representatives of organizations of such 
service providers. 
‘‘(D) DUTIES.—The advisory board shall 
have the following duties: 
‘‘(i) To develop guidelines for awards 
under paragraph (1), including guidelines 
relating to award sizes, proposal require-
ments, measures for monitoring awardee 
performance, and measures for determining 
the overall value of the activities carried out 
by the awardees. 
‘‘(ii) To identify opportunities for co-
ordinated outreach, technical assistance, 
and commercialization activities among 
Federal agencies, the recipients of the 
awards under paragraph (1), and appli-
cants and recipients of SBIR awards, in-
cluding opportunities such as— 
‘‘(I) podcasting or webcasting for 
conferences, training workshops, and 
other events; 
‘‘(II) shared online resources to 
match prospective applicants with the 
network of paragraph (1) recipients; 
and 
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‘‘(III) venture capital conferences 
tied to technologies and sectors that 
cross agencies. 
‘‘(iii) To review and recommend revi-
sions to activities under paragraph (1). 
‘‘(iv) To submit to the Committee on 
Small Business and Entrepreneurship of 
the Senate and the Committee on Small 
Business and the Committee on Science and 
Technology of the House of Representatives 
an annual report on the activities carried 
out under paragraph (1) and the effective-
ness and impact of those activities. 
‘‘(6) SELECTION CRITERIA.—In awarding grants 
under this subsection, the Administrator shall use se-
lection criteria developed by the advisory board estab-
lished under paragraph (5). The criteria shall in-
clude— 
‘‘(A) criteria designed to give preference to 
applicants who propose to carry out activities 
that will reach either an underperforming geo-
graphic area or an underrepresented population 
group (as measured by the number of SBIR ap-
plicants); 
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‘‘(B) criteria designed to give preference to 
applicants who propose to carry out activities 
that complement, and are integrated into, the ex-
isting public-private innovation support system 
for the targeted region or population; 
‘‘(C) criteria designed to give preference to 
applicants who propose to measure the effective-
ness of the proposed activities; and 
‘‘(D) criteria designed to give preference to 
applicants who include a Small Business Devel-
opment Center program that is accredited for its 
technology services. 
‘‘(7) PEER REVIEW.—In awarding grants under 
this subsection, the Administrator shall use a peer re-
view process. Reviewers shall include— 
‘‘(A) SBIR program managers for agencies 
required by this section to conduct SBIR pro-
grams; and 
‘‘(B) private individuals and organizations 
that are knowledgeable about SBIR, the innova-
tion process, technology commercialization, and 
State and regional technology-based economic de-
velopment programs. 
‘‘(8) PER-STATE LIMITATIONS.— 
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‘‘(A) IN GENERAL.—To be eligible to receive 
a grant under this subsection, the applicant 
must have the written endorsement of the Gov-
ernor of the State where the targeted regions or 
populations are located (if the regions or popu-
lations are located in more than one State, the 
applicant must have the written endorsement of 
the Governor of each such State). Such an en-
dorsement must indicate that the Governor will 
ensure that the activities to be carried out under 
the grant will be integrated with the balance of 
the State’s portfolio of investments to help small 
business concerns commercialize technology. 
‘‘(B) LIMITATION.—Each fiscal year, a Gov-
ernor may have in effect not more than one writ-
ten endorsement for a grant under paragraph 
(1)(A), and not more than one written endorse-
ment for a grant under paragraph (1)(B). 
‘‘(9) SPECIFIC REQUIREMENTS FOR AWARDS.— 
In making awards under paragraph (1) the Adminis-
trator shall ensure that each award shall be for a pe-
riod of 2 fiscal years. The Administrator shall estab-
lish rules and performance goals for the disbursement 
of funds for the second fiscal year, and funds shall not 
be disbursed to a recipient for such a fiscal year until 
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after the advisory board established under this sub-
section has determined that the recipient is in compli-
ance with the rules and performance goals.’’. 
SEC. 302. RURAL PREFERENCE. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(cc) RURAL PREFERENCE.—In making awards under 
this section, Federal agencies shall give priority to applica-
tions so as to increase the number of SBIR and STTR 
award recipients from rural areas.’’. 
SEC. 303. OBTAINING SBIR APPLICANT’S CONSENT TO RE-
LEASE 
CONTACT 
INFORMATION 
TO 
ECO-
NOMIC DEVELOPMENT ORGANIZATIONS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(dd) CONSENT TO RELEASE CONTACT INFORMATION 
TO ORGANIZATIONS.— 
‘‘(1) ENABLING CONCERN TO GIVE CONSENT.— 
Each Federal agency required by this section to con-
duct an SBIR program shall enable a small business 
concern that is an SBIR applicant to indicate to the 
agency whether the agency has its consent to— 
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‘‘(A) identify the concern to appropriate 
local and State-level economic development orga-
nizations as an SBIR applicant; and 
‘‘(B) release the concern’s contact informa-
tion to such organizations. 
‘‘(2) RULES.—The Administrator shall establish 
rules to implement this subsection. The rules shall in-
clude a requirement that the agency include in its 
SBIR application forms a provision through which 
the applicant can indicate consent for purposes of 
paragraph (1).’’. 
SEC. 
304. 
INCREASED 
PARTNERSHIPS 
BETWEEN 
SBIR 
AWARDEES AND PRIME CONTRACTORS, VEN-
TURE 
CAPITAL 
INVESTMENT 
COMPANIES, 
AND LARGER BUSINESSES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ee) INCREASED PARTNERSHIPS.— 
‘‘(1) IN
GENERAL.—Each agency required by 
this section to conduct an SBIR program shall estab-
lish initiatives by which the agency encourages part-
nerships between SBIR awardees and prime contrac-
tors, venture capital investment companies, business 
incubators, and larger businesses, for the purpose of 
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facilitating the progress of the SBIR awardees to the 
third phase. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘business incubator’ means an entity that provides co-
ordinated and specialized services to entrepreneurial 
businesses which meet selected criteria during the 
businesses’ startup phases, including providing serv-
ices such as shared office space and office services, ac-
cess to equipment, access to telecommunications and 
technology services, flexible leases, specialized manage-
ment assistance, access to financing, mentoring and 
training services, or other coordinated business or 
technical support services designed to provide business 
development assistance to entrepreneurial businesses 
during these businesses’ startup phases.’’. 
TITLE IV—SBIR AND STTR 
ENHANCEMENT 
SEC. 401. INCREASED NUMBER OF RESEARCH TOPIC SO-
LICITATIONS ANNUALLY AND SHORTENED 
PERIOD FOR FINAL DECISIONS ON APPLICA-
TIONS. 
(a) INCREASED NUMBER OF RESEARCH TOPIC SOLICI-
TATIONS ANNUALLY.—Section 9(g)(2) of the Small Business 
Act (15 U.S.C. 638(g)(2)) is amended by inserting before 
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the semicolon at the end the following: ‘‘, but not less often 
than twice per year’’. 
(b) SHORTENED PERIOD FOR FINAL DECISIONS ON 
APPLICATIONS.—Section 9(g)(4) of the Small Business Act 
(15 U.S.C. 638(g)(4)) is amended by inserting before the 
semicolon at the end the following: ‘‘, but a final decision 
on each proposal shall be rendered not later than 90 days 
after the date on which the solicitation closes unless the Ad-
ministrator determines, on a case by case basis, that a deci-
sion may be extended from 90 days to 180 days’’. 
SEC. 402. AGENCIES SHOULD FUND VITAL R&D PROJECTS 
WITH THE POTENTIAL FOR COMMERCIALIZA-
TION. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ff) MULTIPLE FIRST PHASE SBIR AWARDS RE-
PORT.—The Administrator shall, on an annual basis, sub-
mit to the Committee on Small Business and the Committee 
on Science and Technology of the House of Representatives 
and the Committee on Small Business and Entrepreneur-
ship of the Senate a list identifying each small business con-
cern that, for the period covered by the preceding 5 fiscal 
years, received 15 or more first phase SBIR awards and 
no second phase SBIR awards.’’. 
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SEC. 403. FEDERAL AGENCY ENGAGEMENT WITH SBIR 
AWARDEES THAT HAVE BEEN AWARDED MUL-
TIPLE PHASE ONE AWARDS BUT HAVE NOT 
BEEN AWARDED PHASE TWO AWARDS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(gg) REQUIREMENTS RELATING TO FEDERAL AGEN-
CY ENGAGEMENT WITH CERTAIN FIRST PHASE SBIR 
AWARDEES.—Each Federal agency required by this section 
to conduct an SBIR program shall engage with SBIR 
awardees that have been awarded multiple first phase SBIR 
awards but have not been awarded any second phase SBIR 
awards and shall develop performance measures with re-
spect to awardee progression in the SBIR program.’’. 
SEC. 404. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(hh) ASSISTANCE FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS.— 
‘‘(1) IN GENERAL.—From amounts made avail-
able to carry out this subsection, the Administrator 
may, on petition by Federal agencies required by this 
section to conduct an SBIR program, transfer funds 
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to such agencies to assist with the administrative, 
oversight, and contract processing costs relating to 
such program. 
‘‘(2) PETITIONS.—The Administrator shall estab-
lish rules for making transfers under paragraph (1). 
The initial set of rules shall be promulgated not later 
than 180 days after the date of the enactment of this 
subsection. 
‘‘(3) LIMIT
ON
TRANSFER.—A Federal agency 
may not receive under this subsection in a fiscal year 
an amount greater than 3 percent of the SBIR budget 
of such agency for such fiscal year. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Admin-
istrator to carry out this subsection $27,500,000 for 
each of fiscal years 2010 and 2011.’’. 
SEC. 405. COMPTROLLER GENERAL AUDIT OF HOW FED-
ERAL AGENCIES CALCULATE EXTRAMURAL 
RESEARCH BUDGETS. 
The Comptroller General of the United States shall 
carry out a detailed audit of how Federal agencies calculate 
extramural research budgets for purposes of calculating the 
size of the agencies’ Small Business Innovation Research 
Program and Small Business Technology Transfer Pro-
gram budgets. Not later than 1 year after the date of the 
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enactment of this Act, the Comptroller General shall submit 
to the Committee on Small Business and the Committee on 
Science and Technology of the House of Representatives and 
the Committee on Small Business and Entrepreneurship of 
the Senate a report on the results of the audit. 
SEC. 406. AGENCY DATABASES TO SUPPORT PROGRAM 
EVALUATION. 
Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)) is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘and’’ at the end of clause 
(ii); 
(B) by inserting ‘‘and’’ at the end of clause 
(iii); and 
(C) by adding at the end the following new 
clause: 
‘‘(iv) information on the ownership 
structure of award recipients, both at the 
time of receipt of the award and upon com-
pletion of the award period;’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) UPDATING INFORMATION FOR DATABASE.— 
‘‘(A) IN GENERAL.—A Federal agency shall 
not make a Phase I or Phase II payment to a 
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small business concern under this section unless 
the small business concern has provided all in-
formation required under this subsection and 
available at the time with respect to the award 
under which the payment is made, and with re-
spect to any other award under this section pre-
viously received by the small business concern or 
a predecessor in interest to the small business 
concern. 
‘‘(B) APPORTIONMENT.—In complying with 
this paragraph, a small business concern may 
apportion sales or additional investment infor-
mation relating to more than one second phase 
award among those awards, if it notes the ap-
portionment for each award. 
‘‘(C) 
ANNUAL
UPDATES
UPON
TERMI-
NATION.—A small business concern receiving an 
award under this section shall— 
‘‘(i) in the case of a second phase 
award, update information in the databases 
required under paragraphs (2) and (6) con-
cerning that award at the termination of 
the award period; 
‘‘(ii) in the case of award recipients 
not described in clause (iii), be requested to 
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voluntarily update such information annu-
ally thereafter for a period of 5 years; and 
‘‘(iii) in the case of a small business 
concern applying for a subsequent first 
phase or second phase award, be required to 
update such information annually there-
after for a period of 5 years.’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(6) AGENCY
PROGRAM
EVALUATION
DATA-
BASES.—Each Federal agency required to establish 
an SBIR or STTR program under this section shall 
develop and maintain, for the purpose of evaluating 
such programs, a database containing information re-
quired to be contained in the database under para-
graph (2). Each such database shall be designed to be 
accessible to other agencies that are required to main-
tain a database under this paragraph. Each such 
database shall be developed and operated in a manner 
to ensure that each such database is relevant to and 
contributes to the agency’s oversight and evaluation of 
the SBIR and STTR programs. Paragraphs (4) and 
(5) apply to each database under this paragraph.’’. 
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SEC. 407. AGENCY DATABASES TO SUPPORT TECHNOLOGY 
UTILIZATION. 
Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)), as amended, is further amended by adding at the 
end the following new paragraph: 
‘‘(7) AGENCY
DATABASES
TO
SUPPORT
TECH-
NOLOGY UTILIZATION.—Each Federal agency with an 
SBIR or STTR program shall create and maintain 
a technology utilization database, which shall be 
available to the public and shall contain data sup-
plied by the award recipients specifically to help them 
attract customers for the products and services gen-
erated under the SBIR or STTR project, and to at-
tract additional investors and business partners. 
Each database created under this paragraph shall in-
clude information on the other databases created 
under this paragraph by other Federal agencies. Par-
ticipation in a database under this paragraph shall 
be voluntary, except that such participation is re-
quired of all award recipients who received supple-
mental payments from SBIR and STTR program 
funds above their initial Phase II award. Each data-
base created under this paragraph shall be developed 
and operated in a manner to ensure that each such 
database is relevant to and contributes to the agency’s 
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oversight and evaluation of the SBIR and STTR pro-
grams.’’. 
SEC. 408. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the Office of 
Science and Technology Policy shall establish an Inter-
agency SBIR/STTR Policy Committee comprised of one 
representative from each Federal agency with an SBIR pro-
gram and the Office of Management and Budget. 
(b) COCHAIRS.—The Director of the Office of Science 
and Technology Policy and the Director of the National In-
stitute of Standards and Technology shall jointly chair the 
Interagency SBIR/STTR Policy Committee. 
(c) DUTIES.—The Interagency SBIR/STTR Policy 
Committee shall review the following issues and make policy 
recommendations on ways to improve program effectiveness 
and efficiency: 
(1) The public and government databases de-
scribed in section 9(k) (1) and (2) of the Small Busi-
ness Act (15 U.S.C. 638(k) (1) and (2)). 
(2) Federal agency flexibility in establishing 
Phase I and II award sizes, and appropriate criteria 
to exercise such flexibility. 
(3) Commercialization assistance best practices 
in Federal agencies with significant potential to be 
employed by other agencies, and the appropriate steps 
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to achieve that leverage, as well as proposals for new 
initiatives to address funding gaps business concerns 
face after Phase II but before commercialization. 
(4) Development and incorporation of a stand-
ard evaluation framework to enable systematic assess-
ment of SBIR and STTR, including through im-
proved tracking of awards and outcomes and develop-
ment of performance measures for individual agency 
programs. 
(d) REPORTS.—The Interagency SBIR/STTR Policy 
Committee shall transmit to the Committee on Science and 
Technology and the Committee on Small Business of the 
House of Representatives, and to the Committee on Small 
Business and Entrepreneurship of the Senate— 
(1) a report on its review and recommendations 
under subsections (c)(1) and (c)(4) not later than 1 
year after the date of enactment of this Act; 
(2) a report on its review and recommendations 
under subsection (c)(2) not later than 18 months after 
the date of enactment of this Act; and 
(3) a report on its review and recommendations 
under subsection (c)(3) not later than 2 years after 
the date of enactment of this Act. 
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SEC. 409. NATIONAL RESEARCH COUNCIL SBIR STUDY. 
Section 108(d) of the Small Business Reauthorization 
Act of 2000 (15 U.S.C. 638 note), enacted into law by ref-
erence under section 1(a)(9) of the Consolidated Appropria-
tions Act, 2001 (Public Law 106–554), is amended— 
(1) by striking ‘‘of the Senate’’ and all that fol-
lows through ‘‘not later than 3’’ and inserting ‘‘of the 
Senate, not later than 3’’; and 
(2) by striking ‘‘; and’’ and all that follows 
through ‘‘update of such report’’. 
SEC. 410. EXPRESS AUTHORITY TO ‘‘FAST-TRACK’’ PHASE 
TWO AWARDS FOR PROMISING PHASE ONE 
RESEARCH. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ii) AUTHORITY
TO
‘FAST-TRACK’ PHASE
TWO 
AWARDS FOR PROMISING PHASE ONE RESEARCH.—To ad-
dress the delay between an award for the first phase of an 
SBIR program and the application for and extension of 
an award for the second phase of such program, each Fed-
eral agency with an SBIR program may develop ‘fast-track’ 
programs to eliminate such delay by issuing second phase 
SBIR awards as soon as practicable, including in appro-
priate cases simultaneously with the issuance of the first 
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phase SBIR award. The Administrator shall encourage the 
development of such ‘fast-track’ programs.’’. 
SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS. 
(a) SBIR AWARD LEVEL
AND ANNUAL ADJUST-
MENTS.—Section 9(j) of the Small Business Act (15 U.S.C. 
638(j)) is amended by adding at the end the following: 
‘‘(4) FURTHER
ADDITIONAL
MODIFICATIONS.—Not 
later than 180 days after the date of enactment of this para-
graph and notwithstanding paragraph (2)(D), the Admin-
istrator shall modify the policy directives issued pursuant 
to this subsection to provide for an increase to $250,000 
in the amount of funds which an agency may award in 
the first phase of an SBIR program, and to $2,000,000 in 
the second phase of an SBIR program, and a mandatory 
annual adjustment of such amounts to reflect economic ad-
justments and programmatic considerations.’’. 
(b) STTR AWARD LEVEL
AND ANNUAL ADJUST-
MENTS.—Section 9(p)(2)(B)(ix) of the Small Business Act 
(15 U.S.C. 638(p)(2)(B)(ix)) is amended— 
(1) by striking ‘‘$100,000’’ and ‘‘$750,000’’ and 
inserting ‘‘$250,000’’ and ‘‘$2,000,000’’, respectively; 
and 
(2) by striking ‘‘greater or lesser amounts’’ and 
inserting ‘‘with a mandatory annual adjustment of 
such amounts to reflect economic adjustments and 
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programmatic 
considerations, 
and 
with 
lesser 
amounts’’. 
(c) LIMITATION ON CERTAIN AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following: 
‘‘(jj) LIMITATION ON PHASE I AND II AWARDS.—No 
Federal agency shall issue an award under the SBIR pro-
gram or the STTR program if the size of the award exceeds 
the amounts established under subsections (j)(4) and 
(p)(2)(B)(ix).’’. 
SEC. 412. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD 
SEQUENTIAL PHASE TWO AWARDS FOR SBIR- 
FUNDED PROJECTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(kk) REQUIREMENTS RELATING TO ADDITIONAL SEC-
OND PHASE SBIR AWARDS.— 
‘‘(1) IN
GENERAL.—A small business concern 
that receives a second phase SBIR award for a project 
remains eligible to receive additional second phase 
SBIR awards for such project. 
‘‘(2) TECHNICAL OR WEAPONS SYSTEMS.—Agen-
cies are expressly authorized to provide additional 
second phase SBIR awards for testing and evaluation 
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assistance for the insertion of SBIR technologies into 
technical or weapons systems.’’. 
SEC. 413. FIRST PHASE REQUIRED. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(ll) FIRST PHASE REQUIRED.—Under this section, a 
Federal agency shall provide to a small business concern 
an award for the second phase of an SBIR program with 
respect to a project only if such agency finds that the small 
business concern has been provided an award for the first 
phase of an SBIR program with respect to such project or 
has completed the determinations described in subsection 
(e)(4)(A) with respect to such project despite not having 
been provided an award for the first phase.’’. 
SEC. 414. INVOLVEMENT OF CHIEF COUNSEL FOR ADVO-
CACY. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended, is further amended by adding at the end the 
following: 
‘‘(mm) INVOLVEMENT OF CHIEF COUNSEL FOR ADVO-
CACY.—The Chief Counsel for Advocacy, as described in sec-
tion 201 of Public Law 94–305 (15 U.S.C. 634a), and any 
individual reporting to the Chief Counsel for Advocacy, 
without regard to whether such individual was hired under 
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section 204 of Public Law 94–305 (15 U.S.C. 634d), may 
not provide to the Administrator, to any individual who 
reports directly or indirectly to the Administrator, or to 
any Federal agency any advice, guidance, oversight, or re-
view with respect to the programs authorized under this sec-
tion.’’. 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as 
the ‘‘Enhancing Small Business Research and 
Innovation Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of con-
tents for this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—PROGRAM EXTENSION AND VENTURE CAPITAL 
OPERATING COMPANY INVOLVEMENT 
Sec. 101. Extension of termination dates. 
Sec. 102. Ensuring that innovative small businesses with sub-
stantial investment from venture capital oper-
ating companies are able to participate in the 
SBIR and STTR programs. 
TITLE II—COMMERCIALIZATION ACTIVITIES AND 
RESEARCH TOPICS DESERVING SPECIAL CONSIDERATION 
Sec. 201. Focus on commercialization. 
Sec. 202. Inclusion of energy-related research topics and rare 
disease-related research topics as deserving ‘‘spe-
cial consideration’’ as SBIR research topics. 
Sec. 203. Nanotechnology-related research topics. 
Sec. 204. Clarifying the definition of ‘‘Phase Three’’. 
Sec. 205. Agency research goals. 
Sec. 206. Commercialization programs. 
TITLE III—RURAL DEVELOPMENT AND OUTREACH 
Sec. 301. Outreach and support activities. 
Sec. 302. Rural preference. 
Sec. 303. Obtaining SBIR applicant’s consent to release contact 
information to economic development organiza-
tions. 
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Sec. 304. Increased partnerships between SBIR awardees and 
prime contractors, venture capital investment 
companies, and larger businesses. 
TITLE IV—SBIR AND STTR ENHANCEMENT 
Sec. 401. Increased number of research topic solicitations an-
nually and shortened period for final decisions on 
applications. 
Sec. 402. Agencies should fund vital R&D projects with the po-
tential for commercialization. 
Sec. 403. Federal agency engagement with SBIR awardees that 
have been awarded multiple Phase One awards 
but have not been awarded Phase Two awards. 
Sec. 404. Funding for administrative, oversight, and contract 
processing costs. 
Sec. 405. Comptroller general audit of how Federal agencies 
calculate extramural research budgets. 
Sec. 406. Agency databases to support program evaluation. 
Sec. 407. Agency databases to support technology utilization. 
Sec. 408. Interagency Policy Committee. 
Sec. 409. National Research Council SBIR Study. 
Sec. 410. Express authority to ‘‘fast-track’’ Phase Two awards 
for promising Phase One research. 
Sec. 411. Increased SBIR and STTR award levels. 
Sec. 412. Express authority for an agency to award sequential 
Phase Two awards for SBIR-funded projects. 
Sec. 413. First phase required. 
TITLE I—PROGRAM EXTENSION 
AND VENTURE CAPITAL OP-
ERATING COMPANY INVOLVE-
MENT 
SEC. 101. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Busi-
ness Act (15 U.S.C. 638(m)) is amended by 
striking ‘‘2008’’ and inserting ‘‘2011’’. 
(b) STTR.—Section 9(n)(1)(A) of the Small 
Business Act (15 U.S.C. 638(n)(1)(A)) is amend-
ed by striking ‘‘2009’’ and inserting ‘‘2011’’. 
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SEC. 102. ENSURING THAT INNOVATIVE SMALL BUSI-
NESSES WITH SUBSTANTIAL INVESTMENT 
FROM VENTURE CAPITAL OPERATING COM-
PANIES ARE ABLE TO PARTICIPATE IN THE 
SBIR AND STTR PROGRAMS. 
Section 9 of the Small Business Act (15 
U.S.C. 638) is amended by adding at the end 
the following: 
‘‘(aa) VENTURE CAPITAL OPERATING COMPA-
NIES.—Effective only for the SBIR and STTR 
programs the following shall apply: 
‘‘(1) A business concern that has more 
than 500 employees shall not qualify as a 
small business concern. 
‘‘(2) In determining whether a small 
business concern is independently owned 
and operated under section 3(a)(1) or 
meets the small business size standards 
instituted under section 3(a)(2), the Ad-
ministrator shall not consider a business 
concern to be affiliated with a venture 
capital operating company (or with any 
other business that the venture capital 
operating company has financed) if— 
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‘‘(A) the venture capital operating 
company does not own 50 percent or 
more of the business concern; and 
‘‘(B) employees of the venture 
capital operating company do not 
constitute a majority of the board of 
directors of the business concern. 
‘‘(3) A business concern shall be 
deemed to be ‘independently owned and 
operated’ if— 
‘‘(A) it is owned in majority part 
by one or more natural persons or 
venture capital operating companies; 
‘‘(B) there is no single venture 
capital operating company that owns 
50 percent or more of the business 
concern; and 
‘‘(C) there is no single venture 
capital operating company the em-
ployees of which constitute a major-
ity of the board of directors of the 
business concern. 
‘‘(4) If a venture capital operating 
company controlled by a business with 
more than 500 employees (in this para-
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graph referred to as a ‘VCOC under large 
business control’) has an ownership inter-
est in a small business concern that is 
owned in majority part by venture cap-
ital operating companies, the small busi-
ness concern is eligible to receive an 
award under the SBIR or STTR program 
only if— 
‘‘(A) not more than two VCOCs 
under large business control have an 
ownership interest in the small busi-
ness concern; and 
‘‘(B) the VCOCs under large busi-
ness control do not collectively own 
more than 20 percent of the small 
business concern. 
‘‘(5) The term ‘venture capital oper-
ating company’ means a business con-
cern— 
‘‘(A) that— 
‘‘(i) is a Venture Capital Oper-
ating Company, as that term is 
defined in regulations promul-
gated by the Secretary of Labor; 
or 
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‘‘(ii) is an entity that— 
‘‘(I) is registered under 
the Investment Company Act 
of 1940 (15 U.S.C. 80a–51 et 
seq.); or 
‘‘(II) is an investment com-
pany, as defined in section 
3(c)(1) of such Act (15 U.S.C. 
80a–3(c)(1)), which is not reg-
istered under such Act be-
cause it is beneficially owned 
by less than 100 persons; and 
‘‘(B) that is itself organized or in-
corporated 
and 
domiciled 
in 
the 
United States, or is controlled by a 
business concern that is incorporated 
and domiciled in the United States.’’. 
TITLE II—COMMERCIALIZATION 
ACTIVITIES AND RESEARCH 
TOPICS DESERVING SPECIAL 
CONSIDERATION 
SEC. 201. FOCUS ON COMMERCIALIZATION. 
Section 9(a) of the Small Business Act (15 
U.S.C. 638(a)) is amended by adding at the end 
the following: ‘‘It is further the policy of Con-
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gress that the programs established in this 
section should focus on promoting research 
and development of projects governed by 
commercial business plans, which have sig-
nificant potential to produce products or 
services for the marketplace or for acquisi-
tion by Federal agencies.’’. 
SEC. 202. INCLUSION OF ENERGY-RELATED RESEARCH 
TOPICS AND RARE DISEASE-RELATED RE-
SEARCH TOPICS AS DESERVING ‘‘SPECIAL 
CONSIDERATION’’ AS SBIR RESEARCH TOP-
ICS. 
Section 9(g)(3) of the Small Business Act 
(15 U.S.C. 638(g)(3)) is amended— 
(1) in the matter preceding subpara-
graph (A) by inserting after ‘‘critical tech-
nologies’’ the following: ‘‘or pressing re-
search priorities’’; 
(2) in subparagraph (A) by striking 
‘‘or’’ at the end; and 
(3) by adding at the end the fol-
lowing: 
‘‘(C) the National Academy of 
Sciences, in the final report issued by 
the ‘America’s Energy Future: Tech-
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nology 
Opportunities, 
Risks, 
and 
Tradeoffs’ project, and in subsequent 
reports issued by the National Acad-
emy of Sciences on sustainability, en-
ergy, and alternative fuels; 
‘‘(D) the National Institutes of 
Health, in the annual report on the 
rare diseases research activities of 
the National Institutes of Health for 
fiscal year 2005, and in subsequent 
reports issued by the National Insti-
tutes of Health on rare diseases re-
search activities; or 
‘‘(E) the National Academy of 
Sciences, in the final report issued by 
the ‘Transit Research and Develop-
ment: Federal Role in the National 
Program’ project and the ‘Transpor-
tation Research, Development and 
Technology 
Strategic 
Plan 
(2006– 
2010)’ issued by the United States De-
partment of Transportation Research 
and Innovative Technology Adminis-
tration, and in subsequent reports 
issued by the National Academy of 
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Sciences and United States Depart-
ment of Transportation on transpor-
tation and infrastructure;’’. 
SEC. 203. NANOTECHNOLOGY-RELATED RESEARCH TOPICS. 
(a) SBIR.—Section 9(g)(3) of the Small 
Business Act (15 U.S.C. 638(g)(3)), as amended, 
is further amended— 
(1) in subparagraph (D) by striking 
‘‘or’’ at the end; 
(2) in subparagraph (E) by adding 
‘‘or’’ at the end; and 
(3) by adding at the end the fol-
lowing: 
‘‘(F) the national nanotechnology 
strategic plan required under section 
2(c)(4) of the 21st Century Nanotech-
nology Research and Development 
Act (15 U.S.C. 7501(c)(4)) and in subse-
quent reports issued by the National 
Science 
and 
Technology 
Council 
Committee on Technology, focusing 
on areas of nanotechnology identified 
in such plan;’’. 
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(b) STTR.—Section 9(o)(3) of the Small 
Business Act (15 U.S.C. 638(o)(3)) is amend-
ed— 
(1) in subparagraph (A) by striking 
‘‘or’’ at the end; 
(2) in subparagraph (B) by adding 
‘‘or’’ at the end; and 
(3) by adding at the end the fol-
lowing: 
‘‘(C) by the national nanotechnol-
ogy strategic plan required under 
section 2(c)(4) of the 21st Century 
Nanotechnology Research and Devel-
opment Act (15 U.S.C. 7501(c)(4)) and 
in subsequent reports issued by the 
National 
Science 
and 
Technology 
Council Committee on Technology, fo-
cusing on areas of nanotechnology 
identified in such plan;’’. 
SEC. 
204. 
CLARIFYING 
THE 
DEFINITION 
OF 
‘‘PHASE 
THREE’’. 
Section 9(e) of the Small Business Act (15 
U.S.C. 638(e)) is amended— 
(1) in paragraph (4)(C) in the matter 
preceding clause (i) by inserting after ‘‘a 
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third phase’’ the following: ‘‘, which shall 
consist of work that derives from, ex-
tends, or logically concludes efforts per-
formed under prior SBIR funding agree-
ments (which may be referred to as 
‘Phase III’)’’; 
(2) in paragraph (8) by striking ‘‘and’’ 
at the end; 
(3) in paragraph (9) by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(4) by adding at the end the fol-
lowing: 
‘‘(10) 
the 
term 
‘commercialization’ 
means the process of developing market-
able products or services and producing 
and delivering products or services for 
sale (whether by the originating party or 
by others) to government or commercial 
markets.’’. 
SEC. 205. AGENCY RESEARCH GOALS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by striking subsection (h) and inserting the 
following: 
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‘‘(h) AGENCY RESEARCH GOALS.— 
‘‘(1) IN GENERAL.—In addition to the 
requirements of subsection (f), each Fed-
eral agency that is required by this sec-
tion to have an SBIR program and that 
awards annually $5,000,000,000 or more 
in procurement contracts shall, effective 
for fiscal year 2010 and each fiscal year 
thereafter, establish annual goals for 
commercialization of projects funded by 
SBIR awards. 
‘‘(2) SPECIFIC
GOALS.—The goals re-
quired by paragraph (1) shall include 
specific goals for each of the following: 
‘‘(A) 
The 
percentage 
of 
SBIR 
projects that receive funding for the 
third phase (as defined in subsection 
(e)(4)(C)). 
‘‘(B) 
The 
percentage 
of 
SBIR 
projects that are successfully inte-
grated into a program of record. 
‘‘(C) The amount of Federal dol-
lars 
received 
by 
SBIR 
projects 
through Federal contracts, not in-
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cluding dollars received through the 
SBIR program. 
‘‘(3) SUBMISSION TO COMMITTEES.—For 
each fiscal year for which goals are re-
quired by paragraph (1), the agency shall 
submit to the Committee on Small Busi-
ness and the Committee on Science and 
Technology of the House of Representa-
tives and the Committee on Small Busi-
ness and Entrepreneurship of the Sen-
ate— 
‘‘(A) not later than 60 days after 
the beginning of the fiscal year, the 
goals; and 
‘‘(B) not later than 90 days after 
the end of the fiscal year, data on the 
extent to which the goals were met 
and a description of the methodology 
used to collect such data.’’. 
SEC. 206. COMMERCIALIZATION PROGRAMS. 
Section 9 of the Small Business Act (15 
U.S.C. 638) as amended, is further amended, 
by adding at the end the following: 
‘‘(bb) COMMERCIALIZATION PROGRAMS.— 
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‘‘(1) IN
GENERAL.—Each agency re-
quired by this section to conduct an SBIR 
program shall establish a commercializa-
tion program that supports the progress 
of SBIR awardees to the third phase. The 
commercialization program may include 
activities such as partnership databases, 
partnership conferences, multiple second 
phases, mentoring between prime con-
tractors and SBIR awardees, multiple 
second phases with matching private in-
vestment requirements, jumbo awards, 
SBIR helpdesks, and transition assistance 
programs. The agency shall include in its 
annual report an analysis of the various 
activities considered for inclusion in the 
commercialization program and a state-
ment of the reasons why each activity 
considered was included or not included, 
as the case may be. 
‘‘(2) FUNDING FOR COMMERCIALIZATION 
PROGRAMS.— 
‘‘(A) IN
GENERAL.—From amounts 
made available to carry out this para-
graph, the Administrator may, on pe-
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tition by agencies required by this 
section to conduct an SBIR program, 
transfer funds to such agencies to 
support the commercialization pro-
grams of such agencies. 
‘‘(B) 
PETITIONS.—The 
Adminis-
trator shall establish rules for making 
transfers under subparagraph (A). 
The initial set of rules shall be pro-
mulgated not later than 90 days after 
the date of the enactment of this 
paragraph. 
‘‘(C) AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be ap-
propriated to the Administrator to 
carry out this paragraph $27,500,000 
for fiscal year 2010 and each fiscal 
year thereafter. 
‘‘(3) FUNDING
LIMITATION.—For pay-
ment of expenses incurred to administer 
the 
commercialization 
programs 
de-
scribed in paragraphs (1) and (2), the 
head of an agency may use not more than 
an amount equal to 1 percent of the 
funds set aside for the agency’s Small 
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Business Innovation Research program. 
Such funds— 
‘‘(A) shall not be subject to the 
limitations on the use of funds in sub-
section (f)(2); and 
‘‘(B) shall not be used for the pur-
pose of funding costs associated with 
salaries and expenses of employees of 
the Federal Government.’’. 
TITLE III—RURAL 
DEVELOPMENT AND OUTREACH 
SEC. 301. OUTREACH AND SUPPORT ACTIVITIES. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by inserting after subsection (r) the following: 
‘‘(s) OUTREACH AND SUPPORT ACTIVITIES.— 
‘‘(1) IN GENERAL.—Subject to the other 
provisions of this subsection, the Admin-
istrator shall make grants on a competi-
tive basis to organizations, to be used by 
the organizations to do one or both of the 
following: 
‘‘(A) To conduct outreach efforts 
to increase participation in the pro-
grams under this section. 
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‘‘(B) To provide application sup-
port and entrepreneurial and busi-
ness skills support to prospective par-
ticipants in the programs under this 
section. 
‘‘(2) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appro-
priated to the Administrator $10,000,000 
to carry out paragraph (1) for each of fis-
cal years 2010 and 2011. 
‘‘(3) AMOUNT OF ASSISTANCE.—For each 
of subparagraphs (A) and (B) of para-
graph (1), the amount of assistance pro-
vided to an organization under that sub-
paragraph in any fiscal year— 
‘‘(A) shall be equal to the total 
amount of matching funds from non- 
Federal sources provided by the orga-
nization; and 
‘‘(B) shall not exceed $250,000. 
‘‘(4) DIRECTION.—An organization re-
ceiving funds under paragraph (1) shall, 
in using those funds, direct its activities 
at one or both of the following: 
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‘‘(A) Small business concerns lo-
cated in geographic areas that are 
underrepresented in the programs 
under this section. 
‘‘(B) 
Small 
business 
concerns 
owned and controlled by women, 
small business concerns owned and 
controlled by service-disabled vet-
erans, and small business concerns 
owned and controlled by minorities. 
‘‘(5) ADVISORY BOARD.— 
‘‘(A) 
ESTABLISHMENT.—Not 
later 
than 90 days after the date of the en-
actment of this subsection, the Ad-
ministrator shall establish an advi-
sory board for the activities carried 
out under this subsection. 
‘‘(B) NON-APPLICABILITY OF FACA.— 
The Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the 
advisory board. 
‘‘(C) MEMBERS.—The members of 
the advisory board shall include the 
following: 
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‘‘(i) The Administrator (or the 
Administrator’s designee). 
‘‘(ii) For each Federal agency 
required by this section to con-
duct an SBIR program, the head 
of the agency (or the designee of 
the head of the agency). 
‘‘(iii) Representatives of small 
business concerns that are cur-
rent or former recipients of SBIR 
awards, or representatives of or-
ganizations of such concerns. 
‘‘(iv) Representatives of serv-
ice providers of SBIR outreach 
and assistance, or representatives 
of organizations of such service 
providers. 
‘‘(D) DUTIES.—The advisory board 
shall have the following duties: 
‘‘(i) To develop guidelines for 
awards under paragraph (1), in-
cluding 
guidelines 
relating 
to 
award sizes, proposal require-
ments, measures for monitoring 
awardee performance, and meas-
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ures for determining the overall 
value of the activities carried out 
by the awardees. 
‘‘(ii) To identify opportunities 
for coordinated outreach, tech-
nical 
assistance, 
and 
commer-
cialization activities among Fed-
eral agencies, the recipients of 
the awards under paragraph (1), 
and applicants and recipients of 
SBIR awards, including opportu-
nities such as— 
‘‘(I) 
podcasting 
or 
webcasting for conferences, 
training workshops, and other 
events; 
‘‘(II) 
shared 
online 
re-
sources to match prospective 
applicants with the network 
of paragraph (1) recipients; 
and 
‘‘(III) venture capital con-
ferences tied to technologies 
and sectors that cross agen-
cies. 
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‘‘(iii) 
To 
review 
and 
rec-
ommend revisions to activities 
under paragraph (1). 
‘‘(iv) To submit to the Com-
mittee on Small Business and En-
trepreneurship of the Senate and 
the Committee on Small Business 
and the Committee on Science 
and Technology of the House of 
Representatives an annual report 
on 
the 
activities 
carried 
out 
under paragraph (1) and the ef-
fectiveness and impact of those 
activities. 
‘‘(6) SELECTION CRITERIA.—In awarding 
grants under this subsection, the Admin-
istrator shall use selection criteria devel-
oped by the advisory board established 
under paragraph (5). The criteria shall 
include— 
‘‘(A) criteria designed to give pref-
erence to applicants who propose to 
carry out activities that will reach ei-
ther an underperforming geographic 
area or an underrepresented popu-
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lation group (as measured by the 
number of SBIR applicants); 
‘‘(B) criteria designed to give pref-
erence to applicants who propose to 
carry out activities that complement, 
and are integrated into, the existing 
public-private 
innovation 
support 
system for the targeted region or pop-
ulation; 
‘‘(C) criteria designed to give pref-
erence to applicants who propose to 
measure the effectiveness of the pro-
posed activities; and 
‘‘(D) criteria designed to give 
preference to applicants who include 
a Small Business Development Center 
program that is accredited for its 
technology services. 
‘‘(7) 
PEER
REVIEW.—In 
awarding 
grants under this subsection, the Admin-
istrator shall use a peer review process. 
Reviewers shall include— 
‘‘(A) SBIR program managers for 
agencies required by this section to 
conduct SBIR programs; and 
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‘‘(B) private individuals and orga-
nizations 
that 
are 
knowledgeable 
about SBIR, the innovation process, 
technology 
commercialization, 
and 
State and regional technology-based 
economic development programs. 
‘‘(8) PER-STATE LIMITATIONS.— 
‘‘(A) IN GENERAL.—To be eligible to 
receive a grant under this subsection, 
the applicant must have the written 
endorsement of the Governor of the 
State where the targeted regions or 
populations are located (if the re-
gions or populations are located in 
more than one State, the applicant 
must have the written endorsement 
of the Governor of each such State). 
Such an endorsement must indicate 
that the Governor will ensure that 
the activities to be carried out under 
the grant will be integrated with the 
balance of the State’s portfolio of in-
vestments to help small business con-
cerns commercialize technology. 
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‘‘(B) LIMITATION.—Each fiscal year, 
a Governor may have in effect not 
more than one written endorsement 
for a grant under paragraph (1)(A), 
and not more than one written en-
dorsement for a grant under para-
graph (1)(B). 
‘‘(9) 
SPECIFIC
REQUIREMENTS
FOR 
AWARDS.—In making awards under para-
graph (1) the Administrator shall ensure 
that each award shall be for a period of 
2 fiscal years. The Administrator shall es-
tablish rules and performance goals for 
the disbursement of funds for the second 
fiscal year, and funds shall not be dis-
bursed to a recipient for such a fiscal 
year until after the advisory board estab-
lished under this subsection has deter-
mined that the recipient is in compliance 
with the rules and performance goals.’’. 
SEC. 302. RURAL PREFERENCE. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
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‘‘(cc) 
RURAL
PREFERENCE.—In 
making 
awards under this section, Federal agencies 
shall give priority to applications so as to in-
crease the number of SBIR and STTR award 
recipients from rural areas.’’. 
SEC. 303. OBTAINING SBIR APPLICANT’S CONSENT TO RE-
LEASE 
CONTACT 
INFORMATION 
TO 
ECO-
NOMIC DEVELOPMENT ORGANIZATIONS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(dd) CONSENT TO RELEASE CONTACT IN-
FORMATION TO ORGANIZATIONS.— 
‘‘(1) ENABLING CONCERN TO GIVE CON-
SENT.—Each Federal agency required by 
this section to conduct an SBIR program 
shall enable a small business concern 
that is an SBIR applicant to indicate to 
the agency whether the agency has its 
consent to— 
‘‘(A) identify the concern to ap-
propriate local and State-level eco-
nomic development organizations as 
an SBIR applicant; and 
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‘‘(B) release the concern’s contact 
information to such organizations. 
‘‘(2) RULES.—The Administrator shall 
establish rules to implement this sub-
section. The rules shall include a require-
ment that the agency include in its SBIR 
application forms a provision through 
which the applicant can indicate consent 
for purposes of paragraph (1).’’. 
SEC. 304. INCREASED PARTNERSHIPS BETWEEN SBIR 
AWARDEES AND PRIME CONTRACTORS, VEN-
TURE 
CAPITAL 
INVESTMENT 
COMPANIES, 
AND LARGER BUSINESSES. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(ee) INCREASED PARTNERSHIPS.— 
‘‘(1) IN
GENERAL.—Each agency re-
quired by this section to conduct an SBIR 
program shall establish initiatives by 
which the agency encourages partner-
ships between SBIR awardees and prime 
contractors, venture capital investment 
companies, business incubators, and larg-
er businesses, for the purpose of facili-
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tating the progress of the SBIR awardees 
to the third phase. 
‘‘(2) DEFINITION.—In this subsection, 
the term ‘business incubator’ means an 
entity that provides coordinated and spe-
cialized services to entrepreneurial busi-
nesses which meet selected criteria dur-
ing the businesses’ startup phases, in-
cluding providing services such as shared 
office space and office services, access to 
equipment, access to telecommunications 
and technology services, flexible leases, 
specialized management assistance, ac-
cess to financing, mentoring and training 
services, or other coordinated business or 
technical support services designed to 
provide business development assistance 
to 
entrepreneurial 
businesses 
during 
these businesses’ startup phases.’’. 
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TITLE IV—SBIR AND STTR 
ENHANCEMENT 
SEC. 401. INCREASED NUMBER OF RESEARCH TOPIC SO-
LICITATIONS ANNUALLY AND SHORTENED 
PERIOD FOR FINAL DECISIONS ON APPLICA-
TIONS. 
(a) INCREASED NUMBER OF RESEARCH TOPIC 
SOLICITATIONS ANNUALLY.—Section 9(g)(2) of 
the Small Business Act (15 U.S.C. 638(g)(2)) is 
amended by inserting before the semicolon at 
the end the following: ‘‘, but not less often 
than twice per year’’. 
(b) SHORTENED PERIOD
FOR FINAL DECI-
SIONS ON APPLICATIONS.—Section 9(g)(4) of the 
Small Business Act (15 U.S.C. 638(g)(4)) is 
amended by inserting before the semicolon at 
the end the following: ‘‘, but a final decision 
on each proposal shall be rendered not later 
than 90 days after the date on which the solic-
itation closes unless the Administrator deter-
mines, on a case by case basis, that a decision 
may be extended from 90 days to 180 days’’. 
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SEC. 402. AGENCIES SHOULD FUND VITAL R&D PROJECTS 
WITH THE POTENTIAL FOR COMMERCIALIZA-
TION. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(ff) MULTIPLE FIRST PHASE SBIR AWARDS 
REPORT.—The Administrator shall, on an an-
nual basis, submit to the Committee on Small 
Business and the Committee on Science and 
Technology of the House of Representatives 
and the Committee on Small Business and En-
trepreneurship of the Senate a list identifying 
each small business concern that, for the pe-
riod covered by the preceding 5 fiscal years, 
received 15 or more first phase SBIR awards 
and no second phase SBIR awards.’’. 
SEC. 403. FEDERAL AGENCY ENGAGEMENT WITH SBIR 
AWARDEES THAT HAVE BEEN AWARDED MUL-
TIPLE PHASE ONE AWARDS BUT HAVE NOT 
BEEN AWARDED PHASE TWO AWARDS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(gg) REQUIREMENTS RELATING TO FEDERAL 
AGENCY
ENGAGEMENT
WITH
CERTAIN
FIRST 
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PHASE SBIR AWARDEES.—Each Federal agency 
required by this section to conduct an SBIR 
program shall engage with SBIR awardees 
that have been awarded multiple first phase 
SBIR awards but have not been awarded any 
second phase SBIR awards and shall develop 
performance measures with respect to award-
ee progression in the SBIR program.’’. 
SEC. 404. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, 
AND CONTRACT PROCESSING COSTS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(hh) 
ASSISTANCE
FOR
ADMINISTRATIVE, 
OVERSIGHT, 
AND
CONTRACT
PROCESSING 
COSTS.— 
‘‘(1) 
IN
GENERAL.—From 
amounts 
made available to carry out this sub-
section, the Administrator may, on peti-
tion by Federal agencies required by this 
section to conduct an SBIR program, 
transfer funds to such agencies to assist 
with the administrative, oversight, and 
contract processing costs relating to such 
program. 
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‘‘(2) 
PETITIONS.—The 
Administrator 
shall establish rules for making transfers 
under paragraph (1). The initial set of 
rules shall be promulgated not later than 
180 days after the date of the enactment 
of this subsection. 
‘‘(3) LIMIT
ON
TRANSFER.—A Federal 
agency may not receive under this sub-
section in a fiscal year an amount greater 
than 3 percent of the SBIR budget of 
such agency for such fiscal year. 
‘‘(4) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appro-
priated to the Administrator to carry out 
this subsection $27,500,000 for each of fis-
cal years 2010 and 2011.’’. 
SEC. 405. COMPTROLLER GENERAL AUDIT OF HOW FED-
ERAL AGENCIES CALCULATE EXTRAMURAL 
RESEARCH BUDGETS. 
The Comptroller General of the United 
States shall carry out a detailed audit of how 
Federal agencies calculate extramural re-
search budgets for purposes of calculating the 
size of the agencies’ Small Business Innova-
tion Research Program and Small Business 
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Technology Transfer Program budgets. Not 
later than 1 year after the date of the enact-
ment of this Act, the Comptroller General 
shall submit to the Committee on Small Busi-
ness and the Committee on Science and Tech-
nology of the House of Representatives and 
the Committee on Small Business and Entre-
preneurship of the Senate a report on the re-
sults of the audit. 
SEC. 406. AGENCY DATABASES TO SUPPORT PROGRAM 
EVALUATION. 
Section 9(k) of the Small Business Act (15 
U.S.C. 638(k)) is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘and’’ at the end of 
clause (ii); 
(B) by inserting ‘‘and’’ at the end 
of clause (iii); and 
(C) by adding at the end the fol-
lowing new clause: 
‘‘(iv) information on the own-
ership structure of award recipi-
ents, both at the time of receipt of 
the award and upon completion 
of the award period;’’; 
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(2) by amending paragraph (3) to 
read as follows: 
‘‘(3) UPDATING INFORMATION FOR DATA-
BASE.— 
‘‘(A) IN GENERAL.—A Federal agen-
cy shall not make a Phase I or Phase 
II payment to a small business con-
cern under this section unless the 
small business concern has provided 
all information required under this 
subsection and available at the time 
with respect to the award under 
which the payment is made, and with 
respect to any other award under this 
section previously received by the 
small business concern or a prede-
cessor in interest to the small busi-
ness concern. 
‘‘(B) 
APPORTIONMENT.—In 
com-
plying with this paragraph, a small 
business concern may apportion sales 
or additional investment information 
relating to more than one second 
phase award among those awards, if 
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it notes the apportionment for each 
award. 
‘‘(C) ANNUAL UPDATES UPON TERMI-
NATION.—A small business concern re-
ceiving an award under this section 
shall— 
‘‘(i) in the case of a second 
phase award, update information 
in the databases required under 
paragraphs (2) and (6) concerning 
that award at the termination of 
the award period; 
‘‘(ii) in the case of award re-
cipients not described in clause 
(iii), be requested to voluntarily 
update such information annually 
thereafter for a period of 5 years; 
and 
‘‘(iii) in the case of a small 
business concern applying for a 
subsequent first phase or second 
phase award, be required to up-
date such information annually 
thereafter 
for 
a 
period 
of 
years.’’; and 
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(3) by adding at the end the following 
new paragraph: 
‘‘(6) 
AGENCY
PROGRAM
EVALUATION 
DATABASES.—Each 
Federal 
agency 
re-
quired to establish an SBIR or STTR pro-
gram under this section shall develop 
and maintain, for the purpose of evalu-
ating such programs, a database con-
taining information required to be con-
tained in the database under paragraph 
(2). Each such database shall be designed 
to be accessible to other agencies that are 
required to maintain a database under 
this paragraph. Each such database shall 
be developed and operated in a manner 
to ensure that each such database is rel-
evant to and contributes to the agency’s 
oversight and evaluation of the SBIR and 
STTR programs. Paragraphs (4) and (5) 
apply to each database under this para-
graph.’’. 
SEC. 407. AGENCY DATABASES TO SUPPORT TECHNOLOGY 
UTILIZATION. 
Section 9(k) of the Small Business Act (15 
U.S.C. 638(k)), as amended, is further amend-
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ed by adding at the end the following new 
paragraph: 
‘‘(7) AGENCY
DATABASES
TO
SUPPORT 
TECHNOLOGY
UTILIZATION.—Each Federal 
agency with an SBIR or STTR program 
shall create and maintain a technology 
utilization database, which shall be avail-
able to the public and shall contain data 
supplied by the award recipients specifi-
cally to help them attract customers for 
the products and services generated 
under the SBIR or STTR project, and to 
attract additional investors and business 
partners. Each database created under 
this paragraph shall include information 
on the other databases created under this 
paragraph by other Federal agencies. 
Participation in a database under this 
paragraph shall be voluntary, except that 
such participation is required of all 
award recipients who received supple-
mental payments from SBIR and STTR 
program funds above their initial Phase 
II award. Each database created under 
this paragraph shall be developed and 
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operated in a manner to ensure that each 
such database is relevant to and contrib-
utes to the agency’s oversight and evalua-
tion of the SBIR and STTR programs.’’. 
SEC. 408. INTERAGENCY POLICY COMMITTEE. 
(a) ESTABLISHMENT.—The Director of the 
Office of Science and Technology Policy shall 
establish an Interagency SBIR/STTR Policy 
Committee comprised of one representative 
from each Federal agency with an SBIR pro-
gram and the Office of Management and 
Budget. 
(b) COCHAIRS.—The Director of the Office 
of Science and Technology Policy and the Di-
rector of the National Institute of Standards 
and Technology shall jointly chair the Inter-
agency SBIR/STTR Policy Committee. 
(c) DUTIES.—The Interagency SBIR/STTR 
Policy Committee shall review the following 
issues and make policy recommendations on 
ways to improve program effectiveness and 
efficiency: 
(1) The public and government data-
bases described in section 9(k) (1) and (2) 
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of the Small Business Act (15 U.S.C. 
638(k) (1) and (2)). 
(2) Federal agency flexibility in estab-
lishing Phase I and II award sizes, and 
appropriate criteria to exercise such 
flexibility. 
(3) Commercialization assistance best 
practices in Federal agencies with signifi-
cant potential to be employed by other 
agencies, and the appropriate steps to 
achieve that leverage, as well as pro-
posals for new initiatives to address 
funding gaps business concerns face after 
Phase II but before commercialization. 
(4) Development and incorporation of 
a standard evaluation framework to en-
able systematic assessment of SBIR and 
STTR, including through improved track-
ing of awards and outcomes and develop-
ment of performance measures for indi-
vidual agency programs. 
(d) 
REPORTS.—The 
Interagency 
SBIR/ 
STTR Policy Committee shall transmit to the 
Committee on Science and Technology and 
the Committee on Small Business of the 
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House of Representatives, and to the Com-
mittee on Small Business and Entrepreneur-
ship of the Senate— 
(1) a report on its review and rec-
ommendations under subsections (c)(1) 
and (c)(4) not later than 1 year after the 
date of enactment of this Act; 
(2) a report on its review and rec-
ommendations under subsection (c)(2) 
not later than 18 months after the date of 
enactment of this Act; and 
(3) a report on its review and rec-
ommendations under subsection (c)(3) 
not later than 2 years after the date of 
enactment of this Act. 
SEC. 409. NATIONAL RESEARCH COUNCIL SBIR STUDY. 
Section 108(d) of the Small Business Reau-
thorization Act of 2000 (15 U.S.C. 638 note), 
enacted into law by reference under section 
1(a)(9) of the Consolidated Appropriations 
Act, 2001 (Public Law 106–554), is amended— 
(1) by striking ‘‘of the Senate’’ and all 
that follows through ‘‘not later than 3’’ 
and inserting ‘‘of the Senate, not later 
than 3’’; and 
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(2) by striking ‘‘; and’’ and all that fol-
lows through ‘‘update of such report’’. 
SEC. 410. EXPRESS AUTHORITY TO ‘‘FAST-TRACK’’ PHASE 
TWO AWARDS FOR PROMISING PHASE ONE 
RESEARCH. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(ii) AUTHORITY
TO
‘FAST-TRACK’ PHASE 
TWO AWARDS FOR PROMISING PHASE ONE RE-
SEARCH.—To address the delay between an 
award for the first phase of an SBIR program 
and the application for and extension of an 
award for the second phase of such program, 
each Federal agency with an SBIR program 
may develop ‘fast-track’ programs to elimi-
nate such delay by issuing second phase SBIR 
awards as soon as practicable, including in 
appropriate cases simultaneously with the 
issuance of the first phase SBIR award. The 
Administrator shall encourage the develop-
ment of such ‘fast-track’ programs.’’. 
SEC. 411. INCREASED SBIR AND STTR AWARD LEVELS. 
(a) SBIR AWARD LEVEL AND ANNUAL AD-
JUSTMENTS.—Section 9(j) of the Small Business 
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Act (15 U.S.C. 638(j)) is amended by adding at 
the end the following: 
‘‘(4) 
FURTHER
ADDITIONAL
MODIFICA-
TIONS.—Not later than 180 days after the date 
of enactment of this paragraph and notwith-
standing paragraph (2)(D), the Administrator 
shall modify the policy directives issued pur-
suant to this subsection to provide for an in-
crease to $250,000 in the amount of funds 
which an agency may award in the first phase 
of an SBIR program, and to $2,000,000 in the 
second phase of an SBIR program, and a man-
datory annual adjustment of such amounts to 
reflect 
economic 
adjustments 
and 
pro-
grammatic considerations.’’. 
(b) STTR AWARD LEVEL AND ANNUAL AD-
JUSTMENTS.—Section 
9(p)(2)(B)(ix) 
of 
the 
Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) 
is amended— 
(1) 
by 
striking 
‘‘$100,000’’ 
and 
‘‘$750,000’’ and inserting ‘‘$250,000’’ and 
‘‘$2,000,000’’, respectively; and 
(2) by striking ‘‘greater or lesser 
amounts’’ and inserting ‘‘with a manda-
tory annual adjustment of such amounts 
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to reflect economic adjustments and pro-
grammatic considerations, and with less-
er amounts’’. 
(c) LIMITATION ON CERTAIN AWARDS.—Sec-
tion 9 of the Small Business Act (15 U.S.C. 
638), as amended, is further amended by add-
ing at the end the following: 
‘‘(jj) 
LIMITATION
ON
PHASE
I 
AND
II 
AWARDS.—No Federal agency shall issue an 
award under the SBIR program or the STTR 
program if the size of the award exceeds the 
amounts established under subsections (j)(4) 
and (p)(2)(B)(ix).’’. 
SEC. 412. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD 
SEQUENTIAL PHASE TWO AWARDS FOR SBIR- 
FUNDED PROJECTS. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(kk) REQUIREMENTS RELATING
TO ADDI-
TIONAL SECOND PHASE SBIR AWARDS.— 
‘‘(1) IN
GENERAL.—A small business 
concern that receives a second phase 
SBIR award for a project remains eligible 
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to receive additional second phase SBIR 
awards for such project. 
‘‘(2) TECHNICAL OR WEAPONS SYSTEMS.— 
Agencies are expressly authorized to pro-
vide 
additional 
second 
phase 
SBIR 
awards for testing and evaluation assist-
ance for the insertion of SBIR tech-
nologies into technical or weapons sys-
tems.’’. 
SEC. 413. FIRST PHASE REQUIRED. 
Section 9 of the Small Business Act (15 
U.S.C. 638), as amended, is further amended 
by adding at the end the following: 
‘‘(ll) FIRST PHASE REQUIRED.—Under this 
section, a Federal agency shall provide to a 
small business concern an award for the sec-
ond phase of an SBIR program with respect 
to a project only if such agency finds that the 
small business concern has been provided an 
award for the first phase of an SBIR program 
with respect to such project or has completed 
the determinations described in subsection 
(e)(4)(A) with respect to such project despite 
not having been provided an award for the 
first phase.’’. 
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Union Calendar No. 102 
111TH CONGRESS 
1ST SESSION 
H. R. 2965 
[Report No. 111–190, Parts I and II] 
A BILL 
To amend the Small Business Act with respect to 
the Small Business Innovation Research Pro-
gram and the Small Business Technology Trans-
fer Program, and for other purposes. 
JULY 7, 2009 
Reported from the Committee on Science and Technology 
with an amendment 
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