340 
(I) are knowledgeable about the SBIR programs and 
STTR programs as good candidates for SBIR programs 
and STTR programs; and 
(II) would benefit from mentoring, in accordance with 
subsection (f); 
(iii) to create or participate in a training program for indi-
viduals providing SBIR program outreach and assistance at 
the State and local levels; and 
(iv) to encourage the commercialization of technology devel-
oped through SBIR program funding. 
(2) SELECTION CONSIDERATIONS.—In making awards or entering 
into cooperative agreements under this section, the Administrator and 
the SBIR program managers at the National Science Foundation and 
the Department of Defense— 
(A) may consider only proposals by applicants that intend to 
use a portion of the Federal assistance provided under this section 
to provide outreach, financial support, or technical assistance to 
technology-based small business concerns participating in or inter-
ested in participating in an SBIR program; 
(B) shall consider, at a minimum— 
(i) whether the applicant has demonstrated that the assist-
ance to be provided would address unmet needs of small busi-
ness concerns in the community, and whether it is important 
to use Federal funding for the proposed activities; 
(ii) whether the applicant has demonstrated that a need ex-
ists to increase the number or success of small high-tech-
nology businesses in the State, as measured by the number 
of phase I and phase II SBIR awards that have historically 
been received by small business concerns in the State; 
(iii) whether the projected costs of the proposed activities 
are reasonable; 
(iv) whether the proposal integrates and coordinates the 
proposed activities with other State and local programs assist-
ing small high-technology firms in the State; 
(v) the manner in which the applicant will measure the re-
sults of the activities to be conducted; and 
(vi) whether the proposal addresses the needs of— 
(I) small business concerns owned and controlled by 
women; 
(II) small business concerns owned and controlled by 
minorities; and 
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341 
(III) small business concerns located in areas that 
have historically not participated in the SBIR programs 
and STTR programs; and 
(C) shall give special consideration to an applicant that is lo-
cated in an area affected by a catastrophic incident. 
(3) PROPOSAL LIMIT.—Not more than 1 proposal may be submitted 
for inclusion in the FAST program to provide services in any 1 State 
in any 1 fiscal year. 
(4) PROCESS.— 
(A) PROPOSALS AND APPLICATION.—A proposal or application 
for assistance under this section shall be in such form and subject 
to such procedures as the Administrator shall establish. 
(B) REGULATIONS.—The Administrator shall promulgate regu-
lations establishing standards for the consideration of proposals 
under paragraph (2), including standards regarding each of the 
considerations described in paragraph (2)(B). 
(5) ADDITIONAL
ASSISTANCE
FOR
CATASTROPHIC
INCIDENTS.— 
Upon application by an applicant that receives an award or has in ef-
fect a cooperative agreement under this section and that is located in 
an area affected by a catastrophic incident, the Administrator may— 
(A) provide additional assistance to the applicant; and 
(B) waive the matching requirements under subsection (e)(2). 
(d) COOPERATION AND COORDINATION.—In carrying out the FAST pro-
gram, the Administrator shall cooperate and coordinate with— 
(1) SBIR agencies; and 
(2) entities, organizations, and individuals actively engaged in en-
hancing or developing the technological capabilities of small business 
concerns, including— 
(A) State and local development agencies and entities; 
(B) State committees established under the Experimental Pro-
gram to Stimulate Competitive Research of the National Science 
Foundation established under section 113 of the National Science 
Foundation Authorization Act of 1988 (42 U.S.C. 1862g); 
(C) State science and technology councils; and 
(D) representatives of technology-based small business concerns. 
(e) REQUIREMENTS.— 
(1) COMPETITIVE
BASIS.—An award under this section shall be 
made or a cooperative agreement under this section shall be entered 
into on a competitive basis. 
(2) MATCHING REQUIREMENTS.— 
(A) AMOUNT OF NON-FEDERAL SHARE.— 
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342 
(i) IN GENERAL.—The non-Federal share of the cost of an 
activity (other than a planning activity) carried out using an 
award or under a cooperative agreement under this section 
shall be— 
(I) 1⁄3, in the case of a recipient that will serve small 
business concerns located in 1 of the 18 States receiving 
the fewest SBIR program phase I awards; 
(II) except as provided in subparagraph (B), 1⁄2, in the 
case of a recipient that will serve small business concerns 
located in 1 of the 16 States receiving the greatest num-
ber of SBIR program phase I awards; and 
(III) except as provided in subparagraph (B), 3⁄7, in 
the case of a recipient that will serve small business con-
cerns located in a State not described in subclause (I) 
or (II) that is receiving SBIR program phase I awards. 
(ii) RANKINGS.—For purposes of clause (i), the Adminis-
trator shall reevaluate the ranking of a State once every 2 fis-
cal years, based on the most recent statistics compiled by the 
Administrator. 
(B) LOW-INCOME AREAS.—To the extent that the Federal con-
tribution to the cost of the activity will be directly allocated by a 
recipient described in subparagraph (A) to serve small business 
concerns located in a qualified census tract, the non-Federal share 
of the cost of an activity carried out using an award or under a 
cooperative agreement under this section shall be 1⁄3. 
(C) TYPES OF FUNDING.— 
(i) IN GENERAL.—The non-Federal share of the cost of an 
activity carried out by a recipient shall be comprised of not 
less than 50 percent cash and not more than 50 percent of 
indirect costs and in-kind contributions. 
(ii) NON-FEDERAL
SOURCE.—None of the non-Federal 
share of costs or contributions may be derived from funds 
from any other Federal program. 
(3) DURATION.—An award may be made or a cooperative agreement 
may be entered into under this section for multiple years, not to exceed 
5 years in total. 
(f) MENTORING NETWORKS.— 
(1) IN GENERAL.—A recipient of an award or participant in a coop-
erative agreement under this section may use a reasonable amount of 
the assistance for the establishment of a mentoring network under this 
section. 
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(2) CRITERIA.—A mentoring network established using assistance 
under this section shall— 
(A) provide business advice and counseling to high technology 
small business concerns located in the State or region served by 
the 
mentoring 
network 
and 
identified 
under 
subsection 
(c)(1)(E)(ii) as potential candidates for an SBIR program or 
STTR program; 
(B) identify volunteer mentors who— 
(i) are persons associated with a small business concern 
that has successfully completed 1 or more SBIR program or 
STTR program funding agreements; and 
(ii) have agreed to guide small business concerns through 
all stages of the SBIR program or STTR program process, 
including providing assistance relating to— 
(I) proposal writing; 
(II) marketing; 
(III) Government accounting; 
(IV) Government audits; 
(V) project facilities and equipment; 
(VI) human resources; 
(VII) phase III partners; 
(VIII) commercialization; 
(IX) venture capital networking; and 
(X) other matters relevant to the SBIR programs and 
STTR programs; 
(C) have experience working with small business concerns par-
ticipating in the SBIR programs and STTR programs; 
(D) contribute information to the national database referred to 
in paragraph (3); and 
(E) agree to reimburse volunteer mentors for out-of-pocket ex-
penses related to service as a mentor under this section. 
(3) MENTORING DATABASE.—The Administrator, directly or by con-
tract, shall— 
(A) include in the database required by section 263301 of this 
title, in cooperation with the SBIR program, STTR program, and 
FAST program, information on mentoring networks and mentors 
participating under this subsection, including a description of their 
areas of expertise; 
(B) work cooperatively with mentoring networks to maintain 
and update the database; and 
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(C) take such action as is necessary to aggressively promote 
mentoring networks under this subsection. 
(g) TERMINATION.—The authority to carry out the FAST program termi-
nates on September 30, 2005. 
§ 263306. Innovation in energy efficiency 
(a) FEDERAL AGENCY ENERGY-RELATED PRIORITY.—In carrying out its 
duties under this division relating to SBIR program and STTR program so-
licitations by Federal agencies, the Administrator shall— 
(1) ensure that Federal agencies give high priority to small business 
concerns that participate in or conduct energy efficiency or renewable 
energy system research and development projects; and 
(2) include in the annual report to Congress under section 
107110(a) of this title a determination of whether the priority de-
scribed in paragraph (1) is being carried out. 
(b) CONSULTATION.—The Administrator shall consult with the heads of 
other Federal agencies in determining whether priority has been given to 
small business concerns that participate in or conduct energy efficiency or 
renewable energy system research and development projects, as required by 
this section. 
(c) GUIDELINES.—The Administrator shall issue guidelines and directives 
to assist Federal agencies in meeting the requirements of this section. 
§ 263307. Competitive selection procedures 
All funds awarded, appropriated, or otherwise made available in accord-
ance with section 263101 or 263201 of this title shall be awarded pursuant 
to competitive and merit-based selection procedures. 
§ 263308. Award amounts in excess of guidelines 
(a) PROHIBITION.— 
(1) IN GENERAL.—A Federal agency shall not issue an award under 
the SBIR program or STTR program if the amount of the award 
would exceed the award guidelines established under this section by 
more than 50 percent. 
(2) WAIVER FOR SPECIFIC TOPIC.—On the receipt of an application 
from an SBIR agency or STTR agency, the Administrator may grant 
a waiver from the prohibition under paragraph (1) with respect to a 
specific topic (but not for the SBIR agency or STTR agency as a 
whole) for a fiscal year if the Administrator determines, based on the 
information contained in the application from the SBIR agency or 
STTR agency, that— 
(A) the requirement under paragraph (1) will interfere with the 
ability of the SBIR agency or STTR agency to fulfill its research 
mission through the SBIR program or STTR program; and 
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345 
(B) the SBIR agency or STTR agency will minimize, to the 
maximum extent possible, the number of awards that do not sat-
isfy the prohibition under paragraph (1) to preserve the nature 
and intent of the SBIR program and the STTR program. 
(b) MAINTENANCE OF INFORMATION.—An SBIR agency and an STTR 
agency shall maintain information on awards exceeding the guidelines estab-
lished under this division, including, for each such award— 
(1) the amount of the award; 
(2) a justification for exceeding the guidelines for the award; 
(3) the identity and location of the award recipient; and 
(4) whether the award recipient has received any venture capital, 
hedge fund, or private equity firm investment and, if so, whether the 
recipient is majority-owned by multiple venture capital operating com-
panies, hedge funds, or private equity firms. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall be construed 
to preclude an SBIR agency or STTR agency from supplementing an award 
under the SBIR program or STTR program using funds of the SBIR agen-
cy or STTR agency that are not part of the SBIR program or STTR pro-
gram of the SBIR agency or STTR agency. 
§ 263309. Subsequent phase II awards 
(a) AGENCY FLEXIBILITY.—A small business concern that receives a 
phase I award from a Federal agency under this division shall be eligible 
to receive a subsequent phase II award from another Federal agency if— 
(1) the head of each relevant Federal agency or the relevant compo-
nent of the Federal agency makes a written determination that the top-
ics of the relevant awards are the same; and 
(2) both Federal agencies report the awards to the Administrator for 
inclusion in the public database under section 263301 of this title. 
(b) SBIR AND STTR PROGRAM FLEXIBILITY.— 
(1) IN GENERAL.—A small business concern that receives a phase I 
award under this division under the SBIR program or STTR program 
may receive a subsequent phase II award under either the SBIR pro-
gram or the STTR program. 
(2) REPORTING.—The participating Federal agency or agencies shall 
report awards referred to in paragraph (1) to the Administrator for in-
clusion in the public database under section 263301 of this title. 
(c) PREVENTION OF DUPLICATIVE AWARDS.—The head of a Federal 
agency shall verify that any activity to be performed with respect to a 
project with a phase I or phase II SBIR or STTR award has not been fund-
ed under the SBIR program or STTR program of another Federal agency. 
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§ 263310. Collaboration with Federal laboratories and re-
search and development centers 
(a) AUTHORIZATION.—Subject to the limitations under this section, the 
head of an SBIR participating agency or STTR participating agency may 
make an SBIR award or STTR award to any eligible small business concern 
that— 
(1) intends to enter into an agreement with a Federal laboratory or 
federally funded research and development center for a portion of the 
activities to be performed under the award; or 
(2) enters into a cooperative research and development agreement 
(as defined in section 12(d) of the Stevenson-Wydler Technology Inno-
vation Act of 1980 (15 U.S.S. 3710a(d)) with a Federal laboratory. 
(b) PROHIBITION.—A Federal agency shall not— 
(1) condition an SBIR award or STTR award on a small business 
concern’s entering into an agreement with any Federal laboratory or 
any federally funded laboratory or research and development center for 
any portion of the activities to be performed under the award; 
(2) approve an agreement between a small business concern receiving 
an SBIR award or STTR award and a Federal laboratory or federally 
funded laboratory or research and development center, if the small 
business concern performs a lesser portion of the activities to be per-
formed under the award than required by this section and by the SBIR 
policy directives and the STTR policy directive of the Administrator; 
or 
(3) approve an agreement that violates any provision, including any 
data rights protections provision, of this section or the SBIR Directives 
and the STTR policy directive. 
(c) IMPLEMENTATION.—The SBIR policy directives and the STTR policy 
directive issued under this division shall ensure that small business con-
cerns— 
(1) have the flexibility to use the resources of the Federal labora-
tories or federally funded research and development centers; and 
(2) are not required to enter into agreement with any Federal lab-
oratory or any federally funded laboratory or research and development 
center as a condition of an award. 
(d) ADVANCE PAYMENT.—If a small business concern that receives an 
award under this division enters into an agreement with a Federal labora-
tory or federally funded research and development center for a portion of 
the activities to be performed under the award, the Federal laboratory or 
federally funded research and development center shall not require advance 
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payment from the small business concern in an amount greater than the 
amount necessary to pay for 30 days of the activities. 
§ 263311. Sequential SBIR awards and STTR awards for con-
tinued work on a project 
A small business concern that receives a phase II SBIR award or phase 
II STTR award for a project remains eligible to receive 1 additional phase 
II SBIR award or phase II STTR award for continued work on the project. 
§ 263312. Prevention of duplicative awards 
The head of a Federal agency shall verify that any activity to be per-
formed with respect to a project with a phase I or phase II SBIR award 
or STTR award has not been funded under the SBIR program or STTR 
program of another Federal agency. 
§ 263313. Discretionary technical assistance 
(a) IN GENERAL.—An SBIR agency or STTR agency may enter into an 
agreement with a vendor selected under subsection (b) to provide small busi-
ness concerns engaged in SBIR projects or STTR projects with technical 
assistance services, such as access to a network of scientists and engineers 
engaged in a wide range of technologies or access to technical and business 
literature available through on-line data bases, for the purpose of assisting 
the small business concerns in— 
(1) making better technical decisions concerning the projects; 
(2) solving technical problems that arise during the conduct of the 
projects; 
(3) minimizing technical risks associated with the projects; and 
(4) developing and commercializing new commercial products and 
processes resulting from the projects. 
(b) VENDOR SELECTION.— 
(1) IN GENERAL.—An SBIR agency or STTR agency may select a 
vendor to assist small business concerns in meeting the goals listed in 
subsection (a) for a term not to exceed 5 years. 
(2) COMPETITION.—Selection of a vendor shall be competitive and 
shall use merit-based criteria. 
(c) ADDITIONAL TECHNICAL ASSISTANCE.— 
(1) IN GENERAL.—An SBIR agency or STTR agency may— 
(A) provide to a phase I or phase II SBIR award or STTR 
award recipient, through a vendor selected under subsection (b), 
the services described in subsection (a) in an amount equal to not 
more than $5,000 per year; or 
(B) authorize a phase I or phase II SBIR award or STTR 
award recipient to purchase the services described in subsection 
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(a) in an amount equal to not more than $5,000 per year, which 
shall be in addition to the amount of the recipient’s award. 
(2) FLEXIBILITY.—In carrying out paragraph (1), an SBIR agency 
or STTR agency shall provide the allowable amounts to a recipient that 
meets the eligibility requirements under the paragraph if the recipient 
requests to seek technical assistance from an individual or entity other 
than the vendor selected under subsection (b) by the SBIR agency or 
STTR agency. 
(3) LIMITATION.—An SBIR agency or STTR agency shall not— 
(A) use the amounts authorized under paragraph (1) unless the 
vendor selected under subsection (b) provides the technical assist-
ance to the recipient; or 
(B) enter a contract with a vendor under subsection (b) under 
which the amount provided for technical assistance is based on the 
total number of phase I or phase II awards. 
§ 263314. Commercialization readiness programs 
(a) DEPARTMENT OF DEFENSE AND MILITARY DEPARTMENTS.— 
(1) IN GENERAL.—The Secretary of Defense or Secretary of a mili-
tary department may create and administer a commercialization readi-
ness program to accelerate the transition of technologies, products, and 
services developed under the SBIR program or STTR program of the 
Department of Defense or of the military department to phase III, in-
cluding the acquisition process. 
(2) IDENTIFICATION OF RESEARCH PROGRAMS FOR ACCELERATED 
TRANSITION TO ACQUISITION PROCESS.—In carrying out a commer-
cialization readiness program, the Secretary of Defense or Secretary of 
a military department shall identify research programs of an SBIR 
program or STTR program that have the potential for rapid 
transitioning to phase III and into the acquisition process. 
(3) LIMITATION.—A research program of a military department shall 
not be identified under paragraph (2) unless the Secretary of the mili-
tary department certifies in writing that the successful transition of the 
research program to phase III and into the acquisition process is ex-
pected to meet high priority military requirements of the military de-
partment. 
(4) FUNDING.— 
(A) IN GENERAL.—The Secretary of Defense or the Secretary 
of a military department may use not more than an amount equal 
to 1 percent of the funds available to the Department of Defense 
or the military department pursuant to the SBIR program for 
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payment of expenses incurred to administer the commercialization 
readiness program under this subsection. 
(B) NO USE OF FUNDS FOR PHASE III AWARDS.—Funds de-
scribed in subparagraph (A) shall not be used to make phase III 
awards. 
(C) INAPPLICABILITY
OF
LIMITATIONS
AFTER
FISCAL
YEAR 
2015.—After fiscal year 2015, funds described in subparagraph (A) 
shall not be subject to the limitations on the use of funds in sec-
tion 263101(b) of this title. 
(5) INSERTION INCENTIVES.—For any contract with a value of not 
less than $100,000,000, the Secretary of Defense may— 
(A) establish goals for the transition of phase III technologies 
in subcontracting plans; and 
(B) require a prime contractor on the contract to report the 
number and dollar amount of contracts entered into by that prime 
contractor for phase III SBIR projects or STTR projects. 
(6) GOAL FOR SBIR AND STTR TECHNOLOGY INSERTION.—The Sec-
retary of Defense shall— 
(A) set a goal to increase the number of phase II SBIR con-
tracts and the number of phase II STTR contracts awarded by 
the Secretary that lead to technology transition into programs of 
record or fielded systems; 
(B) use incentives in effect on December 31, 2011, or create 
new incentives, to encourage agency program managers and prime 
contractors to meet the goal under subparagraph (A); and 
(C) submit to the Administrator— 
(i) the number and percentage of phase II SBIR and 
STTR contracts awarded by the Secretary that led to tech-
nology transition into programs of record or fielded systems; 
(ii) information on the status of each project that received 
funding through the commercialization readiness program 
and efforts to transition those projects into programs of 
record or fielded systems; and 
(iii) a description of each incentive that has been used by 
the Secretary under subparagraph (B) and the effectiveness 
of that incentive with respect to meeting the goal under sub-
paragraph (A). 
(7) EFFECT OF SUBSECTION.—The authority to create and admin-
ister a commercialization readiness program under this subsection shall 
not be construed to eliminate or replace any other part of the SBIR 
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program or STTR program that enhances the insertion or transition 
of SBIR or STTR technologies. 
(b) FEDERAL AGENCIES OTHER
THAN
THE DEPARTMENT
OF DE-
FENSE.— 
(1) IN GENERAL.—On approval of an application under paragraph 
(2), the head of an SBIR participating agency or STTR participating 
agency other than the Department of Defense may establish a pilot 
program under which the agency head may allocate not more than 10 
percent of the funds allocated to the SBIR program or STTR program 
of the SBIR participating agency or STTR participating agency— 
(A) for awards for technology development, testing, evaluation, 
and commercialization assistance for SBIR or STTR phase II 
technologies; or 
(B) to support the progress of research, research and develop-
ment, and commercialization conducted under the SBIR program 
or STTR program to phase III. 
(2) APPLICATION.— 
(A) SUBMISSION.—The head of an SBIR participating agency 
or STTR participating agency may establish a pilot program 
under paragraph (1) if the agency head, not later than 90 days 
before the 1st day of the fiscal year in which the pilot program 
is to be established, submits to the Administrator a written appli-
cation that describes a compelling reason, including unusually high 
regulatory, systems integration, or other costs relating to develop-
ment or manufacturing of identifiable, highly promising small 
business technologies or a class of small business technologies ex-
pected to substantially advance the mission of the Federal agency, 
why additional investment in SBIR or STTR technologies is nec-
essary. 
(B) DETERMINATION.—The Administrator shall— 
(i) make a determination whether to approve an application 
under subparagraph (A) not later than 30 days before the 
first day of the fiscal year for which the application is sub-
mitted; 
(ii) publish the determination in the Federal Register; and 
(iii) make a copy of the determination and any related ma-
terials available to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on Small 
Business and Committee on Science, Space, and Technology 
of the House of Representatives. 
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(3) CONSIDERATION
OF
LIKELIHOOD
OF
DOMESTIC
MANUFAC-
TURE.—In making an award under this subsection, an agency head 
shall consider whether the technology to be supported by the award is 
likely to be manufactured in the United States. 
(4) MAXIMUM AMOUNT OF AWARD.—An agency head shall not make 
an award under the pilot program under paragraph (1) in excess of the 
amount that is equal to 3 times the dollar amounts generally estab-
lished for phase II awards under subsection section 263104(b)(10) or 
263203(c)(2)(I) of this title. 
(5) REGISTRATION.—The recipient an award under a pilot program 
under paragraph (1) shall register with the Administrator in a registry 
that is available to the public. 
(6) REPORT.—The head of a Federal agency that carries out a pilot 
program under paragraph (1) shall include in the annual report of the 
Federal agency to the Administrator— 
(A) an analysis of the various activities considered for inclusion 
in the pilot program; and 
(B) a statement of the reasons why each activity considered was 
included or not included, as the case may be. 
(7) TERMINATION
OF
AUTHORITY.—The authority to establish a 
pilot program under this subsection expires at the end of fiscal year 
2017. 
§ 263315. Timing of release of funding 
An SBIR participating agency or STTR participating agency shall, to the 
extent possible, attempt to shorten the amount of time between the provi-
sion of notice of an award under the SBIR program or STTR program and 
the subsequent release of funding under the award. 
§ 263316. Reporting on timing of final decisions on pro-
posals and releases of funding 
An SBIR participating agency or STTR participating agency shall pro-
vide the Administrator— 
(1) the average length of time that the SBIR participating agency 
or STTR participating agency takes to make a final decision on pro-
posals submitted under the SBIR program or STTR program; 
(2) the average length of time that the SBIR participating agency 
or STTR participating agency takes to release funding under an award 
under the SBIR program or STTR program; and 
(3) the goals established to reduce those lengths of time. 
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§ 263317. Release of contact information to economic devel-
opment organizations 
(a) CONSENT
OF SMALL BUSINESS CONCERN.—An SBIR agency or 
STTR agency shall provide a means by which a small business concern that 
is an SBIR applicant or an STTR applicant may indicate to the SBIR 
agency or STTR agency whether the SBIR agency or STTR agency has the 
consent of the small business concern to— 
(1) identify the small business concern to appropriate local and State 
economic development organizations as an SBIR applicant or an STTR 
applicant; and 
(2) release the contact information of the small business concern to 
the economic development organizations. 
(b) RULES.—The Administrator shall issue rules to implement this sec-
tion. The rules shall include a requirement that an SBIR agency or STTR 
agency include in the SBIR or STTR application a provision under which 
an applicant may indicate consent for purposes of subsection (a). 
§ 263318. Prevention of fraud, waste, and abuse 
(a) IN GENERAL.—The SBIR policy directives under section 263104 of 
this title and the STTR policy directive under section 263203 of this title 
shall include measures to prevent fraud, waste, and abuse in the SBIR pro-
gram and STTR program. 
(b) CONTENTS.—The measures required under subsection (a) include— 
(1) definitions or descriptions of fraud, waste, and abuse; 
(2) guidelines for the monitoring and oversight of applicants to and 
recipients of awards under the SBIR program or STTR program; 
(3) a requirement that an SBIR participating agency or STTR par-
ticipating agency include information concerning the method estab-
lished by the Inspector General of the SBIR participating agency or 
STTR participating agency to report fraud, waste, and abuse (includ-
ing any telephone hotline or web-based platform)— 
(A) on the website of the SBIR participating agency or STTR 
participating agency; and 
(B) in any solicitation or notice of funding opportunity issued 
by the SBIR participating agency or STTR participating agency 
for the SBIR program or STTR program; and 
(4) a requirement that an applicant for and a small business concern 
that receives funding under the SBIR program or STTR program shall 
certify whether the applicant or small business concern is in compliance 
with the laws relating to the SBIR program and the STTR program 
and the conduct guidelines established under the SBIR policy directives 
and the STTR policy directive. 
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(c) PROCEDURES AND REQUIREMENTS FOR CERTIFICATION.— 
(1) IN GENERAL.—In consultation with the Council of Inspectors 
General on Integrity and Efficiency, and after providing notice and an 
opportunity for public comment, the Administrator shall develop proce-
dures and requirements for a certification under subsection (b)(4). 
(2) CONTENTS.—The form of certification developed under para-
graph (1) may— 
(A) cover the lifecycle of an award to require certifications at 
the application, funding, reporting, and closeout phases of every 
SBIR award and STTR award; 
(B) require the small business concern to certify compliance 
with the principal investor primary employment requirement, the 
small business concern definition requirement, and the perform-
ance of work requirements as set forth in the directive applicable 
to the award; 
(C) require a small business concern to disclose whether the 
small business concern has applied for, has plans to apply for, or 
has received an SBIR award or STTR award for identical or es-
sentially equivalent work (as defined under the SBIR policy direc-
tives and the STTR policy directive), and require the small busi-
ness concern to certify that the award that the small business con-
cern is applying for or obtaining funding for is not identical or es-
sentially equivalent to work that the small business concern has 
performed, or will perform, in connection with any other SBIR 
award or STTR award that the small business concern has applied 
for or has received from any other agency except as fully disclosed 
to all funding agencies; and 
(D) require that the small business concern certify that the 
small business concern will perform or did perform the work on 
the award at its facilities with its employees, unless otherwise indi-
cated. 
(d) INSPECTORS GENERAL.—The Inspector General of a participating 
SBIR agency or participating SBIR agency shall cooperate to prevent fraud, 
waste, and abuse in the SBIR program and STTR program by— 
(1) establishing fraud detection indicators; 
(2) reviewing regulations and operating procedures of the partici-
pating SBIR agency or participating SBIR agency; 
(3) coordinating information sharing between Federal agencies, to 
the extent otherwise permitted under Federal law; and 
(4) improving the education and training of and outreach to— 
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354 
(A) administrators of the SBIR program and the STTR pro-
gram of the participating SBIR agency or participating SBIR 
agency; 
(B) applicants to the SBIR program or STTR program; and 
(C) recipients of awards under the SBIR program or STTR 
program. 
§ 263319. Competitive selection procedures 
All funds awarded, appropriated, or otherwise made available in accord-
ance with section 263101 or 263201 of this title shall be awarded pursuant 
to competitive and merit-based selection procedures. 
§ 263320. Limitation on pilot programs 
(a) DEFINITION OF COVERED PILOT PROGRAM.—In this section, the 
term ‘‘covered pilot program’’ means an initiative, project, innovation, or 
other activity that— 
(1) is established by the Administrator; 
(2) relates to an SBIR program or STTR program; and 
(3) is not specifically authorized by law. 
(b) PILOT PROGRAMS IN OPERATION ON DECEMBER 31, 2011.—The Ad-
ministrator may carry out a covered pilot program that is in operation on 
December 31, 2011, only until December 31, 2014. 
(c) PILOT PROGRAMS ESTABLISHED AFTER DECEMBER 31, 2011.—The 
Administrator may carry out a covered pilot program established after De-
cember 31, 2011— 
(1) only for a period of 3 years period beginning on the date on 
which the covered pilot program is established; and 
(2) if the covered pilot program does not continue and is not based 
on, in any manner, a previously established covered pilot program. 
§ 263321. Minimum standards for participation 
(a) PROGRESS TO PHASE II SUCCESS.— 
(1) ESTABLISHMENT OF SYSTEM AND MINIMUM COMMERCIALIZATION 
RATE.—The head of an SBIR participating agency or STTR partici-
pating agency shall— 
(A) establish a system to measure, where appropriate, the suc-
cess of small business concerns with respect to the receipt of phase 
II SBIR awards or STTR awards for projects that have received 
phase I SBIR awards or STTR awards; 
(B) establish a minimum performance standard for small busi-
ness concerns with respect to the receipt of phase II SBIR awards 
or STTR awards for projects that have received phase I SBIR 
awards or STTR awards; and 
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357 
271106.
Assistance from Federal laboratories. 
271107.
Assistance from the National Science Foundation. 
271108.
Assistance from the National Aeronautics and Space Administration. 
271109.
National Small Business Development Center Advisory Board. 
271110.
Small business development center advisory boards. 
271111.
Program examination and accreditation. 
271112.
Limitations on authority. 
271113.
Prohibition of fees for counseling service. 
271114.
Veterans assistance and services program. 
271115.
Grants for small business development centers 
§ 271101. Definitions 
In this chapter: 
(1) ASSOCIATE
ADMINISTRATOR.—The term ‘‘Associate Adminis-
trator’’ means the Associate Administrator for Small Business Develop-
ment Centers. 
(2) FINANCIAL ASSISTANCE.—The term ‘‘financial assistance’’ means 
financial assistance under a grant, contract, or cooperative agreement. 
(3) FINANCIAL ASSISTANCE AGREEMENT.—The term ‘‘financial as-
sistance agreement’’ means a grant agreement, contract, or cooperative 
agreement under which financial assistance is provided under this 
chapter. 
(4) PROGRAM.—The term ‘‘program’’ means the small business de-
velopment center program under this chapter. 
(5) QUALIFIED ENTITY.—The term ‘‘qualified entity’’ means— 
(A) a public or private institution of higher education (including 
a land-grant college or university, a college or school of business, 
engineering, commerce, or agriculture, and a community college or 
junior college); 
(B) a women’s business center; and 
(C) any other entity if the entity, on December 31, 1990, was 
receiving a grant or was a party to a contract or cooperative 
agreement under this chapter. 
(6) STATE.—The term ‘‘State’’ means a State, the District of Co-
lumbia, Puerto Rico, the Virgin Islands, Guam, and American Samoa. 
§ 271102. Financial assistance agreements 
(a) IN GENERAL.—Under a program to be known as the small business 
development center program, the Administrator may provide financial as-
sistance to a qualified entity to assist in establishing a small business devel-
opment center project for the purpose of providing— 
(1) a small business oriented employment or natural resources devel-
opment program; 
(2) studies, research, and counseling concerning the managing, fi-
nancing, and operation of small business concerns; 
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358 
(3) management and technical assistance regarding participation by 
small business concerns in international markets, export promotion, 
and technology transfer; 
(4) delivery or distribution of services and information in connection 
with an activity described in paragraph (1), (2), or (3); 
(5) access to business analysts that can refer small business concerns 
to available experts; and 
(6) to the extent practicable, assistance in furtherance of the Small 
Business Development Center Cyber Strategy developed under section 
1841(a) of the National Defense Authorization Act for Fiscal Year 
2017 (Public Law 114–328, 130 Stat. 2662). 
(b) REQUIREMENTS.—The Administrator shall require an applicant for fi-
nancial assistance under this chapter with performance commencing on or 
after January 1, 1992, to— 
(1) have its own budget; and 
(2) primarily use institutions of higher education and women’s busi-
ness centers to provide services to the small business community. 
(c) TERM.—The term of a financial assistance agreement shall be made 
on a calendar year or Federal fiscal year basis. 
(d) COOPERATION TO PROVIDE INTERNATIONAL TRADING SERVICES.— 
(1) INFORMATION AND SERVICES.—A small business development 
center shall work in close cooperation with SBA regional offices and 
SBA district offices, the Department of Commerce, appropriate Fed-
eral, State, and local agencies (including State trade agencies), and the 
small business community to serve as an active information dissemina-
tion and service delivery mechanism for existing trade promotion, trade 
finance, trade adjustment, trade remedy, and trade data collection pro-
grams of particular utility for small business concerns. 
(2) COOPERATION WITH STATE TRADE AGENCIES AND EXPORT AS-
SISTANCE CENTERS.—A small business development center that coun-
sels a small business concern on issues relating to international trade 
shall— 
(A) consult with State trade agencies and export assistance cen-
ters to provide appropriate services to the small business concern; 
and 
(B) as necessary, refer the small business concern to a State 
trade agency or export assistance center for further counseling or 
assistance. 
(e) MANAGEMENT.— 
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(1) IN GENERAL.—The program shall be under the general manage-
ment and oversight of the Administrator for the delivery of programs 
and services to the small business community. 
(2) PROGRAMS AND SERVICES.—Programs and services referred to 
in paragraph (1) shall be jointly developed, negotiated, and agreed on, 
with full participation of a qualified entity and the Administrator, 
under an executed financial assistance agreement between the qualified 
entity and the Administrator. 
(f) ASSOCIATION OF SMALL BUSINESS DEVELOPMENT CENTERS.— 
(1) IN GENERAL.—Small business development centers may form an 
Association to pursue matters of common concern. 
(2) RECOGNITION; DOCUMENTS.— 
(A) IN GENERAL.—If more than a majority of the small busi-
ness development centers that are operating under agreements 
with the Administrator are members of an Association formed 
under paragraph (1), the Administrator shall— 
(i) recognize the existence and activities of the Association; 
and 
(ii) consult with the Association and develop documents— 
(I) announcing the annual scope of activities under 
this chapter; 
(II) requesting proposals to deliver assistance as pro-
vided in this chapter; and 
(III) governing the general operations and administra-
tion of the program, specifically including the develop-
ment of regulations and a uniform negotiated financial 
assistance agreement for use on an annual basis when 
entering into individual negotiated financial assistance 
agreements with small business development centers. 
(B) INCORPORATION OF CERTAIN PROVISIONS.—In regulations 
under subparagraph (A)(ii)((III), provisions governing audits, cost 
principles and administrative requirements for financial assistance 
that are included in uniform requirements of Office of Manage-
ment and Budget Circulars shall be incorporated by reference and 
shall not be set forth in summary or other form. 
(3) LEVERAGING OF RESOURCES.—On an annual basis, a small busi-
ness development center shall review and coordinate public and private 
partnerships and cosponsorships with the Administrator for the pur-
pose of more efficiently leveraging available resources on a national and 
a State basis. 
(g) FUNDING.— 
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(1) MATCHING AMOUNT.— 
(A) IN GENERAL.—The Administrator shall require as a condi-
tion of any financial assistance agreement (or amendment or 
modification of a financial assistance agreement) made to a quali-
fied entity under this chapter that a matching amount (excluding 
any fees collected from recipients of such assistance) equal to the 
amount of the financial assistance be provided from sources other 
than the Federal Government, to be comprised of not less than 50 
percent cash and not more than 50 percent of indirect costs and 
in-kind contributions. 
(B) RESTRICTION.—The matching amount described in sub-
paragraph (A) shall not include any indirect costs or in-kind con-
tributions derived from any Federal program. 
(2) FUNDING FORMULA.— 
(A) IN
GENERAL.—Subject to subparagraph (C), the total 
amount of financial assistance received by recipients of financial 
assistance in a State under this section shall be equal to an 
amount determined in accordance with the following formula: 
(i) PRO RATA BASIS.—The annual amount made available 
under section 109103(a) of this title for the small business 
development center program, less any reductions made for ex-
penses authorized by subparagraph (E), shall be divided on 
a pro rata basis, based on the percentage of the population 
of each State, as compared with the population of the United 
States. 
(ii) MINIMUM FUNDING LEVEL.—If the pro rata amount 
calculated under clause (i) for any State is less than the min-
imum funding level under subparagraph (C), the Adminis-
trator shall determine the aggregate amount necessary to 
achieve that minimum funding level for each such State. 
(iii) DEDUCTION.—The aggregate amount calculated under 
clause (ii) shall be deducted from the amount calculated 
under clause (i) for States eligible to receive more than the 
minimum funding level. The deductions shall be made on a 
pro rata basis, based on the population of each such State, 
as compared with the total population of all such States. 
(iv) ADDITION.—The aggregate amount deducted under 
clause (iii) shall be added to the amount of financial assist-
ance of the States that are not eligible to receive more than 
the minimum funding level in order to achieve the minimum 
funding level for each such State, except that the eligible 
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361 
amount of financial assistance to any State shall not be re-
duced to an amount below the minimum funding level. 
(B) DETERMINATION OF AMOUNT OF FINANCIAL ASSISTANCE.— 
The amount of financial assistance for which a State is eligible to 
apply under this paragraph shall be the amount determined under 
subparagraph (A), subject to any modifications required under 
subparagraph (C), and shall be based on the amount available for 
the fiscal year in which performance of the financial assistance 
agreement commences, but not including amounts distributed in 
accordance with subparagraph (D). The total amount of financial 
assistance received by recipients of financial assistance in a State 
under any provision of this paragraph shall not exceed the amount 
of matching funds from sources other than the Federal Govern-
ment, as required under paragraph (1). 
(C) MINIMUM FUNDING LEVEL.—The amount of the minimum 
funding level for each State shall be determined for each fiscal 
year based on the amount made available for that fiscal year to 
carry out this chapter, as follows: 
(i) NOT
LESS
THAN
$81,500,000
AND
NOT
MORE
THAN 
$90,000,000 MADE AVAILABLE.—If the amount made available 
is not less than $81,500,000 and not more than $90,000,000, 
the minimum funding level shall be $500,000. 
(ii) LESS
THAN
$81,500,000
MADE
AVAILABLE.—If the 
amount made available is less than $81,500,000, the min-
imum funding level shall be the remainder of $500,000 minus 
a percentage of $500,000 equal to the percentage amount by 
which the amount made available is less than $81,500,000. 
(iii) MORE
THAN
$90,000,000
MADE
AVAILABLE.—If the 
amount made available is more than $90,000,000, the min-
imum funding level shall be the sum of $500,000 plus a per-
centage of $500,000 equal to the percentage amount by which 
the amount made available exceeds $90,000,000. 
(D) DISTRIBUTIONS.—Subject to subparagraph (C), if qualified 
entities in any State do not apply for, or use the full funding eligi-
bility for the State for a fiscal year, the Administrator shall dis-
tribute the remaining funds as follows: 
(i) AMOUNT LESS THAN THE AMOUNT RECEIVED IN FISCAL 
YEAR 2000.—If the amount of financial assistance to any 
State is less than the amount received by recipients of finan-
cial assistance in that State in fiscal year 2000, the Adminis-
trator shall distribute the remaining funds, on a pro rata 
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362 
basis, based on the percentage of shortage of each such State, 
as compared with the total amount of such remaining funds 
available, to the extent necessary to increase the amount of 
the financial assistance to the amount received by recipients 
of financial assistance in that State in fiscal year 2000, or 
until such funds are exhausted, whichever occurs first. 
(ii) REMAINING AMOUNT.—If any funds remain after appli-
cation of clause (i), the remaining amount may be distributed 
as supplemental financial assistance to applicants in any 
State, as the Administrator determines, in the discretion of 
the Administrator, to be appropriate, after consultation with 
the Association. 
(E) USE OF AMOUNTS.— 
(i) IN GENERAL.—Of the amounts made available in any 
fiscal year to carry out this chapter— 
(I) not more than $500,000 may be used by the Ad-
ministrator to pay expenses described in paragraphs (2) 
to (4) of section 109103(a) of this title; and 
(II) not more than $500,000 may be used by the Ad-
ministrator to pay the examination expenses described in 
section 109103(a)(5) of this title. 
(ii) LIMITATION.—No funds described in clause (i) may be 
used for examination expenses under section 109103(a)(5) of 
this title if the use would reduce the amount of financial as-
sistance made available under subparagraph (A)(i) to less 
than $85,000,000 (after excluding any amounts provided in 
appropriations Acts, or accompanying report language, for 
specific institutions or for purposes other than the general 
program) or would further reduce the amount of such finan-
cial assistance below that amount. 
(F) EXCLUSIONS.—Financial assistance provided to grant re-
cipients in a State by the Administrator or another Federal agency 
to carry out subsection (j) or section 271104(b)(7) of this title, 
or for supplemental financial assistance under subparagraph 
(D)(ii) of this paragraph, shall not be included in the calculation 
of maximum funding for a State under subparagraph (B) of this 
paragraph. 
(h) PORTABLE ASSISTANCE FOR STARTUP AND SUSTAINABILITY NON- 
MATCHING FINANCIAL ASSISTANCE PROGRAMS.— 
(1) IN
GENERAL.—From the funds appropriated under section 
109103(h) of this title, the Administrator shall reserve not less than 
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363 
$1,000,000 for each fiscal year to develop portable assistance for start-
up and sustainability non-matching financial assistance programs to be 
conducted by eligible small business development centers in commu-
nities that are economically challenged as a result of a business or gov-
ernment facility downsizing or closing that has resulted in the loss of 
jobs or small business instability. 
(2) MAXIMUM AMOUNT.—Non-matching financial assistance under 
this subsection shall not exceed $100,000. 
(3) USE.—Non-matching financial assistance under this subsection 
shall be used for small business development center personnel expenses 
and related small business programs and services. 
(i) FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT CEN-
TERS.— 
(1) IN GENERAL.—Subject to paragraph (2), a small business devel-
opment center may enter into a contract with a Federal agency to pro-
vide specific assistance to small business concerns. 
(2) CONTRACT PREREQUISITES.— 
(A) IN GENERAL.—Before bidding on a contract under para-
graph (1), a small business development center shall receive ap-
proval from the Associate Administrator of the subject and general 
scope of the contract. 
(B) APPROVAL.—Approval of a contract under paragraph (1) 
shall be based on a determination that— 
(i) the contract will provide assistance to small business 
concerns; and 
(ii) performance of the contract will not hinder the small 
business development center in carrying out the terms of the 
financial assistance agreement received by the small business 
development center from the Administrator. 
(3) EXEMPTION FROM MATCHING REQUIREMENT.—A contract under 
this subsection shall not be subject to the matching funds or eligibility 
requirements of subsection (g). 
(4) INAPPLICABILITY TO CERTAIN CONTRACTING GOALS.—Notwith-
standing any other provision of law, a contract for assistance under 
this subsection shall not be applied to a Federal agency’s contracting 
goal under section 251106 of this title for small business concerns 
owned and controlled by socially and economically disadvantaged indi-
viduals, small business concerns owned and controlled by women, or 
other small business concerns. 
(j) ADDITIONAL FINANCIAL ASSISTANCE.— 
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364 
(1) IN GENERAL.—A qualified entity that is funded by the Adminis-
trator as a small business development center may apply to the Admin-
istrator for additional financial assistance to be used solely to assist, 
as provided in paragraphs (2) to (7) of section 271104(b), in— 
(A) the development and enhancement of exports by small busi-
ness concerns; 
(B) technology transfer; and 
(C) outreach, development, and enhancement of minority-owned 
small business startups or expansions, HUBZone small business 
concerns, veteran-owned small business startups or expansions, 
and women-owned small business startups or expansions, in com-
munities affected by base closings or military or corporate 
downsizing or in rural or underserved communities. 
(2) COMPLIANCE REQUIREMENT.—An applicant applying for addi-
tional financial assistance under paragraph (1) shall comply with all of 
the provisions of this chapter, including providing matching funds. 
(3) FUNDING.—Funding under this subsection shall be effective for 
any fiscal year to the extent provided in advance in appropriations 
Acts. 
(4) LIMITATION
ON
AMOUNT
OF
GRANT.—No recipient of funds 
under this subsection shall receive financial assistance that would ex-
ceed its pro rata share of a $15,000,000 program based on the popu-
lations to be served by the small business development center as com-
pared with the total population of the United States. 
(5) MINIMUM STATE ELIGIBILITY AMOUNT.—The minimum amount 
of eligibility for recipients of financial assistance in any State shall be 
$100,000. 
(6) FINANCIAL ASSISTANCE TO NONPROFIT ENTITIES.— 
(A) IN GENERAL.—In a State described in subparagraph (B), 
the Administrator may provide financial assistance to a nonprofit 
entity in the State to carry out the activities specified in this sub-
section. 
(B) STATES.—A State referred to in subparagraph (A) is a 
State in which— 
(i) the Administrator has not provided financial assistance 
under subsection (a); or 
(ii) no application for financial assistance has been made 
by a small business development center under this subsection 
within 60 days after the later of— 
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365 
(I) the effective date of a financial assistance agree-
ment under subsection (a) to the small business develop-
ment center; or 
(II) the date on which the Administrator notifies the 
financial assistance recipient funded under subsection (a) 
that funds are available for applications for financial as-
sistance under this subsection. 
(C) MATCHING FUNDS.—A nonprofit entity that receives finan-
cial assistance under this paragraph shall comply with the match-
ing funds requirement of subsection (g). 
(D) APPROPRIATIONS.—Financial assistance under this para-
graph shall be effective for any fiscal year only to the extent pro-
vided in advance in an appropriations Act. 
(E) PRO RATA SHARE.—The amount of financial assistance pro-
vided under this paragraph in a State shall be limited to the pro 
rata share provisions of paragraph (4). 
(k) PRIVACY REQUIREMENTS.— 
(1) IN GENERAL.—A small business development center, consortium 
of small business development centers, or contractor or agent of a small 
business development center may not disclose the name, address, or 
telephone number of any individual or small business concern receiving 
assistance under this chapter without the consent of the individual or 
small business concern unless— 
(A) the Administrator is ordered to make such a disclosure by 
a court in any civil or criminal enforcement action initiated by a 
Federal agency or State agency; or 
(B) the Administrator considers such a disclosure to be nec-
essary for the purpose of conducting a financial audit of a small 
business development center. 
(2) LIMITATION.—A disclosure under this paragraph (1)(B) shall be 
limited to the information necessary for an audit. 
(3) USE OF INFORMATION BY THE ADMINISTRATOR.—This chapter 
does not— 
(A) restrict access by the Administrator to program activity 
data; or 
(B) preclude the Administrator from using client information to 
conduct client surveys. 
(4) REGULATIONS.— 
(A) IN GENERAL.—The Administrator shall issue regulations to 
establish standards— 
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