Section 52-a - Small business innovation research and small business technology transfer matching grant program1. The corporation, subject to available appropriations and in consultation with the department of economic development's division for small business, shall establish a matching grant program to provide funds to small businesses who have been awarded phase one or phase two grants under the federal small business innovation research program or the small business technology transfer program. Such grants shall be awarded based on a company's potential for commercialization and job growth. As used in this section, "small business" shall have the same meaning as provided for in section one hundred thirty-one of the economic development law.2. The funding amounts for such grant program shall be as follows:(a) For small businesses that have been awarded phase one funding under the federal small business innovation research program or the small business technology transfer program, the amount shall be up to one hundred thousand dollars.(b) For small businesses that have been awarded phase two funding under the federal small business innovation research program or the small business technology transfer program, the amount shall be up to two hundred thousand dollars.(c) For small businesses that have been awarded phase three status under the federal small business innovation research program or the small business technology transfer program, such businesses shall be provided access to technical assistance and outreach support through relevant programs of the corporation or the division of economic development best suited to foster such businesses continued success and growth, including but not limited to the manufacturing extension program, centers for advanced technology program, centers of excellence program, the state small business credit initiative program, certified innovation hot spots program, certified business incubator program, entrepreneurial assistance centers, business competitions and accelerators supported by the corporation or department of economic development, and venture capital investments administered by the corporation or department of economic development.3. Small businesses applying to the federal small business innovation research program or the small business technology transfer program may apply to the corporation for a commitment letter that may be included in their application to the federal programs named herein to demonstrate contingent state support and therefore increase their likelihood of receiving federal small business innovation research and small business technology transfer matching grant program funding. State matching grants shall only be provided to small businesses that are selected for an award through the federal small business innovation research program or the small business technology transfer program.4. Such funds awarded pursuant to this section shall be used to expedite commercialization and generally used to cover expenses not allowed under the federal small business innovation research program or the small business technology transfer program, including but not limited to business planning, commercialization, patents and marketing studies in sales efforts. Additionally, the corporation shall offer grantees assistance with accessing existing resources offered through the corporation or the department of economic development that cover areas such as business planning inclusive of business financial planning, commercialization, intellectual property and patents, mentoring, international trade and export development, and marketing studies in sales efforts support to ensure the most efficient use of funds awarded through this program.5. Such funds shall be awarded on condition that the small business recipient remains headquartered and operates or manufactures in the state for at least two years following the successful commercialization of the business's product or products. Any small business that has received funding under this program that is not headquartered and operates or manufactures in the state for at least two years following the successful commercialization of the business's product or products shall return all grant awards to the state. If the small business ceases operations before five years after the commercialization of its product or products, such business shall be eligible for a waiver of this clawback provision, as determined by the corporation, in consultation with the department of economic development's division for small business.6. The corporation, in consultation with the department of economic development's division for small business, shall establish the form and manner in which applications for grant awards shall be submitted and shall establish rules, regulations, or guidelines for the grant program. The corporation shall endeavor to advance applicants that can demonstrate the degree to which their small business or product advances a green and sustainable economy, or supports traditionally disadvantaged populations. The corporation shall review each application for compliance with the eligibility criteria and other requirements set forth in the program's rules, regulations, or guidelines established by the commissioner. The corporation may approve or reject each application or may return an application for modifications, if necessary.
7. The corporation, beginning on June first, two thousand twenty-four, and annually thereafter, provided program funds remain, shall submit a report to the governor, the temporary president of the senate, and the speaker of the assembly. Such annual report shall include, but need not be limited to: the number of applicants by stage; the number of applicants approved to receive grants; the total amount of grants awarded and the average amount of such grants awarded; and such other information as the corporation determines necessary and appropriate. Such report shall be included on the corporation's website and any other publicly accessible state databases that list economic development programs, as determined by the corporation.N.Y. Urban Development Corporation Act Law § 52-a
Added by New York Laws 2023, ch. 58,Sec. DD-1, eff. 5/3/2023.