4. Development Award Program 3rd anniversary date of commercialization 30% (balloon interest) of unpaid balance Repayment Requirements Commercialization After 3 years the unpaid balance will increase by 30% (balloon interest) and subsequently by 10% compounded annually. The agreement requires a minimum payment of 2% of gross sales from the product or process developed (applied directly to the principal). Award Made Repayment within 3 years after commercialization – no interest. R&D Effort (no interest) Timeline may vary 2 1 3 4 5 6 7 8 9 10 0 YEAR The 10% interest will be calculated on each anniversary date. Post Commercialization - Full payback required by year seven.
5. Development Award Program Process Outline Complete Applications reviewed by Peer Reviewers Receipt of Applications Pre-application (not mandatory) Invited Applicants Interviewed by the Development Award Review Committee Strongest Projects Recommended to MTI Board for Funding Technology Board Review Committee (TBRC) Meeting and Evaluation
57. Pricing, targeting, identification of first customersTip: More proposals are weak in demonstrating an immediate market need than in any other aspect.
61. Be realistic: Do not stretch or squeeze timelines.Tips: Arithmetic counts - Construct the milestone chart torun consecutively and not concurrently. This will requiredetailed task and cost mapping vs. time.
62. Development Award Program Example Gantt Chart to help determine cost of tasks in Form B $ $ $ Determine cost of tasks within each milestone. $10 K A $20 K $40 K $5 K B TASK $30 K $50 K C $40 K $30 K D Milestone #1 Milestone #2 Milestone #3 TIME
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64. Consider decreased costs, which are not utilized much in new products, but might be realized in the years following commercialization.
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67. Capital expenditure such as buildings or production equipment will only be considered when the purchase is necessary and primarily intended for the project.Tip: Optional 2 additional pages - to justify any budget cost that may seem unusual (indirect costs, purchase price agreements.)
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69. 20% or less of MTI funding and project budget are allowed for indirect costs and 15% or less is allowed for sales and marketing.
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71. No credit checks on those companies whose proposal is not forwarded to the interview.
75. Match must be secured within 6 months of award.Tips:This is an opportunity for the supporter to elaborate on the commitment in time or money with key proposal points.Letterhead with signatures is preferred over email.
82. Development Award Program Pathway to an award Submit a non-confidential summary. Participate in a discussion with MTI staff and attend a workshop. Download a copy of the Request for Application (RFA). Register online (Form A). Prepare, proofread, and submit an application. Receive word of an award decision rendered by MTI committees.
83. Development Award Program MTI Team Betsy Biemann, President Linda Adams, Program Assistant Shane Beckim, Seed Grant Specialist Roger Brooks, Commercialization Support Jim Fecteau, Finance & Administration Manager Jessie Gogan, Development Award Specialist Joe Migliaccio, Manager, Business Innovation Programs Andrea Phillips, Office Manager Patti Sutter, Program Assistant Deb Cook, Consultant, Communications Martha Bentley, Consultant, MTI Bond Programs Scott Stefanski, Consultant, Cluster Initiative Program Karen West, Consultant, SBIR/STTR Programs
84. Open Questions? 405 WATER STREET, SUITE 300 GARDINER, ME 04345 207.582.4790 helps to CREATE and sustain high-paying JOBS in existing and new companies
