After a very painful, nearly five-month lapse in the programs, an agreement has finally been reached to reinstate the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The deal, brokered by Sen. Edward Markey (D-Mass.) and Sen. Joni Ernst (R-Iowa), was announced in a press release from the National Small Business Association (NSBA) and the Small Business Technology Council (SBTC), earlier this afternoon, and is expected to move quickly through the House and to the President’s desk, effectively reauthorizing these vital "America’s Seed Fund" programs through September 30, 2031.
The new agreement includes several significant updates designed to modernize the programs and address security concerns. Key changes include strengthened foreign risk due diligence, the creation of a "strategic breakthrough award" for post-Phase II projects that can reach up to $30 million, and a new cap on the number of proposals a single business can submit (in keeping with Senator Ernst's goal to limit so-called "SBIR Mills"). Additionally, the bill aims to streamline the process with standardized model contracts and expanded Technical and Business Assistance (TABA) that now covers cybersecurity training and hiring.
Industry leaders from the National Small Business Association (NSBA) and the Small Business Technology Council (SBTC) have praised the bipartisan effort, noting that the programs support over 4,000 innovative companies annually. By restoring this funding, lawmakers are ensuring that high-tech small businesses can continue driving the American economy and maintaining a competitive technological advantage on the global stage.
We applaud the compromise and all the hard work and advocacy from the NSBA, SBTC, the govcon compliance industry, and all of the small businesses that pushed so hard to save these programs!