[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3403.3]

[Page 331]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XXXIV--COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 3403_SMALL BUSINESS INNOVATION RESEARCH GRANTS PROGRAM--Table 
of Contents
 
                      Subpart A_General Information
 
Sec. 3403.3  Eligibility requirements.

    (a) Eligibility of organization. (1) Each organization submitting a 
proposal must qualify as a small business concern for research purposes, 
as defined in Sec. 3403.2. Joint ventures and limited partnerships are 
eligible to apply for and to receive research grants under this program, 
provided that the entity created qualifies as a small business concern 
in accordance with section 2(3) of the Small Business Act (15 U.S.C. 
632) and as defined in Sec. 3403.2. For both phase I and phase II the 
research must be performed in the United States.
    (2) A minimum of two-thirds of the research or analytical work, as 
determined by budget expenditures, must be performed by the proposing 
organization under phase I grants. For phase II awards, a minimum of 
one-half of the research or analytical effort must be conducted by the 
proposing organization. The space used by the SBIR awardee to conduct 
the research must be space over which it has exclusive control for the 
period of the grant.
    (b) Eligibility of principal investigator. (1) It is strongly 
suggested that the individual responsible for the scientific or 
technical direction of the project be designated as the principal 
investigator. In addition, the primary employment of the principal 
investigator must be with the proposing small business concern at the 
time of award and during the conduct of the proposed research. Primary 
employment means that more than one-half of the principal investigator's 
time is spent in the employ of the small business concern. Primary 
employment with the small business applicant precludes full-time 
employment with another organization.
    (2) If the proposed principal investigator is employed by another 
organization (e.g., university or another company) at the time of 
submission of the application, documentation must be submitted with the 
proposal from the principal investigator's current employer verifying 
that, in the event of an SBIR award, he/she will become a less-than 
half-time employee of such organization and will remain so for the 
duration of the SBIR project.