SB 994 - Beginning fiscal year 2015, this act specifies that the state shall pay $9 million per fiscal year to Early Stage Business Development Corporations (ESBDCs). ESBDCs will provide grants to business that are winners of competitions for early stage businesses, have substantial operations in Missouri or that begin operating in Missouri, and have potential for regional, national, or international sales or potential to develop new technologies.
The funding will be split so that an ESBDC in each of the three largest metropolitan statistical areas (MSAs) will each receive $2 million, an ESBDC operating in Columbia will receive $2 million, and two ESBDCs operating in other parts of the state will each be eligible for $500,000.
ESBDCs must be not-for-profits designated by the Missouri Technology Corporation to receive funds. Not-for-profit in the three largest MSAs or Columbia must have raised at least $2 million dollars from sources other than the state before being designated an ESBDC. Not-for-profits in other parts of the state must have raised at least $150,000 from sources other than the state before being designated an ESBDC. Only one ESBDC will be designated in each of the three largest MSAs, one in Columbia, and two ESBDCs will be designated in other parts of the state. If more than one not-for-profit in one of the three largest MSAs or Columbia or more than two in other parts of the state apply to be an ESBDC, the not-for-profit that has raised the most funds will receive the designation for that area. Designation as an ESBDC shall be for two years. An ESBDC may reapply for an additional two years.
The act specifies a process for disbursing funds to other ESBDCs if an ESBDC is not designated in one of the three largest MSAs or Columbia or two are not designated in other parts of the state.
Grants to businesses by ESBDCs in the three largest MSAs or Columbia will not require repayment. Grants by ESBDCs in other parts of the state will be loans. ESBDCs cannot take an equity interest in business that receive grants.
No funding shall be authorized under this act after fiscal year 2018 unless the act is reauthorized.
This act is similar to HB 1495 (2014) and HB 813 (2013).