The SBA published a notice in the Federal Register (Volume 68, No. 107 [June 4, 2003]) that states a proposed change in the ownership eligibility requirements to qualify for an SBIR award.

The summary of the SBA proposal is:

The U.S. Small Business Administration (SBA) proposes to revise its small business size regulations to allow a small business that is owned and controlled by another business concern to be eligible for funding agreements under the SBA's Small Business Innovation Research (SBIR) Program. The proposed rule does not change the size standard requiring that an eligible small business concern, with its affiliates, have no more than 500 employees.

The rule proposes to modify the small business eligibility requirements so that the SBIR awardee must meet one of the two following additional criteria:

It must be a for-profit business concern that is at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States (as the regulations currently requires);

or it must be a for-profit business concern that is 100% owned and controlled by another for-profit business concern that is itself at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States.

The SBA will accept comments on the proposed changes but they must be submitted on or before July 7, 2003.

Address written comments to:

Gary M. Jackson
Assistant Administrator for Size Standards, Office of Size Standards
409 Third Street, SW.
Washington, DC 20416.

You may submit comments via email to [email protected], or via facsimile at (202) 205-6390. You may also submit comments electronically to www.regulations.gov.