I 

118TH CONGRESS 

2D SESSION H. R. 10407 

To amend the Small Business Act to reauthorize and modify the Small 

Business Innovation Research and Small Business Technology Transfer 

Research programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 12, 2024 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committees on Science, 

Space, and Technology, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Small Business Act to reauthorize and modify 

the Small Business Innovation Research and Small Business Technology Transfer Research programs, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SBIR/STTR Reau5 thorization Act of 2024’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 


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Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—REAUTHORIZATION OF PROGRAMS 

Sec. 101. Sense of Congress. 

Sec. 102. Extension of SBIR and STTR authority. 

Sec. 103. Extension of FAST Program. 

TITLE II—DIVERSIFICATION INITIATIVES 

Sec. 201. SBIR and STTR fellowships. 

Sec. 202. Application assistance to broaden participation. 

Sec. 203. Technical and business assistance improvements. 

Sec. 204. Improvements to website relating to the SBIR program or STTR 

program. 

TITLE III—COMMERCIALIZATION IMPROVEMENTS 

Sec. 301. Phase III award education. 

Sec. 302. Report on DoD denials of Phase III. 

TITLE IV—PILOT PROGRAMS 

Sec. 401. Extend and modify assistance for administrative, oversight, and contract processing costs. 

Sec. 402. Extend and expand the direct to Phase II authority. 

Sec. 403. Acceleration of DoD SBIR and STTR awards. 

Sec. 404. Extend commercialization readiness program for civilian agencies. 

Sec. 405. Extend and expand Phase 0 proof of concept partnership program. 

Sec. 406. Extend commercialization assistance programs. 

TITLE V—OVERSIGHT AND SIMPLIFICATION INITIATIVES 

Sec. 501. Annual reports to Congress. 

Sec. 502. Comptroller General reports on fraud controls. 

Sec. 503. Comptroller General report on diversification and commercialization. 

Sec. 504. Extend the report on award timeliness. 

Sec. 505. Pilot program to accelerate National Institutes of Health evaluation 

process. 

Sec. 506. Codifying safeguards for small business concerns majority-owned by 

venture capital operating companies, hedge funds, or private 

equity firms. 

TITLE VI—TECHNICAL CHANGES 

Sec. 601. Inclusion of SBICs in the SBIR and STTR programs. 

Sec. 602. Phase III and sole-source awards. 


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1 TITLE I—REAUTHORIZATION OF 

2 PROGRAMS 

3 SEC. 101. SENSE OF CONGRESS. 

4 Section 9(a) of the Small Business Act (15 U.S.C. 

5 638(a)) is amended— 

6 (1) by inserting ‘‘(1)’’ before ‘‘Research and de7 velopment’’; and 

8 (2) by adding at the end the following new 

9 paragraphs: 

10 ‘‘(2) It is the sense of the Congress that— 

11 ‘‘(A) the purpose of the SBIR and STTR pro12 grams is to strengthen the role of innovative small 

13 business concerns in Federally funded research and 

14 development, including— 

15 ‘‘(i) stimulating technological innovation; 

16 ‘‘(ii) using small business concerns to meet 

17 the needs of Federal research and development; 

18 ‘‘(iii) fostering and encouraging participa19 tion of and by socially and economically dis20 advantaged small business concerns (as defined 

21 in section 8(a)(4)(A)) and small business con22 cerns owned and controlled by women in tech23 nological innovation; and 

24 ‘‘(iv) increasing private sector commer25 cialization of innovations derived from Federal 


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1 research and development, thereby increasing 

2 competition, productivity, and economic growth; 

3 and 

4 ‘‘(B) in addition to the purposes set forth in 

5 subparagraph (A), the purpose of the STTR pro6 gram is to reserve a portion of the extramural re7 search or research and development budgets of Fed8 eral agencies to provide awards to small business 

9 concerns for cooperative research and development 

10 with research institutions.’’. 

11 SEC. 102. EXTENSION OF SBIR AND STTR AUTHORITY. 

12 (a) SBIR.—Section 9 of the Small Business Act (15 

13 U.S.C. 638) is amended by striking subsection (m). 

14 (b) STTR.—Section 9(n)(1)(A) of the Small Busi15 ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 

16 ‘‘through fiscal year 2025’’. 

17 SEC. 103. EXTENSION OF FAST PROGRAM. 

18 Section 34(i) of the Small Business Act (15 U.S.C. 

19 657d(i)) is amended by striking ‘‘September 30, 2005’’ 

20 and inserting ‘‘September 30, 2030’’. 

21 TITLE II—DIVERSIFICATION 

22 INITIATIVES 

23 SEC. 201. SBIR AND STTR FELLOWSHIPS. 

24 Section 9 of the Small Business Act (15 U.S.C. 638) 

25 is amended— 


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1 (1) in subsection (f), by adding at the end the 

2 following new paragraph: 

3 ‘‘(5) FELLOWSHIPS.— 

4 ‘‘(A) IN GENERAL.—A Federal agency may 

5 provide grants or awards, either directly or in 

6 partnership with a third party, to small busi7 ness concerns that have received SBIR or 

8 STTR Phase II awards to provide fellowship 

9 and internship opportunities at the under10 graduate, baccalaureate, graduate, and 

11 postdoctoral levels in fields that are important 

12 to such Federal agency. 

13 ‘‘(B) ENHANCED OUTREACH.—Each Fed14 eral agency that makes an award or enters into 

15 a partnership under subparagraph (A) shall 

16 provide for enhanced outreach to increase the 

17 participation of women, socially disadvantaged 

18 individuals (as described in section 8(a)(5)), 

19 and economically disadvantaged individuals (as 

20 described section 8(a)(6)(A)) in the fellowship 

21 and internship opportunities described under 

22 subparagraph (A). 

23 ‘‘(C) SUPPORT ORGANIZATION.—Each 

24 Federal agency that makes an award or enters 

25 into a partnership under subparagraph (A) may 


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1 partner with or provide grants or awards to a 

2 third-party organization to support and facili3 tate the enhanced outreach under subparagraph 

4 (B) provided that such third-party organization 

5 is a nonprofit organization with relevant experi6 ence and demonstrated expertise in delivery of 

7 services described in subparagraph (B). 

8 ‘‘(D) FUNDING.—In carrying out this 

9 paragraph, a Federal agency may use only the 

10 following amounts: 

11 ‘‘(i) With respect to a Federal agency 

12 that uses the authority under subsection 

13 (mm), the funds authorized under such 

14 subsection. 

15 ‘‘(ii) With respect a Federal agency 

16 other than a Federal agency described in 

17 clause (i), not more than three percent of 

18 the funds required to be expended under 

19 paragraph (1).’’; and 

20 (2) in subsection (n), by adding at the end the 

21 following new paragraph: 

22 ‘‘(4) FELLOWSHIPS.— 

23 ‘‘(A) IN GENERAL.—A Federal agency may 

24 provide grants or awards, either directly or in 

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1 ness concerns that have received SBIR or 

2 STTR Phase II awards to provide fellowship 

3 and internship opportunities at the under4 graduate, baccalaureate, graduate, and 

5 postdoctoral levels in fields that are important 

6 to such Federal agency. 

7 ‘‘(B) ENHANCED OUTREACH.—Each Fed8 eral agency that makes an award or enters into 

9 a partnership under subparagraph (A) shall 

10 provide for enhanced outreach to increase the 

11 participation of women, socially disadvantaged 

12 individuals (as described in section 8(a)(5)), 

13 and economically disadvantaged individuals (as 

14 described section 8(a)(6)(A)) in the fellowship 

15 and internship opportunities described under 

16 subparagraph (A). 

17 ‘‘(C) SUPPORT ORGANIZATION.—Each 

18 Federal agency that makes an award or enters 

19 into a partnership under subparagraph (A) may 

20 partner with or provide grants or awards to a 

21 third-party organization to support and facili22 tate the enhanced outreach under subparagraph 

23 (B) provided such third-party organization is a 

24 nonprofit organization with relevant experience 


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1 and demonstrated expertise in delivery of serv2 ices described in subparagraph (B). 

3 ‘‘(D) FUNDING.—In carrying out this 

4 paragraph, a Federal agency may use only the 

5 following amounts: 

6 ‘‘(i) With respect to a Federal agency 

7 that uses the authority under subsection 

8 (mm), the funds authorized under such 

9 subsection. 

10 ‘‘(ii) With respect a Federal agency 

11 other than a Federal agency described in 

12 clause (i), not more than three percent of 

13 the funds required to be expended under 

14 paragraph (1).’’. 

15 SEC. 202. APPLICATION ASSISTANCE TO BROADEN PARTICI16 PATION. 

17 (a) IN GENERAL.—Section 9(mm)(1) of the Small 

18 Business Act (15 U.S.C. 638(mm)(1)) is amended— 

19 (1) in subparagraph (J), by striking ‘‘and’’ at 

20 the end; 

21 (2) in subparagraph (K), by striking the period 

22 at the end and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following new sub24 paragraph: 


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1 ‘‘(L) providing small business concerns 

2 with assistance applying to the SBIR program 

3 or STTR program of the Federal agency, in4 cluding providing such assistance to carry out 

5 the policy directive required under paragraphs 

6 (2)(F) or (5) of subsection (j) and subsection 

7 (p)(2)(H) to increase the participation of States 

8 with respect to which a low level of SBIR or 

9 STTR awards have historically been awarded.’’. 

10 (b) ENHANCED MINORITY INSTITUTION PARTICIPA11 TION.— 

12 (1) SBIR.—Section 9(j) of the Small Business 

13 Act (15 U.S.C. 638(j)), is amended by adding at the 

14 end the following new paragraph: 

15 ‘‘(5) INCREASED OUTREACH REQUIREMENTS.— 

16 Not later than 90 days after the date of the enact17 ment of this paragraph, the Administration shall 

18 modify the policy directives issued pursuant to this 

19 subsection to require enhanced outreach efforts to 

20 increase the participation of individuals conducting 

21 research at minority institutions (as defined in sec22 tion 365 of the Higher Education Act of 1965 (20 

23 U.S.C. 1067k)) and Hispanic-serving institutions (as 

24 defined in section 502(a) of such Act (20 U.S.C. 

25 1101a(a))) in SBIR programs.’’. 


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1 (2) STTR.—Section 9(p)(2) of the Small Busi2 ness Act (15 U.S.C. 638(p)(2)) is amended— 

3 (A) in subparagraph (F), by striking 

4 ‘‘and’’ at the end; 

5 (B) in subparagraph (G)(iii), by striking 

6 the period at the end and inserting ‘‘; and’’; 

7 and 

8 (C) by adding at the end the following new 

9 subparagraph: 

10 ‘‘(H) procedures for outreach efforts to in11 crease the participation of individuals con12 ducting research at minority institutions (as de13 fined in section 365 of the Higher Education 

14 Act of 1965 (20 U.S.C. 1067k)) and Hispanic15 serving institutions (as defined in section 16 

16 502(a) of such Act (20 U.S.C. 1101a(a))) in 

17 STTR programs.’’. 

18 SEC. 203. TECHNICAL AND BUSINESS ASSISTANCE IM19 PROVEMENTS. 

20 Section 9(q) of the Small Business Act (15 U.S.C. 

21 638(q)) is amended by— 

22 (1) in paragraph (1), in the matter preceding 

23 subparagraph (A)— 

24 (A) by striking ‘‘may enter into an agree25 ment with 1 or more vendors selected under 


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1 paragraph (2)(A) to provide small business con2 cerns engaged in SBIR or STTR projects with’’ 

3 and inserting ‘‘shall authorize recipients of 

4 awards under the SBIR program or the STTR 

5 program to select, if desired, commercialization 

6 activities provided under subparagraph (A), 

7 (B), or (C) of paragraph (3) to provide such re8 cipients with’’; and 

9 (B) by inserting ‘‘cybersecurity assist10 ance,’’ after ‘‘market validation,’’; 

11 (2) in paragraph (3)— 

12 (A) by striking subparagraphs (A) and (B) 

13 and inserting the following: 

14 ‘‘(A) PHASE I.—A Federal agency de15 scribed in paragraph (1) shall authorize a re16 cipient of a Phase I SBIR or STTR award to 

17 use not more than $6,500 per project, in addi18 tion to the amount of the award of the recipient 

19 as determined appropriate by the head of the 

20 Federal agency, for the services described in 

21 paragraph (1)— 

22 ‘‘(i) provided through a vendor se23 lected under paragraph (2)(A); 

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1 dor other than a vendor selected under 

2 paragraph (2)(A); or 

3 ‘‘(iii) provided through any combina4 tion of clauses (i) and (ii). 

5 ‘‘(B) PHASE II.—A Federal agency de6 scribed in paragraph (1) shall authorize a re7 cipient of a Phase II SBIR or STTR award to 

8 use not more than $50,000 per project, in9 cluded as part of the award of the recipient or 

10 in addition to the amount of the award of the 

11 recipient as determined appropriate by the head 

12 of the Federal agency, for the services described 

13 in paragraph (1)— 

14 ‘‘(i) provided through a vendor se15 lected under paragraph (2)(A); 

16 ‘‘(ii) provided through a vendor other 

17 than a vendor selected under paragraph 

18 (2)(A); or 

19 ‘‘(iii) provided through any combina20 tion of clauses (i) and (ii).’’; and 

21 (B) in subparagraph (E), by inserting 

22 ‘‘Phase I or’’ before ‘‘Phase II’’; and 

23 (3) by adding at the end the following new 

24 paragraph: 

25 ‘‘(5) I–CORPS PARTICIPATION.— 


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1 ‘‘(A) IN GENERAL.—Each Federal agency 

2 that is required to conduct an SBIR or STTR 

3 program with an Innovation Corps program (es4 tablished under section 601 of the American In5 novation and Competitiveness Act (42 U.S.C. 

6 1862s–8); commonly known as ‘I–Corps’) 

7 shall— 

8 ‘‘(i) provide an option for participa9 tion in an I–Corps teams course, I–Corps 

10 bootcamp, or another equivalent training 

11 program to recipients of an award under 

12 the SBIR or STTR program; and 

13 ‘‘(ii) authorize the recipients described 

14 in clause (i) to use amounts authorized 

15 under this subsection to participate in the 

16 I–Corps teams course, I–Corps bootcamp, 

17 or another equivalent training program. 

18 ‘‘(B) COST OF PARTICIPATION.—The cost 

19 of participation by a recipient described in sub20 paragraph (A)(i) in an I–Corps course, I–Corps 

21 bootcamp, or another equivalent training pro22 gram may be provided by— 

23 ‘‘(i) an I–Corps team grant; 

24 ‘‘(ii) funds awarded to the recipient 

25 under this subsection; 


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1 ‘‘(iii) the participating teams or other 

2 sources as appropriate; or 

3 ‘‘(iv) any combination of sources de4 scribed in clauses (i), (ii), and (iii).’’. 

5 SEC. 204. IMPROVEMENTS TO WEBSITE RELATING TO THE 

6 SBIR PROGRAM OR STTR PROGRAM. 

7 (a) SBIR PROGRAM.—Section 9(g)(8) of the Small 

8 Business Act (15 U.S.C. 638(g)(8)) is amended— 

9 (1) in subparagraph (B), by striking ‘‘and’’ at 

10 the end; 

11 (2) in subparagraph (C), by adding ‘‘and’’ at 

12 the end; and 

13 (3) by adding at the end the following new sub14 paragraph: 

15 ‘‘(D) for each research institution subcon16 tracted by a recipient of a Phase I, Phase II, 

17 or Phase III SBIR award to perform research 

18 or research and development with respect to 

19 such award— 

20 ‘‘(i) the name and location of such re21 search institution; 

22 ‘‘(ii) whether such research institution 

23 is— 

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1 tion 101 of the Higher Education Act 

2 of 1965 (20 U.S.C. 1001)); 

3 ‘‘(II) a nonprofit institution (as 

4 defined in section 4 of the Stevenson5 Wydler Technology Innovation Act of 

6 1980 (15 U.S.C. 3703)) other than an 

7 institution of higher education; or 

8 ‘‘(III) a federally funded research 

9 and development center (as identified 

10 by the National Scientific Foundation 

11 in accordance with the Federal Acqui12 sition Regulation); and 

13 ‘‘(iii) for each research institution 

14 that is an institution of higher education, 

15 whether such research institution is— 

16 ‘‘(I) a part B institution (as de17 fined in section 322 the Higher Edu18 cation Act of 1965 (20 U.S.C. 1061)); 

19 ‘‘(II) a Hispanic-serving institu20 tion (as defined in section 502 of such 

21 Act (20 U.S.C. 1101a)); 

22 ‘‘(III) a Tribal College or Univer23 sity (as defined in section 316 of such 

24 Act (20 U.S.C. 1059c)); 


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1 ‘‘(IV) an Alaska Native-serving 

2 institution or a Native Hawaiian-serv3 ing institution (as defined in section 

4 317(b) of such Act (20 U.S.C. 

5 1059d(b))); 

6 ‘‘(V) a Predominantly Black In7 stitution (as defined in section 371(c) 

8 of such Act (20 U.S.C. 1067q(c))); 

9 ‘‘(VI) an Asian American and 

10 Native American Pacific Islander11 serving institution (as defined in sec12 tion 371(c) of such Act (20 U.S.C. 10 

13 1067q(c))); or 

14 ‘‘(VII) a Native American-serving 

15 nontribal institution (as defined in 

16 section 371(c) of such Act (20 U.S.C. 

17 1067q(c)));’’. 

18 (b) STTR PROGRAM.—Section 9(o)(9) of the Small 

19 Business Act (15 U.S.C. 638(o)(9)) is amended— 

20 (1) in subparagraph (B), by striking ‘‘and’’ at 

21 the end; 

22 (2) in subparagraph (C), by adding ‘‘and’’ at 

23 the end; and 

24 (3) by adding at the end the following new sub25 paragraph: 


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1 ‘‘(D) for each research institution subcon2 tracted by a recipient of a Phase I or Phase II 

3 STTR award to perform research or research 

4 and development with respect to such award— 

5 ‘‘(i) the name and location of such re6 search institution; 

7 ‘‘(ii) whether such research institution 

8 is— 

9 ‘‘(I) an institution of higher edu10 cation (as such term is defined in sec11 tion 101 of the Higher Education Act 

12 of 1965 (20 U.S.C. 1001)); 

13 ‘‘(II) a nonprofit institution (as 

14 defined in section 4 of the Stevenson15 Wydler Technology Innovation Act of 

16 1980 (15 U.S.C. 3703)) other than an 

17 institution of higher education; or 

18 ‘‘(III) a federally funded research 

19 and development center (as identified 

20 by the National Scientific Foundation 

21 in accordance with the Federal Acqui22 sition Regulation); and 

23 ‘‘(iii) for each research institution 

24 that is an institution of higher education, 

25 whether such research institution is— 


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1 ‘‘(I) a part B institution (as de2 fined in section 322 the Higher Edu3 cation Act of 1965 (20 U.S.C. 1061)); 

4 ‘‘(II) a Hispanic-serving institu5 tion (as defined in section 502 of such 

6 Act (20 U.S.C. 1101a)); 

7 ‘‘(III) a Tribal College or Univer8 sity (as defined in section 316 of such 

9 Act (20 U.S.C. 1059c)); 

10 ‘‘(IV) an Alaska Native-serving 

11 institution or a Native Hawaiian-serv12 ing institution (as defined in section 

13 317(b) of such Act (20 U.S.C. 

14 1059d(b))); 

15 ‘‘(V) a Predominantly Black In16 stitution (as defined in section 371(c) 

17 of such Act (20 U.S.C. 1067q(c))); 

18 ‘‘(VI) an Asian American and 

19 Native American Pacific Islander20 serving institution (as defined in sec21 tion 371(c) of such Act (20 U.S.C. 25 

22 1067q(c))); or 

23 ‘‘(VII) a Native American-serving 

24 nontribal institution (as defined in 


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1 section 371(c) of such Act (20 U.S.C. 

2 1067q(c)));’’. 

3 (c) DATABASE REPORTING.— 

4 (1) IN GENERAL.—Section 9(k) of the Small 

5 Business Act (15 U.S.C. 638(k)) is amended— 

6 (A) by striking ‘‘Phase I or Phase II SBIR 

7 or STTR’’ each place it appears and inserting 

8 ‘‘Phase I, Phase II, or Phase III SBIR or 

9 STTR’’; 

10 (B) in paragraph (1)(B)— 

11 (i) in clause (ii), by striking ‘‘and’’ at 

12 the end; 

13 (ii) in clause (iii), by adding ‘‘and’’ at 

14 the end; and 

15 (iii) by adding at the end the fol16 lowing new clause: 

17 ‘‘(iv) information regarding any re18 search institution subcontracted by such 

19 small business concern to perform research 

20 or research and development with respect 

21 to such award, including— 

22 ‘‘(I) the name and location of 

23 such research institution; 

24 ‘‘(II) whether such research insti25 tution is— 


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1 ‘‘(aa) an institution of high2 er education (as such term is de3 fined in section 101 of the High4 er Education Act of 1965 (20 

5 U.S.C. 1001)); 

6 ‘‘(bb) a nonprofit institution 

7 (as defined in section 4 of the 

8 Stevenson-Wydler Technology In9 novation Act of 1980 (15 U.S.C. 

10 3703)) other than an institution 

11 of higher education; or 

12 ‘‘(cc) a federally funded re13 search and development center 

14 (as identified by the National 

15 Scientific Foundation in accord16 ance with the Federal Acquisition 

17 Regulation); and 

18 ‘‘(III) for each research institu19 tion that is an institution of higher 

20 education (as such term is defined in 

21 section 101 of the Higher Education 

22 Act of 1965 (20 U.S.C. 1001)), 

23 whether such research institution is 

24 an institution described in paragraphs 


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1 (1) through (7) of section 371(a) of 

2 such Act (20 U.S.C. 1067q(a));’’; 

3 (C) in paragraph (2)— 

4 (i) in subparagraph (A), by striking 

5 ‘‘Phase I or Phase II of the SBIR program 

6 or the STTR’’ and inserting ‘‘Phase I, 

7 Phase II, or Phase III of the SBIR pro8 gram or the STTR’’; 

9 (ii) in subparagraph (F), by striking 

10 ‘‘and’’ at the end; 

11 (iii) in subparagraph (G)(ii), by strik12 ing the period at the end and inserting ‘‘; 

13 and’’; and 

14 (iv) by adding at the end the following 

15 new subparagraph: 

16 ‘‘(H) contains information for each re17 search institution subcontracted by a recipient 

18 of a Phase I, Phase II, or Phase III STTR or 

19 SBIR award to perform research or research 

20 and development with respect to such award, 

21 including— 

22 ‘‘(i) the name and location of such re23 search institution; 

24 ‘‘(ii) whether such research institution 

25 is— 


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1 ‘‘(I) an institution of higher edu2 cation (as such term is defined in sec3 tion 101 of the Higher Education Act 

4 of 1965 (20 U.S.C. 1001)); 

5 ‘‘(II) a nonprofit institution (as 

6 defined in section 4 of the Stevenson7 Wydler Technology Innovation Act of 

8 1980 (15 U.S.C. 3703)) other than an 

9 institution of higher education; or 

10 ‘‘(III) a federally funded research 

11 and development center (as identified 

12 by the National Scientific Foundation 

13 in accordance with the Federal Acqui14 sition Regulation); and 

15 ‘‘(iii) for each research institution 

16 that is an institution of higher education 

17 (as such term is defined in section 101 of 

18 the Higher Education Act of 1965 (20 

19 U.S.C. 1001)), whether such research in20 stitution is an institution described in 

21 paragraphs (1) through (7) of section 

22 371(a) of such Act (20 U.S.C. 

23 1067q(a)).’’; and 

24 (D) in paragraph (3)(C), by striking 

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1 pears and inserting ‘‘Phase I, Phase II, or 

2 Phase III award’’. 

3 (2) DATABASE UPDATE DEADLINE.—Notwith4 standing paragraphs (1) or (2) of section 9(k) of the 

5 Small Business Act (15 U.S.C. 638(k)), the Admin6 istrator shall, not later than 1 year after the date 

7 of the enactment of this Act, include— 

8 (A) in the database described such para9 graph (1) the information required under such 

10 paragraph, as amended by subparagraphs (A) 

11 and (B) of paragraph (1) of this Act; and 

12 (B) in the database described such para13 graph (2) the information required under such 

14 paragraph, as amended by subparagraphs (A) 

15 and (C) of paragraph (1) of this Act. 

16 TITLE III—COMMERCIALIZATION 

17 IMPROVEMENTS 

18 SEC. 301. PHASE III AWARD EDUCATION. 

19 Section 9(r) of the Small Business Act (15 U.S.C. 

20 638(r)) is amended by adding at the end the following new 

21 paragraph: 

22 ‘‘(5) WORKFORCE TRAINING.— 

23 ‘‘(A) IN GENERAL.—The Administrator, in 

24 coordination with the Secretary of Defense, the 

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1 tration, and the head of any such other Federal 

2 agency that the Administrator determines ap3 propriate, shall establish training activities for 

4 contracting officers and agency acquisition 

5 workforce of Federal agencies to ensure that 

6 such individuals are fully aware of all aspects of 

7 Phase III acquisitions under the SBIR and 

8 STTR programs, as applicable. 

9 ‘‘(B) TRAINING TOPICS.—The training ac10 tivities required under subparagraph (A) shall 

11 include training on— 

12 ‘‘(i) the missions, goals, and authori13 ties of the SBIR and STTR programs; 

14 ‘‘(ii) the use of Phase III agreement; 

15 and 

16 ‘‘(iii) Phase III data rights. 

17 ‘‘(C) DEFINITIONS.—In this paragraph: 

18 ‘‘(i) AGENCY ACQUISITION WORK19 FORCE.—The term ‘agency acquisition 

20 workforce’ means the employees of a Fed21 eral agency that have procurement or ac22 quisition responsibilities, including— 

23 ‘‘(I) employees described in sec24 tion 1703 of title 41, United States 

25 Code; and 


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1 ‘‘(II) individuals that are part of 

2 the acquisition workforce (as such 

3 term is defined in section 101(a) of 

4 title 10, United States Code). 

5 ‘‘(ii) PHASE III ACQUISITION.—The 

6 term ‘Phase III acquisition’ means the ac7 quisition of a good or service from a par8 ticipant in Phase III that such participant 

9 has commercialized or is seeking to com10 mercialize as such a participant.’’. 

11 SEC. 302. REPORT ON DOD DENIALS OF PHASE III. 

12 Section 9(r) of the Small Business Act (15 U.S.C. 

13 638(r)), as amended by section 301, is further amended 

14 by adding at the end the following new paragraph: 

15 ‘‘(6) REPORTING.—Not later than 30 days after 

16 the date on which the Department of Defense denies 

17 a small business concern Phase III agreement, the 

18 Secretary of Defense shall report that denial to the 

19 Administrator.’’. 


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1 TITLE IV—PILOT PROGRAMS 

2 SEC. 401. EXTEND AND MODIFY ASSISTANCE FOR ADMINIS3 TRATIVE, OVERSIGHT, AND CONTRACT PROC4 ESSING COSTS. 

5 (a) IN GENERAL.—Section 9(mm) of the Small Busi6 ness Act (15 U.S.C. 638(mm)), as amended by section 

7 202, is further amended— 

8 (1) by designating the text of paragraph (1) as 

9 subparagraph (A); and 

10 (2) in paragraph (1)— 

11 (A) by redesignating subparagraphs (A) 

12 through (L) as clauses (i) through (xii), respec13 tively; 

14 (B) by striking ‘‘September 30, 2025’’ and 

15 inserting ‘‘September 30, 2030’’; 

16 (C) by striking ‘‘3 percent’’ and inserting 

17 ‘‘3.3 percent’’; and 

18 (D) by adding at the end the following new 

19 subparagraph: 

20 ‘‘(B) TRANSFER OF FUNDS.— 

21 ‘‘(i) IN GENERAL.—Not later than 2 

22 months after the date of the enactment of 

23 an Act providing appropriations for the 

24 Department of Defense, the Department of 

25 Energy, the Department of Health and 


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1 Human Services, the National Aeronautics 

2 and Space Administration, or the National 

3 Science Foundation, the head of each such 

4 entity for which such Act provided appro5 priations shall transfer not less than 10 

6 percent of the funds described under sub7 paragraph (A) to the Administrator to in8 crease the resources of the Administration 

9 for administering the SBIR and STTR 

10 programs. 

11 ‘‘(ii) FUND USE LIMITS.—None of the 

12 funds transferred under clause (i) may be 

13 used for or with respect to any program 

14 established under the Small Business In15 vestment Act of 1958 (15 U.S.C. 661 et 

16 seq.).’’. 

17 (b) INCREASING PARTICIPATION OF UNDERSERVED

18 POPULATIONS IN THE SBIR AND STTR PROGRAMS.— 

19 (1) IN GENERAL.—Section 9(mm)(2) of the 

20 Small Business Act (15 U.S.C. 638(mm)(2)) is 

21 amended to read as follows: 

22 ‘‘(2) OUTREACH AND TECHNICAL ASSIST23 ANCE.—A Federal agency participating in the pro24 gram under this subsection may use a portion of the 

25 funds authorized for uses under paragraph (1) to 


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1 carry out the policy directive required under sub2 section (j)(2)(F) and to increase the participation of 

3 States with respect to which a low level of SBIR 

4 awards have historically been awarded.’’. 

5 (2) CONFORMING AMENDMENT.—Section 

6 9(mm)(6) of the Small Business Act (15 U.S.C. 

7 638(mm)(6)) is amended by striking ‘‘including’’ 

8 and all that follows and inserting the following: ‘‘in9 cluding— 

10 ‘‘(A) the use of funds transferred under 

11 subparagraph (B) of paragraph (1) for the uses 

12 authorized in such subparagraph and to achieve 

13 the objectives of paragraph (2); and 

14 ‘‘(B) the use of other funds under this 

15 subsection to achieve such objectives.’’. 

16 SEC. 402. EXTEND AND EXPAND THE DIRECT TO PHASE II 

17 AUTHORITY. 

18 Section 9 of the Small Business Act (15 U.S.C. 638) 

19 is amended— 

20 (1) by designating the text of subsection (cc) as 

21 paragraph (1); and 

22 (2) in subsection (cc)— 

23 (A) by striking ‘‘2012 through 2025’’ and 

24 inserting ‘‘2012 through 2030’’; 


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1 (B) by striking ‘‘the National Institutes of 

2 Health, the Department of Defense, and the 

3 Department of Education may each’’ and in4 serting ‘‘each Federal agency required to carry 

5 out an SBIR program may’’; and 

6 (C) by adding at the end the following new 

7 paragraphs: 

8 ‘‘(2) LIMITATION.—The total value of awards 

9 provided by a Federal agency under this subsection 

10 in a fiscal year shall be— 

11 ‘‘(A) except as provided in subparagraph 

12 (B), not more than 10 percent of the total 

13 funds allocated to the SBIR program of the 

14 Federal agency during that fiscal year; and 

15 ‘‘(B) with respect to the National Insti16 tutes of Health, not more than 15 percent of 

17 the total funds allocated to the SBIR program 

18 of the National Institutes of Health during that 

19 fiscal year. 

20 ‘‘(3) REPORT.—Each head of a Federal agency 

21 that exercises the authority under this subsection 

22 shall include in the next report submitted by such 

23 Federal agency under (g)(9) following such exercise 

24 the number and amount of awards provided under 


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1 this subsection by such Federal agency in the period 

2 covered by such report.’’. 

3 SEC. 403. ACCELERATION OF DOD SBIR AND STTR AWARDS. 

4 (a) IN GENERAL.—Section 9(hh) of the Small Busi5 ness Act (15 U.S.C. 638(hh)) is amended— 

6 (1) in the heading, by inserting ‘‘AND SIM7 PLIFIED DOD FORMS’’ after ‘‘OF FUNDING’’; and 

8 (2) by amending paragraph (2) to read as fol9 lows: 

10 ‘‘(2) ACCELERATE DEPARTMENT OF DEFENSE

11 SBIR AND STTR AWARDS.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding sub13 sections (g)(4) and (o)(4), the Under Secretary 

14 of Defense for Research and Engineering, act15 ing through the Director of Defense Procure16 ment and Acquisition Policy of the Department 

17 of Defense, shall develop simplified and stand18 ardized procedures and model contracts 

19 throughout the Department of Defense for 

20 Phase I, Phase II, and Phase III SBIR awards 

21 that, to the extent practicable, reduce the 

22 amount of time between the provision of notice 

23 of such awards and the subsequent release of 

24 funding with respect to the awards to 90 days. 


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1 ‘‘(B) CONSULTATION.—In carrying out 

2 subparagraph (A), the Director of Defense Pro3 curement and Acquisition Policy of the Depart4 ment of Defense shall consult with the Director 

5 of the Office of Small Business Programs of the 

6 Department of Defense.’’. 

7 (b) TIMING.—The Under Secretary of Defense for 

8 Research and Engineering, acting through the Director of 

9 Defense Procurement and Acquisition Policy of the De10 partment of Defense, shall carry out section 9(hh)(2) of 

11 the Small Business Act (15 U.S.C. 638(hh)(2)), as 

12 amended by subsection (a), not later than 1 year after 

13 the date of the enactment of this Act. 

14 SEC. 404. EXTEND COMMERCIALIZATION READINESS PRO15 GRAM FOR CIVILIAN AGENCIES. 

16 Section 9(gg) of the Small Business Act (15 U.S.C. 

17 638(gg)) is amended— 

18 (1) in the heading, by striking ‘‘PILOT’’ and in19 serting ‘‘CIVILIAN AGENCIES COMMERCIALIZATION

20 READINESS’’; 

21 (2) by striking ‘‘pilot program’’ each place it 

22 appears and inserting ‘‘covered program’’; and 

23 (3) by striking ‘‘fiscal year 2025’’ and inserting 

24 ‘‘fiscal year 2030’’. 


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1 SEC. 405. EXTEND AND EXPAND PHASE 0 PROOF OF CON2 CEPT PARTNERSHIP PROGRAM. 

3 Section 9(jj) of the Small Business Act (15 U.S.C. 

4 638(jj)) is amended— 

5 (1) in the subsection heading, by striking 

6 ‘‘PILOT’’; 

7 (2) in paragraph (1)— 

8 (A) by striking ‘‘Director of the National 

9 Institutes of Health’’ and inserting ‘‘head of a 

10 covered agency’’; 

11 (B) by striking ‘‘pilot program’’ and in12 serting ‘‘program’’; 

13 (C) by striking ‘‘the Director shall award’’ 

14 and inserting ‘‘the head of each covered agency 

15 shall make’’; and 

16 (D) by striking ‘‘grants’’ each place it ap17 pears and inserting ‘‘awards’’; 

18 (3) by amending paragraph (2) to read as fol19 lows: 

20 ‘‘(2) DEFINITIONS.—In this subsection— 

21 ‘‘(A) the term ‘covered agency’ means the 

22 National Institutes of Health, the National 

23 Science Foundation, the National Aeronautics 

24 and Space Administration, and the Department 

25 of Energy; 


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1 ‘‘(B) the term ‘Phase 0 program’ means a 

2 Proof of Concept Partnership program; and 

3 ‘‘(C) the term ‘qualifying institution’ 

4 mean— 

5 ‘‘(i) a university or other research in6 stitution that participates in the STTR 

7 program of the National Institutes of 

8 Health, National Science Foundation, Na9 tional Aeronautics and Atmospheric Ad10 ministration, Department of Energy, or 

11 Department of Defense; or 

12 ‘‘(ii) another U.S.-based organization 

13 with relevant expertise and capability in 

14 technology translation, technology entre15 preneurship, or technical research and de16 velopment.’’; 

17 (4) in paragraph (3)— 

18 (A) by amending subparagraph (A) to read 

19 as follows: 

20 ‘‘(A) IN GENERAL.—A Proof of Concept 

21 Partnership shall be set up by a qualifying in22 stitution to make awards to individual research23 ers in support of proof of concept work and 

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1 late promising research projects and tech2 nologies into a viable company.’’; and 

3 (B) in subparagraph (B)— 

4 (i) in the matter preceding clause 

5 (i)— 

6 (I) by striking ‘‘Proof of Concept 

7 Partnership program’’ and inserting 

8 ‘‘Phase 0 program’’; and 

9 (II) by striking ‘‘award grants’’ 

10 and inserting ‘‘make awards’’; 

11 (ii) by redesignating clause (ii) as 

12 clause (iv); and 

13 (iii) by inserting after clause (i) the 

14 following new clauses: 

15 ‘‘(ii) Eligible individual researchers in16 clude faculty members, university staff, in17 dustrial scientists, owners of small busi18 ness concerns, postdoctoral scholars, and 

19 students. 

20 ‘‘(iii) Awards may support technical 

21 validations, market research, entrepre22 neurial training, clarifying intellectual 

23 property rights position and strategy, and 

24 investigating commercial or business op25 portunities.’’; 


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1 (5) in paragraph (4)— 

2 (A) in subparagraph (A)— 

3 (i) by striking ‘‘The Director’’ and in4 serting ‘‘The head of a covered agency’’; 

5 and 

6 (ii) by striking ‘‘$1,000,000’’ and in7 serting ‘‘$1,500,000’’; and 

8 (B) in subparagraph (B)— 

9 (i) in the matter preceding clause (i), 

10 by striking ‘‘In determining’’ and all that 

11 follows through ‘‘qualifying institutions—’’ 

12 and inserting the following: ‘‘In deter13 mining which qualifying institutions receive 

14 awards under the Phase 0 program, the 

15 head of a covered agency shall consider, in 

16 addition to any other criteria such head 

17 determines necessary, the extent to which 

18 the qualifying institution—’’; 

19 (ii) by amending clause (i) to read as 

20 follows: 

21 ‘‘(i) have an established and proven 

22 record of working in the areas of tech23 nology transfer, technology or commer24 cialization, entrepreneurial development, or 

25 another related innovation practice;’’; 


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1 (iii) in clause (iv), by inserting ‘‘aca2 demic,’’ after ‘‘industry,’’; and 

3 (iv) by amending clause (v) to read as 

4 follows: 

5 ‘‘(v) have demonstrated a plan for encouraging par6 ticipation of small business concerns owned and controlled 

7 by socially and economically disadvantaged individuals and 

8 small business concerns owned and controlled by women;’’; 

9 (6) in paragraph (6)— 

10 (A) in the matter preceding subparagraph 

11 (A)— 

12 (i) by striking ‘‘The Director’’ and in13 serting ‘‘The head of each covered agen14 cy’’; and 

15 (ii) by striking ‘‘pilot program’’ and 

16 inserting ‘‘Phase 0 program implemented 

17 by such head’’; 

18 (B) in subparagraph (B), by striking ‘‘the 

19 pilot program’’ and inserting ‘‘such Phase 0 

20 program’’; 

21 (C) in subparagraph (C), by striking ‘‘the 

22 pilot program’’ and inserting ‘‘such Phase 0 

23 program’’; 


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1 (D) in subparagraph (D), by striking ‘‘the 

2 pilot program’’ and inserting ‘‘such Phase 0 

3 program’’; and 

4 (E) in subparagraph (E)— 

5 (i) by striking ‘‘the program’s effec6 tiveness’’ and inserting ‘‘the effectiveness 

7 of such Phase 0 program’’; and 

8 (ii) by inserting after ‘‘supporting 

9 data’’ the following: ‘‘, including how the 

10 program contributes to the implementation 

11 of the policy directive required under sub12 section (j)(2)(F)’’; and 

13 (7) by striking paragraph (7). 

14 SEC. 406. EXTEND COMMERCIALIZATION ASSISTANCE PRO15 GRAMS. 

16 Section 9(uu) of the Small Business Act (15 U.S.C. 

17 638(uu)) is amended— 

18 (1) in the heading, by striking ‘‘PILOT’’; 

19 (2) by striking ‘‘subsequent Phase II’’ each 

20 place it appears and inserting ‘‘third Phase II’’; 

21 (3) in paragraph (1), by amending the heading 

22 to read as follows: ‘‘PROGRAM IMPLEMENTATIONS’’; 

23 (4) by striking ‘‘pilot’’ each place it appears; 

24 (5) in paragraph (3), by striking ‘‘September 

25 30, 2025’’ and inserting ‘‘September 30, 2030’’; 


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1 (6) in paragraph (5)(B)— 

2 (A) by striking ‘‘An eligible entity’’ and in3 serting the following: 

4 ‘‘(i) IN GENERAL.—An eligible enti5 ty’’; and 

6 (B) by adding at the end the following new 

7 clause: 

8 ‘‘(ii) CERTAIN AGENCY FUNDS.—An 

9 eligible entity may use funds received from 

10 Federal agencies, other than funds received 

11 under an SBIR or STTR program, to meet 

12 the matching requirement of subparagraph 

13 (A).’’; 

14 (7) by redesignating paragraph (10) as para15 graph (11); 

16 (8) by inserting after paragraph (9) the fol17 lowing new paragraph: 

18 ‘‘(10) TIMING.—An eligible entity may apply 

19 for and receive a third Phase II award any time 

20 after the eligible entity receives an additional Phase 

21 II SBIR award under subsection (ff), including after 

22 the completion of such additional Phase II SBIR 

23 award.’’; and 


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1 (9) in subparagraph (E) of paragraph (11), as 

2 so redesignated, in the heading, by striking ‘‘SUBSE3 QUENT PHASE II’’ and inserting ‘‘THIRD PHASE II’’. 

4 TITLE V—OVERSIGHT AND 

5 SIMPLIFICATION INITIATIVES 

6 SEC. 501. ANNUAL REPORTS TO CONGRESS. 

7 Section 9 of the Small Business Act (15 U.S.C. 638) 

8 is amended— 

9 (1) in subsection (g)(9)— 

10 (A) by inserting ‘‘Congress,’’ after ‘‘SBIR 

11 program to’’; 

12 (B) by inserting a comma after ‘‘Adminis13 tration’’; and 

14 (C) by inserting after ‘‘Technology Policy’’ 

15 the following: ‘‘and publish such report on the 

16 website of such Federal agency as soon as prac17 ticable’’; 

18 (2) in subsection (o)(10)— 

19 (A) by inserting ‘‘Congress,’’ after ‘‘STTR 

20 program to’’; 

21 (B) by inserting a comma after ‘‘Adminis22 tration’’; and 

23 (C) by inserting after ‘‘Technology Policy’’ 

24 the following: ‘‘and publish such report on the 


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1 website of such Federal agency as soon as prac2 ticable’’; and 

3 (3) in subsection (gg)(6), by inserting ‘‘Con4 gress and’’ after ‘‘agency to’’. 

5 SEC. 502. COMPTROLLER GENERAL REPORTS ON FRAUD 

6 CONTROLS. 

7 (a) REPORT ON STUDY WITH RESPECT TO VENTURE

8 CAPITAL OPERATING COMPANY, HEDGE FUND, AND PRI9 VATE EQUITY FIRM INVOLVEMENT.—Section 5142 of the 

10 National Defense Authorization Act for Fiscal Year 2012 

11 (15 U.S.C. 638a) is amended by inserting ‘‘through De12 cember 31, 2027’’ after ‘‘every 3 years thereafter’’. 

13 (b) REPORT ON PROGRAM TO FIGHT FRAUD, 

14 WASTE, AND ABUSE.—Section 5143(b) of the National 

15 Defense Authorization Act for Fiscal Year 2012 (15 

16 U.S.C. 638b(b)) is amended by inserting ‘‘through Decem17 ber 31, 2027,’’ after ‘‘every 4 years thereafter’’. 

18 SEC. 503. COMPTROLLER GENERAL REPORT ON DIVER19 SIFICATION AND COMMERCIALIZATION. 

20 (a) IN GENERAL.—Not later than three years after 

21 the date of the enactment of this Act, the Comptroller 

22 General of the United States shall submit to the Com23 mittee on Small Business and Entrepreneurship of the 

24 Senate and the Committee on Small Business of the 

25 House of Representatives a report on the effectiveness of 


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1 the SBIR and STTR programs with respect to diversifica2 tion of participants and commercialization. 

3 (b) CONTENTS.—The report shall include, to the ex4 tent practicable, an assessment of— 

5 (1) the demographics of small business concerns 

6 receiving SBIR or STTR awards, including new en7 trants and underrepresented groups; 

8 (2) the efforts of participating agencies to 

9 broaden representation and participation of new en10 trants and underrepresented groups in the SBIR 

11 and STTR programs; 

12 (3) how participating agencies develop solicita13 tion topics and attract applicants; 

14 (4) the efforts of participating agencies to sup15 port technology commercialization; 

16 (5) the extent to which the SBIR and STTR 

17 awards made by each participating agency align with 

18 the research priorities and technology needs of that 

19 participating agency; and 

20 (6) such other matters as the Comptroller Gen21 eral, in consultation with the Committee on Small 

22 Business and Entrepreneurship of the Senate and 

23 the Committee on Small Business of the House of 

24 Representatives, determines appropriate. 

25 (c) DEFINITIONS.—In this section: 


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1 (1) FEDERAL AGENCY; SBIR; STTR.—The terms 

2 ‘‘Federal agency’’, ‘‘SBIR’’, and ‘‘STTR’’ have the 

3 meanings given such terms in section 9(e) of the 

4 Small Business Act (15 U.S.C. 638(e)). 

5 (2) NEW ENTRANT.—The term ‘‘new entrant’’ 

6 means a small business concern that has not pre7 viously received an SBIR or STTR award. 

8 (3) UNDERREPRESENTED GROUPS.—The term 

9 ‘‘underrepresented groups’’ means small business 

10 concerns located in States with respect to which a 

11 low level of SBIR and STTR awards have histori12 cally been awarded, small business concerns owned 

13 and controlled by women, and small business con14 cerns owned and controlled by socially and economi15 cally disadvantaged individuals. 

16 (4) PARTICIPATING AGENCY.—The term ‘‘par17 ticipating agency’’ means a Federal agency carrying 

18 out an SBIR or STTR program under section 9 of 

19 the Small Business Act (15 U.S.C. 638). 

20 (5) SMALL BUSINESS CONCERN.—The term 

21 ‘‘small business concern’’ has the meaning given 

22 such term under section 3 of the Small Business Act 

23 (15 U.S.C. 632). 

24 (6) SMALL BUSINESS CONCERN OWNED AND

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1 ADVANTAGED INDIVIDUALS; SMALL BUSINESS CON2 CERN OWNED AND CONTROLLED BY WOMEN.—The 

3 terms ‘‘small business concern owned and controlled 

4 by socially and economically disadvantaged individ5 uals’’ and ‘‘small business concern owned and con6 trolled by women’’ have the meanings given such 

7 terms in section 8(d) of the Small Business Act (15 

8 U.S.C. 637(d)). 

9 SEC. 504. EXTEND THE REPORT ON AWARD TIMELINESS. 

10 Section 9(ii)(2)(A) of the Small Business Act (15 

11 U.S.C. 638(ii)(2)(A)) is amended— 

12 (1) in the matter preceding clause (i), by strik13 ing ‘‘3 years’’ and inserting ‘‘11 years’’; 

14 (2) in clause (i), by striking ‘‘and’’ at the end; 

15 (3) by redesignating clause (ii) as clause (iii); 

16 and 

17 (4) by inserting after clause (i) the following 

18 new clause: 

19 ‘‘(ii) provides the average and median 

20 amount of time that each Federal agency 

21 with an SBIR or STTR program takes to 

22 review and make a final decision on pro23 posals submitted under the program; and’’. 


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1 SEC. 505. PILOT PROGRAM TO ACCELERATE NATIONAL IN2 STITUTES OF HEALTH EVALUATION PROC3 ESS. 

4 (a) IN GENERAL.—Section 9(hh) of the Small Busi5 ness Act (15 U.S.C. 638(hh)) is amended by adding at 

6 the end the following new paragraph: 

7 ‘‘(3) PILOT PROGRAM TO ACCELERATE THE NA8 TIONAL INSTITUTES OF HEALTH SBIR AND STTR

9 AWARDS.— 

10 ‘‘(A) IN GENERAL.—Not later than 1 year 

11 after the date of the enactment of this para12 graph, the Director of the National Institutes of 

13 Health shall establish a pilot program to reduce 

14 the time for awards under the SBIR and STTR 

15 programs of the National Institutes of Health. 

16 ‘‘(B) AWARD PROCEDURES.—In carrying 

17 out the pilot program under subparagraph (A), 

18 the Director shall develop simplified and stand19 ardized procedures across all relevant awarding 

20 offices at the National Institutes of Health and 

21 reduce the amount of time between the provi22 sion of notice of such awards and the subse23 quent release of funding with respect to the 

24 awards to be as close to 90 days as possible. 

25 ‘‘(C) MERIT REVIEW.— 


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1 ‘‘(i) IN GENERAL.—Under the pilot 

2 program under subparagraph (A), the Di3 rector of the National Institutes of Health 

4 may, with respect to awards under the 

5 SBIR and STTR programs of the National 

6 Institute of Health, use such peer review 

7 procedures (including consultation with ap8 propriate scientific experts) as the Director 

9 determines to be appropriate to obtain as10 sessments of scientific and technical merit 

11 and potential for commercialization. 

12 ‘‘(ii) DEEMED.—The use of peer re13 view procedures under clause (i) shall be 

14 deemed to fulfill any requirements applica15 ble to the award under the SBIR or STTR 

16 program of the National Institute of 

17 Health under sections 406(a)(3)(A) and 

18 492 of the Public Health Service Act (42 

19 U.S.C. 284a(a)(3)(A); 289a). 

20 ‘‘(D) TERMINATION.—The pilot program 

21 under subparagraph (A) shall terminate on 

22 September 30, 2030.’’. 

23 (b) EVALUATION REPORT.—Not later than three 

24 years after the date of enactment of this Act, the Director 

25 of the National Institutes of Health shall submit to the 


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1 Committees on Small Business and Science, Space, and 

2 Technology of the House of Representatives and the Com3 mittee on Small Business and Entrepreneurship of the 

4 Senate an evaluation of the pilot program established 

5 under paragraph (3) of section 9(hh) of the Small Busi6 ness Act (15 U.S.C. 638(hh)), as added by subsection (a), 

7 including an analysis of the peer review procedures used 

8 under subparagraph (C) of such paragraph and the effects 

9 on award times. 

10 SEC. 506. CODIFYING SAFEGUARDS FOR SMALL BUSINESS 

11 CONCERNS MAJORITY-OWNED BY VENTURE 

12 CAPITAL OPERATING COMPANIES, HEDGE 

13 FUNDS, OR PRIVATE EQUITY FIRMS. 

14 (a) IN GENERAL.—Section 9(dd) of the Small Busi15 ness Act (15 U.S.C. 638(dd)) is amended— 

16 (1) in paragraph (6)(B), by striking ‘‘If a Fed17 eral’’ and inserting ‘‘Except as provided in para18 graph (8), if a Federal’’; and 

19 (2) by adding at the end the following new 

20 paragraph: 

21 ‘‘(8) PARTICIPATION LIMITS.— 

22 ‘‘(A) IN GENERAL.—A small business con23 cern that is majority-owned by multiple venture 

24 capital operating companies, hedge funds, or 

25 private equity firms is ineligible to receive an 


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1 award under any SBIR program if the Admin2 istrator determines that such small business 

3 concern is, or is owned and controlled in major4 ity part by, a covered foreign entity. 

5 ‘‘(B) OWNERSHIP DETERMINATION.—In 

6 determining whether a small business concern is 

7 ineligible to receive an award under any SBIR 

8 program under subparagraph (A), the Adminis9 trator shall consider whether the small business 

10 concern is a direct or indirect subsidiary of a 

11 foreign-owned firm. 

12 ‘‘(C) SIZE STANDARDS.—The Adminis13 trator shall establish size standards for small 

14 business concerns seeking to participate in an 

15 SBIR program solely under the authority under 

16 this section. 

17 ‘‘(D) DEFINITIONS.—In this paragraph: 

18 ‘‘(i) COVERED FOREIGN ENTITY.—the 

19 term ‘covered foreign entity’— 

20 ‘‘(I) means— 

21 ‘‘(aa) a foreign entity of 

22 concern; 

23 ‘‘(bb) a government or polit24 ical party of a foreign country of 

25 concern; 


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1 ‘‘(cc) a natural person who 

2 is not a lawful permanent resi3 dent of the United States, citizen 

4 of the United States, or any 

5 other protected individual (as 

6 such term is defined in section 

7 274B(a)(3) of the Immigration 

8 and Nationality Act (8 U.S.C. 

9 1324b(a)(3))); or 

10 ‘‘(dd) a partnership, associa11 tion, corporation, organization, or 

12 other combination of persons or13 ganized under the laws of or hav14 ing its principal place of business 

15 in a foreign country of concern; 

16 and 

17 ‘‘(II) includes— 

18 ‘‘(aa) any person owned by, 

19 controlled by, or subject to the 

20 jurisdiction or direction of a an 

21 entity listed in subclause (I); 

22 ‘‘(bb) any person, wherever 

23 located, who acts as an agent, 

24 representative, or employee of an 

25 entity listed in subclause (I); 


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1 ‘‘(cc) any person who acts in 

2 any other capacity at the order, 

3 request, or under the direction or 

4 control, of an entity listed in sub5 clause (I), or of a person whose 

6 activities are directly or indirectly 

7 supervised, directed, controlled, 

8 financed, or subsidized in whole 

9 or in majority part by an entity 

10 listed in subclause (I); 

11 ‘‘(dd) any person who di12 rectly or indirectly through any 

13 contract, arrangement, under14 standing, relationship, or other15 wise, owns 25 percent or more of 

16 the equity interests of an entity 

17 listed in subclause (I); 

18 ‘‘(ee) any person with sig19 nificant responsibility to control, 

20 manage, or direct an entity listed 

21 in subclause (I); 

22 ‘‘(ff) any person, wherever 

23 located, who is a citizen or resi24 dent of a country controlled by 


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•HR 10407 IH

1 an entity listed in subclause (I); 

2 or 

3 ‘‘(gg) any corporation, part4 nership, association, or other or5 ganization organized under the 

6 laws of a country controlled by 

7 an entity listed in subclause (I). 

8 ‘‘(ii) FOREIGN ENTITY OF CON9 CERN.—The term ‘foreign entity of con10 cern’ means a foreign entity that is— 

11 ‘‘(I) designated as a foreign ter12 rorist organization by the Secretary of 

13 State under section 219(a) of the Im14 migration and Nationality Act (8 

15 U.S.C. 1189(a)); 

16 ‘‘(II) included on the list of spe17 cially designated nationals and 

18 blocked persons maintained by the Of19 fice of Foreign Assets Control of the 

20 Department of the Treasury (com21 monly known as the SDN list); 

22 ‘‘(III) owned by, controlled by, or 

23 subject to the jurisdiction or direction 

24 of a government of a foreign country 

25 that is a covered nation (as such term 


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•HR 10407 IH

1 is defined in section 4872 of title 10, 

2 United States Code); 

3 ‘‘(IV) alleged by the Attorney 

4 General to have been involved in ac5 tivities for which a conviction was ob6 tained under— 

7 ‘‘(aa) chapter 37 of title 18, 

8 United States Code (commonly 

9 known as the Espionage Act); 

10 ‘‘(bb) section 951 or 1030 of 

11 such title; 

12 ‘‘(cc) chapter 90 of such 

13 title (commonly known as the 

14 Economic Espionage Act of 

15 1996); 

16 ‘‘(dd) the Arms Export Con17 trol Act (22 U.S.C. 2751 et seq.); 

18 ‘‘(ee) section 224, 225, 226, 

19 227, or 236 of the Atomic En20 ergy Act of 1954 (42 U.S.C. 

21 2274, 2275, 2276, 2277, and 

22 2284); 

23 ‘‘(ff) the Export Control Re24 form Act of 2018 (50 U.S.C. 

25 4801 et seq.); or 


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1 ‘‘(gg) the International 

2 Emergency Economic Powers Act 

3 (50 U.S.C. 1701 et seq.); or 

4 ‘‘(V) determined by the Secretary 

5 of Commerce, in consultation with the 

6 Secretary of Defense and the Director 

7 of National Intelligence, to be engaged 

8 in unauthorized conduct that is detri9 mental to the national security or for10 eign policy of the United States.’’. 

11 (b) APPLICABILITY.—The amendments made by sub12 section (a) shall apply only with respect to awards made 

13 under an Small Business Innovation Research Program 

14 (as defined in section 9(e) of the Small Business Act (15 

15 U.S.C. 638(e))) after the date of the enactment of this 

16 Act. 

17 TITLE VI—TECHNICAL CHANGES 

18 SEC. 601. INCLUSION OF SBICS IN THE SBIR AND STTR PRO19 GRAMS. 

20 Section 9 of the Small Business Act (15 U.S.C. 638) 

21 is amended— 

22 (1) by striking ‘‘or private equity firm invest23 ment’’ each place that term appears and inserting 

24 ‘‘private equity firm, or SBIC investment’’; 


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1 (2) by striking ‘‘or private equity firms’’ each 

2 place that term appears and inserting ‘‘private eq3 uity firms, or SBICs’’; 

4 (3) in subsection (e)— 

5 (A) in paragraph (18), by striking ‘‘and’’ 

6 at the end; 

7 (B) in paragraph (19), by striking the pe8 riod at the end and inserting ‘‘; and’’; and 

9 (C) by adding at the end the following new 

10 paragraph: 

11 ‘‘(15) the term ‘SBIC’ means a small business 

12 investment company as defined in section 103 of the 

13 Small Business Investment Act of 1958 (15 U.S.C. 

14 662).’’; and 

15 (4) in the heading for subsection (dd), by strik16 ing ‘‘OR PRIVATE EQUITY FIRMS’’ and inserting 

17 ‘‘PRIVATE EQUITY FIRMS, OR SBICS’’. 

18 SEC. 602. PHASE III AND SOLE-SOURCE AWARDS. 

19 Section 9(r) of the Small Business Act (15 U.S.C. 

20 638) is amended— 

21 (1) in the heading, by inserting ‘‘SOLE SOURCE

22 AND OTHER’’ after ‘‘JUSTIFICATION FOR’’; and 


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1 (2) in the heading for paragraph (4), by insert2 ing ‘‘SOLE SOURCE AND OTHER’’ after ‘‘JUSTIFICA3 TION FOR’’. 

Æ 


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