Legislation updating a longstanding small business program for R&D won U.S.
approval July 8. The bill modernizes the Small Business Innovation Research
and Small Business Technology Transfer programs, including allowing
venture capitalists to again participate in the programs.
The Enhancing Small Business Research and Innovation Act of 2009 increases the
award sizes for early and midstage development (Phase I and Phase II) to
reflect the actual costs of doing high-tech research. It also increases the
flexibility of the SBIR program by allowing cross-agency awards, allowing
applicants to apply directly for Phase II funding and allowing venture capital-backed
small businesses to once again apply for awards.
"In the current economic environment we need to do everything possible to
support small high-tech entrepreneurs in the United
States, and that's the goal of the SBIR
program," Rep. Bart Gordon, chairman of the House Science and Technology
Committee, said in a statement.
SBIR is the single largest federal program supporting small high-tech
companies' R&D activities. The program provides more than $2.2 billion
annually to small high-tech businesses to develop commercial products and
assist agencies in their mission-related research agendas. The STTR (Small
Business Technology Transfer) program awards grants to joint partnerships
between universities and small businesses.
"Given the economic changes we have seen during the past two decades, we
need to update these programs to reflect the current economic realities of our
increasingly competitive innovation economy," Technology and Innovation
Subcommittee Chairman David Wu said. "The National Academies recently
released a report stating that venture capital-backed companies are important
and do not crowd out other small businesses. The goal of SBIR is to encourage
innovation; it is time we fix the administrative ruling of a single judge and
support more innovative small businesses."
The legislation also includes an amendment that aims to help the small
businesses that support NASA's space shuttle program transition through the
retirement of the shuttle, which is scheduled for mothballs at the end of 2010.
"Helping small businesses affected by the retirement of the shuttle
program transition to work in related or unrelated industries will encourage
cutting-edge R&D and preserve the unique work force which has made us the
world leader in innovation," said Rep. Suzanne Kosmas.
The companion bill in the Senate is S. 1233.
Midmarket News & Reviews 
