FAQS for SBIR/STTR Research Security Requirements
These FAQs are specifically designed to support the compliance considerations for Small and Medium Sized Businesses (SMBs) related to SBIR/STTR Requirements related to research security. SMBs should always consult their own legal counsel and may also need to be cognizant of state level research security requirements. If you have any questions about state level research security requirements that may apply to you, consider reaching out to the SECURE Center leads for your region.
This material is based upon work supported by the U.S. National Science Foundation under Cooperative Agreement No. 2403771. Any opinions, findings and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. National Science Foundation or the University of Washington.
Yes, according to the SBIR/STTR basics program, “The small business must be primarily U.S. owned. This is defined as having at least 51% of its ownership by U.S. citizens and/or permanent resident aliens.”
However, the picture can get more complicated when venture capital investors are involved because you will need to consider who is funding the firm investing in your business. If your SMB has funding from a venture capital firm, it is best to consult both the program guidelines and an attorney to ensure compliance with this requirement.
SMBs should consider any and all funded or unfunded relationships with foreign countries. The disclosure form asks about sources of funding and support, but it also asks about other types of contractual relationships, including pending contractual relationships that could implicate the sharing of resources, IP, and data, such as joint ventures or teaming agreements.
Q: I have an angel investor who is a US person, but they have made their money through a family firm based in a foreign country. They are currently employed by this organization. Do I need to report anything?
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