Maryland Industrial Partnerships

• Before You Apply
• Application Requirements
• Funding Requirements
• Selection Process & Criteria

Funding Requirements

The minimum requirements for industry matching funds are dependent upon the company size and type.

Size categories for MIPS matching determination are established as follows:

• Large firm: more than 1,000 full-time employees
• Medium firm: 100 to 1,000 full-time employees
• Small firm: fewer than 100 full-time employees
• Start-up firm: see definition below

Definition of a Start-up Firm

General guidelines for start-up company qualifications are as follows:

• A new company in product development mode;
• Time in business does not exceed 4 years;
• No public stock offering;
• Annual sales do not exceed $1,000,000;
• A minimum of one full-time employee and no more than 12.

Matching Requirements

Cash: Matching requirements are based on the University Budget for the project.  Both MIPS and the company contribute cash, the total of which equals the University Budget.

In-Kind: Companies are required to make an in-kind contribution in addition to their cash contribution.  An in-kind contribution is the company's budget for its work on the project.  This includes salaries and wages, materials and equipment, travel and other company expenses budgeted for the project.

Large Firms: Company cash contribution is at least 50% of the University Budget.  Company's in-kind requirement is at least equivalent to 25% of the University Budget.

Medium Firms: Company cash contribution is at least 50% of the University Budget.  Company’s in-kind requirement is at least equivalent to 25% of the University Budget.

Small Firms: Company cash contribution is at least 35% of the University Budget.  Company's in-kind requirement is at least equivalent to 30% of the University Budget.

Start-up Firms: Company cash contribution is at least 10% of the University Budget.  Company's in-kind requirement is at least equivalent to 35% of the University Budget. 

Equipment Gift: If the company donates equipment to the University that is needed for the project, the required equipment is to be valued according to "DESCRIPTION AND ESTIMATED VALUE OF EQUIPMENT GIFT" in the Application Form.

Equipment Loan: If the company lends equipment to the University, the value of the loan for the applicable period may be determined by fair rental value or by depreciation for the period of the loan.  This estimate should be included in "COST ESTIMATE - COMPANY EFFORT" in the application form.

MIPS Funding Limits: MIPS awards are limited to $100,000 per project per year for large, medium and small companies and $90,000 for start-up firms. The minimum is $5,000 per project per year. University overhead, as well as company overhead, are included in the matching-fund computations. Each institution of the University System of Maryland has its own overhead structure.

Alternative to Matching Requirements for Start-up Companies: This provision applies only to a start-up company’s cash matching requirement and involves making an equity contribution in place of the otherwise required cash contribution. If the Company is interested in the equity alternative, it is necessary to advise MIPS well in advance of the proposal (Project Application) submittal deadline date and for the company and MIPS to agree to the contractual arrangements, should the Company receive an award.

• Before You Apply
• Application Requirements
• Funding Requirements
• Selection Process & Criteria

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