I 
117TH CONGRESS 
1ST SESSION H. R. 4033 
To amend the Small Business Act to improve the Small Business Innovation 
Research program and Small Business Technology Transfer program, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2021 
Mr. BAIRD (for himself and Ms. STEVENS) 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 subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Small Business Act to improve the Small 
Business Innovation Research program and Small Busi-
ness Technology Transfer program, and for other pur-
poses. 
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 
‘‘Small Business Innovation Research and Small Business 
Technology Transfer Improvements Act of 2021.’’ 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Requiring insertion incentives. 
Sec. 3. Additional SBIR and STTR technology insertion reporting requirement. 
Sec. 4. Encouraging innovation in United States manufacturing. 
Sec. 5. Encouraging innovation in cybersecurity. 
Sec. 6. Compliance of Phase III awards with competitive procedures. 
Sec. 7. Increased outreach requirements. 
Sec. 8. Annual meeting. 
Sec. 9. Establishing the Civilian Agency Commercialization Readiness Program. 
Sec. 10. Phase 0 Proof of Concept Partnership Program. 
Sec. 11. Reporting requirements. 
Sec. 12. SBIR phase flexibility. 
Sec. 13. Amendments to administrative fee assistance. 
Sec. 14. Amendments to technical and business assistance. 
Sec. 15. Extension of commercialization extension pilot. 
Sec. 16. Short-form application. 
SEC. 2. REQUIRING INSERTION INCENTIVES. 
Section 9(y)(5) of the Small Business Act (15 U.S.C. 
638(y)(5)) is amended by striking ‘‘is authorized to’’ and 
inserting ‘‘shall’’. 
SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSER-
TION REPORTING REQUIREMENT. 
Section 9(y)(6) of the Small Business Act (15 U.S.C. 
638(y)(6)) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C)(iii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) not later than 120 days after the 
date of the enactment of this subparagraph, 
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and not later than December 31 of each year 
thereafter, submit to the Committee on Science, 
Space, and Technology and the Committee on 
Small Business of the House of Representa-
tives, and to the Committee on Small Business 
and Entrepreneurship of the Senate, a report 
describing the goals set under subparagraph 
(A) and the incentives used or created under 
subparagraph (B).’’. 
SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES 
MANUFACTURING. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding at the end the following new sub-
section: 
‘‘(vv) 
ENCOURAGING
INNOVATION
IN
UNITED 
STATES MANUFACTURING.—In carrying out this section, 
the Administrator shall— 
‘‘(1) ensure that, in selecting small business 
concerns to participate in SBIR or STTR programs 
under this section, Federal agencies give high pri-
ority to small manufacturing companies and other 
small business concerns engaged in or planning to 
engage in manufacturing research and development 
for the purpose of developing and producing new 
products and technologies in the United States; and 
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‘‘(2) include in the annual report to Congress 
under subsection (b)(7) a determination of whether 
the priority described in paragraph (1) is being car-
ried out.’’. 
SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by section 4, is further amended by adding 
at the end the following new subsection: 
‘‘(ww) ENCOURAGING INNOVATION IN CYBERSECU-
RITY.—In carrying out this section, the Administrator 
shall— 
‘‘(1) ensure that, in selecting small business 
concerns to participate in SBIR or STTR programs 
under this section, Federal agencies engaged in cy-
bersecurity research give high priority to small busi-
ness concerns that are engaged in cybersecurity re-
search and development, for the purpose of devel-
oping and implementing technology services and 
products to strengthen the security of United States 
Government and private computer systems, includ-
ing software, hardware, and portable devices; and 
‘‘(2) include in the annual report to Congress 
under subsection (b)(7) a determination of whether 
the priority described in paragraph (1) is being car-
ried out.’’. 
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SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COM-
PETITIVE PROCEDURES. 
Section 9(r)(4) of the Small Business Act (15 U.S.C. 
638(r)(4)) is amended by inserting as ‘‘direct follow-on 
awards issued without further competition’’ after ‘‘devel-
oped the technology’’. 
SEC. 7. INCREASED OUTREACH REQUIREMENTS. 
(a) IN GENERAL.— 
(1) SBIR AMENDMENT.—Section 9(j) of the 
Small Business Act (15 U.S.C. 638(j)), as amended 
by section 8, is further amended by adding at the 
end the following new paragraph: 
‘‘(5) INCREASED OUTREACH REQUIREMENTS.— 
Upon the enactment of this paragraph, the Adminis-
trator shall modify the policy directives issued pur-
suant to this subsection to require outreach efforts 
to increase the participation in technological innova-
tion under the SBIR programs among individuals 
conducting research at minority institutions (as de-
fined in section 365(3) of the Higher Education Act 
of 1965) and Hispanic-serving institutions (as de-
fined in section 502(a)(5) of such Act).’’. 
(2) STTR AMENDMENT.—Section 9(p)(2) of 
the Small Business Act (15 U.S.C. 638(p)(2)), as 
amended by section 8, is further amended by adding 
at the end the following new subparagraph: 
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‘‘(H) procedures for outreach efforts to in-
crease the participation in technological innova-
tion under the SBIR programs among individ-
uals conducting research at minority institu-
tions (as defined in section 365(3) of the High-
er Education Act of 1965) and Hispanic-serving 
institutions (as defined in section 502(a)(5) of 
such Act).’’. 
(b) FUNDING FOR OUTREACH.—Section 9(mm)(1) of 
the Small Business Act (15 U.S.C. 638(mm)(1)) is 
amended— 
(1) in subparagraph (J), by striking the ‘‘and’’ 
at the end; 
(2) in subparagraph (K), by striking the period 
at the end and inserting a semicolon; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(L) the outreach efforts described under 
subsections (j)(4) and (p)(2)(G); and’’. 
SEC. 8. ANNUAL MEETING. 
(a) IN GENERAL.—Section 9 of the Small Business 
Act (15 U.S.C. 638), as amended by section 5, is further 
amended by adding at the end the following new sub-
section: 
‘‘(xx) ANNUAL MEETING.— 
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‘‘(1) IN GENERAL.—The head of each Federal 
agency required to have a program under this sec-
tion (or a designee) and the Administrator (or a des-
ignee) shall meet annually to discuss methods— 
‘‘(A) to improve the collection of data 
under this section; 
‘‘(B) to improve the reporting of data to 
the Administrator under this section; 
‘‘(C) to make the application processes for 
programs under this section more efficient; and 
‘‘(D) to increase participation in the pro-
grams established under this section. 
‘‘(2) REPORT.—Not later than 60 days after 
the date on which an annual meeting required under 
paragraph (1) is held, the Administrator shall sub-
mit to the Committee on Small Business and Entre-
preneurship of the Senate and the Committee on 
Small Business and the Committee on Science, 
Space, and Technology of the House of Representa-
tives, a report on the findings of such meeting and 
recommendations on how to implement changes to 
programs under this section.’’. 
(b) FUNDING
FOR
ANNUAL
MEETING.—Section 
9(mm)(1) of the Small Business Act (15 U.S.C. 
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638(mm)(1)) as amended by section 9, is further amended 
by adding at the end the following new subparagraph: 
‘‘(M) the annual meeting required under 
subsection (xx).’’. 
SEC. 9. ESTABLISHING THE CIVILIAN AGENCY COMMER-
CIALIZATION READINESS PROGRAM. 
Section 9(gg) of the Small Business Act (15 U.S.C. 
638(gg)) is amended— 
(1) by amending the subsection heading to read 
as follows: ‘‘CIVILIAN AGENCY COMMERCIALIZATION 
READINESS PROGRAM’’; 
(2) in paragraph (1), by inserting ‘‘to establish 
a Civilian Agency Commercialization Readiness Pro-
gram for civilian agencies’’ after ‘‘the covered Fed-
eral agency’’; 
(3) in paragraph (2)(A)— 
(A) by striking ‘‘establish a pilot program’’ 
and inserting ‘‘establish a Civilian Agency Com-
mercialization Readiness Program under this 
subsection’’; and 
(B) by striking ‘‘the pilot program’’ and 
inserting ‘‘such Civilian Agency Commercializa-
tion Readiness Program’’; 
(4) in paragraphs (3) and (4), by striking ‘‘a 
pilot program’’ each place such term appears and in-
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(2) in paragraph (2), after ‘‘(j)(2)(F)’’ add 
‘‘and (j)(5)’’ as required under this Act. 
SEC. 14. AMENDMENTS TO TECHNICAL AND BUSINESS AS-
SISTANCE. 
Section 9(q) of the Small Business Act (15 U.S.C. 
638(q)) is amended— 
(1) in the header, by striking ‘‘technical and 
business assistance’’ and inserting ‘‘APPLICATION, 
TECHNICAL, AND BUSINESS ASSISTANCE’’; 
(2) in paragraph (2), by adding at the end the 
following: 
‘‘(C) GUIDANCE.—The Administrator shall 
establish guidelines and metrics for the selec-
tion of vendors for the purposes of this sub-
section, which shall include at a minimum guid-
ance on selecting vendors with demonstrated ex-
perience and success in— 
‘‘(i) working with small business con-
cerns focused on research and development 
of advanced and emerging technologies; 
‘‘(ii) federal acquisition and procure-
ment processes and regulations; and 
‘‘(iii) commercializing federally funded 
research and development.’’; and 
(3) in paragraph (3)— 
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(A) in subparagraph (C), by adding ‘‘sub-
ject to the guidance provided by the Adminis-
trator under paragraph (2)(C)’’ after ‘‘commer-
cializing technology’’; 
(B) in subparagraph (D)— 
(i) in clause (i), by striking ‘‘; or’’ and 
inserting a semicolon; 
(ii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iii) use the amounts authorized 
under subparagraph (A) or (B) to increase 
the amount of an award for carrying out 
additional research or development.’’; 
(C) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) APPLICATION ASSISTANCE.— 
‘‘(A) IN GENERAL.—Each Federal agency 
required by this section to conduct an SBIR 
program or STTR program may establish an 
Application Assistance Program to provide 
small business concerns applying to SBIR or 
STTR with application assistance. 
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‘‘(B) PURPOSE.—The purpose of this pro-
gram is to assist small businesses to better un-
derstand the technical aspects of the application 
process and to develop a more competitive ap-
plication. 
‘‘(C) REQUIREMENTS.—Each agency under 
subparagraph (A) may provide the assistance 
under this paragraph or enter into an agree-
ment with 1 or more vendors selected under 
subparagraph (G). 
‘‘(D) ELIGIBILITY.—To be eligible for as-
sistance under this program a small business 
concern must— 
‘‘(i) be a first-time applicant for an 
SBIR or STTR award from that agency 
and have not been a previous recipient of 
an SBIR or STTR award from any other 
agency; and 
‘‘(ii) be selected to proceed in the ap-
plication process after the short-form ap-
plication 
requirements 
under 
section 
9(g)(2) have been completed. 
‘‘(E) BROADENING
PARTICIPATION.—The 
Administrator shall encourage businesses de-
scribed under section (j)(2)(F) to apply for as-
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sistance under the program established in this 
paragraph. 
‘‘(F) ACTIVITIES.—The program shall pro-
vide Phase 1 proposal preparation, review, and 
registration assistance to small business con-
cerns selected to proceed in the application 
process after the short-form application require-
ments under section 9(g)(2) have been com-
pleted. 
‘‘(G) VENDOR SELECTION.—If the agency 
selects 1 or more vendors to provide the assist-
ance under this program, it shall be a competi-
tive, merit-based process for a term not to ex-
ceed 5 years and the vendor shall have dem-
onstrated expertise in writing successful Feder-
ally funded technology development proposals. 
‘‘(H) PAYMENT
FOR
SERVICES.—There 
shall be no fee assessed to small business con-
cerns receiving services under this program. 
‘‘(I) FUNDING.—Each Federal agency that 
establishes an Application Assistance program 
may use funds allocated under section 9(mm).’’; 
and 
(D) by redesignating paragraph (4) as 
paragraph (5). 
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SEC. 15. EXTENSION OF COMMERCIALIZATION EXTENSION 
PILOT. 
Section 9(uu)(3) of the Small Business Act (15 
U.S.C. 638(uu)) is amended by striking ‘‘2022’’ and in-
serting ‘‘2026’’. 
SEC. 16. SHORT-FORM APPLICATION. 
Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is amended by— 
(1) by striking ‘‘Each Federal agency’’ and in-
serting ‘‘(1) Each Federal agency’’; 
(2) by redesignating paragraphs (1) through 
(12) as subparagraphs (A) through (L), respectively; 
(3) in subparagraph (C), as so redesignated, by 
redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively; 
(4) in subparagraph (D), as so redesignated— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively; 
(B) in clause (ii), as so redesignated, by 
redesignating clauses (i) and (ii) as subclauses 
(I) and (II), respectively; and 
(C) in subclause (II), as so redesignated, 
by striking ‘‘clause (i)’’ and inserting ‘‘sub-
clause (I)’’; 
(5) in subparagraph (H), as so redesignated— 
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(A) by redesignating subparagraphs (A) 
through (C) as clauses (i) through (iii), respec-
tively; 
(B) in clause (i), as so redesignated, by re-
designating clauses (i) through (vi) as sub-
clauses (I) through (VI), respectively; 
(C) in subclause (I), as so redesignated, by 
redesignating subclauses (I) and (II) as items 
(aa) and (bb), respectively; and 
(D) in subclause (II), as so redesignated, 
by redesignating subclauses (I) and (II) as 
items (aa) and (bb), respectively; and 
(6) by adding at the end a new paragraph (2): 
‘‘(2) To the extent practicable prior to a more 
extensive application, implement a short-form appli-
cation to be received and evaluated, which shall in-
clude at a minimum a description of— 
‘‘(A) the technology innovation; 
‘‘(B) the technical objectives and chal-
lenges; 
‘‘(C) the market opportunity; and 
‘‘(D) the small business concern and key 
employees.’’. 
Æ 
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