SBIR/STTR Reauthorization Act of 2025
Officially: “SBIR/STTR Reauthorization Act of 2025” Read the full text
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Sec. 1Short title
This section states that the Act may be cited as the "SBIR/STTR Reauthorization Act of 2025."
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1. Short title This Act may be cited as the SBIR/STTR Reauthorization Act of 2025 .
Sec. 2Table of contents
This section lists the table of contents for the Act, showing the six titles and all the numbered sections that follow.
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2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—Reauthorization of Programs Sec.
Sec. 101Extension of SBIR and STTR authority
This section would delete subsection (m) of Section 9 of the Small Business Act, which is part of the law governing the SBIR program. The text of subsection (m) is not included in the bill text available for this rendering, so this rendering cannot describe what rule is being removed or what would change as a result of removing it. Separately, this section would delete the phrase "through fiscal year 2025" from Section 9(n)(1)(A), which is part of the law governing the STTR program. Whatever requirement Section 9(n)(1)(A) states, it would no longer be capped by that 2025 end date once this phrase is removed, though the bill text does not show the rest of that provision.
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101. Extension of SBIR and STTR authority. Sec.
Sec. 102Extension of FAST Program
This section would extend the authorization for the Federal and State Technology (FAST) Partnership Program. It changes Section 34(i) of the Small Business Act by replacing the date "September 30, 2005" with "September 30, 2030," so the program's authorization would run through September 30, 2030 instead of ending on the earlier date.
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102. Extension of FAST Program. Title II—Enhancing Competition Sec.
Sec. 201Increasing agency expenditures for SBIR and STTR programs
This section would raise the minimum share of certain federal funds that agencies must spend on the SBIR and STTR programs in future years. For SBIR, the law currently requires agencies to meet a minimum percentage set elsewhere in subparagraph (I), starting in fiscal year 2017 with no end date. This section limits that existing open-ended minimum to fiscal years 2017 through 2025 only, and then adds new escalating minimums for later years: at least 4 percent of the budget in fiscal years 2026 and 2027, at least 5 percent in fiscal years 2028 and 2029, at least 6 percent in fiscal years 2030 and 2031, and at least 7 percent in fiscal year 2032 and every year after. For STTR, this section makes the same kind of change to the parallel STTR expenditure requirement, capping the existing open-ended minimum to fiscal years 2016 through 2025, and then adding new escalating minimums: 0.5 percent for fiscal years 2026 and 2027, 0.65 percent for fiscal years 2028 and 2029, 0.8 percent for fiscal years 2030 and 2031, and 1 percent for fiscal year 2032 and every year after.
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201. Increasing agency expenditures for SBIR and STTR programs. Sec.
Sec. 202SBIR and STTR fellowships
This section would let a federal agency give grants or awards, either directly or through a partnership with a third party, to small businesses that already received an SBIR or STTR Phase II award, so those businesses can offer fellowship and internship opportunities at the undergraduate, bachelor's, graduate, and postdoctoral levels in fields important to that agency. Any agency that makes such an award or enters such a partnership must provide enhanced outreach to increase participation by women, socially disadvantaged individuals (as described in Section 8(a)(5) of the Small Business Act), and economically disadvantaged individuals (as described in Section 8(a)(6)(A)) in these fellowship and internship opportunities. The agency may also partner with, or give grants or awards to, a third-party nonprofit organization with relevant experience and expertise to help carry out that outreach. To pay for this, an agency that uses the separate funding authority in subsection (mm) must use funds authorized under that subsection; any other agency may spend no more than 3 percent of the funds it is required to spend under paragraph (1) of the relevant subsection. This same fellowship authority, outreach duty, partner option, and 3 percent funding limit would apply in parallel to both the SBIR program and the STTR program.
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202. SBIR and STTR fellowships. Sec.
Sec. 203Application assistance to broaden participation
This section would let a federal agency use funds already authorized under Section 9(mm) of the Small Business Act to give small businesses help applying to the agency's SBIR or STTR program, including help needed to carry out the outreach policy directives, required under Section 9(j)(2)(F) or 9(j)(5) and under Section 9(p)(2)(H), that are aimed at increasing participation from states that have historically received a low level of SBIR or STTR awards. Separately, this section would require the Small Business Administration, within 90 days after enactment, to update its SBIR policy directives to require enhanced outreach that increases participation by researchers at minority institutions (as defined in Section 365 of the Higher Education Act of 1965) and Hispanic-serving institutions (as defined in Section 502(a) of that Act) in the SBIR program. It would add a matching requirement for the STTR program, requiring the STTR policy directives to include procedures for outreach that increases participation by researchers at those same types of institutions in the STTR program.
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203. Application assistance to broaden participation. Sec.
Sec. 204Technical and business assistance improvements
This section changes how federal agencies provide technical and business assistance to SBIR and STTR award recipients. Currently, an agency may enter into an agreement with one or more selected vendors to provide this assistance to small businesses working on SBIR or STTR projects. This section would instead require the agency to let recipients of SBIR or STTR awards choose, if they want, among the specific forms of assistance described in new paragraph (3), rather than being limited to agency-selected vendors. It also adds cybersecurity assistance to the list of assistance topics that already includes intellectual property protections. It adds a new allowed use of the assistance funding: a small business may use funding provided under this section, by contract or otherwise, to hire new staff, add to its staff, or direct its staff to take part in training activities that support the goals listed in paragraph (1). It replaces the funding-amount rules with new dollar caps. For a Phase I SBIR or STTR award, the agency must let the recipient use up to $6,500 per project, either included in the award or added on top of it as the agency head decides, for these services, obtained through a vendor the agency selected, through any other vendor, through the staff-hiring option described above, or through a combination of the vendor options. For a Phase II SBIR or STTR award, the agency must let the recipient use up to $50,000 per project for the same kinds of services, obtained through an agency-selected vendor, any other vendor, the staff-hiring option, or any combination of all three of those options. This section also lets a federal agency perform targeted reviews of how this technical and business assistance funding is used, as described in Section 9(mm)(1)(F). Separately, this section requires each federal agency that, as of January 1, 2025, already had to run its SBIR or STTR program alongside an Innovation Corps (I-Corps) program to give award recipients the option to take an I-Corps teams course, I-Corps bootcamp, or an equivalent training program, and to let those recipients use funds authorized for this technical and business assistance to pay for that training. The cost of a recipient's participation in that training can come from an I-Corps team grant, funds awarded to the recipient under this assistance authority, the participating teams or other appropriate sources, or any combination of those sources.
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204. Technical and business assistance improvements. Sec.
Sec. 205Improvements to website relating to the SBIR program or STTR program
This section would require federal agencies to report more detailed information about the research institutions that SBIR and STTR award recipients subcontract with, in two places in the law: the SBIR and STTR website reporting requirements, and the SBIR/STTR award database. For the SBIR website report (Section 9(g)(8)), for each research institution that a Phase I, Phase II, or Phase III SBIR award recipient subcontracts with to do research or research and development connected to the award, the agency must report the institution's name and location; whether it is a college or university (as defined in the Higher Education Act of 1965), a nonprofit institution other than a college or university (as defined in the Stevenson-Wydler Technology Innovation Act of 1980), or a federally funded research and development center; and, if it is a college or university, whether it is a Part B institution, a Hispanic-serving institution, a Tribal College or University, an Alaska Native-serving or Native Hawaiian-serving institution, a Predominantly Black Institution, an Asian American and Native American Pacific Islander-serving institution, or a Native American-serving nontribal institution, each as defined in the Higher Education Act of 1965. The same reporting requirement would apply to the STTR website report (Section 9(o)(9)), but only for Phase I and Phase II STTR award recipients' subcontracted research institutions, not Phase III. Separately, this section expands the SBIR/STTR award database required under Section 9(k): everywhere the database currently covers only Phase I or Phase II awards, both the SBIR-side and STTR-side database requirements must now also cover Phase III awards. It also adds a new required data element to each database: the name and location of any research institution a recipient subcontracts with for the award's research or research and development, whether that institution is a college or university, a nonprofit institution other than a college or university, or a federally funded research and development center, and, if it is a college or university, whether it is one of the institution types listed in paragraphs (1) through (7) of Section 371(a) of the Higher Education Act of 1965. Not later than one year after enactment, the Small Business Administration must add this newly required research-institution information to both of these databases.
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205. Improvements to website relating to the SBIR program or STTR program. Title III—Commercialization Improvements Sec.
Sec. 301Phase III award education
This section would require the Administrator of the Small Business Administration, working with the Secretary of Defense, the Administrator of the General Services Administration, and the heads of any other federal agencies the Administrator decides to include, to set up training for contracting officers and other members of federal agencies' acquisition workforce so they fully understand Phase III acquisitions under the SBIR and STTR programs. That training must cover the missions, goals, and legal authorities of the SBIR and STTR programs; how Phase III agreements are used; Phase III data rights; and how to carry out Phase III sole-source award contracts. The section defines "agency acquisition workforce" to include federal employees with procurement or acquisition responsibilities, including those covered by a specific federal personnel law and those who are part of the acquisition workforce under defense acquisition law. It defines a "Phase III acquisition" as the purchase of a good or service from a Phase III program participant that has commercialized, or is trying to commercialize, that good or service as a Phase III participant.
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301. Phase III award education. Sec.
Sec. 302Technology Commercialization Official
This section would require the head of each federal agency that runs an SBIR or STTR program to either designate an existing official as that agency's Technology Commercialization Official or identify an existing official already doing substantially the same job. That official must have sufficient experience with commercialization; must guide SBIR and STTR award recipients on commercializing and transitioning their technologies; must coordinate with the Small Business Administration and other agencies' Technology Commercialization Officials to identify additional markets and commercialization pathways for promising SBIR and STTR technologies; must submit an annual report to the Administrator on how many technologies from the agency's program have advanced commercialization activities, including the information required for the commercialization impact assessment report under subsection (ccc); must identify and advocate for SBIR and STTR technologies with sufficient readiness to advance to Phase III awards or other non-SBIR or STTR contracts; must submit an annual report on the actions the agency has taken to simplify, standardize, and expedite its application process, requirements, procedures, and contracts as required under subsection (hh), and on the results of those actions; and must carry out any other duties the agency head decides are necessary.
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302. Technology Commercialization Official. Sec.
Sec. 303Phase III improvements
This section would add a duty for each agency's procurement center representatives: in addition to their existing responsibilities under the policy directives in Section 9(j)(4), they must also advocate for making the maximum practicable use of, and moving toward Phase III, products, services, and technologies developed under the SBIR and STTR programs, by means of Phase III awards to small businesses. Within one year after enactment, the Small Business Administration must update its policy directives to reflect this new duty. Separately, this section adds two new duties for federal agencies or federal prime contractors under Section 9(r)(4): they must report to the Administrator on the actions they have taken to develop simplified and standardized procedures and model contracts for Phase I, Phase II, and Phase III SBIR awards, and they must issue standardized solicitation provisions and contract clauses that clearly explain what information small businesses participating in the SBIR or STTR program can be expected to provide, whether as part of market research or as part of a proposal to establish eligibility for a Phase III award.
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303. Phase III improvements. Title IV—Pilot Programs Sec.
Sec. 401Extend and modify assistance for administrative, oversight, and contract processing costs
This section would extend, from September 30, 2025 to September 30, 2030, the authorization for the program under Section 9(mm) of the Small Business Act that funds administrative, oversight, and contract processing costs for the SBIR and STTR programs, and it raises that program's funding cap from 3 percent to 3.3 percent. It adds a new requirement: within two months after Congress enacts an appropriations act funding the Department of Defense, the Department of Energy, the Department of Health and Human Services, NASA, or the National Science Foundation, the head of whichever of those entities received the appropriation must transfer at least 10 percent of the funds it uses for the purposes covered by this program to the Small Business Administration, to increase the SBA's own resources for administering the SBIR and STTR programs; none of the transferred funds may be used for any program established under the Small Business Investment Act of 1958. This section also rewrites the rule on using these funds to increase participation of underserved populations: a federal agency participating in this program may use a portion of its authorized funds to carry out the outreach policy directive required under Section 9(j)(2)(F) and to increase participation by states that have historically received a low level of SBIR awards. It updates a related reporting requirement so that agency reports on this program's fund use must cover both the use of funds transferred to the SBA under the new transfer requirement, for the uses authorized in that requirement and to achieve the underserved-population outreach objectives, and the use of any other program funds toward those same objectives.
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401. Extend and modify assistance for administrative, oversight, and contract processing costs. Sec.
Sec. 402Extend and expand the direct to Phase II authority
This section would extend the "direct to Phase II" pilot authority, which lets certain agencies award a Phase II SBIR grant without first requiring a Phase I award, from covering fiscal years 2012 through 2025 to covering fiscal years 2012 through 2030. It also expands which agencies may use this authority: instead of being limited to the National Institutes of Health, the Department of Defense, and the Department of Education, it would be available to every federal agency required to run an SBIR program. It adds a new limit: in any fiscal year, the total value of awards a federal agency makes under this authority cannot exceed 10 percent of the total funds allocated to that agency's SBIR program that year, except that the National Institutes of Health may use up to 15 percent of the total funds allocated to its SBIR program that year. It also requires each agency head that uses this authority to report, in the agency's next required SBIR/STTR annual report under subsection (g)(9) after using it, the number and dollar amount of awards made under this authority during the period the report covers.
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402. Extend and expand the direct to Phase II authority. Sec.
Sec. 403Extend commercialization readiness program for civilian agencies
This section would rename the heading of subsection (gg) by replacing the word "Pilot" with "Civilian agencies commercialization readiness," and it replaces the term "pilot program" with "covered program" everywhere that term appears in this part of the law, dropping the pilot label from the commercialization readiness program for civilian agencies. It also extends the program's authorization from fiscal year 2025 to fiscal year 2030.
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403. Extend commercialization readiness program for civilian agencies. Sec.
Sec. 404Extension of certain SBIR and STTR pilot programs
This section would extend the Phase 0 proof-of-concept partnership program, changing its end point from the end of fiscal year 2025 to September 30, 2030. It would also extend the commercialization assistance pilot programs, changing their end date from September 30, 2025 to September 30, 2030.
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404. Extension of certain SBIR and STTR pilot programs. Sec.
Sec. 405Extension of due diligence program to assess security risks
This section would extend the due diligence program that assesses security risks connected to SBIR and STTR awards, moving its end date from September 30, 2025 to September 30, 2030.
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405. Extension of due diligence program to assess security risks. Title V—Oversight and Simplification Initiatives Sec.
Sec. 501Annual reports to Congress
This section would add the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship as required recipients of the SBIR program's existing annual report, and would add the same two committees as required recipients of the STTR program's existing annual report. It also requires each federal agency to publish both of those reports on the agency's own website as soon as practicable. Separately, it adds Congress as a required recipient of the report already required under Section 9(gg)(6), the section covering the commercialization readiness program for civilian agencies.
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501. Annual reports to Congress. Sec.
Sec. 502Comptroller General report on diversification and commercialization
This section would require the Comptroller General of the United States, not later than three years after enactment, to submit a report to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business on how effective the SBIR and STTR programs have been at diversifying participants and supporting commercialization. To the extent practicable, the report must assess the demographics of small businesses receiving SBIR or STTR awards, including new entrants and underrepresented groups; the efforts of participating agencies to broaden representation and participation of new entrants and underrepresented groups; how participating agencies develop solicitation topics and attract applicants; the efforts of participating agencies to support technology commercialization; the extent to which each participating agency's SBIR and STTR awards align with that agency's own research priorities and technology needs; and any other matters the Comptroller General, in consultation with the two committees, determines appropriate. The section defines "new entrant" as a small business concern that has not previously received an SBIR or STTR award, and defines "underrepresented groups" as small business concerns located in states that have historically received a low level of SBIR and STTR awards, small business concerns owned and controlled by women, and small business concerns owned and controlled by socially and economically disadvantaged individuals. It also relies on the Small Business Act's existing definitions for "Federal agency," "SBIR," "STTR," "small business concern," and the specific terms for businesses owned and controlled by women or by socially and economically disadvantaged individuals, and it defines "participating agency" as a federal agency carrying out an SBIR or STTR program under Section 9 of the Small Business Act.
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502. Comptroller General report on diversification and commercialization. Sec.
Sec. 503Extend the report on award timeliness
This section would change the existing SBIR/STTR award-timeliness report by extending the time period it covers from 3 years to 11 years. It also adds a new required element to that report: for each federal agency that runs an SBIR or STTR program, the report must state the average and median amount of time the agency takes to review a proposal and reach a final decision on it.
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503. Extend the report on award timeliness. Sec.
Sec. 504Pilot program to accelerate National Institutes of Health evaluation process
This section would require the Director of the National Institutes of Health, not later than one year after enactment, to establish a pilot program to reduce the time it takes to make SBIR and STTR awards at NIH. Under that pilot program, the Director must develop simplified, standardized procedures across all relevant NIH awarding offices and must try to reduce the time between the notice of an award and the release of its funding to be as close to 90 days as possible. The Director may use whatever peer review procedures, including consultation with appropriate scientific experts, the Director considers appropriate to assess an application's scientific and technical merit and its potential for commercialization; using such peer review procedures is deemed to satisfy any merit-review requirements that would otherwise apply to NIH SBIR or STTR awards under sections 406(a)(3)(A) and 492 of the Public Health Service Act. This pilot program terminates on September 30, 2030. Separately, not later than three years after enactment, the Director of the National Institutes of Health must submit an evaluation of this pilot program to the House Committees on Small Business and on Science, Space, and Technology and to the Senate Committee on Small Business and Entrepreneurship, including an analysis of the peer review procedures used and their effects on award times.
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504. Pilot program to accelerate National Institutes of Health evaluation process. Sec.
Sec. 505Codifying safeguards for small business concerns majority-owned by venture capital operating companies, hedge funds, or private equity firms
This section adds a new exception to an existing SBIR eligibility rule in Section 9(dd)(6)(B): that existing rule now applies "except as provided in paragraph (8)," the new paragraph this section adds. Under new paragraph (8), a small business concern that is majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms becomes ineligible to receive an award under any SBIR program if the Administrator of the Small Business Administration determines that the business is, or is owned and controlled in majority part by, a "covered foreign entity." In making that ineligibility determination, the Administrator must consider whether the business is a direct or indirect subsidiary of a foreign-owned firm. The Administrator must also establish size standards for small business concerns that seek to participate in an SBIR program solely under this venture-capital, hedge-fund, or private-equity ownership authority. The section defines "covered foreign entity" broadly. It includes a foreign entity of concern; a government or political party of a foreign country of concern; a natural person who is not a lawful permanent resident, United States citizen, or other protected individual under immigration law; or a partnership, association, corporation, organization, or other combination of persons organized under the laws of, or with its principal place of business in, a foreign country of concern. It also includes any entity or person that is owned by, controlled by, or subject to the jurisdiction or direction of such an entity; any person anywhere who acts as its agent, representative, or employee; any person acting at its order, request, or direction, or under the direction, control, financing, or subsidy of it or of a person it directly or indirectly supervises or controls; any person who directly or indirectly owns 25 percent or more of its equity interests; any person with significant responsibility to control, manage, or direct it; any person anywhere who is a citizen or resident of a country it controls; and any organization formed under the laws of a country it controls. The section separately defines "foreign entity of concern" as a foreign entity that is designated a foreign terrorist organization by the Secretary of State; is on the Treasury Department's list of specially designated nationals and blocked persons; is owned, controlled, or subject to the jurisdiction or direction of the government of a foreign country that is a "covered nation" under federal defense law; is alleged by the Attorney General to have been involved in activities for which a conviction was obtained under any of several listed federal espionage, export-control, atomic energy, or economic-sanctions laws; or is determined by the Secretary of Commerce, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct detrimental to United States national security or foreign policy. These changes would apply only to awards made under an SBIR program after the date this Act is enacted.
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505. Codifying safeguards for small business concerns majority-owned by venture capital operating companies, hedge funds, or private equity firms. Sec.
Sec. 506Commercialization impact assessment
This section would require the Administrator of the Small Business Administration to coordinate with the head of every federal agency that runs an SBIR or STTR program to develop an annual "commercialization impact assessment." That assessment covers each small business concern that has received at least 50 Phase II awards on or after October 1 of the ninth full fiscal year before the fiscal year in which the assessment is carried out, and for each such business it must measure, covering the preceding 9 fiscal years: the total dollar value of federal awards, subgrants, contracts, and subcontracts the business received other than SBIR or STTR awards; the total dollar value of all SBIR and STTR Phase I and Phase II awards the business received; the business's average annual gross revenue; the business's total revenue from the sale or licensing of any product or service resulting from research conducted under an SBIR or STTR award, broken out separately as sales revenue and licensing revenue; any additional investment in the business, other than Phase I or Phase II SBIR or STTR awards, made to further research and development conducted under an SBIR or STTR award; any mergers or acquisitions of SBIR or STTR award recipients during or after completion of a Phase II award; any new, unique spin-out companies and third-party revenue resulting from research the business conducted under an SBIR or STTR award; the year the business received its first Phase II award and its total number of employees at that time; the business's number of employees as of the end of the most recently completed fiscal year; and the total number and value of Phase III awards the business has received. The Administrator must create a report on the findings of each assessment, include that report in the annual report already required under subsection (b)(7), and submit it to the Senate Committee on Small Business and Entrepreneurship and to the House Committees on Science, Space, and Technology and on Small Business.
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506. Commercialization impact assessment. Title VI—Technical Changes Sec.
Sec. 601Inclusion of SBICs in the SBIR and STTR programs
This section would extend existing rules in Section 9 of the Small Business Act that apply to ownership or investment by venture capital operating companies or private equity firms, including the majority-ownership eligibility rules addressed in Section 505, so that those same rules also apply to ownership or investment by Small Business Investment Companies (SBICs), everywhere that wording appears in the section. It defines "SBIC" to mean a small business investment company as defined in Section 103 of the Small Business Investment Act of 1958. It also updates the heading of subsection (dd), the majority-ownership eligibility provision covering venture capital operating companies, hedge funds, or private equity firms, so that it also mentions SBICs.
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601. Inclusion of SBICs in the SBIR and STTR programs. Sec.
Sec. 602Phase III and sole-source awards
This section would rename the heading of Section 9(r) and the heading of Section 9(r)(4) by adding the words "Sole Source and Other" to the existing "Justification for" language, so the headings reflect that this part of the law covers justification for sole-source and other Phase III awards. The bill text does not show any change to the operative rule itself, only to these two headings.
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602. Phase III and sole-source awards. I Reauthorization of Programs 101. Extension of SBIR and STTR authority (a) SBIR Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended by striking subsection (m). (b) STTR Section 9(n)(1)(A) of the Small Business Act ( 15 U.S.C. 638(n)(1)(A) ) is amended by striking through fiscal year 2025 . 102. Extension of FAST Program Section 34(i) of the Small Business Act ( 15 U.S.C. 657d(i) ) is amended by striking September 30, 2005 and inserting September 30, 2030 . II Enhancing Competition 201. Increasing agency expenditures for SBIR and STTR programs Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in subsection (f)(1)— (A) in subparagraph (H), by striking and ; (B) in subparagraph (I), by striking fiscal year 2017 and each fiscal year thereafter, and inserting each of fiscal years 2017 through 2025; ; and (C) by inserting after subparagraph (I) the following new subparagraphs: (J) not less than 4 percent of such budget in fiscal years 2026 and 2027; (K) not less than 5 percent of such budget in fiscal years 2028 and 2029; (L) not less than 6 percent of such budget in fiscal years 2030 and 2031; and (M) not less than 7 percent of such budget in fiscal year 2032 and each fiscal year thereafter, ; and (2) in subsection (n)(1)(B)— (A) in clause (iv), by striking ; and and inserting a semicolon; (B) in clause (v), by striking fiscal year 2016 and each fiscal year thereafter. and inserting each of fiscal years 2016 through 2025; ; and (C) by adding at the end the following: (vi) 0.5 percent for fiscal year 2026 and 2027; (vii) 0.65 percent for fiscal year 2028 and 2029; (viii) 0.8 percent for fiscal year 2030 and 2031; and (ix) 1 percent for fiscal year 2032 and each fiscal year thereafter. . 202. SBIR and STTR fellowships Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in subsection (f), by adding at the end the following new paragraph: (5) Fellowships (A) In general A Federal agency may provide grants or awards, either directly or in partnership with a third party, to small business concerns that have received SBIR or STTR Phase II awards to provide fellowship and internship opportunities at the undergraduate, baccalaureate, graduate, and postdoctoral levels in fields that are important to such Federal agency. (B) Enhanced outreach Each Federal agency that makes an award or enters into a partnership under subparagraph (A) shall provide for enhanced outreach to increase the participation of women, socially disadvantaged individuals (as described in section 8(a)(5)), and economically disadvantaged individuals (as described section 8(a)(6)(A)) in the fellowship and internship opportunities described under subparagraph (A). (C) Support organization Each Federal agency that makes an award or enters into a partnership under subparagraph (A) may partner with or provide grants or awards to a third-party organization to support and facilitate the enhanced outreach under subparagraph (B) provided that such third-party organization is a nonprofit organization with relevant experience and demonstrated expertise in delivery of services described in subparagraph (B). (D) Funding In carrying out this paragraph, a Federal agency may use only the following amounts: (i) With respect to a Federal agency that uses the authority under subsection (mm), the funds authorized under such subsection. (ii) With respect a Federal agency other than a Federal agency described in clause (i), not more than three percent of the funds required to be expended under paragraph (1). ; and (2) in subsection (n), by adding at the end the following new paragraph: (4) Fellowships (A) In general A Federal agency may provide grants or awards, either directly or in partnership with a third party, to small business concerns that have received SBIR or STTR Phase II awards to provide fellowship and internship opportunities at the undergraduate, baccalaureate, graduate, and postdoctoral levels in fields that are important to such Federal agency. (B) Enhanced outreach Each Federal agency that makes an award or enters into a partnership under subparagraph (A) shall provide for enhanced outreach to increase the participation of women, socially disadvantaged individuals (as described in section 8(a)(5)), and economically disadvantaged individuals (as described section 8(a)(6)(A)) in the fellowship and internship opportunities described under subparagraph (A). (C) Support organization Each Federal agency that makes an award or enters into a partnership under subparagraph (A) may partner with or provide grants or awards to a third-party organization to support and facilitate the enhanced outreach under subparagraph (B) provided such third-party organization is a nonprofit organization with relevant experience and demonstrated expertise in delivery of services described in subparagraph (B). (D) Funding In carrying out this paragraph, a Federal agency may use only the following amounts: (i) With respect to a Federal agency that uses the authority under subsection (mm), the funds authorized under such subsection. (ii) With respect a Federal agency other than a Federal agency described in clause (i), not more than three percent of the funds required to be expended under paragraph (1). . 203. Application assistance to broaden participation (a) In general Section 9(mm)(1) of the Small Business Act ( 15 U.S.C. 638(mm)(1) ) is amended— (1) in subparagraph (J), by striking and at the end; (2) in subparagraph (K), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following new subparagraph: (L) providing small business concerns with assistance applying to the SBIR program or STTR program of the Federal agency, including providing such assistance to carry out the policy directive required under paragraphs (2)(F) or (5) of subsection (j) and subsection (p)(2)(H) to increase the participation of States with respect to which a low level of SBIR or STTR awards have historically been awarded. . (b) Enhanced minority institution participation (1) SBIR Section 9(j) of the Small Business Act ( 15 U.S.C. 638(j) ), is amended by adding at the end the following new paragraph: (5) Increased outreach requirements Not later than 90 days after the date of the enactment of this paragraph, the Administration shall modify the policy directives issued pursuant to this subsection to require enhanced outreach efforts to increase the participation of individuals conducting research at minority institutions (as defined in section 365 of the Higher Education Act of 1965 ( 20 U.S.C. 1067k )) and Hispanic-serving institutions (as defined in section 502(a) of such Act ( 20 U.S.C. 1101a(a) )) in SBIR programs. . (2) STTR Section 9(p)(2) of the Small Business Act ( 15 U.S.C. 638(p)(2) ) is amended— (A) in subparagraph (F), by striking and at the end; (B) in subparagraph (G)(iii), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new subparagraph: (H) procedures for outreach efforts to increase the participation of individuals conducting research at minority institutions (as defined in section 365 of the Higher Education Act of 1965 ( 20 U.S.C. 1067k )) and Hispanic-serving institutions (as defined in section 16 502(a) of such Act ( 20 U.S.C. 1101a(a) )) in STTR programs. . 204. Technical and business assistance improvements Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in subsection (q)— (A) in paragraph (1), in the matter preceding subparagraph (A)— (i) by striking may enter into an agreement with 1 or more vendors selected under paragraph (2)(A) to provide small business concerns engaged in SBIR or STTR projects with technical and business assistance services and inserting shall authorize recipients of awards under the SBIR program or the STTR program to select, if desired, technical and business assistance provided under subparagraph (A), (B), or (C) of paragraph (3) to provide such recipients with ; (ii) by inserting cybersecurity assistance, after intellectual property protections, ; and (iii) by striking such concerns and inserting such recipients ; (B) in paragraph (2), by adding at the end the following: (C) Staff A small business concern may, by contract or otherwise, use funding provided under this section to hire new staff, augment staff, or direct staff to conduct or participate in training activities consistent with the goals listed in paragraph (1) consistent with the goals listed in paragraph (1). ; (C) in paragraph (3), by striking subparagraphs (A) and (B) and inserting the following: (A) Phase I A Federal agency described in paragraph (1) shall authorize a recipient of a Phase I SBIR or STTR award to use not more than $6,500 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)— (i) provided through a vendor selected under paragraph (2)(A); (ii) provided through a vendor other than a vendor selected under paragraph (2)(A); (iii) achieved through the activities described in paragraph (2)(C); or (iv) provided through any combination of clauses (i) and (ii). (B) Phase II A Federal agency described in paragraph (1) shall authorize a recipient of a Phase II SBIR or STTR award to use not more than $50,000 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)— (i) provided through a vendor selected under paragraph (2)(A); (ii) provided through a vendor other than a vendor selected under paragraph (2)(A); (iii) achieved through the activities described in paragraph (2)(C); or (iv) provided through any combination of clauses (i), (ii), and (iii). ; and (D) by adding at the end the following: (5) Targeted review A Federal agency may perform targeted reviews of technical and business assistance funding as described in subsection (mm)(1)(F). ; and (2) by adding at the end the following: (aaa) I-Corps Participation (1) In general Each Federal agency that, as of January 1, 2025, was required to conduct an SBIR or STTR program with an Innovation Corps program (established under section 601 of the American Innovation and Competitiveness Act ( 42 U.S.C. 1862s–8 ) and commonly known as I–Corps ) shall— (A) provide an option for participation in an I–Corps teams course, I–Corps bootcamp, or another equivalent training program to recipients of an award under the SBIR or STTR program; and (B) authorize the recipients described in subparagraph (A) to use amounts authorized under this subsection to participate in the I–Corps teams course, I–Corps bootcamp, or another equivalent training program. (2) Cost of participation The cost of participation by a recipient described in paragraph (1)(A) in an I–Corps course, I–Corps bootcamp, or another equivalent training program may be provided by— (A) an I–Corps team grant; (B) funds awarded to the recipient under this subsection; (C) the participating teams or other sources as appropriate; or (D) any combination of sources described in subparagraphs (A), (B), and (C). . 205. Improvements to website relating to the SBIR program or STTR program (a) SBIR program Section 9(g)(8) of the Small Business Act ( 15 U.S.C. 638(g)(8) ) is amended— (1) in subparagraph (B), by striking and at the end; (2) in subparagraph (C), by adding and at the end; and (3) by adding at the end the following new subparagraph: (D) for each research institution subcontracted by a recipient of a Phase I, Phase II, or Phase III SBIR award to perform research or research and development with respect to such award— (i) the name and location of such research institution; (ii) whether such research institution is— (I) an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); (II) a nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703 )) other than an institution of higher education; or (III) a federally funded research and development center (as identified by the National Scientific Foundation in accordance with the Federal Acquisition Regulation); and (iii) for each research institution that is an institution of higher education, whether such research institution is— (I) a part B institution (as defined in section 322 of the Higher Education Act of 1965 ( 20 U.S.C. 1061 )); (II) a Hispanic-serving institution (as defined in section 502 of such Act ( 20 U.S.C. 1101a )); (III) a Tribal College or University (as defined in section 316 of such Act ( 20 U.S.C. 1059c )); (IV) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in section 317(b) of such Act ( 20 U.S.C. 1059d(b) )); (V) a Predominantly Black Institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )); (VI) an Asian American and Native American Pacific Islander-serving institution (as defined in section 371(c) of such Act (20 U.S.C. 10 1067q(c))); or (VII) a Native American-serving nontribal institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )); . (b) STTR program Section 9(o)(9) of the Small Business Act ( 15 U.S.C. 638(o)(9) ) is amended— (1) in subparagraph (B), by striking and at the end; (2) in subparagraph (C), by adding and at the end; and (3) by adding at the end the following new subparagraph: (D) for each research institution subcontracted by a recipient of a Phase I or Phase II STTR award to perform research or research and development with respect to such award— (i) the name and location of such research institution; (ii) whether such research institution is— (I) an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); (II) a nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703 )) other than an institution of higher education; or (III) a federally funded research and development center (as identified by the National Scientific Foundation in accordance with the Federal Acquisition Regulation); and (iii) for each research institution that is an institution of higher education, whether such research institution is— (I) a part B institution (as defined in section 322 the Higher Education Act of 1965 ( 20 U.S.C. 1061 )); (II) a Hispanic-serving institution (as defined in section 502 of such Act ( 20 U.S.C. 1101a )); (III) a Tribal College or University (as defined in section 316 of such Act ( 20 U.S.C. 1059c )); (IV) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in section 317(b) of such Act ( 20 U.S.C. 1059d(b) )); (V) a Predominantly Black Institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )); (VI) an Asian American and Native American Pacific Islander-serving institution (as defined in section 371(c) of such Act (20 U.S.C. 25 1067q(c))); or (VII) a Native American-serving nontribal institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )); . (c) Database reporting (1) In general Section 9(k) of the Small Business Act ( 15 U.S.C. 638(k) ) is amended— (A) by striking Phase I or Phase II SBIR or STTR each place it appears and inserting Phase I, Phase II, or Phase III SBIR or STTR ; (B) in paragraph (1)(B)— (i) in clause (ii), by striking and at the end; (ii) in clause (iii), by adding and at the end; and (iii) by adding at the end the following new clause: (iv) information regarding any research institution subcontracted by such small business concern to perform research or research and development with respect to such award, including— (I) the name and location of such research institution; (II) whether such research institution is— (aa) an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); (bb) a nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703 )) other than an institution of higher education; or (cc) a federally funded research and development center (as identified by the National Scientific Foundation in accordance with the Federal Acquisition Regulation); and (III) for each research institution that is an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )), whether such research institution is an institution described in paragraphs (1) through (7) of section 371(a) of such Act ( 20 U.S.C. 1067q(a) ); ; (C) in paragraph (2)— (i) in subparagraph (A), by striking Phase I or Phase II of the SBIR program or the STTR and inserting Phase I, Phase II, or Phase III of the SBIR program or the STTR ; (ii) in subparagraph (F), by striking and at the end; (iii) in subparagraph (G)(ii), by striking the period at the end and inserting ; and ; and (iv) by adding at the end the following new subparagraph: (H) contains information for each research institution subcontracted by a recipient of a Phase I, Phase II, or Phase III STTR or SBIR award to perform research or research and development with respect to such award, including— (i) the name and location of such research institution; (ii) whether such research institution is— (I) an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); (II) a nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703 )) other than an institution of higher education; or (III) a federally funded research and development center (as identified by the National Scientific Foundation in accordance with the Federal Acquisition Regulation); and (iii) for each research institution that is an institution of higher education (as such term is defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )), whether such research institution is an institution described in paragraphs (1) through (7) of section 371(a) of such Act ( 20 U.S.C. 1067q(a) ). ; and (D) in paragraph (3)(C), by striking Phase I or Phase II award each place it appears and inserting Phase I, Phase II, or Phase III award . (2) Database update deadline Notwithstanding paragraphs (1) or (2) of section 9(k) of the Small Business Act ( 15 U.S.C. 638(k) ), the Administrator shall, not later than 1 year after the date of the enactment of this Act, include— (A) in the database described such paragraph (1) the information required under such paragraph, as amended by subparagraphs (A) and (B) of paragraph (1) of this Act; and (B) in the database described such paragraph (2) the information required under such paragraph, as amended by subparagraphs (A) and (C) of paragraph (1) of this Act. III Commercialization Improvements 301. Phase III award education Section 9(r) of the Small Business Act ( 15 U.S.C. 638(r) ) is amended by adding at the end the following new paragraph: (5) Workforce training (A) In general The Administrator, in coordination with the Secretary of Defense, the Administrator of the General Services Administration, and the head of any such other Federal agency that the Administrator determines appropriate, shall establish training activities for contracting officers and agency acquisition workforce of Federal agencies to ensure that such individuals are fully aware of all aspects of Phase III acquisitions under the SBIR and STTR programs, as applicable. (B) Training topics The training activities required under subparagraph (A) shall include training on— (i) the missions, goals, and authorities of the SBIR and STTR programs; (ii) the use of Phase III agreement; (iii) Phase III data rights; and (iv) the execution of Phase III sole source award contracts. (C) Definitions In this paragraph: (i) Agency acquisition workforce The term agency acquisition workforce means the employees of a Federal agency that have procurement or acquisition responsibilities, including— (I) employees described in section 1703 of title 41, United States Code; and (II) individuals that are part of the acquisition workforce (as such term is defined in section 101(a) of title 10, United States Code). (ii) Phase III acquisition The term Phase III acquisition means the acquisition of a good or service from a participant in Phase III that such participant has commercialized or is seeking to commercialize as such a participant. . 302. Technology Commercialization Official Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by section 204, is further amended by adding at the end the following new subsection: (bbb) Technology Commercialization Official The head of each Federal agency required to establish an SBIR or STTR program shall— (1) designate an existing official within such Federal agency as the Technology Commercialization Official of such Federal agency, who shall— (A) have sufficient experience with commercialization; (B) provide guidance to recipients of SBIR or STTR awards on commercializing and transitioning technologies; (C) coordinate with the Administrator and the Technology Commercialization Officials of other Federal agencies to identify additional markets and commercialization pathways for promising SBIR and STTR program technologies; (D) submit to the Administrator an annual report on the number of technologies from such SBIR or STTR program that have advanced commercialization activities, including the relevant information required in the commercialization impact assessment report under subsection (ccc); (E) identify and advocate for SBIR and STTR technologies with sufficient technology and commercialization readiness to advance to Phase III awards or other non-SBIR or STTR program contracts; (F) submit to the Administrator an annual report on— (i) the actions taken by such Federal agency to simply, standardize, and expedite the application process and requirements, procedures, and contracts as required under subsection (hh); and (ii) the results of the actions taken under clause (i); and (G) carry out such other duties as the head of such Federal agency determines necessary; or (2) identify an official in such Federal agency carrying out responsibilities that are substantially similar to those described in subparagraphs (A) through (F) of paragraph (1). . 303. Phase III improvements (a) Procurement center representative directives (1) In general Section 9(j)(4) of the Small Business Act ( 15 U.S.C. 638(j)(4) ) is amended by inserting before the period at the end the following: , and advocate for the maximum practicable use and transition of products, services, and technologies developed under SBIR or STTR programs to Phase III by means of Phase III awards to small business concerns . (2) Modification deadline Not later than one year after the date of the enactment of this Act, the Administrator of the Small Business Administration shall modify the policy directives issues pursuant to subsection (j) of section 9 of the Small Business Act ( 15 U.S.C. 638(j) ) in accordance with paragraph (4) of such subsection, as amended by paragraph (1). (b) Phase III award simplification Section 9(r)(4) of the Small Business Act ( 15 U.S.C. 638(r)(4) ) is amended— (1) in subparagraph (A), by striking and at the end; (2) in subparagraph (B), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following new subparagraphs: (C) report to the Administrator on the actions taken by the Federal agency or Federal prime contractor to develop simplified and standardized procedures and model contracts for Phase I, Phase II, and Phase III SBIR awards; and (D) shall issue standardized solicitation provisions and contract clauses which provide clear guidance on the information that small business concerns participating in SBIR or STTR programs can be expected to provide as part of market research or as part of a proposal by such small business concern to establish eligibility for Phase III awards. . IV Pilot Programs 401. Extend and modify assistance for administrative, oversight, and contract processing costs (a) In general Section 9(mm) of the Small Business Act ( 15 U.S.C. 638(mm) ), as amended by section 202, is further amended— (1) by designating the text of paragraph (1) as subparagraph (A); and (2) in paragraph (1)— (A) by redesignating subparagraphs (A) through (L) as clauses (i) through (xii), respectively; (B) by striking September 30, 2025 and inserting September 30, 2030 ; (C) by striking 3 percent and inserting 3.3 percent ; and (D) by adding at the end the following new subparagraph: (B) Transfer of funds (i) In general Not later than 2 months after the date of the enactment of an Act providing appropriations for the Department of Defense, the Department of Energy, the Department of Health and Human Services, the National Aeronautics and Space Administration, or the National Science Foundation, the head of each such entity for which such Act provided appropriations shall transfer not less than 10 percent of the amount of the funds used for the purposes described in clauses (i) through (xii) of subparagraph (A) to the Administrator to increase the resources of the Administration for administering the SBIR and STTR programs. (ii) Fund use limits None of the funds transferred under clause (i) may be used for or with respect to any program established under the Small Business Investment Act of 1958 ( 15 U.S.C. 661 et seq. ). . (b) Increasing participation of underserved populations in the SBIR and STTR programs (1) In general Section 9(mm)(2) of the Small Business Act ( 15 U.S.C. 638(mm)(2) ) is amended to read as follows: (2) Outreach and technical assistance A Federal agency participating in the program under this subsection may use a portion of the funds authorized for uses under paragraph (1) to carry out the policy directive required under subsection (j)(2)(F) and to increase the participation of States with respect to which a low level of SBIR awards have historically been awarded. . (2) Conforming amendment Section 9(mm)(6) of the Small Business Act ( 15 U.S.C. 638(mm)(6) ) is amended by striking including and all that follows and inserting the following: including— (A) the use of funds transferred under subparagraph (B) of paragraph (1) for the uses authorized in such subparagraph and to achieve the objectives of paragraph (2); and (B) the use of other funds under this subsection to achieve such objectives. . 402. Extend and expand the direct to Phase II authority Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) by designating the text of subsection (cc) as paragraph (1); and (2) in subsection (cc)— (A) by striking 2012 through 2025 and inserting 2012 through 2030 ; (B) by striking the National Institutes of Health, the Department of Defense, and the Department of Education may each and inserting each Federal agency required to carry out an SBIR program may ; and (C) by adding at the end the following new paragraphs: (2) Limitation The total value of awards provided by a Federal agency under this subsection in a fiscal year shall be— (A) except as provided in subparagraph (B), not more than 10 percent of the total funds allocated to the SBIR program of the Federal agency during that fiscal year; and (B) with respect to the National Institutes of Health, not more than 15 percent of the total funds allocated to the SBIR program of the National Institutes of Health during that fiscal year. (3) Report Each head of a Federal agency that exercises the authority under this subsection shall include in the next report submitted by such Federal agency under (g)(9) following such exercise the number and amount of awards provided under this subsection by such Federal agency in the period covered by such report. . 403. Extend commercialization readiness program for civilian agencies Section 9(gg) of the Small Business Act ( 15 U.S.C. 638(gg) ) is amended— (1) in the heading, by striking Pilot and inserting Civilian agencies commercialization readiness ; (2) by striking pilot program each place it appears and inserting covered program ; and (3) by striking fiscal year 2025 and inserting fiscal year 2030 . 404. Extension of certain SBIR and STTR pilot programs (a) Phase 0 proof of concept partnership program Section 9(jj)(7) of the Small Business Act ( 15 U.S.C. 638(jj)(7) ) is amended by striking at the end of fiscal year 2025 and inserting on September 30, 2030 . (b) Commercialization assistance pilot programs Section 9(uu)(3) of the Small Business Act ( 15 U.S.C. 638(uu)(3) ) is amended by striking September 30, 2025 and inserting September 30, 2030 . 405. Extension of due diligence program to assess security risks Section 9(vv)(3)(C) of the Small Business Act ( 15 U.S.C. 638(vv)(3)(C) ) is amended by striking September 30, 2025 and inserting September 30, 2030 . V Oversight and Simplification Initiatives 501. Annual reports to Congress Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in subsection (g)(9)— (A) by inserting the House Committee on Small Business, Senate Committee on Small Business and Entrepreneurship, after SBIR program to ; (B) by inserting a comma after Administration ; and (C) by inserting after Technology Policy the following: and publish such report on the website of such Federal agency as soon as practicable ; (2) in subsection (o)(10)— (A) by inserting House Committee on Small Business, Senate Committee on Small Business and Entrepreneurship, after STTR program to ; (B) by inserting a comma after Administration ; and (C) by inserting after Technology Policy the following: and publish such report on the website of such Federal agency as soon as practicable ; and (3) in subsection (gg)(6), by inserting Congress and after agency to . 502. Comptroller General report on diversification and commercialization (a) In general Not later than three years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effectiveness of the SBIR and STTR programs with respect to diversification of participants and commercialization. (b) Contents The report shall include, to the extent practicable, an assessment of— (1) the demographics of small business concerns receiving SBIR or STTR awards, including new entrants and underrepresented groups; (2) the efforts of participating agencies to broaden representation and participation of new entrants and underrepresented groups in the SBIR and STTR programs; (3) how participating agencies develop solicitation topics and attract applicants; (4) the efforts of participating agencies to support technology commercialization; (5) the extent to which the SBIR and STTR awards made by each participating agency align with the research priorities and technology needs of that participating agency; and (6) such other matters as the Comptroller General, in consultation with the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, determines appropriate. (c) Definitions In this section: (1) Federal agency; sbir; sttr The terms Federal agency , SBIR , and STTR have the meanings given such terms in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) ). (2) New entrant The term new entrant means a small business concern that has not previously received an SBIR or STTR award. (3) Underrepresented groups The term underrepresented groups means small business concerns located in States with respect to which a low level of SBIR and STTR awards have historically been awarded, small business concerns owned and controlled by women, and small business concerns owned and controlled by socially and economically disadvantaged individuals. (4) Participating agency The term participating agency means a Federal agency carrying out an SBIR or STTR program under section 9 of the Small Business Act ( 15 U.S.C. 638 ). (5) Small business concern The term small business concern has the meaning given such term under section 3 of the Small Business Act ( 15 U.S.C. 632 ). (6) Small business concern owned and controlled by socially and economically disadvantaged individuals; small business concern owned and controlled by women The terms small business concern owned and controlled by socially and economically disadvantaged individuals and small business concern owned and controlled by women have the meanings given such terms in section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ). 503. Extend the report on award timeliness Section 9(ii)(2)(A) of the Small Business Act ( 15 U.S.C. 638(ii)(2)(A) ) is amended— (1) in the matter preceding clause (i), by striking 3 years and inserting 11 years ; (2) in clause (i), by striking and at the end; (3) by redesignating clause (ii) as clause (iii); and (4) by inserting after clause (i) the following new clause: (ii) provides the average and median amount of time that each Federal agency with an SBIR or STTR program takes to review and make a final decision on proposals submitted under the program; and . 504. Pilot program to accelerate National Institutes of Health evaluation process (a) In general Section 9(hh) of the Small Business Act ( 15 U.S.C. 638(hh) ) is amended by adding at the end the following new paragraph: (3) Pilot program to accelerate the national institutes of health sbir and sttr awards (A) In general Not later than 1 year after the date of the enactment of this paragraph, the Director of the National Institutes of Health shall establish a pilot program to reduce the time for awards under the SBIR and STTR programs of the National Institutes of Health. (B) Award procedures In carrying out the pilot program under subparagraph (A), the Director shall develop simplified and standardized procedures across all relevant awarding offices at the National Institutes of Health and reduce the amount of time between the provision of notice of such awards and the subsequent release of funding with respect to the awards to be as close to 90 days as possible. (C) Merit review (i) In general Under the pilot program under subparagraph (A), the Director of the National Institutes of Health may, with respect to awards under the SBIR and STTR programs of the National Institutes of Health, use such peer review procedures (including consultation with appropriate scientific experts) as the Director determines to be appropriate to obtain assessments of scientific and technical merit and potential for commercialization. (ii) Deemed The use of peer review procedures under clause (i) shall be deemed to fulfill any requirements applicable to the award under the SBIR or STTR program of the National Institutes of Health under sections 406(a)(3)(A) and 492 of the Public Health Service Act ( 42 U.S.C. 284a(a)(3)(A) ; 289a). (D) Termination The pilot program under subparagraph (A) shall terminate on September 30, 2030. . (b) Evaluation report Not later than three years after the date of enactment of this Act, the Director of the National Institutes of Health shall submit to the Committees on Small Business and Science, Space, and Technology of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate an evaluation of the pilot program established under paragraph (3) of section 9(hh) of the Small Business Act ( 15 U.S.C. 638(hh) ), as added by subsection (a), including an analysis of the peer review procedures used under subparagraph (C) of such paragraph and the effects on award times. 505. Codifying safeguards for small business concerns majority-owned by venture capital operating companies, hedge funds, or private equity firms (a) In general Section 9(dd) of the Small Business Act ( 15 U.S.C. 638(dd) ) is amended— (1) in paragraph (6)(B), by striking If a Federal and inserting Except as provided in paragraph (8), if a Federal ; and (2) by adding at the end the following new paragraph: (8) Participation limits (A) In general A small business concern that is majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms is ineligible to receive an award under any SBIR program if the Administrator determines that such small business concern is, or is owned and controlled in majority part by, a covered foreign entity. (B) Ownership determination In determining whether a small business concern is ineligible to receive an award under any SBIR program under subparagraph (A), the Administrator shall consider whether the small business concern is a direct or indirect subsidiary of a foreign-owned firm. (C) Size standards The Administrator shall establish size standards for small business concerns seeking to participate in an SBIR program solely under the authority under this section. (D) Definitions In this paragraph: (i) Covered foreign entity the term covered foreign entity — (I) means— (aa) a foreign entity of concern; (bb) a government or political party of a foreign country of concern; (cc) a natural person who is not a lawful permanent resident of the United States, citizen of the United States, or any other protected individual (as such term is defined in section 274B(a)(3) of the Immigration and Nationality Act ( 8 U.S.C. 1324b(a)(3) )); or (dd) a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern; and (II) includes— (aa) any entity owned by, controlled by, or subject to the jurisdiction or direction of a an entity listed in subclause (I); (bb) any person, wherever located, who acts as an agent, representative, or employee of an entity listed in subclause (I); (cc) any person who acts in any other capacity at the order, request, or under the direction or control, of an entity listed in subclause (I), or of a person whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in majority part by an entity listed in subclause (I); (dd) any person who directly or indirectly through any contract, arrangement, understanding, relationship, or otherwise, owns 25 percent or more of the equity interests of an entity listed in subclause (I); (ee) any person with significant responsibility to control, manage, or direct an entity listed in subclause (I); (ff) any person, wherever located, who is a citizen or resident of a country controlled by an entity listed in subclause (I); or (gg) any corporation, partnership, association, or other organization organized under the laws of a country controlled by an entity listed in subclause (I). (ii) Foreign entity of concern The term foreign entity of concern means a foreign entity that is— (I) designated as a foreign terrorist organization by the Secretary of State under section 219(a) of the Immigration and Nationality Act ( 8 U.S.C. 1189(a) ); (II) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the SDN list); (III) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation (as such term is defined in section 4872 of title 10, United States Code); (IV) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under— (aa) chapter 37 of title 18, United States Code (commonly known as the Espionage Act); (bb) section 951 or 1030 of such title; (cc) chapter 90 of such title (commonly known as the Economic Espionage Act of 1996); (dd) the Arms Export Control Act ( 22 U.S.C. 2751 et seq. ); (ee) section 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2274 , 2275, 2276, 2277, and 2284); (ff) the Export Control Reform Act of 2018 ( 50 U.S.C. 4801 et seq. ); or (gg) the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ); or (V) determined by the Secretary of Commerce, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States. . (b) Applicability The amendments made by subsection (a) shall apply only with respect to awards made under an Small Business Innovation Research Program (as defined in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) )) after the date of the enactment of this Act. 506. Commercialization impact assessment Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by this Act, is further amended by adding at the end the following new subsection: (ccc) Commercialization impact assessment (1) In general The Administrator, shall coordinate with the head of each Federal agency with an SBIR or STTR program to develop an annual commercialization impact assessment, which shall measure, for each small business concern that has received not less than 50 Phase II on or after October 1 of the ninth full fiscal year beginning before the fiscal year in which the assessment is carried out— (A) the total dollar value of Federal awards, including subgrants, contracts, and subcontracts, other than SBIR or STTR awards, received by the small business concern in the preceding 9 fiscal years; (B) the total dollar value of all SBIR and STTR Phase I and Phase II awards received by the small business concern in the preceding 9 fiscal years; (C) the average annual gross revenue of the small business concern over the preceding 9 fiscal years; (D) the total revenue of the small business concern received or realized in the preceding 9 fiscal years from the sale or licensing of any product or service resulting from research conduct under an SBIR or STTR award, disaggregated by the revenue from such sales and the revenue from such licensing; (E) additional investments in the small business concern from any source, other than a Phase I or Phase II SBIR or STTR awards, to further the research and development conducted under an SBIR or STTR award received by the small business concern in the preceding 9 fiscal years; (F) any mergers and acquisitions of SBIR or STTR award recipients during or after the completion of a Phase II award; (G) any new, unique spin-out companies and third party revenues from any business in the preceding 9 fiscal years resulting from research conducted by the small business concern under an SBIR or STTR award; (H) the year in which the first Phase II award was received by the small business concern and the total number of employees of the small business concern at the time of first Phase II award; (I) the number of employees, as of the end of the most recently completed fiscal year; and (J) the total number and value of Phase III awards received by the small business concern. (2) Publication The Administrator shall create a report on the findings of each commercialization impact assessment and shall— (A) include such report in the annual report required under subsection (b)(7); and (B) submit such report to— (i) the Committee on Small Business and Entrepreneurship of the Senate; and (ii) the Committees on Science, Space, and Technology and on Small Business of the House of Representatives. . VI Technical Changes 601. Inclusion of SBICs in the SBIR and STTR programs Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by section 505, is further amended— (1) by striking or private equity firm investment each place that term appears and inserting private equity firm, or SBIC investment ; (2) by striking or private equity firms each place that term appears and inserting private equity firms, or SBICs ; (3) in subsection (e)— (A) in paragraph (18), by striking and at the end; (B) in paragraph (19), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new paragraph: (20) the term SBIC means a small business investment company as defined in section 103 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ). ; and (4) in the heading for subsection (dd), by striking or Private Equity Firms and inserting Private Equity Firms, or SBICs . 602. Phase III and sole-source awards Section 9(r) of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in the heading, by inserting Sole Source and Other after Justification for ; and (2) in the heading for paragraph (4), by inserting sole source and other after justification for .
Where it is
In the House.