Eligibility RequirementsApplicants for the SBIR/STTR Phase I must meet all the requirements discussed in this RFA. Failure to meet the eligibility criteria by the application deadline may result in exclusion from consideration or preclude NIFA from making an award. For those new to Federal financial assistance, NIFA’s Grants Overview provides highly recommended information about grants and other resources to help understand the Federal awards process.Each applicant must qualify as an SBC through registration with the SBA for R/R&D purposes at the time of selection (see Definitions in section APPENDIX III of this RFA). Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, it will preclude NIFA from making an award.). Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, will preclude NIFA from making an award.SBIR/STTR eligibility requirements are in place to ensure that the funds go only to small, independent US businesses. The regulations include restrictions about (1) the type of firm, (2) its ownership structure, and (3) the firm’s size in terms of the number of employees.Type of Firm The purpose of the requirement regarding type of firm is to target awards to firms with an economic interest in developing the idea or research into a commercial application.1. An SBIR/STTR small business awardee must be a business concern – it must be organized as a for-profit concern and meet all of the other requirements for a “business concern” in 13 C.F.R. § 121.105. Non-profit entities are not eligible (except as the partnering research institution under the STTR Program).2. If an awardee is a joint venture, limited partnership, or venture capital, each party to the joint venture must be a concern that satisfies all program eligibility requirements. Ownership & Control The purpose of the ownership requirement is to limit the program to independent firms controlled by US citizens or permanent resident aliens as a way of maximizing the likelihood that the funding will stimulate innovative activity within the US economy.A majority (more than 50%) of the firms’ equity (e.g., stock) must be directly owned and controlled by one of the following: 1. One or more individuals who are citizens or permanent resident aliens of the United States. 2. Other for-profit small business concerns (each of which is directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States). 3. A combination of (1) and (2) above. 4. Multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these, so long as no one such firm owns or controls more than 50% of the equity. Note: This option is allowed only for SBIR awards from agencies that are using the authority provided in the SBIR/STTR Reauthorization Act (majority‐VC‐owned authority), 15 U.S.C. § 638(dd)(1).Notes: 1. If an Employee Stock Ownership Plan owns all or part of the concern, each stock trustee and plan member is considered an owner. If a trust owns all or part of the concern, each trustee and trust beneficiary is considered an owner. 2. A potential grantee that is a subsidiary must show that the parent company or parent companies are also a small business entity, and the parent company or parent companies must provide documentation supporting their small business status (the documentation should be included in the Research and Related (R&R) Other Project Information form under Other Attachments, as directed by Part IV of this RFA). If the parent company or one of the parent companies is a nonprofit organization, then the subsidiary is not eligible to submit an SBIR/STTR application.SizeThe purpose of the size restriction (number of employees of the firm and its affiliates) is to limit program funding to SBCs that have a unique capacity for innovation and are more likely to be constrained by lack of access to such funding. An SBIR/STTR awardee, combined with its affiliates, must not have more than 500 employees.For more information on SBIR/STTR eligibility refer to https://www.sbir.gov/sites/default/files/elig_size_compliance_guide.pdf SBIR/STTR Program EligibilitiesApplicants can choose from SBIR only, STTR only, or Both (SBIR/STTR in a single submission). The following SBIR and STTR program eligibility distinctions are summarized in the table below.To apply for SBIR only, the primary employment of the Project Director/Principal Investigator (PD/PI) must be with the SBC at the time of award and during the conduct of the proposed research. Eligible primary employment means that more than one-half (51%) of the PD’s/PI’s time is spent in the employ of the SBC during the award period of performance. Primary employment with the SBC precludes the applicant as a full-time employee with another organization or academic institution. While the PD/PI must work more than one- half (51%) of his/her time for the SBC during the entire grant period, there is no time requirement for the PD’s/PI’s work on the proposed research. Prior Federal Employees must provide documentation that post termination requirements from Federal Service have been completed at time of submission. For SBIR Phase I, as determined by budget expenditures, a minimum of two-thirds (66%) of the research or analytical work must be performed by the proposing SBC. For STTR only, the PD/PI for the proposed project (or, if multiple PD/PIs, at least one PD/PI) must be employed by and perform more than one-half (51%) of the PD’s/PI’s time in the employ of either the SBC or the partnering Research Institution. For projects with multiple PD/PIs, at least one PD/PI must meet the primary employment requirement. That PD/PI will serve as the contact PD/PI for the Project Team. For STTR Phase I, as determined by budget expenditures, a minimum of 30% and a maximum of 60% of the research or analytical work must be performed by a single partnering research institution (e.g., University, Federal Laboratory, etc.), and the SBC must conduct a minimum of 40% of the proposed research or analytical work.To apply to Both (SBIR and STTR), the PD/PI must be employed more than one-half (51%) by the SBC, and as determined by budget expenditures, a minimum of 30% and a maximum of 33% of the research and analytical work must be conducted by a single non-profit research institution (e.g., University, Federal Laboratory, etc.).