§ 52-a. Small business innovation research and small business
technology transfer matching grant program. 1. The corporation, subject
to available appropriations and in consultation with the department of
economic development's division for small business, shall establish a
matching grant program to provide funds to small businesses who have
been awarded phase one or phase two grants under the federal small
business innovation research program or the small business technology
transfer program. Such grants shall be awarded based on a company's
potential for commercialization and job growth. As used in this section,
"small business" shall have the same meaning as provided for in section
one hundred thirty-one of the economic development law.

2. The funding amounts for such grant program shall be as follows:

(a) For small businesses that have been awarded phase one funding
under the federal small business innovation research program or the
small business technology transfer program, the amount shall be up to
one hundred thousand dollars.

(b) For small businesses that have been awarded phase two funding
under the federal small business innovation research program or the
small business technology transfer program, the amount shall be up to
two hundred thousand dollars.

(c) For small businesses that have been awarded phase three status
under the federal small business innovation research program or the
small business technology transfer program, such businesses shall be
provided access to technical assistance and outreach support through
relevant programs of the corporation or the division of economic
development best suited to foster such businesses continued success and
growth, including but not limited to the manufacturing extension
program, centers for advanced technology program, centers of excellence
program, the state small business credit initiative program, certified
innovation hot spots program, certified business incubator program,
entrepreneurial assistance centers, business competitions and
accelerators supported by the corporation or department of economic
development, and venture capital investments administered by the
corporation or department of economic development.

3. Small businesses applying to the federal small business innovation
research program or the small business technology transfer program may
apply to the corporation for a commitment letter that may be included in
their application to the federal programs named herein to demonstrate
contingent state support and therefore increase their likelihood of
receiving federal small business innovation research and small business
technology transfer matching grant program funding. State matching
grants shall only be provided to small businesses that are selected for
an award through the federal small business innovation research program
or the small business technology transfer program.

4. Such funds awarded pursuant to this section shall be used to
expedite commercialization and generally used to cover expenses not
allowed under the federal small business innovation research program or
the small business technology transfer program, including but not
limited to business planning, commercialization, patents and marketing
studies in sales efforts. Additionally, the corporation shall offer
grantees assistance with accessing existing resources offered through
the corporation or the department of economic development that cover
areas such as business planning inclusive of business financial
planning, commercialization, intellectual property and patents,
mentoring, international trade and export development, and marketing
studies in sales efforts support to ensure the most efficient use of
funds awarded through this program.

5. Such funds shall be awarded on condition that the small business
recipient remains headquartered and operates or manufactures in the
state for at least two years following the successful commercialization
of the business's product or products. Any small business that has
received funding under this program that is not headquartered and
operates or manufactures in the state for at least two years following
the successful commercialization of the business's product or products
shall return all grant awards to the state. If the small business ceases
operations before five years after the commercialization of its product
or products, such business shall be eligible for a waiver of this
clawback provision, as determined by the corporation, in consultation
with the department of economic development's division for small
business.

6. The corporation, in consultation with the department of economic
development's division for small business, shall establish the form and
manner in which applications for grant awards shall be submitted and
shall establish rules, regulations, or guidelines for the grant program.
The corporation shall endeavor to advance applicants that can
demonstrate the degree to which their small business or product advances
a green and sustainable economy, or supports traditionally disadvantaged
populations.

The corporation shall review each application for compliance with the
eligibility criteria and other requirements set forth in the program's
rules, regulations, or guidelines established by the commissioner. The
corporation may approve or reject each application or may return an
application for modifications, if necessary.

7. The corporation, beginning on June first, two thousand twenty-four,
and annually thereafter, provided program funds remain, shall submit a
report to the governor, the temporary president of the senate, and the
speaker of the assembly. Such annual report shall include, but need not
be limited to: the number of applicants by stage; the number of
applicants approved to receive grants; the total amount of grants
awarded and the average amount of such grants awarded; and such other
information as the corporation determines necessary and appropriate.
Such report shall be included on the corporation's website and any other
publicly accessible state databases that list economic development
programs, as determined by the corporation.