In the Senate of the United States, 
July 13, 2009. 
Resolved, That the bill from the House of Representa-
tives (H.R. 2965) entitled ‘‘An Act to amend the Small Busi-
ness Act with respect to the Small Business Innovation Re-
search Program and the Small Business Technology Transfer 
Program, and for other purposes.’’, do pass with the fol-
lowing 
AMENDMENT: 
Strike out all after the enacting clause and insert: 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘SBIR/STTR Reauthor-
ization Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—REAUTHORIZATION OF THE SBIR AND STTR PROGRAMS 
Sec. 101. Extension of termination dates. 
Sec. 102. Status of the Office of Technology. 
Sec. 103. SBIR allocation increase. 
Sec. 104. STTR allocation increase.
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Sec. 105. SBIR and STTR award levels. 
Sec. 106. Agency and program collaboration. 
Sec. 107. Elimination of Phase II invitations. 
Sec. 108. Majority-venture investments in SBIR firms. 
Sec. 109. SBIR and STTR special acquisition preference. 
Sec. 110. Collaborating with Federal laboratories and research and development 
centers. 
Sec. 111. Notice requirement. 
TITLE II—OUTREACH AND COMMERCIALIZATION INITIATIVES 
Sec. 201. Rural and State outreach. 
Sec. 202. SBIR–STEM Workforce Development Grant Pilot Program. 
Sec. 203. Technical assistance for awardees. 
Sec. 204. Commercialization program at Department of Defense. 
Sec. 205. Commercialization Pilot Program for civilian agencies. 
Sec. 206. Nanotechnology initiative. 
Sec. 207. Accelerating cures. 
TITLE III—OVERSIGHT AND EVALUATION 
Sec. 301. Streamlining annual evaluation requirements. 
Sec. 302. Data collection from agencies for SBIR. 
Sec. 303. Data collection from agencies for STTR. 
Sec. 304. Public database. 
Sec. 305. Government database. 
Sec. 306. Accuracy in funding base calculations. 
Sec. 307. Continued evaluation by the National Academy of Sciences. 
Sec. 308. Technology insertion reporting requirements. 
Sec. 309. Intellectual property protections. 
TITLE IV—POLICY DIRECTIVES 
Sec. 401. Conforming amendments to the SBIR and the STTR Policy Directives. 
Sec. 402. Priorities for certain research initiatives. 
Sec. 403. Report on SBIR and STTR program goals. 
Sec. 404. Competitive selection procedures for SBIR and STTR programs. 
SEC. 3. DEFINITIONS. 
In this Act— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and 
the Administrator thereof, respectively; 
(2) the terms ‘‘extramural budget’’, ‘‘Federal 
agency’’, ‘‘Small Business Innovation Research Pro-
gram’’, ‘‘SBIR’’, ‘‘Small Business Technology Trans-
fer Program’’, and ‘‘STTR’’ have the meanings given
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such terms in section 9 of the Small Business Act (15 
U.S.C. 638); and 
(3) the term ‘‘small business concern’’ has the 
same meaning as under section 3 of the Small Busi-
ness Act (15 U.S.C. 632). 
TITLE I—REAUTHORIZATION OF 
THE SBIR AND STTR PROGRAMS 
SEC. 101. 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 in-
serting ‘‘2017’’. 
(b) STTR.—Section 9(n)(1)(A) of the Small Business 
Act (15 U.S.C. 638(n)(1)(A)) is amended by striking 
‘‘2009’’ and inserting ‘‘2017’’. 
SEC. 102. STATUS OF THE OFFICE OF TECHNOLOGY. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)) is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (8) as para-
graph (9); and 
(4) by adding at the end the following:
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‘‘(10) to maintain an Office of Technology to 
carry out the responsibilities of the Administration 
under this section, which shall be— 
‘‘(A) headed by the Assistant Administrator 
for Technology, who shall report directly to the 
Administrator; and 
‘‘(B) independent from the Office of Govern-
ment Contracting of the Administration and suf-
ficiently staffed and funded to comply with the 
oversight, reporting, and public database respon-
sibilities assigned to the Office of Technology by 
the Administrator.’’. 
SEC. 103. SBIR ALLOCATION INCREASE. 
Section 9(f) of the Small Business Act (15 U.S.C. 
638(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘Each’’ and inserting ‘‘Except 
as provided in paragraph (2)(C), each’’; 
(B) in subparagraph (B), by striking ‘‘and’’ 
at the end; and 
(C) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) not less than 2.5 percent of such budget 
in each of fiscal years 2009 and 2010;
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‘‘(D) not less than 2.6 percent of such budg-
et in fiscal year 2011; 
‘‘(E) not less than 2.7 percent of such budg-
et in fiscal year 2012; 
‘‘(F) not less than 2.8 percent of such budg-
et in fiscal year 2013; 
‘‘(G) not less than 2.9 percent of such budg-
et in fiscal year 2014; 
‘‘(H) not less than 3.0 percent of such budg-
et in fiscal year 2015; 
‘‘(I) not less than 3.1 percent of such budget 
in fiscal year 2016; 
‘‘(J) not less than 3.2 percent of such budget 
in fiscal year 2017; 
‘‘(K) not less than 3.3 percent of such budg-
et in fiscal year 2018; 
‘‘(L) not less than 3.4 percent of such budg-
et in fiscal year 2019; and 
‘‘(M) not less than 3.5 percent of such budg-
et in fiscal year 2020 and each fiscal year there-
after,’’; and 
(2) in paragraph (2)— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
adjusting the margins accordingly;
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(B) by striking ‘‘A Federal agency’’ and in-
serting the following: 
‘‘(A) IN GENERAL.—A Federal agency’’; and 
(C) by adding at the end the following: 
‘‘(B) DEPARTMENT OF DEFENSE AND DE-
PARTMENT OF ENERGY.—For the Department of 
Defense and the Department of Energy, to the 
greatest extent practicable, the percentage of the 
extramural budget in excess of 2.5 percent re-
quired to be expended with small business con-
cerns under subparagraphs (D) through (M) of 
paragraph (1)— 
‘‘(i) may not be used for new Phase I 
or Phase II awards; and 
‘‘(ii) shall be used for activities that 
further the readiness levels of technologies 
developed under Phase II awards, including 
conducting testing and evaluation to pro-
mote the transition of such technologies into 
commercial or defense products, or systems 
furthering the mission needs of the Depart-
ment of Defense or the Department of En-
ergy, as the case may be.’’.
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SEC. 104. STTR ALLOCATION INCREASE. 
Section 9(n)(1)(B) of the Small Business Act (15 
U.S.C. 638(n)(1)(B)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking ‘‘thereafter.’’ and 
inserting ‘‘through fiscal year 2010;’’; and 
(3) by adding at the end the following: 
‘‘(iii) 0.4 percent for fiscal years 2011 
and 2012; 
‘‘(iv) 0.5 percent for fiscal years 2013 
and 2014; and 
‘‘(v) 0.6 percent for fiscal year 2015 
and each fiscal year thereafter.’’. 
SEC. 105. SBIR AND STTR AWARD LEVELS. 
(a) SBIR ADJUSTMENTS.—Section 9(j)(2)(D) of the 
Small Business Act (15 U.S.C. 638(j)(2)(D)) is amended— 
(1) by striking ‘‘$100,000’’ and inserting 
‘‘$150,000’’; and 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
(b) STTR ADJUSTMENTS.—Section 9(p)(2)(B)(ix) of 
the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) is 
amended— 
(1) by striking ‘‘$100,000’’ and inserting 
‘‘$150,000’’; and
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(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
(c) TRIENNIAL ADJUSTMENTS.—Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (j)(2)(D)— 
(A) by striking ‘‘5 years’’ and inserting ‘‘3 
years’’; and 
(B) by striking ‘‘and programmatic consid-
erations’’; and 
(2) in subsection (p)(2)(B)(ix) by striking 
‘‘greater or lesser amounts to be awarded at the dis-
cretion of the awarding agency,’’ and inserting ‘‘an 
adjustment for inflation of such amounts once every 
3 years,’’. 
(d) LIMITATION ON CERTAIN AWARDS.—Section 9 of 
the Small Business Act (15 U.S.C. 638) is amended by add-
ing at the end the following: 
‘‘(aa) LIMITATION ON CERTAIN AWARDS.— 
‘‘(1) LIMITATION.—No Federal agency may issue 
an award under the SBIR program or the STTR pro-
gram if the size of the award exceeds the award guide-
lines established under this section by more than 50 
percent. 
‘‘(2) MAINTENANCE OF INFORMATION.—Partici-
pating agencies shall maintain information on
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awards exceeding the guidelines established under this 
section, including— 
‘‘(A) the amount of each award; 
‘‘(B) a justification for exceeding the award 
amount; 
‘‘(C) the identity and location of each 
award recipient; and 
‘‘(D) whether a recipient has received any 
venture capital investment and, if so, whether 
the recipient is majority-owned and controlled 
by multiple venture capital companies. 
‘‘(3) REPORTS.—The Administrator shall in-
clude the information described in paragraph (2) in 
the annual report of the Administrator to Congress. 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to prevent a Federal 
agency from supplementing an award under the 
SBIR program or the STTR program using funds of 
the Federal agency that are not part of the SBIR pro-
gram or the STTR program of the Federal agency.’’. 
SEC. 106. AGENCY AND PROGRAM COLLABORATION. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(bb) SUBSEQUENT PHASES.—
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‘‘(1) AGENCY COLLABORATION.—A small business 
concern that received an award from a Federal agen-
cy under this section shall be eligible to receive an 
award for a subsequent phase from another Federal 
agency, if the head of each relevant Federal agency or 
the relevant component of the Federal agency makes 
a written determination that the topics of the relevant 
awards are the same and both agencies report the 
awards to the Administrator for inclusion in the pub-
lic database under subsection (k). 
‘‘(2) SBIR AND STTR COLLABORATION.—A small 
business concern which received an award under this 
section under the SBIR program or the STTR pro-
gram may receive an award under this section for a 
subsequent phase in either the SBIR program or the 
STTR program and the participating agency or 
agencies shall report the awards to the Administrator 
for inclusion in the public database under subsection 
(k).’’. 
SEC. 107. ELIMINATION OF PHASE II INVITATIONS. 
(a) IN GENERAL.—Section 9(e) of the Small Business 
Act (15 U.S.C. 638(e)) is amended— 
(1) in paragraph (4)(B), by striking ‘‘to further’’ 
and inserting: ‘‘which shall not include any invita-
tion, pre-screening, pre-selection, or down-selection
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process for eligibility for the second phase, that will 
further’’; and 
(2) in paragraph (6)(B), by striking ‘‘to further 
develop proposed ideas to’’ and inserting ‘‘which shall 
not include any invitation, pre-screening, pre-selec-
tion, or down-selection process for eligibility for the 
second phase, that will further develop proposals 
that’’. 
(b) TECHNICAL
AND CONFORMING AMENDMENTS.— 
The Small Business Act (15 U.S.C. 638) is amended— 
(1) in section 9— 
(A) in subsection (e)— 
(i) in paragraph (8), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (9)— 
(I) by striking ‘‘the second or the 
third phase’’ and inserting ‘‘Phase II 
or Phase III’’; and 
(II) by striking the period at the 
end and inserting a semicolon; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(10) the term ‘Phase I’ means— 
‘‘(A) with respect to the SBIR program, the 
first phase described in paragraph (4)(A); and
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‘‘(B) with respect to the STTR program, the 
first phase described in paragraph (6)(A); 
‘‘(11) the term ‘Phase II’ means— 
‘‘(A) with respect to the SBIR program, the 
second phase described in paragraph (4)(B); and 
‘‘(B) with respect to the STTR program, the 
second phase described in paragraph (6)(B); and 
‘‘(12) the term ‘Phase III’ means— 
‘‘(A) with respect to the SBIR program, the 
third phase described in paragraph (4)(C); and 
‘‘(B) with respect to the STTR program, the 
third phase described in paragraph (6)(C).’’; 
(B) in subsection (j)— 
(i) in paragraph (1)(B), by striking 
‘‘phase two’’ and inserting ‘‘Phase II’’; 
(ii) in paragraph (2)— 
(I) in subparagraph (B)— 
(aa) by striking ‘‘the third 
phase’’ each place it appears and 
inserting ‘‘Phase III’’; and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
(II) in subparagraph (D)—
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(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
(III) in subparagraph (F), by 
striking ‘‘the third phase’’ and insert-
ing ‘‘Phase III’’; 
(IV) in subparagraph (G)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(V) in subparagraph (H)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
(bb) 
by 
striking 
‘‘second 
phase’’ each place it appears and 
inserting ‘‘Phase II’’; and 
(cc) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(iii) in paragraph (3)—
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(I) in subparagraph (A)— 
(aa) by striking ‘‘the first 
phase (as described in subsection 
(e)(4)(A))’’ and inserting ‘‘Phase 
I’’; 
(bb) by striking ‘‘the second 
phase (as described in subsection 
(e)(4)(B))’’ and inserting ‘‘Phase 
II’’; and 
(cc) by striking ‘‘the third 
phase (as described in subsection 
(e)(4)(C))’’ and inserting ‘‘Phase 
III’’; and 
(II) in subparagraph (B), by 
striking ‘‘second phase’’ and inserting 
‘‘Phase II’’; 
(C) in subsection (k)— 
(i) by striking ‘‘first phase’’ each place 
it appears and inserting ‘‘Phase I’’; and 
(ii) by striking ‘‘second phase’’ each 
place it appears and inserting ‘‘Phase II’’; 
(D) in subsection (l)(2)— 
(i) by striking ‘‘the first phase’’ and 
inserting ‘‘Phase I’’; and
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(ii) by striking ‘‘the second phase’’ and 
inserting ‘‘Phase II’’; 
(E) in subsection (o)(13)— 
(i) in subparagraph (B), by striking 
‘‘second phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in subparagraph (C), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
(F) in subsection (p)— 
(i) in paragraph (2)(B)— 
(I) in clause (vi)— 
(aa) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(bb) by striking ‘‘the third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(II) in clause (ix)— 
(aa) by striking ‘‘the first 
phase’’ and inserting ‘‘Phase I’’; 
and 
(bb) by striking ‘‘the second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(ii) in paragraph (3)—
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(I) by striking ‘‘the first phase (as 
described in subsection (e)(6)(A))’’ and 
inserting ‘‘Phase I’’; 
(II) by striking ‘‘the second phase 
(as described in subsection (e)(6)(B))’’ 
and inserting ‘‘Phase II’’; and 
(III) by striking ‘‘the third phase 
(as described in subsection (e)(6)(A))’’ 
and inserting ‘‘Phase III’’; 
(G) in subsection (q)(3)— 
(i) in subparagraph (A)— 
(I) in the subparagraph heading, 
by striking ‘‘FIRST PHASE’’ and insert-
ing ‘‘PHASE I’’; and 
(II) by striking ‘‘first phase’’ and 
inserting ‘‘Phase I’’; and 
(ii) in subparagraph (B)— 
(I) in the subparagraph heading, 
by striking ‘‘SECOND PHASE’’ and in-
serting ‘‘PHASE II’’; and 
(II) by striking ‘‘second phase’’ 
and inserting ‘‘Phase II’’; 
(H) in subsection (r)—
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(i) in the subsection heading, by strik-
ing ‘‘THIRD PHASE’’ and inserting ‘‘PHASE 
III’’; 
(ii) in paragraph (1)— 
(I) in the first sentence— 
(aa) by striking ‘‘for the sec-
ond phase’’ and inserting ‘‘for 
Phase II’’; 
(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(cc) 
by 
striking 
‘‘second 
phase 
period’’ 
and 
inserting 
‘‘Phase II period’’; and 
(II) in the second sentence— 
(aa) 
by 
striking 
‘‘second 
phase’’ and inserting ‘‘Phase II’’; 
and 
(bb) 
by 
striking 
‘‘third 
phase’’ and inserting ‘‘Phase III’’; 
and 
(iii) in paragraph (2), by striking 
‘‘third phase’’ and inserting ‘‘Phase III’’; 
and
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(I) in subsection (u)(2)(B), by striking ‘‘the 
first phase’’ and inserting ‘‘Phase I’’; 
(2) in section 34— 
(A) in subsection (c)(2)(B)(ii), by striking 
‘‘first phase and second phase SBIR awards’’ 
and inserting ‘‘Phase I and Phase II SBIR 
awards (as defined in section 9(e))’’; and 
(B) in subsection (e)(2)(A)— 
(i) in clause (i), by striking ‘‘first 
phase awards’’ and all that follows and in-
serting ‘‘Phase I awards (as defined in sec-
tion 9(e));’’; and 
(ii) by striking ‘‘first phase’’ each 
place it appears and inserting ‘‘Phase I’’; 
and 
(3) in section 35(c)(2)(B)(vii), by striking ‘‘third 
phase’’ and inserting ‘‘Phase III’’. 
SEC. 108. MAJORITY-VENTURE INVESTMENTS IN SBIR 
FIRMS. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is amended by 
adding at the end the following: 
‘‘(cc) MAJORITY-VENTURE INVESTMENTS
IN SBIR 
FIRMS.— 
‘‘(1) AUTHORITY AND DETERMINATION.—
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‘‘(A) IN GENERAL.—Upon a written deter-
mination provided not later than 30 days in ad-
vance to the Administrator and to the Committee 
on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of 
the House of Representatives— 
‘‘(i) the Director of the National Insti-
tutes of Health may award not more than 
18 percent of the SBIR funds of the Na-
tional Institutes of Health allocated in ac-
cordance with this Act, in the first full fis-
cal year beginning after the date of enact-
ment of this subsection, and each fiscal year 
thereafter, to small business concerns that 
are owned in majority part by venture cap-
ital companies and that satisfy the quali-
fication requirements under paragraph (2) 
through competitive, merit-based procedures 
that are open to all eligible small business 
concerns; and 
‘‘(ii) the head of any other Federal 
agency participating in the SBIR program 
may award not more than 8 percent of the 
SBIR funds of the Federal agency allocated 
in accordance with this Act, in the first full
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fiscal year beginning after the date of enact-
ment of this subsection, and each fiscal year 
thereafter, to small business concerns that 
are majority owned by venture capital com-
panies and that satisfy the qualification re-
quirements under paragraph (2) through 
competitive, merit-based procedures that are 
open to all eligible small business concerns. 
‘‘(B) DETERMINATION.—A written deter-
mination made under subparagraph (A) shall 
explain how the use of the authority under that 
subparagraph will induce additional venture 
capital funding of small business innovations, 
substantially contribute to the mission of the 
funding Federal agency, demonstrate a need for 
public research, and otherwise fulfill the capital 
needs of small business concerns for additional 
financing for the SBIR project. 
‘‘(2) QUALIFICATION REQUIREMENTS.—The Ad-
ministrator shall establish requirements relating to 
the affiliation by small business concerns with venture 
capital companies, which may not exclude a United 
States small business concern from participation in 
the program under paragraph (1) on the basis that 
the small business concern is owned in majority part
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by, or controlled by, more than 1 United States ven-
ture capital company, so long as no single venture 
capital company owns more than 49 percent of the 
small business concern. 
‘‘(3) REGISTRATION.—A small business concern 
that is majority owned and controlled by multiple 
venture capital companies and qualified for partici-
pation in the program authorized under paragraph 
(1) shall— 
‘‘(A) register with the Administrator on the 
date that the small business concern submits an 
application for an award under the SBIR pro-
gram; and 
‘‘(B) indicate whether the small business 
concern is registered under subparagraph (A) in 
any SBIR proposal. 
‘‘(4) COMPLIANCE.—A Federal agency described 
in paragraph (1) shall collect data regarding the 
number and dollar amounts of phase I, phase II, and 
all other categories of awards under the SBIR pro-
gram, and the Administrator shall report on the data 
and the compliance of each such Federal agency with 
the maximum amounts under paragraph (1) as part 
of the annual report by the Administration under 
subsection (b)(7).
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‘‘(5) 
ENFORCEMENT.—If 
a 
Federal 
agency 
awards more than the amount authorized under para-
graph (1) for a purpose described in paragraph (1), 
the amount awarded in excess of the amount author-
ized under paragraph (1) shall be transferred to the 
funds for general SBIR programs from the non-SBIR 
research and development funds of the Federal agency 
within 60 days of the date on which the Federal agen-
cy awarded more than the amount authorized under 
paragraph (1) for a purpose described in paragraph 
(1).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 3 of the Small Business Act (15 U.S.C. 632) is amend-
ed by adding at the end the following: 
‘‘(t) VENTURE CAPITAL COMPANY.—In this Act, the 
term ‘venture capital company’ means an entity described 
in clause (i), (v), or (vi) of section 121.103(b)(5) of title 
13, Code of Federal Regulations (or any successor thereto).’’. 
(c) ASSISTANCE FOR DETERMINING AFFILIATES.—Not 
later than 30 days after the date of enactment of this Act, 
the Administrator shall post on the website of the Adminis-
tration (with a direct link displayed on the homepage of 
the website of the Administration or the SBIR website of 
the Administration)—
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of the activities to be performed under that 
award; 
‘‘(B) approve an agreement between a small 
business concern receiving a SBIR 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 performed 
under that award than required by this section 
and by the SBIR Policy Directive and the STTR 
Policy Directive of the Administrator; or 
‘‘(C) approve an agreement that violates 
any provision, including any data rights protec-
tions provision, of this section or the SBIR and 
the STTR Policy Directives. 
‘‘(3) IMPLEMENTATION.—Not later than 180 
days after the date of enactment of this subsection, the 
Administrator shall modify the SBIR Policy Direc-
tive and the STTR Policy Directive issued under this 
section to ensure that small business concerns— 
‘‘(A) have the flexibility to use the resources 
of the Federal laboratories and federally funded 
research and development centers; and 
‘‘(B) are not mandated to enter into agree-
ment with any Federal laboratory or any feder-
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ally funded laboratory or research and develop-
ment center as a condition of an award.’’. 
SEC. 111. NOTICE REQUIREMENT. 
The head of any Federal agency involved in a case or 
controversy before any Federal judicial or administrative 
tribunal concerning the SBIR program or the STTR pro-
gram shall provide timely notice, as determined by the Ad-
ministrator, of the case or controversy to the Administrator. 
TITLE II—OUTREACH AND COM-
MERCIALIZATION 
INITIA-
TIVES 
SEC. 201. RURAL AND STATE OUTREACH. 
(a) OUTREACH.—Section 9 of the Small Business Act 
(15 U.S.C. 638) is amended by inserting after subsection 
(r) the following: 
‘‘(s) OUTREACH.— 
‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this 
subsection, the term ‘eligible State’ means a State— 
‘‘(A) for which the total value of contracts 
awarded to the State under this section during 
the most recent fiscal year for which data is 
available was less than $5,000,000; and 
‘‘(B) that certifies to the Administrator that 
the State will, upon receipt of assistance under 
this subsection, provide matching funds from
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non-Federal sources in an amount that is not 
less than 50 percent of the amount provided 
under this subsection. 
‘‘(2) PROGRAM AUTHORITY.—Of amounts made 
available to carry out this section for each of fiscal 
years 2010 through 2014, the Administrator may ex-
pend with eligible States not more than $5,000,000 in 
each such fiscal year in order to increase the partici-
pation of small business concerns located in those 
States in the programs under this section. 
‘‘(3) AMOUNT OF ASSISTANCE.—The amount of 
assistance provided to an eligible State under this 
subsection in any fiscal year— 
‘‘(A) shall be equal to not more than 50 per-
cent of the total amount of matching funds from 
non-Federal sources provided by the State; and 
‘‘(B) shall not exceed $100,000. 
‘‘(4) USE OF ASSISTANCE.—Assistance provided 
to an eligible State under this subsection shall be used 
by the State, in consultation with State and local de-
partments and agencies, for programs and activities 
to increase the participation of small business con-
cerns located in the State in the programs under this 
section, including—
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‘‘(A) the establishment of quantifiable per-
formance goals, including goals relating to— 
‘‘(i) the number of program awards 
under this section made to small business 
concerns in the State; and 
‘‘(ii) the total amount of Federal re-
search and development contracts awarded 
to small business concerns in the State; 
‘‘(B) the provision of competition outreach 
support to small business concerns in the State 
that are involved in research and development; 
and 
‘‘(C) the development and dissemination of 
educational and promotional information relat-
ing to the programs under this section to small 
business concerns in the State.’’. 
(b) FEDERAL AND STATE PROGRAM EXTENSION.— 
Section 34 of the Small Business Act (15 U.S.C. 657d) is 
amended— 
(1) in subsection (h), by striking ‘‘2001 through 
2005’’ each place it appears and inserting ‘‘2010 
through 2014’’; and 
(2) in subsection (i), by striking ‘‘2005’’ and in-
serting ‘‘2014’’.
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(c) MATCHING REQUIREMENTS.—Section 34(e)(2) of 
the Small Business Act (15 U.S.C. 657d(e)(2)) is amend-
ed— 
(1) in subparagraph (A)— 
(A) in clause (i), by striking ‘‘50 cents’’ and 
inserting ‘‘35 cents’’; and 
(B) in clause (iii), by striking ‘‘75 cents’’ 
and inserting ‘‘50 cents’’; 
(2) in subparagraph (B), by striking ‘‘50 cents’’ 
and inserting ‘‘35 cents’’; 
(3) by redesignating subparagraphs (C) and (D) 
as subparagraphs (D) and (E), respectively; and 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) RURAL AREAS.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), the non-Federal share of the 
cost of the activity carried out using an 
award or under a cooperative agreement 
under this section shall be 35 cents for each 
Federal dollar that will be directly allocated 
by a recipient described in paragraph (A) 
to serve small business concerns located in 
a rural area.
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‘‘(ii) ENHANCED RURAL AWARDS.—For 
a recipient located in a rural area that is 
located in a State described in subpara-
graph (A)(i), the non-Federal share of the 
cost of the activity carried out using an 
award or under a cooperative agreement 
under this section shall be 15 cents for each 
Federal dollar that will be directly allocated 
by a recipient described in paragraph (A) 
to serve small business concerns located in 
the rural area. 
‘‘(iii) DEFINITION OF RURAL AREA.— 
In this subparagraph, the term ‘rural area’ 
has the meaning given that term in section 
1393(a)(2)) of the Internal Revenue Code of 
1986.’’. 
SEC. 202. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 
PILOT PROGRAM. 
(a) PILOT PROGRAM ESTABLISHED.—From amounts 
made available to carry out this section, the Administrator 
shall establish a SBIR–STEM Workforce Development 
Grant Pilot Program to encourage the business community 
to provide workforce development opportunities for college 
students, in the fields of science, technology, engineering,
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and math (in this section referred to as ‘‘STEM college stu-
dents’’), by providing a SBIR bonus grant. 
(b) ELIGIBLE ENTITIES DEFINED.—In this section the 
term ‘‘eligible entity’’ means a grantee receiving a grant 
under the SBIR Program on the date of the bonus grant 
under subsection (a) that provides an internship program 
for STEM college students. 
(c) AWARDS.—An eligible entity shall receive a bonus 
grant equal to 10 percent of either a Phase I or Phase II 
grant, as applicable, with a total award maximum of not 
more than $10,000 per year. 
(d) EVALUATION.—Following the fourth year of fund-
ing under this section, the Administrator shall submit a 
report to Congress on the results of the SBIR–STEM Work-
force Development Grant Pilot Program. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section— 
(1) $1,000,000 for fiscal year 2011; 
(2) $1,000,000 for fiscal year 2012; 
(3) $1,000,000 for fiscal year 2013; 
(4) $1,000,000 for fiscal year 2014; and 
(5) $1,000,000 for fiscal year 2015. 
SEC. 203. TECHNICAL ASSISTANCE FOR AWARDEES. 
Section 9(q)(3) of the Small Business Act (15 U.S.C. 
638(q)(3)) is amended—
† HR 2965 EAS 
(1) in subparagraph (A), by striking ‘‘$4,000’’ 
and inserting ‘‘$5,000’’; 
(2) in subparagraph (B)— 
(A) by striking ‘‘, with funds available from 
their SBIR awards,’’; and 
(B) by striking ‘‘$4,000 per year’’ and in-
serting ‘‘$5,000 per year, which shall be in addi-
tion to the amount of the recipient’s award’’; 
and 
(3) by adding at the end the following: 
‘‘(C) FLEXIBILITY.—In carrying out sub-
paragraphs (A) and (B), each Federal agency 
shall provide the allowable amounts to a recipi-
ent that meets the eligibility requirements under 
the applicable subparagraph, if the recipient re-
quests to seek technical assistance from an indi-
vidual or entity other than the vendor selected 
under paragraph (2) by the Federal agency. 
‘‘(D) LIMITATION.—A Federal agency may 
not— 
‘‘(i) use the amounts authorized under 
subparagraph (A) or (B) unless the vendor 
selected under paragraph (2) provides the 
technical assistance to the recipient; or
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‘‘(ii) enter a contract with a vendor 
under paragraph (2) under which the 
amount provided for technical assistance is 
based on total number of Phase I or Phase 
II awards.’’. 
SEC. 204. COMMERCIALIZATION PROGRAM AT DEPARTMENT 
OF DEFENSE. 
Section 9(y) of the Small Business Act (15 U.S.C. 
638(y)) is amended— 
(1) in the subsection heading, by striking 
‘‘PILOT’’; 
(2) by striking ‘‘Pilot’’ each place that term ap-
pears; 
(3) in paragraph (1)— 
(A) by inserting ‘‘or Small Business Tech-
nology Transfer Program’’ after ‘‘Small Business 
Innovation Research Program’’; and 
(B) by adding at the end the following: 
‘‘The authority to create and administer a Com-
mercialization Program under this subsection 
may not be construed to eliminate or replace any 
other SBIR program or STTR program that en-
hances the insertion or transition of SBIR or 
STTR technologies, including any such program 
in effect on the date of enactment of the National
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Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163; 119 Stat. 3136).’’; 
(4) in paragraph (2), by inserting ‘‘or Small 
Business Technology Transfer Program’’ after ‘‘Small 
Business Innovation Research Program’’; 
(5) in paragraph (4), by inserting ‘‘or Small 
Business Technology Transfer Program’’ after ‘‘Small 
Business Innovation Research Program’’; 
(6) by striking paragraph (6); 
(7) by redesignating paragraph (5) as para-
graph (7); and 
(8) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) INSERTION INCENTIVES.—For any contract 
with a value of not less than $100,000,000, the Sec-
retary of Defense is authorized to— 
‘‘(A) establish goals for the transition of 
Phase III technologies in subcontracting plans; 
and 
‘‘(B) require a prime contractor on such a 
contract to report the number and dollar amount 
of contracts entered into by that prime con-
tractor for Phase III SBIR or STTR projects. 
‘‘(6) GOAL FOR SBIR AND STTR TECHNOLOGY IN-
SERTION.—The Secretary of Defense shall—
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‘‘(A) set a goal to increase the number of 
Phase II SBIR contracts and the number of 
Phase II STTR contracts awarded by that Sec-
retary that lead to technology transition into 
programs of record or fielded systems; 
‘‘(B) use incentives in effect on the date of 
enactment of the SBIR/STTR Reauthorization 
Act of 2009, or create new incentives, to encour-
age agency program managers and prime con-
tractors to meet the goal under subparagraph 
(A); and 
‘‘(C) include in the annual report to Con-
gress the percentage of contracts described in sub-
paragraph (A) awarded by that Secretary, and 
information on the ongoing status of projects 
funded through the Commercialization Program 
and efforts to transition these technologies into 
programs of record or fielded systems.’’. 
SEC. 205. COMMERCIALIZATION PILOT PROGRAM FOR CI-
VILIAN AGENCIES. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(ee) PILOT PROGRAM.—
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‘‘(1) AUTHORIZATION.—The head of each covered 
Federal agency may set aside not more than 10 per-
cent of the SBIR and STTR funds of such agency for 
further technology development, testing, and evalua-
tion of SBIR and STTR Phase II technologies. 
‘‘(2) APPLICATION BY FEDERAL AGENCY.— 
‘‘(A) IN
GENERAL.—A covered Federal 
agency may not establish a pilot program unless 
such agency makes a written application to the 
Administrator, not later than 90 days before to 
the first day of the fiscal year in which the pilot 
program is to be established, that describes a 
compelling reason that additional investment in 
SBIR or STTR technologies is necessary, includ-
ing unusually high regulatory, systems integra-
tion, or other costs relating to development or 
manufacturing of identifiable, highly promising 
small business technologies or a class of such 
technologies expected to substantially advance the 
mission of the agency. 
‘‘(B) DETERMINATION.—The Administrator 
shall— 
‘‘(i) make a determination regarding 
an application submitted under subpara-
graph (A) not later than 30 days before the
† HR 2965 EAS 
first day of the fiscal year for which the ap-
plication is submitted; 
‘‘(ii) publish the determination in the 
Federal Register; and 
‘‘(iii) make a copy of the determina-
tion and any related materials available to 
the Committee on Small Business and En-
trepreneurship of the Senate and the Com-
mittee on Small Business of the House of 
Representatives. 
‘‘(3) MAXIMUM AMOUNT OF AWARD.—The head of 
a Federal agency may not make an award under a 
pilot program in excess of 3 times the dollar amounts 
generally established for Phase II awards under sub-
section (j)(2)(D) or (p)(2)(B)(ix). 
‘‘(4) MATCHING.—The head of a Federal agency 
may not make an award under a pilot program for 
SBIR or STTR Phase II technology that will be ac-
quired by the Federal Government unless new private, 
Federal non-SBIR, or Federal non-STTR funding 
that at least matches the award from the Federal 
agency is provided for the SBIR or STTR Phase II 
technology. 
‘‘(5) ELIGIBILITY FOR AWARD.—The head of a 
Federal agency may make an award under a pilot
† HR 2965 EAS 
program to any applicant that is eligible to receive 
a Phase III award related to technology developed in 
Phase II of an SBIR or STTR project. 
‘‘(6) REGISTRATION.—Any applicant that re-
ceives an award under a pilot program shall register 
with the Administrator in a registry that is available 
to the public. 
‘‘(7) TERMINATION.—The authority to establish 
a pilot program under this section expires at the end 
of fiscal year 2014. 
‘‘(8) DEFINITIONS.—In this section— 
‘‘(A) the term ‘covered Federal agency’— 
‘‘(i) means a Federal agency partici-
pating in the SBIR program or the STTR 
program; and 
‘‘(ii) does not include the Department 
of Defense; and 
‘‘(B) the term ‘pilot program’ means the 
program established under paragraph (1).’’. 
SEC. 206. NANOTECHNOLOGY INITIATIVE. 
(a) IN GENERAL.—Section 9 of the Small Business Act 
(15 U.S.C. 638), as amended by this Act, is amended by 
adding at the end the following: 
‘‘(ff) NANOTECHNOLOGY INITIATIVE.—Each Federal 
agency participating in the SBIR or STTR program shall
† HR 2965 EAS 
encourage the submission of applications for support of 
nanotechnology related projects to such program.’’. 
(b) SUNSET.—Effective October 1, 2014, subsection (ff) 
of the Small Business Act, as added by subsection (a) of 
this section, is repealed. 
SEC. 207. ACCELERATING CURES. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 44 as section 45; 
and 
(2) by inserting after section 43 the following: 
‘‘SEC. 44. SMALL BUSINESS INNOVATION RESEARCH PRO-
GRAM. 
‘‘(a) NIH CURES PILOT.— 
‘‘(1) ESTABLISHMENT.—An independent advi-
sory board shall be established at the National Acad-
emy of Sciences (in this section referred to as the ‘ad-
visory board’) to conduct periodic evaluations of the 
SBIR program (as that term is defined in section 9) 
of each of the National Institutes of Health (referred 
to in this section as the ‘NIH’) institutes and centers 
for the purpose of improving the management of the 
SBIR program through data-driven assessment. 
‘‘(2) MEMBERSHIP.—
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‘‘(A) IN
GENERAL.—The advisory board 
shall consist of— 
‘‘(i) the Director of the NIH; 
‘‘(ii) the Director of the SBIR program 
of the NIH; 
‘‘(iii) senior NIH agency managers, se-
lected by the Director of NIH; 
‘‘(iv) industry experts, selected by the 
Council of the National Academy of 
Sciences in consultation with the Associate 
Administrator for Technology of the Admin-
istration and the Director of the Office of 
Science and Technology Policy; and 
‘‘(v) owners or operators of small busi-
ness concerns that have received an award 
under the SBIR program of the NIH, se-
lected by the Associate Administrator for 
Technology of the Administration. 
‘‘(B) NUMBER
OF
MEMBERS.—The total 
number of members selected under clauses (iii), 
(iv), and (v) of subparagraph (A) shall not ex-
ceed 10. 
‘‘(C) EQUAL REPRESENTATION.—The total 
number of members of the advisory board selected 
under clauses (i), (ii), (iii), and (iv) of subpara-
† HR 2965 EAS 
graph (A) shall be equal to the number of mem-
bers of the advisory board selected under sub-
paragraph (A)(v). 
‘‘(b) ADDRESSING DATA GAPS.—In order to enhance 
the evidence-base guiding SBIR program decisions and 
changes, the Director of the SBIR program of the NIH shall 
address the gaps and deficiencies in the data collection con-
cerns identified in the 2007 report of the National Acad-
emies of Science entitled ‘An Assessment of the Small Busi-
ness Innovation Research Program at the NIH’. 
‘‘(c) PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Director of the SBIR 
program of the NIH may initiate a pilot program, 
under a formal mechanism for designing, imple-
menting, and evaluating pilot programs, to spur in-
novation and to test new strategies that may enhance 
the development of cures and therapies. 
‘‘(2) CONSIDERATIONS.—The Director of the 
SBIR program of the NIH may consider conducting 
a pilot program to include individuals with successful 
SBIR program experience in study sections, hiring 
individuals with small business development experi-
ence for staff positions, separating the commercial 
and scientific review processes, and examining the
† HR 2965 EAS 
impact of the trend toward larger awards on the over-
all program. 
‘‘(d) REPORT TO CONGRESS.—The Director of the NIH 
shall submit an annual report to Congress and the advisory 
board on the activities of the SBIR program of the NIH 
under this section. 
‘‘(e) SBIR GRANTS AND CONTRACTS.— 
‘‘(1) IN
GENERAL.—In awarding grants and 
contracts under the SBIR program of the NIH each 
SBIR program manager shall place an emphasis on 
applications that identify products and services that 
may enhance the development of cures and therapies. 
‘‘(2) EXAMINATION OF COMMERCIALIZATION AND 
OTHER METRICS.—The advisory board shall evaluate 
the implementation of the requirement under para-
graph (1) by examining increased commercialization 
and other metrics, to be determined and collected by 
the SBIR program of the NIH. 
‘‘(3) PHASE I AND II.—To the greatest extent 
practicable, the Director of the SBIR program of the 
NIH shall reduce the time period between Phase I 
and Phase II funding of grants and contracts under 
the SBIR program of the NIH to 6 months. 
‘‘(f) LIMIT.—Not more than a total of 1 percent of the 
extramural budget (as defined in section 9 of the Small
† HR 2965 EAS 
Business Act (15 U.S.C. 638)) of the NIH for research or 
research and development may be used for the pilot program 
under subsection (c) and to carry out subsection (e). 
‘‘(g) SUNSET.—This section shall cease to be effective 
on the date that is 5 years after the date of enactment of 
the SBIR/STTR Reauthorization Act of 2009.’’. 
TITLE III—OVERSIGHT AND 
EVALUATION 
SEC. 301. STREAMLINING ANNUAL EVALUATION REQUIRE-
MENTS. 
Section 9(b) of the Small Business Act (15 U.S.C. 
638(b)), as amended by section 102 of this Act, is amend-
ed— 
(1) in paragraph (7)— 
(A) by striking ‘‘STTR programs, including 
the data’’ and inserting the following: ‘‘STTR 
programs, including— 
‘‘(A) the data’’; 
(B) by striking ‘‘(g)(10), (o)(9), and (o)(15), 
the number’’ and all that follows through ‘‘under 
each of the SBIR and STTR programs, and a 
description’’ and inserting the following: ‘‘(g)(8) 
and (o)(9); and 
‘‘(B) the number of proposals received from, 
and the number and total amount of awards to,
† HR 2965 EAS 
HUBZone small business concerns and firms 
with venture capital investment (including those 
majority owned and controlled by multiple ven-
ture capital firms) under each of the SBIR and 
STTR programs; 
‘‘(C) a description of the extent to which 
each Federal agency is increasing outreach and 
awards to firms owned and controlled by women 
and social or economically disadvantaged indi-
viduals under each of the SBIR and STTR pro-
grams; 
‘‘(D) general information about the imple-
mentation and compliance with the allocation of 
funds required under subsection (cc) for firms 
majority owned and controlled by multiple ven-
ture capital firms under each of the SBIR and 
STTR programs; 
‘‘(E) a detailed description of appeals of 
Phase III awards and notices of noncompliance 
with the SBIR and the STTR Policy Directives 
filed by the Administrator with Federal agencies; 
and 
‘‘(F) a description’’; and 
(2) by inserting after paragraph (7) the fol-
lowing:
† HR 2965 EAS 
‘‘(8) to coordinate the implementation of elec-
tronic databases at each of the Federal agencies par-
ticipating in the SBIR program or the STTR pro-
gram, including the technical ability of the partici-
pating agencies to electronically share data;’’. 
SEC. 302. DATA COLLECTION FROM AGENCIES FOR SBIR. 
Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)) is amended— 
(1) by striking paragraph (10); 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (9) and (10), respectively; 
(3) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from awardees as is necessary to assess the SBIR 
program, including information necessary to main-
tain the database described in subsection (k), includ-
ing— 
‘‘(A) whether an awardee— 
‘‘(i) has venture capital or is majority 
owned and controlled by multiple venture 
capital firms, and, if so—
† HR 2965 EAS 
‘‘(I) the amount of venture capital 
that the awardee has received as of the 
date of the award; and 
‘‘(II) the amount of additional 
capital that the awardee has invested 
in the SBIR technology; 
‘‘(ii) has an investor that— 
‘‘(I) is an individual who is not a 
citizen of the United States or a lawful 
permanent resident of the United 
States, and if so, the name of any such 
individual; or 
‘‘(II) is a person that is not an 
individual and is not organized under 
the laws of a State or the United 
States, and if so the name of any such 
person; 
‘‘(iii) is owned by a woman or has a 
woman as a principal investigator; 
‘‘(iv) is owned by a socially or eco-
nomically disadvantaged individual or has 
a socially or economically disadvantaged 
individual as a principal investigator;
† HR 2965 EAS 
‘‘(v) received assistance under the 
FAST program under section 34 or the out-
reach program under subsection (s); 
‘‘(vi) is a faculty member or a student 
of an institution of higher education, as 
that term is defined in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 
1001); or 
‘‘(vii) is located in a State described in 
subsection (u)(3); and 
‘‘(B) a justification statement from the 
agency, if an awardee receives an award in an 
amount that is more than the award guidelines 
under this section;’’; and 
(4) in paragraph (10), as so redesignated, by 
adding ‘‘and’’ at the end. 
SEC. 303. DATA COLLECTION FROM AGENCIES FOR STTR. 
Section 9(o) of the Small Business Act (15 U.S.C. 
638(o)) is amended— 
(1) by striking paragraph (9) and inserting the 
following: 
‘‘(9) collect annually, and maintain in a com-
mon format in accordance with the simplified report-
ing requirements under subsection (v), such informa-
tion from applicants and awardees as is necessary to