(a) Purpose.

1. (1) The purpose of the Technology Development Program (TDP) is to assist in commercializing new, technology-based products and processes created or developed by inventors, businesses, Arkansas-based colleges or universities, and federal laboratories located in Arkansas.
2. (2) The program is intended to provide flexible bridge financing in the form of grants of up to one hundred thousand dollars ($100,000) for projects to develop qualified technologies.

(b) Eligibility requirements. Applicant eligibility requirements include the following:

1. (1) The qualified applicant’s principal place of business is in Arkansas;
2. (2) The proposed TDP project shall promote the benefits of science and advanced technology to the State of Arkansas and its citizens by commercializing new products and processes;
3. (3) The application is complete and has been submitted by a qualified applicant;
4. (4) The applicant shall submit a well-developed and defined project plan in accordance with requirements of subsection (c) of this section; and
5. (5) A nonpublic applicant shall submit a nonrefundable fee, via check, of one dollar ($1.00) with the preliminary application.

(c) Application submittal process.

1. (1) Applicants for TDP funds shall submit one (1) completed signed application and, if a nonpublic applicant, a nonrefundable fee of one dollar ($1.00), under forms provided by the Division of Science and Technology of the Arkansas Economic Development Commission, and may be subject to:

   1. (A) An interview;
   2. (B) A site visit; or
   3. (C) Both.

2. (2) Applications shall include the following information:

   1. (A) The legal name, address, North American Industry Classification System classification, and business filing status of the qualified applicant;
   2. (B) The names and contact information of professional staff affiliated with the enterprise;
   3. (C) A list of key officers, owners, and personnel, including senior technical staff (attach resumes);
   4. (D) Source or sources, amount or amounts, and anticipated use or uses of Arkansas Economic Development Commission funds and non-commission funds;
   5. (E) A brief description of the project, including the technology involved, for which funds are requested;
   6. (F) An explanation of the business’s stage of development in relation to the project;
   7. (G) A statement of anticipated economic impact including the number, location, occupational classification, and compensation of jobs to be created;
   8. (H) A business plan, including a description of the business and its:

(i) Background;

1. (ii) Management;

   1. (iii) Product or products; and

      1. (iv) Service or services; and
   2. (I) Other information as requested by the commission.

2. (3) Applications shall also include a well-developed and defined project plan, showing progression from idea to prototype to production, which includes the following:

   1. (A) A description of the proposed:

      1. (i) Product;
      2. (ii) Process; or
      3. (iii) Technical innovation;
   2. (B) An assessment (if applicable) of previous research and development efforts that strengthens technical claims;
   3. (C) Potential sources of prototype development;
   4. (D) A description of any known barriers to production of the product (e.g., process, materials, safety, or environment);
   5. (E) A description of the product to be commercialized, including potential manufacturers, distributors, niche markets, etc.;

   6. (F) A description of the implementation plan for the accomplishment of the project, including a:

      1. (i) Timetable;
      2. (ii) Narrative description of the use of funds; and
      3. (iii) Listing of any required supporting facilities, equipment, and personnel;
   7. (G) The budget for the proposed project period;
   8. (H) A description of the qualifications of key personnel including resumes;

   9. (I) A statement of economic impact, including without limitation:

      1. (i) Potential job creation;
      2. (ii) Export potential; or
      3. (iii) Value added to existing products; and

   10. (J) A description of all methods used to protect intellectual properties including disclosure documents, patents, trademarks, copyrights, etc.

       1. (d) Application review and approval process. No financial commitment or approval shall be made by the Executive Director of the Arkansas Economic Development Commission until a qualified applicant has completed the following review and approval process:

3. (1) Division staff will evaluate applications for completeness based on the following five (5) factors:

   1. (A) Technical feasibility:

      1. (i) Is there a sufficient description of the proposed product, process, or innovation to derive a sound technical evaluation;
      2. (ii) Is the invention based upon scientific principles;
      3. (iii) Is there previous research or development that substantiates the technical feasibility;
      4. (iv) Does it require redesign, rebuilding, or further testing; and
      5. (v) How is the project technically innovative;

   2. (B) Production feasibility:

      1. (i) Can it be produced economically and in sufficient quantities using existing production technology;
      2. (ii) Can it be produced safely, meeting legal, liability, product infringement, and pollution guidelines; and
      3. (iii) How many sources are willing to produce it;

   3. (C) Commercial feasibility:

      1. (i) What specific customer needs does the product or process satisfy;
      2. (ii) Will the market support the project;
      3. (iii) Who is the competition;
      4. (iv) Does the product, process, or innovation provide a competitive edge;
      5. (v) Is there adequate financial support;
      6. (vi) Does the budget support the implementation plan;
      7. (vii) Is the commercialization plan valid; and
      8. (viii) Can key personnel support the project;

   4. (D) Economic potential:

      1. (i) Will the project impact Arkansas’s economy;
      2. (ii) Does the project have job creation potential;
      3. (iii) Does the technology add value to existing products; and
      4. (iv) Can the technology be exported; and

   5. (E) Patentability:

      1. (i) Has a patent been applied for;
      2. (ii) Have similar patents been granted; and
      3. (iii) Can the concept be protected with a patent;
4. (2) Applicants may be subject to an interview, a site visit, or both, during the application review process;
5. (3) Division staff shall prepare a project summary of each project reviewed in accordance with criteria listed in subdivision (d)(1) of this section;
6. (4) Optional step. The executive director may request an independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with 15 CAR § 147-301;

7. (5) Optional step.

   1. (A) The executive director may request division staff to submit project summaries to the Commercialization Committee of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission for review.

   2. (B) If so requested:

      1. (i) The Commercialization Committee will review projects in accordance with program rules;
      2. (ii) Applicants may be invited to present their projects before the Commercialization Committee;
      3. (iii) The Commercialization Committee may ask applicants for additional information before recommending projects for funding;
      4. (iv) Projects receiving Commercialization Committee support will be forwarded to the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission for review; and
      5. (v) The board will vote, by simple majority, to determine whether or not to recommend project funding;
8. (6) Division staff will prepare a resolution for funding for each project recommended for funding and distribute for signatures;
9. (7) For projects recommended by the Commercialization Committee, the secretary of the board will sign the resolution for funding and forward to the executive director;

10. (8)

    1. (A) The executive director, or his or her designee, after reviewing all recommendations, will sign resolutions for funding for approved projects.
    2. (B) Unsuccessful applicants will be notified in writing by division staff.
    3. (C) Approved applicants will be required to execute a written agreement outlining the amount, terms, and conditions of the funding, in the form of a royalty agreement, prior to receiving funds; and
11. (9) Funds shall be disbursed to approved applicants in accordance with terms and conditions of the royalty agreement.