As reported in June 2016 newsletter, NSF updated their SBIR Program Phase I instructions:  “No person who is an equity holder, employee, or officer of the proposing small business may be paid through a subaward budget unless an exception is recommended by the Program Director and approved by the Division Director for the Division of Industrial Innovation and Partnerships.”

We have received notice that on at least one of our start-up companies’ SBIR award, an Emory faculty member who was an equity holder of the small business was not able to participate on the Emory subcontract.