SEC. 2. EXTENSION OF TERMINATION DATES. 
(a) SBIR.—Section 9(m) of the Small Business Act 
(15 U.S.C. 638(m)) is amended by striking ‘‘2008’’ and 
inserting ‘‘2011’’. 
(b) STTR.—Section 9(n)(1)(A) of the Small Busi-
ness Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 
‘‘2009’’ and inserting ‘‘2011’’. 
SEC. 3. ENSURING THAT INNOVATIVE SMALL BUSINESSES 
WITH SUBSTANTIAL INVESTMENT FROM VEN-
TURE CAPITAL OPERATING COMPANIES ARE 
ABLE TO PARTICIPATE IN THE SBIR AND 
STTR PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding at the end the following: 
‘‘(aa) VENTURE CAPITAL OPERATING COMPANIES.— 
Effective only for the SBIR and STTR programs the fol-
lowing shall apply: 
‘‘(1) A business concern that has more than 
500 employees shall not qualify as a small business 
concern. 
‘‘(2) In determining whether a small business 
concern is independently owned and operated under 
section 3(a)(1) or meets the small business size 
standards instituted under section 3(a)(2), the Ad-
ministrator shall not consider a business concern to 
be affiliated with a venture capital operating com-
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pany (or with any other business that the venture 
capital operating company has financed) if— 
‘‘(A) the venture capital operating com-
pany does not own 50 percent or more of the 
business concern; and 
‘‘(B) employees of the venture capital oper-
ating company do not constitute a majority of 
the board of directors of the business concern. 
‘‘(3) A business concern shall be deemed to be 
‘independently owned and operated’ if— 
‘‘(A) it is owned in majority part by one or 
more natural persons or venture capital oper-
ating companies; 
‘‘(B) there is no single venture capital op-
erating company that owns 50 percent or more 
of the business concern; and 
‘‘(C) there is no single venture capital op-
erating company the employees of which con-
stitute a majority of the board of directors of 
the business concern. 
‘‘(4) If a venture capital operating company 
controlled by a business with more than 500 employ-
ees (in this paragraph referred to as a ‘VCOC under 
large business control’) has an ownership interest in 
a small business concern that is owned in majority 
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part by venture capital operating companies, the 
small business concern is eligible to receive an award 
under the SBIR or STTR program only if— 
‘‘(A) not more than two VCOCs under 
large business control have an ownership inter-
est in the small business concern; 
‘‘(B) the VCOCs under large business con-
trol do not collectively own more than 20 per-
cent of the small business concern; and 
‘‘(C) the VCOCs under large business con-
trol do not collaborate with each other to exer-
cise more control over the small business con-
cern than they could otherwise exercise individ-
ually. 
‘‘(5) The term ‘venture capital operating com-
pany’ means a business concern— 
‘‘(A) that— 
‘‘(i) is a Venture Capital Operating 
Company, as that term is defined in regu-
lations promulgated by the Secretary of 
Labor; or 
‘‘(ii) is an entity that— 
‘‘(I) is registered under the In-
vestment Company Act of 1940 (15 
U.S.C. 80a–51 et seq.); or 
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‘‘(II) is an investment company, 
as defined in section 3(c)(14) of such 
Act (15 U.S.C. 80a–3(c)(14)), which 
is not registered under such Act be-
cause it is beneficially owned by less 
than 100 persons; and 
‘‘(B) that is itself organized or incor-
porated and domiciled in the United States, or 
is controlled by a business concern that is incor-
porated and domiciled in the United States.’’. 
Æ 
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