Deal Reached on Long-Term SBIR Reauthorization

Dec 13, 2011

Washington DC - This evening, House Science, Space and Technology Committee Chairman Ralph Hall (R-TX), House Small Business Committee Chairman Sam Graves (R-MO), and Technology and Innovation Subcommittee Chairman Ben Quayle (R-AZ) announced that a bipartisan deal to reauthorize the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program has been agreed upon. 

These programs were set to expire on December 16th, but a compromise deal was successfully negotiated with the Senate, allowing a long-term reauthorization to be included as an amendment to the National Defense Authorization Act (NDAA).

Chairman Hall:

"I am extremely pleased that we have come to an agreement on a long-term reauthorization for the SBIR and STTR programs.  This agreement will provide thousands of small businesses with the certainty necessary to facilitate innovation and create high-paying jobs.  The legislation will also strengthen the program's research and development output by opening it up to more small businesses, and will ensure the greatest return on taxpayer investment by helping us combat waste, fraud, and abuse."

Chairman Graves:

"The SBIR and STTR programs are one of government's most effective programs for spurring innovative ideas among the small business research and development community and I'm glad that we've reached a deal to provide some much-needed certainty for the small firms who want to participate in this program.  This deal not only gives the program stability, but it improves the program by opening it up to more companies regardless of their financial structure, it increases the Phase I and II award sizes, and it puts a stronger emphasis on commercialization.  As our nation continues to recover economically, it is important for Congress to pass legislation like this that helps our nation's most effective job creators and innovators-our small businesses."

Chairman Quayle:

"The SBIR and STTR programs have largely been successful, but have operated under temporary extensions for the last few years.  Today's agreement is an important step that provides small businesses in Arizona and across the country with the resources and certainty they need to continue to innovate and create jobs.  I want to thank Chairman Hall for his efforts in finally securing a long-term reauthorization."

The negotiated reauthorization:

·         Reauthorizes the programs for six years;

·         Increases the SBIR program allocation from 2.5 to 3.2 percent and the STTR allocation from .3 percent to .45 percent, giving small businesses an increased role in the federal R&D enterprise, while preserving the bulk of federal R&D funding for basic research;

·         Allows for participation among small businesses with majority venture capital and private capital support in the program, increasing competition;

·         Helps participating agencies combat waste, fraud, and abuse within the SBIR and STTR programs, protecting taxpayer dollars in the program;

·         Tasks the National Research Council with evaluating the effectiveness of both the SBIR and the STTR programs;

·         Enables participating federal agencies to utilize 3% of program funds to improve administration of the program, combat waste, fraud, and abuse, and conduct outreach to underrepresented businesses.

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