Post-Award Procedures

Grant Agreements

If a proposal receives all the necessary approvals described in the Application and Review Process, the applicant will enter into a grant agreement with the IEDC. The specifics of each agreement are a function of the project details; however, all agreements have general characteristics.

In order to ensure that the grant is invested in Indiana and applicants are incentivized to grow their businesses in Indiana, the awards contain conditions relating to repayment of grant funds in certain circumstances. The following summary of the material provisions contained in the grant agreement is for informational purposes only.

Mandatory Award repayment, plus a penalty, may result from the following events:

• Moving the project outside the State of Indiana
• Moving or establishing any business operation resulting from the project (other than clinical trials, collaborations or licensing arrangements with third parties) outside of the State of Indiana
• Payment of more than fifty percent (50%) of the total amount of all salaries, wages and benefits to persons other than full-time residents of the State of Indiana
• Making a misstatement of material fact in materials submitted to the IEDC
• Defaulting under the terms and conditions of the agreement

In addition, in the event the applicant conducts a successful exit ("Transaction"), the IEDC will have the ability to receive a return of the original grant amount based on the value of a calculated "Invested Capital Multiplier".

Invested capital is the pre-agreement sum of cash and fair market value. Dividing the transaction proceeds by the invested capital determines the ‘Invested Capital Multiplier’. Generally, the agreement between the IEDC and the applicant will specify a minimum invested capital multiplier, below which the IEDC will receive no return, a maximum invested capital multiplier above which the IEDC receives no additional return. The details of such terms are determined by the specifics of each case.

The purpose of these repayment terms is to:

• Reclaim unspent funds in the event an award recipient defaults;
• Encourage award recipients to remain in-state and contribute to Indiana’s economic development; and
• Replenish the Fund through highly successful award recipients

These payback provisions are NOT intended to be burdensome. The IEDC does not want to inhibit the potential of an award recipient to receive follow-on funding from outside investors.

No-Cost Extensions of Award Period

The IEDC/21 Fund is unlikely to approve extensions of the period of an award. Therefore, it is very important that, in developing your proposal, you carefully consider the award period as well as the distribution of award funds during that period. The "Grant Agreement Between Indiana Economic Development Corporation and [ ]" requires that: 8.3 Any funds unexpended after the completion of the Project, or at the expiration of this Agreement, must be returned promptly to the IEDC.

Title to Equipment

Unless otherwise specified, title to equipment purchased or fabricated with grant funds vests with the grantee.

Intellectual Property

The IEDC will have no interest in IP developed by its grantees.

Statutory Requirements

Finally, the agreement with the IEDC will include statutory requirements typical of all State of Indiana agreements, including: Compliance with Telephone Solicitations Act; Conflict of Interest; Maintaining a Drug Free Workplace; Non-Discrimination, etc.