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SCS/HB 1495 - 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-profits in the two largest MSAs must have raised at least $2 million from sources other than the state before being designated an ESBDC. Not-for-profits in Springfield and Columbia must have raised at least $500,000 before being designated an ESBDC. ESBDCs in Columbia and Springfield that raise only $500,000 will only be eligible for a $500,000 appropriation. To be eligible for a full $2 million appropriation, they must raise $2 million from other sources. 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. To continue to be designated an ESBDC, a not-for-profit must raise half the required initial amount every four years. 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 more than 25% of funding received by an ESBDC may be used for administrative costs. Companies that receive funds from an ESBDC and move their business out of state with two years of receiving funds must pay back the funds. No funding shall be authorized under this act after fiscal year 2018 unless the act is reauthorized. No funding shall be authorized for projects involving abortion service, human cloning, or certain prohibited human research. This act is similar to SB 994 (2014) and HB 813 (2013). MIKE HAMMANN
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