[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: 7CFR3403.4]

[Page 331-332]
 
                          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 B_Program Description
 
Sec. 3403.4  Three-phase program.


    The Small Business Innovation Research Grants Program will be 
carried out in three separate phases described in this section. The 
first two phases are designed to assist USDA in meeting its research and 
development objectives and will be supported with SBIR funds. The 
purpose of the third phase is to pursue the commercial applications or 
objectives of the research carried out in phases I and II through the 
use of private or Federal non-SBIR funds.
    (a) Phase I is the initial stage in which the scientific and 
technical merit and feasibility of an idea related to one of the 
research areas described in the program solicitation is evaluated, 
normally for a period not to exceed 6 months. In special cases, however, 
where a proposed research project requires more than 6 months to 
complete, a longer grant period may be considered. A proposer of a phase 
I project with an anticipated duration beyond 6 months should specify 
the length and duration in the proposal at the time of its submission to 
USDA in order for it to be considered at the time of award. (See Sec. 
3403.14(c) for changes in project period subsequent to award).
    (b) Phase II is the principal research or research and development 
effort in which the results from Phase I are expanded upon and further 
pursued, normally for a period not to exceed 24 months. Only those small 
businesses previously receiving phase I awards are eligible to submit 
phase II proposals. For each phase I project funded the awardee may 
apply for a phase II award only once. Phase I awardees who for valid 
reasons cannot apply for phase II support in the next fiscal year 
funding cycle may apply for support not later than the second fiscal 
year funding cycle.
    (c) Phase III is to stimulate technological innovation and the 
national return on investment from research through the pursuit of 
commercial objectives resulting from the work supported by SBIR funding 
carried out in phases I and II. This portion of the project is performed 
by the small business concern and privately funded or

[[Page 332]]

Federally funded by a non-SBIR source through the use of a follow-on 
funding commitment. A follow-on funding commitment is an agreement 
between the small business concern and a provider of follow-on capital 
for a specified amount of funds to be made available to the small 
business concern for further development of their effort upon achieving 
certain mutually agreed upon technical objectives during phase II.