About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (January 15, 2025)

handle is hein.crs/govesbw0001 and id is 1 raw text is: Congressional Research Service informing the legislative debate since 1914 0 January 15, 2025 Small Business Research Programs: Overview and Issues for Reauthorization in the 119th Congress Small businesses are often viewed as being critical to the economy-creating jobs, improving productivity, and advancing innovation. Given the perceived importance of small businesses, Congress has a long-standing interest in federal programs that provide assistance and support to them, including the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which fund research and development (R&D) performed by U.S. small businesses. The statutory authority for the SBIR/STTR programs is set to expire on September 30, 2025. This In Focus provides an overview of the SBIR/STTR programs and describes selected issues Congress may consider as it debates reauthorization of the programs. Overyvew of SB R/STTR Prograrns Congress created the SBIR program in 1982 (P.L. 97-219), stating that, despite the role of small businesses as the principal source of significant innovations in the Nation, the vast majority of federally funded R&D is performed by large businesses, universities, and federal laboratories. Per P.L. 97-219, the SBIR program seeks to advance four objectives: (1) stimulate innovation, (2) increase the use of small businesses in addressing federal R&D needs, (3) foster the participation of socially and economically disadvantaged individuals in innovation and entrepreneurship, and (4) increase private sector commercialization of technologies derived from federally funded R&D. Federal agencies with extramural R&D budgets of $100 million or more are required to allocate a portion of that funding (currently 3.2%) to conduct an agency-run SBIR program. Currently, 11 federal agencies operate SBIR programs: the Departments of Agriculture (USDA), Commerce (DOC), Defense (DOD), Education (ED), Energy (DOE), Health and Human Services (HHS), Homeland Security (DHS), and Transportation (DOT); Environmental Protection Agency (EPA); National Aeronautics and Space Administration (NASA); and National Science Foundation (NSF). A complementary program, the STTR program, was created in 1992 (P.L. 102-564) to facilitate the commercialization of university and federal R&D through support for cooperative R&D between small businesses and research institutions. Federal agencies with extramural R&D budgets of $1 billion or more are required to allocate a portion of that funding (currently 0.45%) to conduct an agency-run STTR program. Five federal agencies currently operate STTR programs: DOD, DOE, HHS, NASA, and NSF. Each federal agency is required to administer its own SBIR/STTR programs in accordance with the statutory provisions at 15 U.S.C. §638 and the policy directive issued by the U.S. Small Business Administration (SBA). SBA is also required to provide coordination across federal agency SBIR/STTR programs, monitor implementation, and report annually to Congress. Both the SBIR and STTR programs have three phases (see Figure 1). Figure I. Phases of the SBIRISTTR Programs Phase I Feasibility To determine scientific/technical merit and O feasibility of ideas with commercial potential Up to $314,363 Funded from agencies' SBIR/STTR budgets 6 months for SBIR and 12 months for STTR Phmse U: Prototyping inTo d melop prototypes or make other ata ,D advancements g Up to $2,095,748 r nded from agencies SBIRSTTR budlgtSI 24 m-onths - To Icommercialize technologies developed under i Phases I and 11 wrdNo limit on award amount Fubnded from non-SBIRSTTR sources No limit on award duration Source: Adapted from U.S. Government Accountability Office, Small Business Research Programs: Information Regarding Subaward Use and Data Quality, GAO-24- 106399, November 28, 2023, p. 7, According to the most recent SBA annual report, in FY2021, federal agencies obligated $3.5 billion in SBIR awards and $528.7 million in STTR awards to small businesses. . for Congress has sought to improve the SBIRJSTTR programs over the years, and in the context of reauthorization, it may consider a number of issues, including the following. Mitigation of Foreign Risks Many Members of Congress are concerned about the security of the U.S. R&D enterprise, including federally funded R&D performed by small businesses. The SBIR and STTR Extension Act of 2022 (P.L. 117-183) required federal agencies to develop and implement a due diligence program to assess the potential security risks (e.g., foreign affiliations) of small businesses seeking SBIR and STTR awards. According to a 2024 study by the U.S. Government

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most