I 119th CONGRESS 1st Session H. R. 3239 IN THE HOUSE OF REPRESENTATIVES May 7, 2025 Ms. Houlahan (for herself and Mr. Balderson ) introduced the following bill; which was referred to the Committee on Small Business , and in addition to the Committees on Science, Space, and Technology , and the Judiciary , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To improve commercialization activities in the SBIR and STTR programs, and for other purposes.

1. Short title This Act may be cited as the Research Advancing to Market Production for Innovators Act . 2. Improvements to commercialization selection (a) In general Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) in subsection (g)— (A) in paragraph (4)(B)(i), by striking 1 year and inserting 180 days ; (B) in paragraph (16), by striking and at the end; (C) in paragraph (17), by striking the period at the end and inserting ; and ; and (D) by adding at the end the following: (18) with respect to peer review carried out under the SBIR program, to the extent practicable, include in the peer review— (A) the likelihood of commercialization in addition to scientific and technical merit and feasibility; and (B) not less than 1 reviewer with commercialization expertise who is capable of assessing the likelihood of commercialization. ; and (2) in subsection (o)— (A) in paragraph (4)(B)(i), by striking 1 year and inserting 180 days ; (B) in paragraph (20), by striking and at the end; (C) in paragraph (21), by striking the period at the end and inserting ; and ; and (D) by adding at the end the following: (22) with respect to peer review carried out under the STTR program, to the extent practicable, include in the peer review— (A) the likelihood of commercialization in addition to scientific and technical merit and feasibility; and (B) not less than 1 reviewer with commercialization expertise who is capable of assessing the likelihood of commercialization. . 3. Improvements to phase flexibility (a) In general Section 9(cc) of the Small Business Act ( 15 U.S.C. 638(cc) ) is amended— (1) by striking During fiscal years 2012 through 2025, the National Institutes of Health, the Department of Defense, and the Department of Education may each and inserting the following: (1) In general During fiscal years 2025, 2026, and 2027, each Federal agency with an SBIR or STTR program may ; and (2) by adding at the end the following: (2) Limitation The total value of awards provided by a Federal agency under this subsection in a fiscal year shall be— (A) except as provided in subparagraph (B) and (C), not more than 10 percent of the total funds allocated to the SBIR and STTR programs of the Federal agency during that fiscal year; (B) with respect to the National Institutes of Health, not more than 30 percent of the total funds allocated to the SBIR and STTR programs of the National Institutes of Health during that fiscal year; and (C) The limitation under subparagraph (A) shall not apply with respect to the Department of Defense. . (b) Report Not later than 1 year after the date of enactment of this Act, the Administrator of the Small Business Administration shall provide a briefing to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the authority provided under section 9(cc) of the Small Business Act ( 15 U.S.C. 638(cc) ), as amended by paragraph (1). 4. Technology commercialization official Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended by adding at the end the following: (aaa) Technology Commercialization Official Each Federal agency participating in the SBIR or STTR program shall— (1) designate an existing official within the Federal agency as the Technology Commercialization Official of the Federal agency, who shall— (A) have sufficient commercialization experience; (B) provide guidance to SBIR and STTR program awardees in commercializing and transitioning technologies; (C) identify and advocate for SBIR and STTR program technologies with sufficient technology and commercialization readiness to advance to Phase III awards or other non-SBIR or STTR program contracts; (D) coordinate with the Administration and Technology Commercialization Officials of other Federal agencies to identify additional markets and commercialization pathways for promising SBIR and STTR program technologies; (E) submit to the Administration an annual report on the number of technologies from the SBIR or STTR program that have advanced commercialization activities, including information required in the commercialization impact assessment under subsection (ccc); (F) submit to the Administration an annual report on actions taken by the Federal agency, and the results of those actions, to simplify, standardize, and expedite the application process and requirements, procedures, and contracts as required under subsection (hh); and (G) carry out such other duties as the Federal agency determines necessary; or (2) identify an official carrying out substantially similar responsibilities as those described in paragraph (1). . 5. Improvements to technical and business assistance Section 9(q) of the Small Business Act ( 15 U.S.C. 638(q) ) is amended— (1) in paragraph (1), in the matter preceding subparagraph (A)— (A) by striking may enter into an agreement with 1 or more vendors selected under paragraph (2)(A) to provide small business concerns engaged in SBIR or STTR projects with technical and business assistance services and inserting shall authorize recipients of awards under the SBIR or STTR program to select, if desired, technical and business assistance provided under subparagraph (A), (B), or (C) of paragraph (2) with respect to SBIR or STTR projects ; (B) by inserting cybersecurity assistance, after intellectual property protections, ; and (C) by striking such concerns and inserting such recipients ; (2) in paragraph (2), by adding at the end the following: (C) Staff A small business concern may, by contract or otherwise, use funding provided under this section to hire new staff, augment staff, or direct staff to conduct or participate in training activities consistent with the goals listed in paragraph (1). ; (3) in paragraph (3), by striking subparagraphs (A) and (B) and inserting the following: (A) Phase I A Federal agency described in paragraph (1) shall authorize a recipient of a Phase I SBIR or STTR award to utilize not more than $6,500 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)— (i) provided through a vendor selected under paragraph (2)(A); (ii) provided through a vendor other than a vendor selected under paragraph (2)(A); (iii) achieved through the activities described in paragraph (2)(C); or (iv) provided or achieved through any combination of clauses (i), (ii), and (iii). (B) Phase II A Federal agency described in paragraph (1) shall authorize a recipient of a Phase II SBIR or STTR award to utilize not more than $50,000 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)— (i) provided through a vendor selected under paragraph (2)(A); (ii) provided through a vendor other than a vendor selected under paragraph (2)(A); (iii) achieved through the activities described in paragraph (2)(C); or (iv) provided or achieved through any combination of clauses (i), (ii), and (iii). ; and (4) by adding at the end the following: (5) Targeted review A Federal agency may perform targeted reviews of technical and business assistance funding as described in subsection (mm)(1)(F). . 6. I-Corps Participation Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by section 4, is amended by adding at the end the following: (bbb) I-Corps participation (1) In general Each Federal agency that is required to conduct an SBIR or STTR program with an Innovation Corps (commonly known as I-Corps ) program shall— (A) provide an option for participation in an I-Corps teams course by recipients of an award under the SBIR or STTR program; and (B) authorize the recipients described in subparagraph (A) to use an award provided under subsection (q) to provide additional technical assistance for participation in the I-Corps teams course. (2) Cost of participation The cost of participation by a recipient described in paragraph (1)(A) in an I-Corps course may be provided by— (A) an I-Corps team grant; (B) funds awarded to the recipient under subsection (q); (C) the participating teams or other sources as appropriate; or (D) any combination of sources described in subparagraphs (A), (B), and (C). . 7. Commercialization impact assessment Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by sections 4 and 6, is amended by adding at the end the following: (ccc) Commercialization impact assessment (1) In general The Administrator shall coordinate with each Federal agency with an SBIR or STTR program to develop an annual commercialization impact assessment report, which shall measure, for each small business concern that has received not less than 50 Phase II awards on or after October 1 of the ninth fiscal year before the fiscal year in which the report is submitted— (A) total dollar value of Federal awards, contracts, and subcontracts, other than SBIR or STTR awards, received by the small business concern over the preceding 9 fiscal years; (B) the total dollar value of all SBIR and STTR Phase I and Phase II awards received by the small business concern over the preceding 9 fiscal years; (C) the average annual gross revenue of the small business concern over the preceding 9 fiscal years; (D) total revenue from the sale or licensing of new products and services resulting from the research conducted under the awards received in the preceding 9 fiscal years; (E) additional investment from any source other than Phase I or Phase II SBIR or STTR awards, to further the research and development conducted under the awards received in the preceding 9 fiscal years; (F) mergers and acquisitions of award recipients during or after the completion of a Phase II award; (G) new, unique spin-out companies resulting from research conducted under the awards received in the preceding 9 fiscal years; (H) patents acquired as a result of research conducted under the awards received in the preceding 9 fiscal years; (I) the year of first Phase II award and the total number of employees at the time of first Phase II award; (J) the number of employees, as of the end of the most recent fiscal year; and (K) the total number and value of Phase III awards received. (2) Publication The commercialization impact assessment report described in paragraph (1) shall be— (A) included in the annual report submitted under subsection (b)(7); and (B) submitted to— (i) the Committee on Small Business and Entrepreneurship of the Senate; and (ii) the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives. . 8. Patent assistance Section 9 of the Small Business Act ( 15 U.S.C. 638 ), as amended by sections 4, 6, and 7, is amended by adding at the end the following: (ddd) Patent assistance (1) Definitions In this subsection— (A) the term Director means the Under Secretary of Commerce for Intellectual Property and Director of the USPTO; and (B) the term USPTO means the United States Patent and Trademark Office. (2) Assistance The Administrator shall enter into an interagency agreement with the Director under which the Director shall assist recipients of an award under the SBIR or STTR program (in this paragraph referred to as SBIR and STTR recipients ) relating to intellectual property protection by establishing a prioritized patent examination program for SBIR and STTR recipients. (3) Outreach The Administrator shall coordinate with the Director to provide outreach regarding the Pro Se Assistance Program of, and scam prevention services provided by, the USPTO. .