(a)  There is hereby established the Innovate Rhode Island Small Business Incentive Program SBIR/STTR to be administered by the Rhode Island Science and Technology Advisory Council (STAC). In order to foster job creation and economic development in the state, STAC may provide grants to eligible businesses to offset costs associated with applying to the United States Small Business Administration for Small Business Innovation Research (SBIR) grants or Small Business Technology Transfer Research (STTR) grants. The grants shall be paid from the Innovate Rhode Island Small Business Account established in this chapter.

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(b) Eligibility.  In order to be eligible for a grant under this section, a business must satisfy all of the following conditions:

(1)  The business must be a for-profit, Rhode Island-based business with fifty (50) or fewer employees. For the purposes of this section, a Rhode Island-based business is one that has its principal place of business and at least fifty-one percent (51%) of its employees residing in this state.

(2)  The business must have submitted a qualified SBIR/STTR Phase I proposal to a participating federal agency in response to a specific federal solicitation.

(3)  The business must satisfy all federal SBIR/STTR requirements.

(4)  The business shall not receive concurrent funding support from other sources that duplicates the purpose of this section.

(5)  The business must certify that at least fifty-one percent (51%) of the research described in the federal SBIR/STTR Phase I proposal will be conducted in this state and that the business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase I project.

(6)  The business must demonstrate its ability to conduct research in its SBIR/STTR Phase I proposal.

(c) Grant.  STAC may award grants to reimburse an eligible business for up to fifty percent (50%) of the costs of preparing and submitting an SBIR/STTR Phase I proposal, up to a maximum of three thousand dollars ($3,000). A business may receive only one grant under this section per year. A business may receive only one grant under this section with respect to each federal proposal submission. Costs that may be reimbursed include costs incurred directly related to preparation and submission of the grant such as word processing services, proposal consulting fees, project-related supplies, literature searches, rental of space or equipment related to the proposal preparation, and salaries of individuals involved with the preparation of the proposals. Costs that shall not be reimbursed include travel expenses, large equipment purchases, facility or leasehold improvements, and legal fees.

(d) Application.  A business shall apply, under oath, to STAC for a grant under this section on a form prescribed by STAC that includes at least all of the following:

(1)  The name of the business, the form of business organization under which it is operated, and the names and addresses of the principals or management of the business.

(2)  An acknowledgement of receipt of the Phase I proposal by the relevant federal agency.

(3)  An itemized statement of the costs that may be reimbursed.

(4)  Any other information necessary for STAC to evaluate the application.