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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4158 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  2d Session
                                S. 4158

 To amend the small business laws to create certain requirements with 
     respect to the SBIR and STTR program, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 5, 2022

  Mr. Padilla introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To amend the small business laws to create certain requirements with 
     respect to the SBIR and STTR program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Encouraging Small Business 
Innovation Act''.

SEC. 2. INCLUSION OF TESTING AND EVALUATION FOR ALL FEDERAL AGENCIES.

    Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is 
amended--
            (1) in the subsection heading, by striking ``Pilot 
        Program'' and inserting ``Testing, Evaluation, and 
        Commercialization'';
            (2) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``establish a program to'' after ``may'';
            (3) in paragraph (2)(A), by striking ``pilot program'' each 
        place that term appears and inserting ``covered program'';
            (4) in paragraph (3), by striking ``pilot program'' and 
        inserting ``covered program'';
            (5) in paragraph (4), by striking ``pilot program'' and 
        inserting ``covered program'';
            (6) in paragraph (6), by striking ``pilot program'' and 
        inserting ``covered program''; and
            (7) by striking paragraphs (7) and (8) and inserting the 
        following:
            ``(7) Definitions.--In this subsection--
                    ``(A) the term `covered Federal agency' means a 
                Federal agency participating in the SBIR program or the 
                STTR program; and
                    ``(B) the term `covered program' means a program 
                established under paragraph (1).''.

SEC. 3. INCLUSION OF SMALL BUSINESS INVESTMENT COMPANIES IN SBIR AND 
              STTR.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) by striking ``or private equity firm investment'' each 
        place that term appears and inserting ``private equity firm, or 
        SBIC investment'';
            (2) by striking ``or private equity firms'' each place that 
        term appears and inserting ``private equity firms, or SBICs'';
            (3) in subsection (e)--
                    (A) in paragraph (13)(B), by striking ``and'' at 
                the end;
                    (B) in paragraph (14), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(15) the term `SBIC' means a small business investment 
        company as defined in section 103 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 662).''; and
            (4) in the heading for subsection (dd), by striking ``or 
        Private Equity Firms'' and inserting ``Private Equity Firms, or 
        SBICs''.

SEC. 4. CALCULATION OF LEVERAGE OF SMALL BUSINESS INVESTMENT COMPANIES 
              THAT INVEST IN SBIR OR STTR PARTICIPANTS.

    Section 303(b)(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(b)(2)) is amended by adding at the end the following:
                    ``(E) Investments in sbir and sttr participants.--
                            ``(i) Definitions.--In this subparagraph--
                                    ``(I) the term `cost' has the 
                                meaning given the term in section 502 
                                of the Federal Credit Reform Act of 
                                1990 (2 U.S.C. 661a); and
                                    ``(II) the term `SBIR or STTR 
                                participant' means a small business 
                                concern that receives contracts or 
                                grants pursuant to section 9 of the 
                                Small Business Act (15 U.S.C. 638).
                            ``(ii) Exclusion.--Subject to clause (iii), 
                        in calculating the outstanding leverage of a 
                        company for purposes of subparagraph (A), the 
                        Administrator shall exclude the amount of any 
                        investment made in a SBIR or STTR participant, 
                        if such investment is made in the first fiscal 
                        year after the date of enactment of this 
                        subparagraph or any fiscal year thereafter by a 
                        company licensed during the applicable fiscal 
                        year.
                            ``(iii) Limitations.--
                                    ``(I) Amount of exclusion.--The 
                                amount excluded under clause (i) for a 
                                company shall not exceed 33 percent of 
                                the private capital of that company.
                                    ``(II) Maximum investment.--A 
                                company shall not make an investment in 
                                any 1 SBIR or STTR participant in an 
                                amount equal to more than 20 percent of 
                                the private capital of that company.
                                    ``(III) Other terms.--The exclusion 
                                of amounts under clause (i) shall be 
                                subject to such terms as the 
                                Administrator may impose to ensure that 
                                there is no cost with respect to 
                                purchasing or guaranteeing any 
                                debenture involved.''.

SEC. 5. ANNUAL MEETING FOR FEDERAL AGENCIES WITH A SBIR OR STTR 
              PROGRAM.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(vv) Annual Meeting.--
            ``(1) In general.--The head of each Federal agency required 
        to have a program under this section (or a designee) and the 
        Administrator (or a designee) shall meet annually to discuss 
        methods--
                    ``(A) to improve the collection of data under this 
                section;
                    ``(B) to improve the reporting of data to the 
                Administrator under this section;
                    ``(C) to make the application processes for 
                programs under this section more efficient; and
                    ``(D) to increase participation in the programs 
                under this section.
            ``(2) Reporting.--Not later than 60 days after the date on 
        which an annual meeting required under paragraph (1) is held, 
        the Administrator shall submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business and the Committee on Science, Space, and 
        Technology of the House of Representatives a report on the 
        findings of the meeting and recommendations on how to implement 
        changes to programs under this section.''.

SEC. 6. INCREASING PARTICIPATION OF UNDERSERVED POPULATIONS IN THE SBIR 
              AND STTR PROGRAMS.

    (a) In General.--Section 9(mm)(2) of the Small Business Act (15 
U.S.C. 638(mm)(2)) is amended to read as follows:
            ``(2) Outreach and technical assistance.--A Federal agency 
        participating in the program under this subsection shall use a 
        portion of the funds authorized for uses under paragraph (1) to 
        carry out the policy directive required under subsection 
        (j)(2)(F) and to increase the participation of States with 
        respect to which a low level of SBIR awards have historically 
        been awarded.''.
    (b) Conforming Amendment.--Section 9(mm)(6) of the Small Business 
Act (15 U.S.C. 638(mm)(6)) is amended by striking ``paragraph (2)(A) 
and any use of the waiver authority under paragraph (2)(B)'' and 
inserting ``paragraph (2)''.
                                 <all>
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