WASHINGTON, DC – This week, Congressman Bill Delahunt joined with his colleagues in the House of Representatives in passing the reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer Programs (SBTT), a program critical to high tech businesses in Massachusetts.

“Over the years, Massachusetts companies have won a significant share of the national SBIR grants for the development of innovative technologies,” said Delahunt. “The program has been a key to the development of the biotech and marine technology industries in our region and it s vital to the creation of new jobs and businesses in the Commonwealth.”

H.R. 5819, Small Business Innovation Research & Small Business Technology Transfer Reauthorization Act was passed by a vote of 368 to 43.

This legislation extends SBIR and SBTT, the Federal government's largest small business research and development programs for a period of two years and increases funding for small research firms by half a billion dollars.  This bill also modernizes the (SBIR) program so that it is sync with the needs of small research firms and can continue to increase the global competitiveness of the U.S. economy.

Massachusetts routinely ranks among the top states in the nation in SBIR and SBTT funding. According to the Massachusetts Technology Development Corporation, the Commonwealth is second behind California in total funding, and has the largest per capita funding in the country.

Specifically this legislation would:

Encourage Greater Participation in SBIR and STTR: The Act includes a number of provisions designed to encourage more small firms to apply for SBIR and STTR awards. The bill more than doubles the size of SBIR and STTR awards for Phase I and Phase II grants.   It also provides access to technical assistance and places an emphasis on research on alternative fuels and orphan diseases. 

Provide Greater Access to Capital for Small Businesses: The bill ensures that businesses are not discriminated against based on their business models or the type of capital they receive.  The bill repeals the 2003 Small Business Administration ruling that limited small businesses' access to venture capital.  The SBA ruling forces many small businesses to choose between accepting investments from venture capital firms and participating in the Federal government's largest R&D program for small research firms.  

Advance commercialization of SBIR-funded Research and Development Projects: The legislation establishes an initiative to increase participation from small firms owned by veterans, women and minorities and those located in rural areas.  This will diversify the program and increase competition for these important awards. It also provides a greater emphasis on commercialization so that new technologies can reach the marketplace quicker.  The bill includes several initiatives and funding to increase such commercialization, including the creation of public-private partnerships and technical assistance.

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