[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: 7CFR3403.4]

[Page 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 B_Program Description
 
Sec. 3403.4  Three-phase program.


    The Small Business Innovation Research Grants Program is carried out 
in three separate phases described in this section. The first two phases 
are designed to assist USDA in meeting its research or research and 
development objectives and will be supported with SBIR Program 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. Phase I involves a solicitation of grant applications 
(hereinafter referred to as proposals) to conduct feasibility-related 
experimental research and development related to described agency 
requirements. These requirements, as defined by agency topics contained 
in the solicitation, may be general or narrow in scope, depending on 
USDA needs. The object of this phase is to determine the scientific and 
technical merit and feasibility of the proposed effort and the quality 
of performance of the small business concern with a relatively small 
agency investment before consideration of further Federal support in 
Phase II.
    (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 SBIR 
awardees in Phase I are eligible to participate in Phase II. This 
includes those awardees identified via a ``novated'' or ``successor in 
interest'' or similarly-revised funding agreement, or those that have 
reorganized with the same key staff, regardless of whether they have 
been assigned a different tax identification number. 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 normally apply for support no 
later than the second fiscal year funding cycle.
    (c) Phase III refers to work that derives from, extends, or 
logically concludes effort(s) performed under prior SBIR funding 
agreements, but is funded by sources other than the SBIR Program. Phase 
III work is typically oriented towards commercialization of SBIR 
research or technology. This portion of a project is 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 the follow-on capital for a specified amount of funds 
to be made available to the small business concern for future 
development of their effort upon achieving certain mutually agreed upon 
technical objectives.