1. An overview of SBA’s resources and SBIR/STTR programs 1

2. U.S. Small Business Administration Federal agency created in 1953 Mission Nation’s largest single financial backer of small businesses What’s a small business? 2

3. Santa Ana District Office Big territory Inform, Educate, Connect 3

4. Starting a Business Today Idea Internet Computer Action 4

5. Capital Provide loan guaranties to lenders 60,000 loans for $30 billion in FY12 SBA loans up to $5.5 million 5

6. Contracts Fed gov’t goal: 23% of all federal contracts to small business Latest figures: over $90 billion Certification programs – 8(a), HUBZone, Woman-owned 6

7. Counseling 14,000 SBA-affiliated counselors 900 Small Business Development Centers – TriTech SBDC – Launchpad SBDC 100 Women’s Business Centers 370 SCORE Chapters What does the data show? 7

8. SBA Successes 8

9. Disaster Direct loans to renters, homeowners, businesses of all sizes 9

10. SBA Website Community Blog Online Training sba.gov/loans-and-grants 10

11. SBA Grants? Despite what you may hear on late night TV… The SBA does NOT provide grants for starting and expanding a business. 11

12. Innovation & Investment Small Business Innovation (SBIR) Small Business Tech Transfer (STTR) 12

13. Goals of SBIR/STTR Program Meet Federal research and development needs Increase private-sector commercialization of innovations derived from Federal research and development funding Stimulate technological innovation Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons 13

14. SBIR/STTR Program Descriptions Small Business Innovation Research (SBIR) – A set-aside program for small business to engage in Federal R&D – with potential for commercialization – 2.6% of the extramural research budget for all agencies with a budget greater than $100MM per year. Over $2 billion dollars in program funds. Small Business Technology Transfer (STTR) – A set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions – with potential for commercialization. – 0.35% of the extramural research budget for all agencies with a budget greater than $1B per year. Over $250 million in program funds. 14

15. SBIR/STTR Basic Structure Phase I – Feasibility Study or Prototype – $150k Max and 6 Months Phase II – Full Research and Development Effort – $1M Max and 24 Months Phase III – Commercialization Stage – Seek External Funding [No Use of SBIR funds] The program runs as a series of sequential phases. 15

16. SBIR Program Eligibility Criteria Be a concern which is more than 50% directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other business concerns (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), or any combination of these; or Be a concern which is more than 50% owned by multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these. 16

17. STTR Program Eligibility Criteria Applicant is organized, for-profit small business based in the U.S. Formal cooperative research and development effort Minimum 40% by small business Minimum 30% by U.S. research institution U.S. research institution College or university Other non-profit research organization Federal research and development center Intellectual Property Agreement Allocation of rights in intellectual property and rights to carry out Follow-on R&D and commercialization effort 17

18. Standard SBIR/STTR Phase 1 Process Agencies describe R&D topics in solicitations at fixed time periods over the year – not rolling. Small Business Concerns prepare short (usually 25-page) proposals. Unsolicited proposals are not accepted. Agencies evaluate based on technical merit, firm’s qualifications, and commercial potential / societal benefit Agencies make Phase I awards. Evaluation Ph I award Solicitation Topics Proposal Submission About 6-9 Months 18

19. Differences Between a Contract and Grant Award Contracting Agencies Agency establishes plans, protocols, requirements Highly focused topics Procurement mechanism for DOD and NASA More fiscal requirements Granting Agencies Investigator initiates approach Less-specified topics Assistance mechanism More flexibility DOD, DHS, HHS/NIH, NASA, ED, EPA, DOT, DOC HHS/NIH, NSF, ED, USDA, DOE 19

20. SBIR/STTR Examples Hal Technology Rancho Cucamonga-based designer and manufacturer of environmental monitoring instruments Phase I Navy SBIR grant Optical dust sensor for real-time engine health monitoring Military and civilian vehicle applications 20

21. SBIR/STTR Examples EyePredict SoCal-based developer of technology that predicts visual attention based on cutting-edge neuroscience research Underlying technology funded in part through National Science Foundation SBIR grant Expanding to assess brain disorders with gaze measures Traumatic brain injury, ADHD, military veterans, etc. 21

22. SBIR/STTR Examples Flint Rehabilitation Spin-off small business from the University of California, Irvine, founded by four researchers Two SBIR grants Developers of next-gen hand rehabilitation devices Music Glove Resonating Arm Exerciser 22

23. SBIR/STTR Examples ISCA Technologies Riverside-based company with a mission to protect the world from damaging insects and disease causing pathogens, by developing tools and solutions that are economical, effective and ecologically friendly Products include 300+ species specific insect lures, 20+ traps, and other pest mgmt. tools Recipient of 44 SBIR/STTR fundings for $10 million Great example of a business collaborating with local university and community 23

24. Thank You! Christopher Lorenzana christopher.lorenzana@sba.gov 714.560.7453 www.sba.gov/ca/santa 24