[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3403.3]

[Page 341-342]
 
                          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) To receive SBIR funds, each 
awardee of a SBIR Phase I or Phase II must qualify as a small business 
concern.
    (2) For Phase I, a minimum of two-thirds of the research or 
analytical effort, as measured by the budget, must be performed by the 
awardee. Occasionally, deviations from this requirement may occur, and 
must be approved in writing by the ADO after consultation with the 
agency SBIR National Program Leader.
    (3) For Phase II, a minimum of one-half of the research or 
analytical effort, as measured by the budget, must be performed by the 
awardee. Occasionally, deviations from this requirement may occur, and 
must be approved in writing by the ADO after consultation with the 
agency SBIR National Program Leader.
    (4) For both Phase I and Phase II, the primary employment of the 
principal investigator must be with the SBC at the time of award and 
during the conduct of the proposed project. Primary employment means 
that more than one-half of the principal investigator's time is spent in 
the employ of the SBC. This precludes full-time employment with another 
organization. Occasionally, deviations from this requirement may occur, 
and must be approved in writing by the ADO after consultation with the 
agency SBIR National Program Leader. Further, an SBC may replace the 
principal investigator on an SBIR Phase I or Phase II award, subject to 
approval in writing by the ADO after consultation with the SBIR National 
Program Leader. For purposes of the SBIR Program, personnel obtained 
through a Professional Employer Organization or other similar personnel 
leasing company must be considered

[[Page 342]]

employees of the awardee. This is consistent with SBA's size 
regulations, 13 CFR 121.106--Small Business Size Regulations.
    (5) For both Phase I and Phase II, the R/R&D must be performed in 
the United States. However, based on a rare and unique circumstance, ADO 
approval may be granted to perform a particular portion of the research 
or research and development work outside of the United States, for 
example, if a supply of material or other item or project requirement is 
not available in the United States. The ADO, after consultation with the 
agency SBIR National Program Leader, must approve each such specific 
condition in writing.
    (b) [Reserved]