I 
119TH CONGRESS 
1ST SESSION H. R. 4777 
To improve the SBIR and STTR programs under the Small Business Act, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2025 
Mr. WILLIAMS of Texas introduced the following bill; which was referred to 
the Committee on Small Business, and in addition to the Committee on 
Science, Space, and Technology, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To improve the SBIR and STTR programs under the Small 
Business Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Investing in National Next-Generation Opportunities for 
Venture Acceleration and Technological Excellence’’ or the 
‘‘INNOVATE Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—PROMOTING TRANSITION FOR BATTLE-READY 
TECHNOLOGIES 
Sec. 101. Enhancing small business success in the STTR program. 
Sec. 102. Phase II strategic breakthrough funding. 
Sec. 103. Implementation briefings. 
Sec. 104. Fixed-price contracts. 
TITLE II—ENCOURAGING SMALL BUSINESS INNOVATION IN ALL 
OF AMERICA 
Sec. 201. Encouraging new SBIR and STTR entrants. 
Sec. 202. Combating discriminatory practices in the SBIR and STTR pro-
grams. 
Sec. 203. Disclosures and prohibitions relating to certain agreements with enti-
ties engaging in censorship. 
Sec. 204. Connecting SBIR and STTR awardees and small business investment 
companies. 
Sec. 205. Agency outreach to rural communities. 
TITLE III—STREAMLINING PARTICIPATION IN THE SBIR AND 
STTR PROGRAMS 
Sec. 301. Amendments relating to open topics. 
Sec. 302. Reducing administrative burden. 
TITLE IV—PROTECTING AMERICAN INNOVATION FROM 
ADVERSARIAL INFLUENCE 
Sec. 401. Definition of foreign risk. 
Sec. 402. Bolstering research security of SBIR and STTR awards. 
Sec. 403. Strengthening the due diligence program to assess security risks. 
Sec. 404. Strengthening agency recovery authority. 
Sec. 405. Best practices on investor informational rights. 
Sec. 406. GAO report. 
TITLE V—SIMPLIFYING SBIR–STTR STANDARDS 
Sec. 501. Improving direct to Phase II authorities. 
Sec. 502. Improving SBIR and STTR data collection. 
Sec. 503. Streamlining program administration. 
Sec. 504. Extending SBIR and STTR authorization. 
TITLE VI—MISCELLANEOUS 
Sec. 601. Technical amendments. 
Sec. 602. Repeals. 
Sec. 603. Severability. 
SEC. 2. DEFINITIONS. 
In this Act, the terms ‘‘Phase I’’, ‘‘Phase II’’, ‘‘Phase 
III’’, ‘‘SBIR’’, and ‘‘STTR’’ have the meanings given 
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those terms in section 9(e) of the Small Business Act (15 
U.S.C. 638(e)). 
TITLE 
I—PROMOTING 
TRANSI-
TION 
FOR 
BATTLE-READY 
TECHNOLOGIES 
SEC. 101. ENHANCING SMALL BUSINESS SUCCESS IN THE 
STTR PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638 
et seq.) is amended— 
(1) in subsection (e)(7)— 
(A) by striking ‘‘40’’ and inserting ‘‘50’’; 
and 
(B) by striking ‘‘30’’ and inserting ‘‘20’’; 
(2) in subsection (f)(1)— 
(A) in subparagraph (H), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (I), by striking ‘‘and 
each fiscal year thereafter,’’ and inserting ‘‘; 
and’’; and 
(C) by adding at the end the following: 
‘‘(J) not less than 3.45 percent of such 
budget in fiscal year 2026 and every year there-
after,’’; and 
(3) in subsection (n)(1)(B)— 
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(A) in clause (iv), by striking ‘‘and’’ at the 
end; 
(B) in clause (v), by striking ‘‘and each 
fiscal year thereafter.’’ and inserting ‘‘; and’’; 
and 
(C) by adding at the end the following: 
‘‘(vi) not less than 0.20 percent for 
fiscal year 2026 and each fiscal year there-
after.’’. 
SEC. 102. PHASE II STRATEGIC BREAKTHROUGH FUNDING. 
(a) IN GENERAL.—Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended— 
(1) in subsection (aa), by adding at the end the 
following: 
‘‘(6) 
STRATEGIC
BREAKTHROUGH
ALLOCA-
TION.—Participating agencies with a budget for 
SBIR greater than $100,000,000 shall not be re-
quired to receive a waiver from the Administrator to 
award a small business concern not more than 
$30,000,000 when using funds made available under 
a strategic breakthrough allocation (as defined in 
subsection (ff)).’’; and 
(2) in subsection (ff)— 
(A) in the subsection heading, by striking 
‘‘AND STTR’’ and inserting ‘‘PHASE II’’; 
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(B) in paragraph (1), by striking ‘‘or 
Phase II STTR award’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) STRATEGIC BREAKTHROUGH AWARDS.— 
‘‘(A) AWARD.—Under this subparagraph, a 
funding agreement may be awarded to a small 
business concern by each participating agency 
using funds made available under a strategic 
breakthrough allocation, as defined in subpara-
graph (B). 
‘‘(B) FUND PARAMETERS.— 
‘‘(i) STRATEGIC BREAKTHROUGH AL-
LOCATION
DEFINED.—In this subpara-
graph, the term ‘strategic breakthrough al-
location’ means, with respect to a partici-
pating agency with a required expenditure 
under subsection (f)(1) in excess of 
$100,000,000, 
a 
required 
expenditure 
amount from the SBIR allocation under 
subsection (f)(1) of such agency of not less 
than 0.25 percent of the extramural budg-
et for research or research and develop-
ment designated for such agency for fiscal 
year 2026 and every fiscal year thereafter. 
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‘‘(ii) REQUIREMENTS.—In the case of 
a Phase II agreement that is awarded to a 
small business concern by a participating 
agency using funds made available under a 
strategic breakthrough allocation, the fol-
lowing requirements shall apply: 
‘‘(I) AWARD
SIZE
AND
PERIOD 
OF
PERFORMANCE.—A participating 
agency may award from a strategic 
breakthrough allocation not more than 
$30,000,000 in aggregate to a small 
business concern, including its affili-
ates, spinouts, or subsidiaries based 
on reaching production or develop-
ment milestone if the total period of 
performance of the project with re-
spect to which such funds are award-
ed is not more than 48 months. 
‘‘(II) SMALL BUSINESS CONCERN 
REQUIREMENTS.—The small business 
concern shall— 
‘‘(aa) have been awarded not 
less than 1 prior Phase II award 
under the SBIR or STTR pro-
gram; 
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‘‘(bb) demonstrate not less 
than 100 percent matching funds 
from sources other than the Gov-
ernment or amounts awarded by 
participating agencies under a 
program other than Phase I and 
II of the SBIR or STTR pro-
gram as a result of an award 
using funds made available under 
a strategic breakthrough alloca-
tion; 
‘‘(cc) is an effective solution, 
as determined by market re-
search; and 
‘‘(dd) only be eligible for an 
award from the strategic break-
through allocation if the product, 
process, or technology of the 
small business concern— 
‘‘(AA) meets a nec-
essary level of readiness and 
has a commitment for inclu-
sion in a program objective 
memorandum from an offi-
cial with the rank of pro-
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gram executive officer or 
higher in an acquisition or-
ganization of the partici-
pating agency making such 
award; and 
‘‘(BB) will meet high 
priority 
requirements 
or 
operational needs of such 
participating agency through 
a successful transition and 
into the acquisition process. 
‘‘(III) DEADLINE.—Each partici-
pating agency shall complete any con-
tract awards using strategic break-
through allocation funds not later 
than 90 days after receiving a pro-
posal from a small business concern 
for the award. 
‘‘(IV) ELIGIBLE
ACTIVITIES.— 
Eligible activities by a small business 
concern using strategic breakthrough 
allocation funds are— 
‘‘(aa) design for manufac-
turing; 
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‘‘(bb) establishing manufac-
turing facilities, tooling, and sup-
ply chain capacity; 
‘‘(cc) buying raw materials 
or inventory; 
‘‘(dd) 
the 
integration 
of 
products with open interoper-
ability standards; 
‘‘(ee) 
testing, 
evaluation, 
and certification of low-rate pro-
duction units; and 
‘‘(ff) the purchase of pro-
duction units and maintenance. 
‘‘(V) SELECTION
CRITERIA.—In 
making awards using funds made 
available under a strategic break-
through allocation, a participating 
agency shall consider— 
‘‘(aa) the potential of the 
small business concern to— 
‘‘(AA) advance the na-
tional security capabilities of 
the United States; and 
‘‘(BB) 
provide 
new 
technologies or processes, or 
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new applications of existing 
technologies, that will enable 
new alternatives to existing 
programs; 
‘‘(bb) whether a customer in 
the participating agency has ex-
pressed an intent to purchase 
and integrate technology from 
the small business concern into 
its operations; and 
‘‘(cc) whether a particular 
technology area is undercapital-
ized by private investment. 
‘‘(C) ACQUISITION
MECHANISM.—A par-
ticipating agency shall establish a mechanism to 
provide small business concerns with direct ac-
cess to program and requirements offices 
throughout the participating agency that may 
purchase technology from small business con-
cerns under Phase III of the SBIR program. 
‘‘(D) USE OF STREAMLINED CONTRACTING 
MECHANISMS.—Each participating agency shall 
implement streamlined processes and require-
ments for submitting proposals and applying 
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for awards using funds made available under a 
strategic breakthrough allocation.’’. 
(b) COMMERCIALIZATION READINESS PROGRAM.— 
Section 9(y) of the Small Business Act (15 U.S.C. 638(y)) 
is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘shall identify’’ and insert-
ing the following: ‘‘shall— 
‘‘(A) identify’’; 
(B) in subparagraph (A), as so des-
ignated— 
(i) by inserting ‘‘, including small 
business concerns with an award from the 
strategic breakthrough allocation,’’ before 
‘‘that have the potential’’; and 
(ii) by striking the period at the end 
and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(B) ensure, in collaboration with SBIR 
program managers of each component, that re-
search programs identified under subparagraph 
(A) are analyzed within the programming and 
budgeting process as budget requests are devel-
oped; and 
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‘‘(C) provide to the Committee on Small 
Business and Entrepreneurship of the Senate 
and the Committees on Small Business and 
Science, Space, and Technology of the House of 
Representatives information on the integration 
of SBIR and STTR awardees in budget rollouts 
for research, development, testing, and evalua-
tion activities.’’; 
(2) by striking paragraph (3) and redesignating 
paragraphs (4), (5), and (6) as paragraphs (3), (4), 
and (5), respectively; and 
(3) in paragraph (5), as so redesignated— 
(A) in the subparagraph heading, by strik-
ing ‘‘AND STTR’’; 
(B) in subparagraph (A)— 
(i) by inserting ‘‘substantively’’ before 
‘‘increase’’; 
(ii) by striking ‘‘and the number of 
Phase II STTR contracts’’; and 
(iii) by inserting ‘‘in fiscal year 2028 
as compared to fiscal year 2025’’ before 
the semicolon at the end; 
(C) in subparagraph (B), by striking 
‘‘and’’ at the end; 
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(D) by redesignating subparagraph (C) as 
subparagraph (E); 
(E) by inserting after subparagraph (B) 
the following: 
‘‘(C) establish a mechanism to provide 
small business concerns with direct access to 
program and requirements offices that may 
purchase technology from the small business 
concern under Phase III of the SBIR program; 
‘‘(D) allow services to provide operational 
needs statements directly to chiefs of require-
ments offices; and’’; and 
(F) in subparagraph (E), as so redesig-
nated, in clause (i) by striking ‘‘and STTR con-
tracts’’. 
SEC. 103. IMPLEMENTATION BRIEFINGS. 
Not later than 60 days after the date of enactment 
of this Act, and on a recurrent basis until the implementa-
tion of paragraph (3) of section 9(ff) of the Small Busi-
ness Act (15 U.S.C. 638(ff)), as added by section 102, 
is complete, the head of each agency participating in the 
SBIR or STTR programs that made an award from funds 
made available under a strategic breakthrough allocation 
(as defined under paragraph (3)(B) of section 9(ff) of the 
Small Business Act (15 U.S.C. 638(ff), as added by sec-
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tion 102)) shall brief the Committee on Small Business 
and Entrepreneurship of the Senate and the Committees 
on Small Business and on Science, Space, and Technology 
of the House of Representatives on such implementation. 
SEC. 104. FIXED-PRICE CONTRACTS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended— 
(1) in subsection (f), by adding at the end the 
following: 
‘‘(5) FIXED-PRICE
CONTRACT.—Any funding 
agreement that is a contract made with expenditures 
allocated to the SBIR program under paragraph (1) 
shall be a firm fixed-price contract (as defined in 
section 16.202 of the Federal Acquisition Regula-
tion), unless, on a case-by-case basis, the head of the 
awarding Federal agency makes a written deter-
mination to use a different contract structure.’’; and 
(2) in subsection (n), by adding at the end the 
following: 
‘‘(5) FIXED-PRICE
CONTRACT.—Any funding 
agreement that is a contract made with expenditures 
allocated to the STTR program under paragraph (1) 
shall be a firm fixed-price contract (as defined in 
section 16.202 of the Federal Acquisition Regula-
tion), unless the head of the awarding Federal agen-
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cy makes a written determination to use a different 
contract structure.’’. 
TITLE II—ENCOURAGING SMALL 
BUSINESS 
INNOVATION 
IN 
ALL OF AMERICA 
SEC. 201. ENCOURAGING NEW SBIR AND STTR ENTRANTS. 
(a) ENCOURAGING NEW SBIR AND STTR EN-
TRANTS.—Section 9(jj) of the Small Business Act (15 
U.S.C. 638(jj)) is amended to read as follows: 
‘‘(jj) ENCOURAGING NEW SBIR AND STTR EN-
TRANTS.— 
‘‘(1) OPTIMIZING SBIR AND STTR FUNDING.— 
‘‘(A) IN GENERAL.—The head of a partici-
pating agency may award a Phase I or Phase 
II award to a small business concern only if the 
total value of the Phase I and Phase II awards 
awarded to such small business concern, includ-
ing its affiliates, spinouts, and subsidiaries, 
does not exceed $75,000,000. 
‘‘(B) WAIVER.— 
‘‘(i) IN GENERAL.—On an award-by- 
award basis, the Undersecretary or Direc-
tor overseeing the SBIR or STTR program 
of a Federal agency may waive the require-
ment under subparagraph (A) with a writ-
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ten justification by the Undersecretary or 
Director that explains why the use of the 
waiver authority for an otherwise disquali-
fied small business concern is imperative 
for national security purposes and why the 
work cannot be performed by other quali-
fying small business concerns. 
‘‘(ii) NONDELEGATION.—The waiver 
authority established under clause (i) may 
not be delegated. 
‘‘(iii) RECORD
REQUIREMENT.—Par-
ticipating agencies shall maintain informa-
tion on any awards made using the waiver 
established under clause (i), including the 
amount of the award, the written justifica-
tion for each award, and the identity of the 
award recipient. 
‘‘(iv) REPORT.—The Administrator 
shall include the information described in 
clause (iii) in the annual report of the Ad-
ministrator to Congress required by sub-
section (b)(7). 
‘‘(2) PRINCIPAL
INVESTIGATORS.—An indi-
vidual may not concurrently serve as the principal 
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investigator on more than 1 proposal to a single 
Phase I solicitation or a single Phase II solicitation. 
‘‘(3) PHASE I SIZE STANDARD.—A small busi-
ness concern applying for a Phase I award may not 
have annual receipts (as defined in section 121.104 
of title 13, Code of Federal Regulations, or any suc-
cessor regulation) of more than $40,000,000 for the 
most recent fiscal year.’’. 
(b) PHASE 1A PROGRAM.— 
(1) IN GENERAL.—Section 9 of the Small Busi-
ness Act (15 U.S.C. 638) is amended— 
(A) in subsection (e)— 
(i) in paragraph (4)— 
(I) in subparagraph (A), by strik-
ing ‘‘subparagraph (B)’’ and inserting 
‘‘subparagraph (C)’’; 
(II) by redesignating subpara-
graphs (B) and (C) as subparagraphs 
(C) and (D); and 
(III) by inserting after subpara-
graph (A), the following: 
‘‘(B) a 1A phase for the same purposes as 
the first phase described under subparagraph 
(A) and intended to increase accessibility to the 
program for new entrants with proposals sub-
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mitted pursuant to only SBIR open topic an-
nouncements;’’; and 
(ii) by adding at the end following: 
‘‘(20) the term ‘Phase 1A’ means the phase de-
scribed in paragraph (4)(B);’’; and 
(B) by amending subsection (pp) to read 
as follows: 
‘‘(pp) PHASE 1A AWARDS.— 
‘‘(1) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
‘‘(A) Phase 1A funds will bring thousands 
of new small business concerns committed to 
commercialization of critical technologies into 
the SBIR program; and 
‘‘(B) in order for participating agencies to 
benefit from the full scope of American innova-
tion and identify the most promising solutions 
to scale, Phase 1A awards should fund the 
strongest technologies in a topic area regardless 
of— 
‘‘(i) the location of the small business 
concern within the United States; or 
‘‘(ii) the educational background of 
the principal investigator. 
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‘‘(2) AUTHORIZATION.—The head of each agen-
cy with an SBIR program shall allocate not less 
than 1.5 percent of funding and not more than 3 
percent of funding for the SBIR program of the 
agency to Phase 1A awards. 
‘‘(3) 
SOLICITATION.—A 
solicitation 
issued 
under this subsection shall be conducted as an open 
topic announcement. 
‘‘(4) ELIGIBILITY.—A small business concern, 
including its affiliates, spinouts, or subsidiaries, is 
eligible for an award under this subsection only if 
such small business concern, including its affiliates, 
spinouts, or subsidiaries, has not previously received 
an SBIR or STTR award. 
‘‘(5) PROPOSAL.— 
‘‘(A) IN GENERAL.—A proposal submitted 
in response to a solicitation under this sub-
section shall consist of a report that is not more 
than 5 pages in length and containing the cri-
teria in clauses (i) through (iv) of subparagraph 
(B). 
‘‘(B) CRITERIA.— 
‘‘(i) IDENTIFICATION OF PROGRAM.— 
The small business concern shall describe 
the problem that the proposal is intended 
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to address for the awarding agency and 
any commercial customer. 
‘‘(ii) DESCRIPTION
OF
SOLUTION.— 
The small business concern shall describe 
the proposed solution, including the tech-
nical basis for the solution to demonstrate 
how the solution would address the prob-
lem described in the proposal, including 
the level of maturity of the solution at the 
time of the proposal. 
‘‘(iii) EFFECTS OF THE SOLUTION.— 
The small business concern shall describe 
how adoption of the proposed solution 
would produce potential time savings, cost 
savings, risk reduction, improvement of 
mission outcomes, or any other beneficial 
effects for the awarding agency and any 
commercial customer. 
‘‘(iv) DIFFERENTIATION.—The small 
business concern shall— 
‘‘(I) identify the state of solu-
tions in use at the time of the pro-
posal to address the problem de-
scribed in the proposal; and 
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‘‘(II) explain how the proposed 
solution is a unique and novel solu-
tion. 
‘‘(v) 
COMMERCIALIZATION
STRAT-
EGY.—The small business concern shall— 
‘‘(I) describe how the small busi-
ness concern intends to fund the pro-
posed solution from sources other 
than the award; and 
‘‘(II) explain the market for the 
proposed solution, including the in-
tended Government and commercial 
end users. 
‘‘(6) AWARD LIMITS.— 
‘‘(A) NUMBER OF AWARDS.—A small busi-
ness concern or principal investigator is eligible 
for not more than one Phase 1A award. 
‘‘(B) AMOUNT.—An award made under 
this subsection shall be for not more than 
$40,000. 
‘‘(7) NOTIFICATION OF SELECTION OR NON-SE-
LECTION.—Each agency shall notify each small busi-
ness concern of the award decision of the agency on 
any proposal submitted by the small business con-
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cern not later than 90 days after the date on which 
the solicitation closes. 
‘‘(8) APPLICATION FOR PHASE II AWARD.— 
‘‘(A) ELIGIBILITY.—A small business con-
cern that receives a Phase 1A award shall be el-
igible to apply for a Phase II award. 
‘‘(B) USE OF FUNDS.—A small business 
concern may use funds from a Phase 1A award 
to develop a proposed solution in pursuit of a 
subsequent proposal for a Phase I award or a 
Phase II award. 
‘‘(9) STREAMLINED
AWARDS.—The head of 
each participating agency shall implement stream-
lined processes and requirements for submitting pro-
posals and applying for solicitations for Phase 1A 
awards. 
‘‘(10) PEER REVIEW REQUIREMENT.—The head 
of a participating agency may waive any applicable 
peer review requirements for Phase 1A awards.’’. 
(2) CONFORMING AMENDMENTS.—Section 9(e) 
of the Small Business Act (15 U.S.C. 638(e)) is 
amended— 
(A) in paragraph (12)(A), by striking 
‘‘paragraph (4)(B)’’ and inserting ‘‘paragraph 
(4)(C)’’; and 
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(B) in paragraph (13)(A), by striking 
‘‘paragraph (4)(C)’’ and inserting ‘‘paragraph 
(4)(D)’’. 
SEC. 202. COMBATING DISCRIMINATORY PRACTICES IN 
THE SBIR AND STTR PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended— 
(1) in subsection (b)(7)(C), by striking ‘‘owned 
and controlled by women or by socially or economi-
cally 
disadvantaged 
individuals’’ 
and 
inserting 
‘‘owned by individuals who reside in rural areas’’; 
(2) in subsection (e)— 
(A) in paragraph (18), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (19), by striking the pe-
riod at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(21) the term ‘new entrants’ means a small 
business concern that has not received an SBIR or 
STTR award; 
‘‘(22) the term ‘rural area’ means a county or 
other political subdivision of a State that the Bureau 
of the Census has defined as mostly rural or com-
pletely rural in the most recent decennial census;’’; 
(3) in subsection (g)(8)(A)— 
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(A) by striking clause (iii); 
(B) by redesignating clauses (iv), (v), and 
(vi) as clauses (iii), (iv), and (v), respectively; 
and 
(C) in clause (iii), as so redesignated, by 
striking ‘‘a socially or economically disadvan-
taged individual or has a socially or economi-
cally disadvantaged individual’’ and inserting 
‘‘an individual who resides in a rural area or 
has an individual who resides in a rural area or 
is a new entrant’’; 
(4) in subsection (j)— 
(A) by adjusting the margins for para-
graphs (2) and (3) 2 ems to the left; and 
(B) in paragraph (2)— 
(i) by striking subparagraph (F); 
(ii) by redesignating subparagraphs 
(G), (H), and (I) as subparagraphs (F), 
(G), and (H), respectively; and 
(iii) in subparagraph (H), as so redes-
ignated, by striking ‘‘subparagraph (H)’’ 
and inserting ‘‘subparagraph (G)’’; 
(5) in subsection (k)(1)(F)— 
(A) by striking clause (ii); 
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(B) by redesignating clauses (iii), (iv), and 
(v) as clauses (ii), (iii), and (iv), respectively; 
and 
(C) in clause (ii), as so redesignated, by 
striking ‘‘a socially or economically disadvan-
taged individual or has a socially or economi-
cally disadvantaged individual’’ and inserting 
‘‘an individual who resides in a rural area or 
has an individual who resides in a rural area or 
is a new entrant’’; 
(6) in subsection (o)(9)(A)— 
(A) by striking clause (iii); 
(B) by redesignating clauses (iv), (v), and 
(vi) as clauses (iii), (iv), and (v), respectively; 
and 
(C) in clause (iii), as so redesignated, by 
striking ‘‘a socially or economically disadvan-
taged individual or has a socially or economi-
cally disadvantaged individual’’ and inserting 
‘‘an individual who resides in a rural area or 
has an individual who resides in a rural area or 
is a new entrant’’; and 
(7) in subsection (mm)— 
(A) in paragraph (1)— 
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(i) in the matter preceding subpara-
graph (A), by striking ‘‘and until Sep-
tember 30, 2025’’; and 
(ii) in subparagraph (F), by striking 
‘‘or abuse to ensure compliance’’ and in-
serting ‘‘abuse, or adversarial influence to 
ensure compliance’’; 
(B) in paragraph (2)(A), by striking ‘‘to 
carry out the policy directive required under 
subsection (j)(2)(F) and’’ and inserting ‘‘to in-
crease the participation of States with respect 
to which a low level of SBIR awards have his-
torically been awarded’’; and 
(C) by adding at the end the following: 
‘‘(7) ELIGIBILITY.—An agency may use the 
funds allocated to the SBIR program of such agency 
under this subsection only if such agency does not— 
‘‘(A) consider the race, gender, or ethnicity 
of the principal investigator, founder, or key 
personnel of the small business concern apply-
ing for an SBIR or STTR award in an award 
decision under the SBIR or STTR program of 
the agency; 
‘‘(B) require or consider a statement or 
plan to promote diversity or equity as part of 
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an application for an SBIR or STTR award 
under the SBIR or STTR program of the agen-
cy; or 
‘‘(C) offer supplemental funds to a recipi-
ent of an SBIR or STTR award based on the 
race, gender, or ethnicity of the principal inves-
tigator, founder, or key personnel of a small 
business concern.’’. 
SEC. 203. DISCLOSURES AND PROHIBITIONS RELATING TO 
CERTAIN AGREEMENTS WITH ENTITIES EN-
GAGING IN CENSORSHIP. 
(a) DISCLOSURE FOR SBIR APPLICANTS.—Section 
9(g)(13) of the Small Business Act (15 U.S.C. 
638(g)(13)) is amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (G), by striking the semi-
colon at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(H) a current or pending agreement 
with— 
‘‘(i) NewsGuard Technologies, Inc. 
(doing business as ‘NEWSGuard’); 
‘‘(ii) 
Disinformation 
Index, 
Inc., 
Disinformation Index, Ltd., or Global 
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Disinformation Index gUG (collectively 
doing business as ‘Global Disinformation 
Index’); 
‘‘(iii) Internews; or 
‘‘(iv) an entity that engages in oper-
ations or activities, or produces products, 
the function of which is to demonetize or 
rate the credibility of a domestic entity (in-
cluding news and information outlets) 
based on lawful speech of such domestic 
entity under the stated function of ‘fact- 
checking’ or otherwise exposing or cor-
recting misinformation, disinformation, or 
misinformation;’’. 
(b) PROHIBITION
ON SBIR AWARDS.—Paragraph 
(16) of section 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as redesignated by section 402, is amended by 
adding at the end the following: 
‘‘(G) the small business concern submitting 
the proposal or application has a current or 
pending agreement with— 
‘‘(i) NewsGuard Technologies, Inc. 
(doing business as ‘NEWSGuard’); 
‘‘(ii) 
Disinformation 
Index, 
Inc., 
Disinformation Index, Ltd., or Global 
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Disinformation Index gUG (collectively 
doing business as ‘Global Disinformation 
Index’); 
‘‘(iii) Internews; or 
‘‘(iv) an entity that engages in oper-
ations or activities, or produces products, 
the function of which is to demonetize or 
rate the credibility of a domestic entity (in-
cluding news and information outlets) 
based on lawful speech of such domestic 
entity under the stated function of ‘fact- 
checking’ or otherwise exposing or cor-
recting misinformation, disinformation, or 
misinformation;’’. 
(c) DISCLOSURE FOR STTR APPLICANTS.—Section 
9(o)(17) of the Small Business Act (15 U.S.C. 
638(o)(17)) is amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (G), by striking the semi-
colon at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(H) a current or pending agreement 
with— 
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‘‘(i) NewsGuard Technologies, Inc. 
(doing business as ‘NEWSGuard’); 
‘‘(ii) 
Disinformation 
Index, 
Inc., 
Disinformation Index, Ltd., or Global 
Disinformation Index gUG (collectively 
doing business as ‘Global Disinformation 
Index’); 
‘‘(iii) Internews; or 
‘‘(iv) an entity that engages in oper-
ations or activities, or produces products, 
the function of which is to demonetize or 
rate the credibility of a domestic entity (in-
cluding news and information outlets) 
based on lawful speech of such domestic 
entity under the stated function of ‘fact- 
checking’ or otherwise exposing or cor-
recting misinformation, disinformation, or 
misinformation;’’. 
(d) PROHIBITION ON STTR AWARDS.—Paragraph 
(20) of section 9(o) of the Small Business Act (15 U.S.C. 
638(o)(20)), as redesignated by section 402, is amended 
by adding at the end the following: 
‘‘(G) the small business concern submitting 
the proposal or application has a current or 
pending agreement with— 
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‘‘(i) NewsGuard Technologies, Inc. 
(doing business as ‘NEWSGuard’); 
‘‘(ii) 
Disinformation 
Index, 
Inc., 
Disinformation Index, Ltd., or Global 
Disinformation Index gUG (collectively 
doing business as ‘Global Disinformation 
Index’); 
‘‘(iii) Internews; or 
‘‘(iv) an entity that engages in oper-
ations or activities, or produces products, 
the function of which is to demonetize or 
rate the credibility of a domestic entity (in-
cluding news and information outlets) 
based on lawful speech of such domestic 
entity under the stated function of ‘fact- 
checking’ or otherwise exposing or cor-
recting misinformation, disinformation, or 
misinformation;’’. 
(e) CONFORMING AMENDMENTS.— 
(1) SBIR AWARDS.—Paragraph (19)(A) of sec-
tion 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as so redesignated by section 402, is 
amended by striking ‘‘through (G)’’ and inserting 
‘‘through (H)’’. 
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(2) STTR AWARDS.—Paragraph (23)(A) of sec-
tion 9(o) of the Small Business Act (15 U.S.C. 
638(o)), as so redesignated by section 402, is 
amended by striking ‘‘through (G)’’ and inserting 
‘‘through (H)’’. 
SEC. 204. CONNECTING SBIR AND STTR AWARDEES AND 
SMALL BUSINESS INVESTMENT COMPANIES. 
Section 9(mm)(1) of the Small Business Act (15 
U.S.C. 638(mm)(1)) is amended— 
(1) in subparagraph (J), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (K), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(L) connecting SBIR and STTR award-
ees with small business investment companies 
(as defined under section 103 of the Small 
Business Investment Act of 1958 (15 U.S.C. 
662)) and other domestic private investors.’’. 
SEC. 205. AGENCY OUTREACH TO RURAL COMMUNITIES. 
(a) AGENCY OUTREACH.—Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (j), by adding at the end the 
following new paragraphs: 
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‘‘(5) MODIFICATION RELATING TO RURAL OUT-
REACH.—Not later than 90 days after the date of 
the enactment of this paragraph, the Administrator 
shall modify the policy directives issued pursuant to 
this subsection to require each Federal agency par-
ticipating in the SBIR program to enhance the out-
reach efforts of such Federal agency to rural com-
munities to increase the participation of small busi-
nesses concerns located in rural communities in the 
SBIR program, including by ensuring that such 
Federal agency— 
‘‘(A) conducts outreach efforts with respect 
to the SBIR program in rural communities; and 
‘‘(B) when such Federal agency conducts 
such outreach in an area served by a small 
business development center, coordinates with 
such small business development center. 
‘‘(6) MODIFICATION RELATING TO RURAL OUT-
REACH.—Not later than 90 days after the date of 
the enactment of this paragraph, the Administrator 
shall modify the policy directives issued pursuant to 
this subsection to require the Administration to 
place a special emphasis on small business concerns 
in rural areas when conducting outreach related to 
the SBIR program, including by ensuring that the 
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Administration includes outreach efforts in rural 
communities carried out by the Administration with 
respect to the SBIR program.’’; and 
(2) in subsection (p), by adding at the end the 
following new paragraph: 
‘‘(4) MODIFICATION RELATING TO RURAL OUT-
REACH.—Not later than 90 days after the date of 
the enactment of this paragraph, the Administrator 
shall modify the policy directive issued pursuant to 
this subsection to require each Federal agency par-
ticipating in the STTR program to enhance the out-
reach efforts of such Federal agency to rural com-
munities to increase the participation of small busi-
nesses concerns located in rural communities in the 
STTR program, including by ensuring that such 
Federal agency— 
‘‘(A) conducts outreach efforts with respect 
to the STTR program in rural communities; 
and 
‘‘(B) when such Federal agency conducts 
such outreach in an area served by a small 
business development center, coordinates with 
such small business development center. 
‘‘(5) MODIFICATION RELATING TO RURAL OUT-
REACH.—Not later than 90 days after the date of 
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the enactment of this paragraph, the Administrator 
shall modify the policy directive issued pursuant to 
this subsection to require the Administration to 
place a special emphasis on small business concerns 
in rural areas when conducting outreach related to 
the STTR program, including by ensuring that the 
Administration includes outreach efforts in rural 
communities carried out by the Administration with 
respect to the STTR program.’’. 
(b) MODIFICATION OF CURRENT DIRECTIVES.—Sec-
tion 9(j)(2) of the Small Business Act (15 U.S.C. 
638(j)(2)), as amended by section 202(4)(B), is amended 
by revising subparagraph (F) to read as follows: 
‘‘(F) enhanced outreach efforts to increase 
the participation of small business concerns 
that have never participated in Federal research 
and development to develop innovative tech-
nologies, with a special emphasis on small busi-
ness concerns in rural areas;’’. 
TITLE III—STREAMLINING PAR-
TICIPATION IN THE SBIR AND 
STTR PROGRAMS 
SEC. 301. AMENDMENTS RELATING TO OPEN TOPICS. 
(a) DEFINITION OF OPEN TOPIC ANNOUNCEMENT.— 
Section 9(e) of the Small Business Act (15 U.S.C. 
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638(e)), as amended by section 202(2), is further amend-
ed by adding at the end the following: 
‘‘(23) the term ‘open topic announcement’ 
means a solicitation for SBIR or STTR proposals 
that— 
‘‘(A) is a generalized problem statement or 
broad technology area and does not contain any 
language requiring that the solutions that a 
small business concern proposes adhere to spe-
cific technological specifications; and 
‘‘(B) evaluates the ability of the solution 
proposed by the small business concern to meet 
the stated innovation need of the agency or 
Government end user; and’’. 
(b) PROGRAM ON INNOVATION OPEN TOPICS.—Sec-
tion 9(ww) of the Small Business Act (15 U.S.C. 638) 
is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘Secretary of Defense’’ and in-
serting ‘‘head of each participating agency’’; 
and 
(B) by striking ‘‘the Department of De-
fense’’ each place it appears and inserting 
‘‘such participating agency’’; 
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(2) in paragraph (2)— 
(A) by striking ‘‘Secretary of Defense’’ and 
inserting ‘‘head of each participating agency’’; 
(B) by striking ‘‘each component of’’ and 
inserting ‘‘such participating agency and, with 
respect to’’; and 
(C) by inserting ‘‘, each component there-
of,’’ before ‘‘per fiscal year’’; and 
(3) by striking paragraph (3). 
SEC. 302. REDUCING ADMINISTRATIVE BURDEN. 
Section 9(jj) of the Small Business Act (15 U.S.C. 
638(jj)), as amended by section 201(a)(1), is further 
amended by adding at the end the following: 
‘‘(4) REDUCING ADMINISTRATIVE BURDEN.— 
‘‘(A) LIMIT ON SUBMISSIONS TO A SOLICI-
TATION.—A small business concern, including 
its affiliates, spinouts, or subsidiaries, may not 
submit more than 10 proposals to a single 
Phase I solicitation or a single Phase II solici-
tation under subsection (cc). 
‘‘(B) LIMIT ON SUBMISSIONS IN A SINGLE 
YEAR.—A small business concern, including its 
affiliates, spinouts, or subsidiaries, may not 
submit more than a combined total of 25 pro-
posals to Phase I solicitations or Phase II so-
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licitations under subsection (cc) published by a 
single agency, including the components of the 
agency, in a single fiscal year.’’. 
TITLE IV—PROTECTING AMER-
ICAN INNOVATION FROM AD-
VERSARIAL INFLUENCE 
SEC. 401. DEFINITION OF FOREIGN RISK. 
Section 9(e) of the Small Business Act (15 U.S.C. 
638(e)), as amended by section 301, is further amended 
by adding at the end the following: 
‘‘(24) the term ‘foreign risk’ means, in the past 
10 years, any foreign affiliation, technology licensing 
agreement, joint venture, contractual or financial ob-
ligation (pending or otherwise), investment agree-
ment, research relationship (including co-author-
ship), or business relationship between— 
‘‘(A) a small business concern (including 
all subsidiaries, spinouts, and affiliates) submit-
ting a proposal for an SBIR or STTR program, 
and covered individuals, owners, or other key 
personnel of the small business concern; and 
‘‘(B) an individual, research institution, 
business entity, government, or government- 
owned entity in a foreign country of concern 
that is disclosed, as required under subsection 
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(g) or subsection (o), or otherwise identified in 
the due diligence process, as required under 
subsection (vv).’’. 
SEC. 402. BOLSTERING RESEARCH SECURITY OF SBIR AND 
STTR AWARDS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended— 
(1) in subsection (g)— 
(A) by redesignating paragraphs (15), 
(16), and (17) as paragraphs (16), (18), and 
(19), respectively; 
(B) by inserting after paragraph (14) the 
following: 
‘‘(15) evaluate whether a small business con-
cern presents a risk to national security for any rea-
son, through measures including— 
‘‘(A) the due diligence process required 
under subsection (vv); 
‘‘(B) disclosures submitted under this sub-
section; or 
‘‘(C) coordination with the Inspector Gen-
eral of the agency or the intelligence community 
(as defined under section 3 of the National Se-
curity Act of 1947 (50 U.S.C. 3003));’’; 
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‘‘(ii) the Non-SDN Chinese Military- 
Industrial Complex Companies List of the 
Office of Foreign Assets Control main-
tained by the Department of the Treasury; 
‘‘(iii) the Section 889 Prohibition List 
established under section 889 of the John 
S. McCain National Defense Authorization 
Act for Fiscal Year 2019 (Public Law 
115–232) and maintained by the Depart-
ment of Defense; 
‘‘(iv) the list of Chinese Military com-
panies required under section 1260H of 
the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 
2021 (Public Law 116–283) and main-
tained by the Department of Defense; 
‘‘(v) the Military End User List main-
tained by the Bureau of Industry and Se-
curity of the Department of Commerce; 
‘‘(vi) the Entity List maintained by 
the Bureau of Industry and Security of the 
Department of Commerce; 
‘‘(vii) the List of Equipment and 
Services maintained by the Federal Com-
munications Commission; and 
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‘‘(viii) the Withhold Release Orders 
and Findings List maintained by U.S. 
Customs and Border Protection; 
‘‘(E) has a foreign risk with a primary 
source that is classified; 
‘‘(F) has a foreign risk or another national 
security risk not listed in statute or regulatory 
guidance that an agency determines warrants a 
denial; or’’; 
(D) by inserting after paragraph (16), as 
so redesignated, the following: 
‘‘(17) not, and any personnel of the Federal 
agency including technical points of contact shall 
not, communicate to an applicant prior to formal no-
tification of an award decision that an application 
was denied due to a foreign risk;’’; and 
(E) in paragraph (19), as so redesig-
nated— 
(i) in subparagraph (B), by striking 
‘‘paragraph (16)(A)’’ and inserting ‘‘para-
graph (18)(A)’’; and 
(ii) in subparagraph (C), by striking 
‘‘paragraph (16)(B)’’ and inserting ‘‘para-
graph (18)(B)’’; and 
(2) in subsection (o)— 
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(A) by redesignating paragraphs (19), 
(20), and (21) as paragraphs (20), (22), and 
(23), respectively; 
(B) by inserting after paragraph (18) the 
following: 
‘‘(19) evaluate whether a small business con-
cern presents a risk to national security for any rea-
son, through measures including— 
‘‘(A) the due diligence process required 
under subsection (vv); 
‘‘(B) disclosures submitted under this sub-
section; or 
‘‘(C) coordination with the Inspector Gen-
eral of the agency or the intelligence community 
(as defined under section 3 of the National Se-
curity Act of 1947 (50 U.S.C. 3003));’’; 
(C) in paragraph (20), as so redesig-
nated— 
(i) by striking subparagraph (B); 
(ii) by striking ‘‘that—’’ and all that 
follows through ‘‘the small business con-
cern submitting’’ and inserting ‘‘that the 
small business concern submitting’’; 
(iii) by redesignating clauses (i), (ii), 
and (iii) as subparagraphs (A), (B), and 
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(C), respectively, and adjusting the mar-
gins accordingly; 
(iv) in subparagraph (B), as so redes-
ignated, by striking ‘‘or’’ at the end; 
(v) in subparagraph (C), as so redes-
ignated, by striking ‘‘and’’ at the end; and 
(vi) by adding at the end the fol-
lowing: 
‘‘(D) has a foreign risk connecting the 
small business concern to an entity, including 
any affiliates, spinouts, or subsidiaries of the 
entity, or individual on one or more of the fol-
lowing lists: 
‘‘(i) the UFLPA Entity List main-
tained by the Department of Homeland Se-
curity; 
‘‘(ii) the Non-SDN Chinese Military- 
Industrial Complex Companies List of the 
Office of Foreign Assets Control main-
tained by the Department of the Treasury; 
‘‘(iii) the Section 889 Prohibition List 
established under section 889 of the John 
S. McCain National Defense Authorization 
Act for Fiscal Year 2019 (Public Law 
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115–232) and maintained by the Depart-
ment of Defense; 
‘‘(iv) the list of Chinese Military com-
panies required under section 1260H of 
the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 
2021 (Public Law 116–283) and main-
tained by the Department of Defense; 
‘‘(v) the Military End User List main-
tained by the Bureau of Industry and Se-
curity of the Department of Commerce; 
‘‘(vi) the Entity List maintained by 
the Bureau of Industry and Security of the 
Department of Commerce; 
‘‘(vii) the List of Equipment and 
Services maintained by the Federal Com-
munications Commission; and 
‘‘(viii) the Withhold Release Orders 
and Findings List maintained by U.S. 
Customs and Border Protection; 
‘‘(E) has a foreign risk with a primary 
source that is classified; 
‘‘(F) has a foreign risk or another national 
security risk not listed in statute or regulatory 
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guidance that an agency determines warrants a 
denial; or’’; 
(D) by inserting after paragraph (20) the 
following: 
‘‘(21) not, and any personnel of the Federal 
agency including technical points of contact shall 
not, communicate to an applicant prior to formal no-
tification of an award decision that an application 
was denied due to a foreign risk;’’; and 
(E) in paragraph (23), as so redesig-
nated— 
(i) in subparagraph (B), by striking 
‘‘paragraph (20)(A)’’ and inserting ‘‘para-
graph (22)(A)’’; and 
(ii) in subparagraph (C), by striking 
‘‘paragraph (20)(B)’’ and inserting ‘‘para-
graph (22)(B)’’. 
SEC. 403. STRENGTHENING THE DUE DILIGENCE PROGRAM 
TO ASSESS SECURITY RISKS. 
Section 9(vv)(2) of the Small Business Act (15 
U.S.C. 638(vv)(2)) is amended— 
(1) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(2) by adding at the end the following: 
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‘‘(C) examine any relationship of a small 
business concern seeking an award to any entity 
or individual included on the lists, as published 
on the date of the closing of the solicitation, de-
scribed under subsections (g)(16)(D) and 
(o)(20)(D).’’. 
SEC. 404. STRENGTHENING AGENCY RECOVERY AUTHOR-
ITY. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended— 
(1) in subsection (g)(18), as redesignated by 
section 402— 
(A) in the matter preceding subparagraph 
(A), by inserting ‘‘, as adjusted for inflation ac-
cording to the Consumer Price Index published 
by the Bureau of Labor Statistics,’’ after 
‘‘amounts’’; 
(B) in subparagraph (A)— 
(i) by inserting ‘‘during the 10-year 
period beginning on the date of the award, 
or during a longer or indefinite period as 
determined by the head of the awarding 
agency as necessary for national security,’’ 
before ‘‘the small business concern’’; and 
(ii) by striking ‘‘or’’ at the end; 
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(C) in subparagraph (B)— 
(i) by inserting ‘‘during the 10-year 
period beginning on the date of the award, 
or during a longer or indefinite period as 
determined by the head of the awarding 
agency as necessary for national security,’’ 
before ‘‘there is a change’’; and 
(ii) by striking ‘‘and’’ at the end; and 
(D) by adding at the end the following: 
‘‘(C) during the 5-year period beginning on 
the date of the award, or during a longer or in-
definite period as determined by the head of the 
awarding agency as necessary for national secu-
rity, the small business concern sells, leases, or 
provides (through joint research, technological 
licensing, or otherwise) intellectual property 
that was developed, wholly or in part, using an 
SBIR award to a foreign entity or individual 
unless the foreign entity or individual is incor-
porated in or a citizen of a country that is a 
member of the North Atlantic Treaty Organiza-
tion or a major non-NATO ally, as described 
under section 2321k of title 22, United States 
Code; or 
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‘‘(D) during the 10-year period beginning 
on the date of the award, or during a longer or 
indefinite period as determined by the head of 
the awarding agency as necessary for national 
security, the small business concern sells, 
leases, or provides (through joint research, tech-
nological licensing, or otherwise) intellectual 
property that was developed, wholly or in part, 
using an SBIR award to an entity, government, 
or individual in a foreign country of concern; 
and’’; and 
(2) in subsection (o)(22), as redesignated by 
section 402— 
(A) in the matter preceding subparagraph 
(A), by inserting ‘‘, as adjusted for inflation ac-
cording to the Consumer Price Index published 
by the Bureau of Labor Statistics,’’ after 
‘‘amounts’’; 
(B) in subparagraph (A)— 
(i) by inserting ‘‘during the 10-year 
period beginning on the date of the award, 
or during a longer or indefinite period as 
determined by the head of the awarding 
agency as necessary for national security,’’ 
before ‘‘the small business concern’’; and 
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(ii) by striking ‘‘or’’ at the end; 
(C) in subparagraph (B)— 
(i) by inserting ‘‘during the 10-year 
period beginning on the date of the award, 
or during a longer or indefinite period as 
determined by the head of the awarding 
agency as necessary for national security,’’ 
before ‘‘there is a change’’; and 
(ii) by striking ‘‘and’’ at the end; and 
(D) by adding at the end the following: 
‘‘(C) during the 5 year period beginning on 
the date of the award, or during a longer or in-
definite period as determined by the head of the 
awarding agency as necessary for national secu-
rity, the small business concern sells, leases, or 
provides (through joint research, technological 
licensing, or otherwise) intellectual property 
that was developed, wholly or in part, using an 
STTR award to a foreign entity or individual 
unless the foreign entity or individual is incor-
porated in or a citizen of a country that is a 
member of the North Atlantic Treaty Organiza-
tion or a major non-NATO ally, as described 
under section 2321k of title 22, United States 
Code; or 
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‘‘(D) during the 10-year period beginning 
on the date of the award, or during a longer or 
indefinite period as determined by the head of 
the awarding agency as necessary for national 
security, the small business concern sells, 
leases, or provides (through joint research, tech-
nological licensing, or otherwise) intellectual 
property that was developed, wholly or in part, 
using an STTR award to an entity, govern-
ment, or individual in a foreign country of con-
cern; and’’. 
SEC. 405. BEST PRACTICES ON INVESTOR INFORMATIONAL 
RIGHTS. 
Section 9(uu) of the Small Business Act (15 U.S.C. 
638(uu)) is amended to read as follows: 
‘‘(uu) BEST PRACTICES
ON INVESTOR INFORMA-
TIONAL RIGHTS.— 
‘‘(1) IN GENERAL.—The Administrator, in co-
ordination with the heads of all agencies with an 
SBIR program, the Director of the White House Of-
fice of Science and Technology Policy, and the Com-
mittee on Foreign Investment in the United States, 
shall develop best practices to be shared with each 
recipient of an SBIR or STTR award by the agency 
granting the award. 
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‘‘(2) CONTENTS.—The best practices developed 
under paragraph (1) shall include recommendations 
for protecting the proprietary technology and intel-
lectual property of the small business concern from 
being shared unintentionally to foreign individuals 
and entities through informational rights of limited 
partners in venture capital, hedge fund, or private 
equity firms that have investments in SBIR or 
STTR recipients.’’. 
SEC. 406. GAO REPORT. 
Paragraph (4) of section 4(b) of the SBIR and STTR 
Extension Act of 2022 (Public Law 117–183; 136 Stat. 
2194) is amended to read as follows: 
‘‘(4) GAO REPORT.— 
‘‘(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of the IN-
NOVATE Act, and annually thereafter under 
September 30, 2028, the Comptroller General 
of the United States shall conduct a study and 
submit to the Committee on Small Business 
and Entrepreneurship and the Committee on 
Armed Services of the Senate and the Com-
mittee on Small Business, the Committee on 
Armed Services, and the Committee on Science, 
Space, and Technology of the House of Rep-
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