The U.S. House of Representatives passed bipartisan legislation to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for five years.
The Small Business Innovation and Economic Security Act has now been approved in the House and the Senate, where it was initially introduced by U.S. Sen. Joni Ernst (R-IA), the chair of the Senate Small Business and Entrepreneurship Committee, and Ranking Member Ed Markey (D-MA). It next heads to the president’s desk to be signed into law.
This bill, S. 3971, protects the merit-based competitive nature of the programs, prevents small businesses from being immediately kicked out of the program, and ensures that the smallest small businesses can access the programs.
“Today’s passage of the bipartisan Small Business Innovation and Economic Security Act is a win-win-win-win—for American small businesses, for workers, for the innovation economy, and for the communities they serve. This bill is a more than $4 billion shot in the arm for our innovation economy in Massachusetts and around the country. The federal government and the American people deserve to have access to the most innovative technologies. The SBIR/STTR programs have invested in technologies that we take for granted—from the world’s smallest heart pump to GPS. Thanks to this five-year reauthorization, small businesses—our most nimble allies in the innovation economy—can continue to supply agencies with the best ideas to solve our toughest challenges,” Markey said.
If signed into law, it would re-open the SBIR/STTR programs and keep them authorized through September 30, 2031.
Specifically, the bill would:
- Reauthorize the SBIR/STTR programs for five years.
- Reject lifetime caps and preserves merit-based competition in the SBIR/STTR program.
- Protect the STTR program and research institutions’ ability to participate.
- Ensure all SBIR funding is retained.
- Maintain strong foreign due diligence requirements and requires transparency from agencies.
“While this legislation does not include every improvement I would like to see, it will reopen these essential programs after an unnecessary and harmful lapse and help small businesses plan for the future. We must work to make these programs permanent because entrepreneurs and innovators should be in the lab focusing on their work—not worrying about what is happening in Washington,” Markey added.
The SBIR/STTR programs have awarded more than $77 billion to 33,000 small businesses to spur inventions such as the world’s smallest heart pump, continuous glucose monitors for Type-1 diabetics, and breakthroughs in treating diseases such as HIV, COVID-19, cancer, and Alzheimer’s. More than 3,700 U.S. small businesses will continue to have full access to more than $4 billion in SBIR and STTR funding every year if the bill is signed into law.
The bill has gained the support of the National Venture Capital Association (NVCA).
“This is a major step forward for America’s innovation ecosystem,” Ashlyn Roberts, National Venture Capital Association (NVCA) vice president of Government Affairs, said. After more than a year of engagement, Congress has delivered a thoughtful reauthorization that not only ensures continuity for the SBIR and STTR programs, but strengthens them.”