Current through Register Vol. 49, No. 2, February 2024
I.
Introduction
Overview
The Arkansas Business and Technology Accelerator Grant Program
(ArBTAGP), provided for by Act 165 of 2017, was created to stimulate innovation
and growth among the state's technology businesses. The program, administered
by the Division of Science and Technology of the Arkansas Economic Development
Commission (Division), may provide, to eligible businesses, discretionary
grants of up to two hundred fifty thousand dollars ($250,000) to sponsor
business and technology programs to mentor start-up companies.
Objectives of the ArBTAGP are to:
* Stimulate corporate growth through the infusion of innovative ideas,
products, and services;
* Create high-skilled, high-wage jobs by encouraging the development of
technological products and services; and
* Foster economic growth by linking new ideas, products, and services
by entrepreneurs and start-up companies to corporate sponsors seeking the
commercialization of new products and services.
Program Rule Summary
1. Eligible applicants shall submit completed
applications, on forms prescribed by the Division, to request grant funding
from the ArBTAGP.
2. The Director
of the Division of Science and Technology of the Arkansas Economic Development
Commission (Director), with advice from the Board of Directors of the Division
of Science and Technology of the Arkansas Economic Development Commission
(Board), shall review and recommend applications for grant funding to the
Executive Director of the Arkansas Economic Development Commission (Executive
Director).
3. Applicants receiving
approval from the Executive Director shall execute grant agreements specifying
grant terms and conditions.
4.
Grant funding shall be made available to grantees on a reimbursement basis,
subsequent to submittal of requests for payment as instructed in the grant
agreement by the Division.
5.
Grantees shall submit final reports, upon full expenditure of ArBTAGP grant
funds, in accordance with terms specified in the grant agreement.
Contact Information
For more information, please contact:
Arkansas Economic Development Commission
Division of Science and Technology
900 West Capitol, Suite 400
Little Rock, AR 72201
(501) 682-1121
II.
Rulemaking Authority
The AEDC has authority, at § 15-3-608, to promulgate rules
necessary to administer the Arkansas Business and Technology Accelerator Grant
Program.
III.
Definitions
1. "Business and
technology accelerator" means a full-time, immersive program administered by an
eligible applicant to potentially invest in, mentor, and accelerate commercial
development of start-up businesses;
2. "Business and technology accelerator
grant" means a discretionary grant of up to two hundred fifty thousand dollars
($250,000) for each approved business and technology accelerator application;
and
3. "Eligible applicant" means
an entity that is:
A. Registered as a business
entity in good standing with the Arkansas Secretary of State; and
B. Principally engaged in one (1) or more of
the following categories of business or industry:
(i) A manufacturer classified in sectors
31-33 of the 2012 North American Industrial Classification System;
(ii) A business that:
(a) Is primarily engaged in the design and
development of prepackaged software, digital content production and
preservation, computer processing and data preparation services, or information
retrieval services; and
(b) Derives
at least seventy-five percent (75%) of its sales revenue from out of
state;
(iii) An office
sector business whose business operations support primary business needs,
including without limitation customer service, credit accounting,
telemarketing, claims processing, and other administrative functions that:
(a) Is a nonretail business; and
(b) Derives at least seventy-five percent
(75%) of its sales revenue from out of state;
(iv) A national or regional corporate
headquarters as classified in sector 551114 of the 2012 North American
Industrial Classification System;
(v) A scientific and technical services
business that derives at least seventy-five percent (75%) of its sales revenue
from out of state;
(vi) A firm
primarily engaged in commercial, physical, and biological research as
classified in code 541711 or 541712 of the 2012 North American Industrial
Classification System; and
(vii) A
firm engaged in one (1) or more of the following categories:
(a) Advanced materials and manufacturing
systems;
(b) Agriculture, food
processing, and environmental sciences;
(c) Biotechnology, bioengineering, and life
sciences;
(d) Information
technology;
(e) Transportation
logistics; and
(f) Internet-enabled
technology or service solution of one (1) or more of the categories described
in subdivision 3.B.(vii)(a)-(e) of this section.
IV.
Eligibility
Eligible Applicants
To be eligible to receive ArBTAGP funding, an applicant shall:
1. Meet the definition of "eligible
applicant"; and
2. Submit a
completed, signed application, on forms provided by the
Division.
Eligible Costs
The Division will review all expenditure requests prior to payment to
ensure that costs are consistent with the terms and conditions of the grant
agreement.
V.
Application
Process
Application Submittal
To request ArBTAGP funds, eligible applicants shall, utilizing forms
prescribed by the Division, submit a completed, signed application with all
supporting documentation to the Division. Applications shall include:
1. Accelerator title;
2. Contact information;
3. Proof of legal organization as a business
entity in good standing with the Arkansas Secretary of State;
4. A statement of work;
5. The amount of funding requested;
and
6. Start and completion dates
of the project.
Application Review and Approval
No grant offer shall be made by the Executive Director to an applicant
until the Division has completed the following review and approval
process.
1. The Division shall conduct
a preliminary review of each application, in order of receipt, to confirm that
it:
A. Was submitted by an eligible
applicant;
B. Is for a targeted
business activity consistent with program objectives; and
C. Is complete, including all required
attachments.
2. At its
discretion, the Division may request supplemental materials from the applicant.
All supplemental materials must be received at least forty-five (45) days prior
to the next scheduled meeting of the Board.
3. All applications meeting preliminary
review requirements shall be forwarded to the Board at least thirty (30) days
prior to their next scheduled meeting.
4. The Board shall:
A. Review each application in accordance with
program rules; and
B. Forward, for
each application reviewed, a recommendation to approve or disapprove the
application to the Director.
5. The Director shall review each application
in accordance with program rules and the advice and recommendation of the
Commercialization Committee of the Board.
6. Upon completion of review, the Director
will provide preliminary funding recommendations to the Executive
Director.
7. The Executive Director,
after reviewing Director recommendations, will specify which applicants may
receive grants.
A. Unsuccessful applicants
will be notified in writing by the Director.
B. Approved applicants will be required to
execute a grant agreement outlining the amount, terms, and conditions of the
grant.
VI.
Grant Agreements
1. ArBTAGP
grants may be awarded, pending availability of funds, at the discretion of the
Executive Director. Grant agreements shall specify:
A. The eligibility date for incurring project
costs;
B. Terms and conditions of
the grant;
C. The amount of
approved costs; and
D. The process
by which grant funds shall be invoiced and disbursed to the grantee.
2. The amount of the grant shall
be discretionary and may be for amounts less than requested.
3. Grants may be funded from any source of
funds allocated to the ArBTAGP.
4.
Grants will be executed according to the following process:
A. Two (2) original copies of the grant
agreement will be prepared by the Director and forwarded to the grantee for
signature and return.
B. Upon
receipt of the signed grant agreements from the grantee, the Director will
prepare an approval letter and forward the grant agreements and the approval
letter to the Executive Director for signature.
C. One (1) original copy of the grant
agreement will be forwarded to the grantee with the signed approval letter. One
(1) original copy of the grant agreement will be retained by the
Director.
5. Any
material change to the scope of the project is subject to prior approval by the
Executive Director.
VII.
Confidential Information
Applications submitted to the Division are subject to the Freedom of
Information Act of 1967, § 25-19-101 et seq. To the extent an applicant
believes that information in an application is confidential or otherwise exempt
under the Freedom of Information Act of 1967, § 25-19-101 et seq., the
applicant shall specifically designate in writing the information the applicant
believes to be confidential or exempt and the basis for the confidentiality or
exemption on that portion of the application in which the information
appears.
VIII.
Reimbursement
Disbursements of Arkansas Business and Technology Accelerator Grant
Program funds shall be made on a reimbursable basis, payable when invoices and
financial reports are submitted to the Division.
IX.
Final Report
Grantees shall submit final reports, upon full expenditure of ArBTAGP
grant funds, in accordance with terms specified in the grant agreement. Reports
shall:
A. Include a one-page
non-proprietary executive summary describing the impact and positive effect of
the receipt of ArBTAGP funds;
B.
Document final expenditure of grant funds;
C. Provide an updated status of the
project;
D. Summarize economic
effects of the ArBTAGP on job creation, project commercialization, and patent
applications filed or approved subsequent to grant award; and
E. Certify that all grant terms and
conditions were met.
X.
Effective Date
These rules are effective on or after October 1,
2017.
