170 



Any private individual or fixm oiay apply 

 for assistance through the AARC pro- 

 gram. While most of the Center's clients 

 are small firms, non-profits and large 

 businesses have also been successful 

 applicants. Universities and similar insti- 

 tutions may be participants, but the private partner is gener- 

 ally in the lead for commercialization aaivities. 





isfKm^i 





The AARC |M"ogram can supply finan- 

 cial assistance at the pre-commcrciali- 

 zation stage of a project-that point in a 

 project when the costs are the greatest 

 and the ability to obtain lending from 

 traditional sources is the most difficulL 

 At the pre-ccMnmercialization stage, a 

 produa is expeaed to have an identi- 

 fied market However, additional work may remain before 

 the product enters the marketplace, e.g. prototype testing or 

 manufaauring, commercial runs, regulatory clearance or 

 market analysis. The financial assistance is in the form of a 

 repayable cot^rative agreement and includes a repayment 

 portion that recognizes the investment risk taken by Uie 

 AARC Center. Applicants are expected to bring at leasta 1 : 1 

 match when seeking funding from the AARC program. In 

 the initial round of projects supported by AARC financing, 

 AARC contributions ranged from less than $100,000 to $1 

 million. 



:]ffiivAi%--' "•■;'. 





Applications undergo evalu- 

 ation by three outside reviewe-s 

 and the AARC Center's staff 

 The evaluation reviews the ade- 

 quacy of the business plan, the 

 technical feasibility of the pro- 

 posal, the project's potential to 

 generate jobs in rural America, 

 as well as environmental and 

 conservation aspects. Following a successful review, an ap- 

 plication is referred to the AARC Center' s Board of Direaors 

 for fmal evaluation. Board members and staff make site 

 visits and in some cases require oral presentations on the 

 ovCTall proposal. The Board makes the final decision as to 

 who receives assistance and in what amount. Proprietary 

 information is proieaed throughout the review and evalu- 

 ation process and procedures are in place to avoid conflicts 

 of interest with reviewers or Board members. In addition, the 

 legislation establishing the AARC program specifically 



