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Small Business (SBIR/STTR)

April 2008

Science and Technology Innovation Act of 2008 (H.R. 5819 - Introdcued in the House 4/16/08, [passed by the House 4/23/08). "A bill to amend the Small Business Act to improve the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program, and for other purposes." According to the House S&T Committee, the bill (1) reauthorizes the SBIR and STTR programs through 2010, (2) increases the Phase I awards from $100,000 to $300,000 and Phase II awards from $750,000 to $2.2 million, (3) allows cross-agency awards and applications to apply directly for Phase II funding, (4) allows small businesses backed by venture capital to apply for awards, (5) expands requirements for agency databases of award recipients, among numerous other provisions. See the SBIR Gateway Insider Alert newsletter (several articles on this topic) and the SSTI Digest for additional views/thoughts on passage of this bill. It now goes to the Senate for action. The SBIR proram sunsets this fiscal year.

October 2007

Small Business Investment Expansion Act (H.R. 3567 - Introduced 9/18/07, passed by House 2 weeks later) "A bill to amend the Small Business Investment Act of 1958 to expand opportunities for investments in small businesses, and for other purposes." According to a Los Angeles Times article (published just prior to the bill's passage), "[T]he Small Business Investment Expansion Act … would allow a small firm that is majority owned by a venture capital firm or other investment company to continue to qualify for federal small-business programs. Proponents say it's needed to ensure that small biotech and high-tech firms get the backing they need to survive their long product development time frames and produce crucial drugs and devices….Critics counter that the bill gives an unfair advantage to businesses that should no longer qualify for small-business programs, including the [SBIR] grants that benefit the biotech industry, because they are backed by a deep-pocketed entity." See also Title V, Section 501 of the bill, which addresses this issue.

August 2006

Small Business Reauthorization and Improvements Act (S. 3778 - Introduced 8/2/06). "A bill to reauthorize and improve the Small Business Act and the Small Business Act of 1958, and for other purposes." This Senate bill contains language focused on the SBIR/STTR provisions - proposing to gradually increase the set-aside for the SBIR program to "no less than 5 %" by 2011", and "0.6 %" immediately for the STTR program, effectively doubling the funding for both (see Section 1522). Further, Section 1535 addresses the ability for Federal labs to be subcontractors on SBIR awards. Specifically, the language states:

  • "Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended by adding at the end the following:
  • (ee) Subcontracting-
  • (1) AUTHORIZATION- The head of each participating Federal agency is authorized to issue SBIR and STTR awards to any eligible small business concern which intends to subcontract portions of the work to Federal laboratories and federally funded research and development centers, subject to the limitations under this section.
  • (2) PROHIBITION- No Federal agency shall--
    • (A) condition SBIR or STTR awards upon subcontracting any portion of the work to any Federal agency or any federally funded laboratory or research and development center;
    • (B) approve a subcontracting arrangement where the small business concern performs a lesser portion of the work than required by this section and by the SBIR and STTR Policy Directives; or
    • (C) approve a subcontracting arrangement which violates any provisions, including data rights protections provisions, of this section or the SBIR and the STTR Policy Directives.
  • (3) IMPLEMENTATION- Not later than 180 days after the date of enactment of this subsection, the Administrator shall modify the SBIR Policy Directive and the STTR Policy Directive issued under this section to ensure that small business concerns have the flexibility to use the resources of the Federal laboratories and federally funded research and development centers, but shall not be mandated to subcontract with them as a condition of award."

February 2006

No Title (H.R.4684 - Introduced 2/1/06): "A bill to amend the Small Business Act to provide for an increase in the amount of awards under the first and second phases of the Small Business Innovation Research program." Under this bill the amounts would increase from $100K to $145K in phase I and $750K to $1010K.

June 2005

Save America's Biotechnology innovation Research Program (SABIR) Act (S.1263 - Introduced 6/16/05): "A bill to amend the Small Business Act to establish eligibility requirements for business concerns to receive awards under the Small Business Innovation Research Program" (NOTE: addresses Venture Capitalist (VC) ownership eligibility issues).