Understanding Cognizant Agency [Small Business Development Centers]: A Comprehensive Guide

Definition & Meaning

The term "Cognizant Agency" refers to the federal agency, other than the Small Business Administration (SBA), that provides the largest grant or the most significant amount of federal funding to a recipient organization or a sponsoring Small Business Development Center (SBDC). This agency also establishes the indirect cost rate that applies to budgeting and funding across the federal government.

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Real-world examples

Here are a couple of examples of abatement:

For instance, if a local SBDC receives a majority of its funding from the Department of Commerce, then the Department of Commerce is considered the cognizant agency for that SBDC. This designation affects how the SBDC manages its budget and funding applications.

Comparison with related terms

Term Definition Key Differences
Cognizant Agency The federal agency providing the most funding to an SBDC. Focuses on funding and grants, not direct business support.
Small Business Administration (SBA) A federal agency that provides support to small businesses. SBA is a specific agency, while cognizant agency can be any federal agency.

What to do if this term applies to you

If you are involved with an SBDC or a recipient organization, identify your cognizant agency to understand your funding sources and compliance requirements. You can utilize US Legal Forms to find templates for grant applications and other related documents. If your situation is complex, consider seeking professional legal assistance.

Quick facts

Attribute Details
Type of Agency Federal
Funding Source Largest grant or funding
Indirect Cost Rate Applicable across federal government

Key takeaways

Frequently asked questions

A cognizant agency is the federal agency that provides the largest grant or funding to a recipient organization or SBDC.