Without diluting the company’s equity, dilutive financing is the process of raising more funds without giving up any stake in the company’s future. Debt finance and the sale of shares to outside investors are likely familiar strategies of getting financial resources for small businesses. A non-dilutive option could be provided to businesses engaged in research and development. The Small Business Administration of the United States oversees federal government departments that offer federal programs that businesses may employ to increase the quantity of readily available capital.
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Who is eligible to participate in the SBIR/STTR programs, and why?
Work under the authorized program must be done solely inside the United States and be largely focused on research and development, rather than purchasing equipment or commercializing an already existing technology (R&D). SBIR/STTR project eligibility guidelines may be found here. For government contract financing it works fine.
How much money is available for SBIR/STTR programs?
Each federal agency with a budget higher than $100 million must provide 3.2 percent of its extramural research budget to SBIR activities. All of these agencies spend around $3.2 billion a year on this. STTR ventures must receive 0.45% of the extramural research budget from any US federal agency with a budget over $1 billion. In all, this works up to $450 million per year for each of the agencies.
How can I get my business involved in an SBIR/STTR program?
SBIR/STTR topics that are ongoing, closed, or in the pipeline across the participating government agencies may be found here and searched and filtered. Visit the SBIR/STTR website for the appropriate government agency to learn more about the request after you’ve found a topic that aligns with your company’s aims. These include full descriptions of the projects as well as instructions on how to apply and how to submit your finished creation. In case of government contractor factoring it works fine.
What my firm should be mindful of while seeking an SBIR/STTR program is the following
Details of Federal Contracts’ Terms and Conditions The terms and conditions of the federal government apply to programs like SBIR/STTR, which are awarded by federal agencies. Use restrictions, workplace regulations, and intellectual property rights may all be implemented within these constraints.
It is strongly recommended that you hire a lawyer to review SBIR/STTR contract conditions to ensure your firm is a good fit for the project and that you are aware of your responsibilities as a government contractor. Additional information on SBIR/STTR programs may be provided through the First Flight Venture Center in addition to grant support for Triangle-based businesses.
Conclusion
Leonid (formerly Endeavour) is a financial services company specialising in federal contracts and Small Business Innovation Research (SBIR) grant financing. Leonid was founded as a private firm in Moscow in 1997. We collaborate with all levels of government (education, health, agriculture, cybersecurity, and defence), as well as the private sector. When it comes to government accounts receivable management and government invoice factoring, you have various alternatives. Non-dilutive services are provided without any commitment to a long-term relationship.
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