(a) Purpose.

1. (1)

   1. (A) The purpose of the Business Incubator Program is to enhance economic development by stimulating technological innovation and fostering the growth of technology-based enterprises to create new employment opportunities for Arkansans through the establishment of Arkansas-based college and university incubators.
   2. (B) The intent of the program is to create an entrepreneurial and technological environment drawing upon a diversity of business enterprises which will stimulate the innovation process and result in economic benefits to Arkansans.

2. (2) Applications for funding should emphasize:

   1. (A) Innovation;
   2. (B) Entrepreneurial engagement;
   3. (C) Leveraging of private capital to the greatest extent possible; and
   4. (D) Local business support.

(b) Eligibility requirements.

1. (1) Applicant eligibility requirements include the following.

2. (2) Applications will be evaluated based upon the following criteria:

   1. (A) The application is complete and has been submitted by an Arkansas-based state college or university that is supported by general revenue appropriations from the General Assembly;
   2. (B) The project shall propose the creation of a facility to locate a business incubator; and
   3. (C)

(i) The proposed project shall create an environment that fosters the success and growth of technology-based enterprises which contribute to the state’s economic development.

1. (ii) Such an environment might involve the presence of well-established technology businesses and nontechnology supportive businesses.

   1. (c) Application submittal process.

2. (1) Potential applicants for Business Incubator Program funds:

   1. (A) Shall submit one (1) completed signed application using forms provided by the Division of Science and Technology of the Arkansas Economic Development Commission; and
   2. (B) May be subject to an interview, a site visit, or both, during the application review process.

3. (2) Applications shall consist of the following documents:

   1. (A) The name and address of the college or university applying for funds;
   2. (B) The name, title, address, and telephone number of the contract official;

   3. (C) The title and description of the proposed project, including:

      1. (i) An explanation of how the incubator addresses local economic development needs;
      2. (ii) The incubator’s concept;
      3. (iii) The objectives of the proposed project; and
      4. (iv) The anticipated public benefits of the incubator project;

   4. (D) A discussion of the proposed business incubator facility operations, including without limitation:

      1. (i) Any entrance and graduation requirements of incubator tenants;
      2. (ii) A discussion of how the project proposes to establish an environment which stimulates innovation and economic development;
      3. (iii) A list of the basic services to be provided to incubator tenants, including technological and managerial assistance;
      4. (iv) A discussion of how the local business community will support the incubator efforts; and
      5. (v) An explanation of the incubator facility’s governance;
   5. (E) A list of any cooperating institutions;
   6. (F) A statement of any other financial resources, including private funds that will be used during the project and afterwards for continuous operation;

   7. (G) A list of key project personnel including their:

      1. (i) Education;
      2. (ii) Related experience; and
      3. (iii) Biographic information;
   8. (H) A list of proposed agreements with consultants who may develop or manage the incubator facilities;
   9. (I) Source or sources, amount or amounts, and anticipated use or uses of Arkansas Economic Development Commission funds and non-commission funds;
   10. (J) A timetable showing major milestones for completing the project and the overall project duration; and

   11. (K) Any other information required by the commission.

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

4. (1)

   1. (A) All applications will be evaluated by division staff for completeness and adherence to eligibility criteria.

   2. (B) Review criteria include, but are not limited to:

      1. (i) Completeness of the application;
      2. (ii) The comprehensiveness of the proposed project;
      3. (iii) The cost-effectiveness of the proposed project;
      4. (iv) The qualifications of the key project personnel;
      5. (v) The anticipated public benefits of the proposed project;
      6. (vi) The overall merit of the proposal; and
      7. (vii) The potential of the project to assist the division in carrying out its mission to bring the benefits of science and technology to Arkansans;
5. (2) Applicants may be subject to an interview, a site visit, or both, during the application review process;
6. (3) The commission 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. (4) Division staff will provide a project summary to the Commercialization Committee of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission for each project reviewed;

8. (5)

   1. (A) All applications will be reviewed by the Commercialization Committee in accordance with program rules.

   2. (B) Prior to final approval:

      1. (i) Applicants may be asked to present their projects before the Commercialization Committee; and
      2. (ii) The Commercialization Committee may ask applicants for additional information before recommending projects for funding;
9. (6) Projects receiving Commercialization Committee support will be reviewed by the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission;
10. (7) If the board votes, by simple majority, to approve the application for funding, division staff will prepare a resolution for funding for signature by the secretary of the board and the executive director; and

11. (8)

    1. (A) The executive director, after reviewing board recommendations, will specify which applicants may receive funding.
    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.