Counsel Commentary: Stay in Control

Over the past several years, venture capital firms and the Department of Defense have become increasingly interested in backing small businesses that can help deliver cutting-edge technologies. 

Specifically, participants in the Small Business Innovation Research (SBIR) program are potential targets for venture capital investment. The SBIR program provides funding for small businesses to perform research and development work on their technologies. 

Participating in the SBIR program can be transformational for a small business, but there are specific rules and requirements for eligibility. RJO shareholder Stephen Bacon explains these requirements and other lesser-known rules in his monthly Contract Management Magazine column, “Stay in Control.” In the article, Bacon discusses what SBIR participants must know to navigate the negative control and ostensible contractor rules to maintain eligibility in the program. 

“Companies that intend to participate in the SBIR program must proceed with caution when taking on outside investors or partnering with other firms to pursue SBIR opportunities,” Bacon writes. “The rules surrounding SBIR eligibility are complex and a violation can have devastating consequences.” 

The piece, which appears in the magazine’s July special extended Innovation edition, is the latest entry in Bacon’s monthly Counsel Commentary column and is published by the National Contract Management Association. It was used with permission. For the month of July, all NCMA members and non-members can receive a free copy of the Innovation edition.

Read Bacon’s latest Contract Management article here.