N.Y. Urban Development Corporation Act 174/68 § 52-a: Small business innovation research and small business technology transfer matching grant program

§ 52-a. Small business innovation research and small business

technology transfer matching grant program. 1. The corporation, subject

to available appropriations and in consultation with the department of

economic development's division for small business, shall establish a

matching grant program to provide funds to small businesses who have

been awarded phase one or phase two grants under the federal small

business innovation research program or the small business technology

transfer program. Such grants shall be awarded based on a company's

potential for commercialization and job growth. As used in this section,

"small business" shall have the same meaning as provided for in section

one hundred thirty-one of the economic development law.

2. The funding amounts for such grant program shall be as follows:

(a) For small businesses that have been awarded phase one funding

under the federal small business innovation research program or the

small business technology transfer program, the amount shall be up to

one hundred thousand dollars.

(b) For small businesses that have been awarded phase two funding

under the federal small business innovation research program or the

small business technology transfer program, the amount shall be up to

two hundred thousand dollars.

(c) For small businesses that have been awarded phase three status

under the federal small business innovation research program or the

small business technology transfer program, such businesses shall be

provided access to technical assistance and outreach support through

relevant programs of the corporation or the division of economic

development best suited to foster such businesses continued success and

growth, including but not limited to the manufacturing extension

program, centers for advanced technology program, centers of excellence

program, the state small business credit initiative program, certified

innovation hot spots program, certified business incubator program,

entrepreneurial assistance centers, business competitions and

accelerators supported by the corporation or department of economic

development, and venture capital investments administered by the

corporation or department of economic development.

3. Small businesses applying to the federal small business innovation

research program or the small business technology transfer program may

apply to the corporation for a commitment letter that may be included in

their application to the federal programs named herein to demonstrate

contingent state support and therefore increase their likelihood of

receiving federal small business innovation research and small business

technology transfer matching grant program funding. State matching

grants shall only be provided to small businesses that are selected for

an award through the federal small business innovation research program

or the small business technology transfer program.

4. Such funds awarded pursuant to this section shall be used to

expedite commercialization and generally used to cover expenses not

allowed under the federal small business innovation research program or

the small business technology transfer program, including but not

limited to business planning, commercialization, patents and marketing

studies in sales efforts. Additionally, the corporation shall offer

grantees assistance with accessing existing resources offered through

the corporation or the department of economic development that cover

areas such as business planning inclusive of business financial

planning, commercialization, intellectual property and patents,

mentoring, international trade and export development, and marketing

studies in sales efforts support to ensure the most efficient use of

funds awarded through this program.

5. Such funds shall be awarded on condition that the small business

recipient remains headquartered and operates or manufactures in the

state for at least two years following the successful commercialization

of the business's product or products. Any small business that has

received funding under this program that is not headquartered and

operates or manufactures in the state for at least two years following

the successful commercialization of the business's product or products

shall return all grant awards to the state. If the small business ceases

operations before five years after the commercialization of its product

or products, such business shall be eligible for a waiver of this

clawback provision, as determined by the corporation, in consultation

with the department of economic development's division for small

business.

6. The corporation, in consultation with the department of economic

development's division for small business, shall establish the form and

manner in which applications for grant awards shall be submitted and

shall establish rules, regulations, or guidelines for the grant program.

The corporation shall endeavor to advance applicants that can

demonstrate the degree to which their small business or product advances

a green and sustainable economy, or supports traditionally disadvantaged

populations.

The corporation shall review each application for compliance with the

eligibility criteria and other requirements set forth in the program's

rules, regulations, or guidelines established by the commissioner. The

corporation may approve or reject each application or may return an

application for modifications, if necessary.

7. The corporation, beginning on June first, two thousand twenty-four,

and annually thereafter, provided program funds remain, shall submit a

report to the governor, the temporary president of the senate, and the

speaker of the assembly. Such annual report shall include, but need not

be limited to: the number of applicants by stage; the number of

applicants approved to receive grants; the total amount of grants

awarded and the average amount of such grants awarded; and such other

information as the corporation determines necessary and appropriate.

Such report shall be included on the corporation's website and any other

publicly accessible state databases that list economic development

programs, as determined by the corporation.