CHAPTER 588r
SMALL BUSINESS

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Sec. 32-345. (Formerly Sec. 32-176). Development research and economic assistance matching grant program.
Sec. 32-346. Revolving account.
Sec. 32-356. Small business incubator program. Small Business Incubator Advisory Board.

      Sec. 32-345. (Formerly Sec. 32-176). Development research and economic assistance matching grant program. (a) The Department of Economic and Community Development may establish a Connecticut development research and economic assistance matching grant program, within available appropriations and, for the purposes of providing financial aid, as defined in subdivision (4) of section 32-34, to assist: (1) Connecticut small businesses in conducting marketing-related activities to facilitate commercialization of research projects funded under the small business innovation research program or the small business technology transfer program; (2) business-led consortia or Connecticut businesses in connection with their participation in a federal technology support program; and (3) micro businesses, in conducting development and research. The department may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program.

      (b) Applications shall be submitted in the manner prescribed by the department. Each such application shall include the following: (1) The location of the principal place of business of the applicant; (2) an explanation of the intended use of the funding being applied for, the potential market for the end product of the project and the marketing strategy; and (3) such other information that the department deems necessary. Information contained in any such application submitted to the department under this section which is of a proprietary nature shall be exempt from the provisions of subsection (a) of section 1-210.

      (c) In determining whether an applicant shall be selected for funding pursuant to this section, the department, or the operator, if any, selected pursuant to subsection (a) of this section, shall consider, but such consideration need not be limited to, the following factors: (1) The description of the small business innovation research project, the small business technology transfer project or the federally-supported technology project and the potential commercial applicability of such project; (2) evidence of satisfactory participation in the applicable small business innovation research program, the small business technology transfer program or the federal technology support program; (3) the potential impact of such research project on the workforce in the region where such small business is located; (4) the size of the potential market, strength of the marketing strategy, and ability of the applicant to execute the strategy and successfully commercialize the end product; and (5) the resources and record of success of the company relative to development and commercialization. Within the availability of funds, the department may provide financial aid to eligible applicants provided no business may receive more than fifty thousand dollars for any single small business innovation research project or small business technology transfer project. The department may require a business to repay such assistance or pay a multiple of the assistance to the department. All such repayments and payments shall be deposited in the Connecticut technology partnership assistance program revolving account established under section 32-346.

      (d) The department may establish a development, research and economic assistance matching financial aid program for micro businesses that have received federal funds for Phase II proposals under the small business innovation research program and the small business technology transfer program. Any micro business receiving financial aid under this subsection shall use such financial aid for the same purpose such micro business was awarded said federal funds. The department may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such a program.

      (e) On or before January 15, 2008, and annually thereafter, the Commissioner of Economic and Community Development shall, in consultation with the program operator, if any, submit a report on the status of the development research and economic assistance matching grant program to the chairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to the Department of Economic and Community Development. Such report shall include, but need not be limited to, a description of the projects supported and the type of financial aid provided.

      (P.A. 87-431, S. 2, 3; P.A. 89-143, S. 1, 2; P.A. 93-382, S. 48, 69; P.A. 94-162, S. 2, 4; P.A. 95-272, S. 23, 29; P.A. 06-83, S. 7; June Sp. Sess. P.A. 07-4, S. 13.)

      History: P.A. 89-143 increased the maximum initial grant amount from $15,000 to $20,000 and increased the maximum amount of subsequent grants from $5,000 to $20,000 in Subsec. (c); P.A. 93-382 transferred program from department of economic development to Connecticut Innovations, Incorporated, provided for financial assistance instead of grants only and authorized corporation to require business to repay assistance, provided for funding to assist small businesses "in conducting marketing-related activities to facilitate commercialization of research projects funded under the small business innovation research program" instead of to assist small businesses participating in said program "in continuing innovative research which has potential commercial applications" and limited the amount of financial assistance that a business may receive during the fiscal year ending June 30, 1994, for a single project, effective July 1, 1993; P.A. 94-162 applied section to small business technology transfer program and changed name of account in Subsec. (c), effective July 1, 1994; Sec. 32-176 transferred to Sec. 32-345 in 1995; P.A. 95-272 amended Subsec. (a) to change competitive funding to Connecticut technology partnership program and added reference to Sec. 32-34(4) and added new Subdiv. (2) re business-led consortia or Connecticut businesses in connection with participation in a federal technology support program, Subsec. (b) to change research to technology, Subsec. (c) to make technical changes and add reference to federally-supported technology project and program, small business innovation research project and small business technology transfer project and deleted Subsec. (e) re termination of program, effective July 1, 1995; P.A. 06-83 amended Subsec. (a) to replace "Connecticut technology partnership program" with "Connecticut development research and economic assistance matching grant program" and add Subdiv. (3) re micro businesses, amended Subsec. (b)(2) to delete "technology", added new Subsec. (d) re eligibility of Phase II proposals for matching financial aid and redesignated existing Subsec. (d) as Subsec. (e), effective July 1, 2006; June Sp. Sess. P.A. 07-4 substituted Department of Economic and Community Development for Connecticut Innovations, Incorporated throughout, in Subsecs. (a) and (d) permitted department to contract with entities to operate the respective programs and, in Subsec. (e), required Commissioner of Economic and Community Development to submit report to legislative committee re status of development research and economic assistance matching grant program, effective June 29, 2007.

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      Sec. 32-346. Revolving account. The corporation shall establish a "Connecticut technology partnership assistance program revolving account". Any and all references in any general statutes, procedure or legal document to the "phase III assistance program revolving account" shall, on and after July 1, 1995, be deemed to refer to the "Connecticut technology partnership assistance program revolving account". The account shall be used for the purpose of providing financial aid under section 32-41u.

      (P.A. 93-382, S. 49, 69; P.A. 94-162, S. 3, 4; P.A. 95-272, S. 24, 29; P.A. 00-187, S. 58, 75; June Sp. Sess. P.A. 07-4, S. 14.)

      History: P.A. 93-382 effective July 1, 1993; P.A. 94-162 changed name of account, effective July 1, 1994; P.A. 95-272 changed phase III assistance program revolving account to Connecticut technology partnership assistance program revolving account and added technical name change language, effective July 1, 1995; P.A. 00-187 authorized use of account for providing financial aid under Sec. 32-41u, effective July 1, 2000; June Sp. Sess. P.A. 07-4 eliminated availability of funds from account for financial assistance under Sec. 32-345, effective June 29, 2007.

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      Sec. 32-356. Small business incubator program. Small Business Incubator Advisory Board. (a) For purposes of this section, "incubator facilities" shall have the same meaning as incubator facilities in section 32-34.

      (b) The Commissioner of Economic and Community Development shall establish the small business incubator program to provide grants to entities operating incubator facilities, as defined in section 32-34. The Department of Economic and Community Development may enter into an agreement, pursuant to chapter 55a, with a person, firm, corporation or other entity to operate such program. The department, or a program operator selected pursuant to this subsection, shall, subject to the availability of funds, operate a technology-based small business incubator program. In accordance with the written guidelines developed by the department, the department or program operator, if any, may provide grants to assist small businesses operating within incubator facilities. Grants made pursuant to this section shall be used by such entities to provide operating funds and related services, including business plan preparation, assistance in acquiring financing and management counseling.

      (c) An entity shall submit an application for a grant pursuant to this section in the manner prescribed by the Commissioner of Economic and Community Development.

      (d) There is established an account to be known as the small business incubator account, which shall be a separate, nonlapsing account within the General Fund. The commissioner may use funds from the account to provide administrative expenses and grants pursuant to this section.

      (e) (1) There is established a Small Business Incubator Advisory Board. Said board shall consist of: (A) The Commissioner of Economic and Community Development; (B) the president of the Connecticut Development Authority and the executive director of Connecticut Innovations, Incorporated, as ex-officio nonvoting members, or their designees; (C) one member to be appointed by the Governor; (D) two members with experience in the field of technology transfer and commercialization, to be appointed by the speaker of the House of Representatives; (E) two members with experience in new product and market development, to be appointed by the president pro tempore of the Senate; (F) one member to be appointed by the majority leader of the Senate; (G) one member to be appointed by the majority leader of the House of Representatives; (H) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the House of Representatives; and (I) one member with experience in seed and early stage capital investment, to be appointed by the minority leader of the Senate. All initial appointments to said board shall be made not later than September 1, 2007.

      (2) The Commissioner of Economic and Community Development shall schedule the first meeting of said board not later than October 15, 2007. Thereafter, the board shall meet at least once annually to evaluate and recommend changes to the guidelines adopted pursuant to this section.

      (P.A. 06-83, S. 5; June Sp. Sess. P.A. 07-4, S. 15.)

      History: P.A. 06-83 effective July 1, 2006; June Sp. Sess P.A. 07-4 amended Subsec. (b) to permit Department of Economic and Community Development to contract with an entity to operate program, to require department to develop guidelines for provision of grants and for department or operator to provide grants to assist small businesses operating incubator facilities, amended Subsec. (c) and deleted former Subsec. (d) to relieve commissioner from obligation to adopt regulations re process for grant application, redesignated existing Subsec. (e) as Subsec. (d) and amended same to delete provisions re moneys in account, and added new Subsec. (e) establishing Small Business Incubator Advisory Board, effective June 29, 2007.

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