NVCA to SBA: Clarify The rules for an SBIR Grant

The National Venture Capital Association (NVCA) issued an appeal for the U.S. Small Business Administration (SBA) to clarify what companies are eligible for Small Business Innovative Research (SBIR) grants.

Currently, any company in which venture firms own a greater than 50% stake is not eligible for these grants.

According to the NVCA, this means that the SBA is effectively denying research grants to those companies that have shown the most promise of success by virtue of their raising venture capital.

In a prepared statement, NVCA President Mark Heesen said that venture capital and SBIR grants are used in very different parts of a company’s development and that the SBA restrictions are having a detrimental effect on startup companies, particularly in the life sciences sector.