News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman


For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
June 25, 2009                                                                                                                 (202) 226-3636

Committee Approves Legislation Reauthorizing Small Business Research Programs

WASHINGTON, D.C. —The House Committee on Small Business today approved landmark bipartisan legislation to modernize the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, two initiatives that help steer federal Research & Development funding to small businesses. Authored by Rep. Jason Altmire (D-PA), the bill, H.R. 2965, the Enhancing Small Business Research and Innovation Act of 2009, will help America’s small businesses spur new innovations and technological breakthroughs, helping set the stage for job creation and renewed economic growth.

“Small businesses are the nation’s innovators, generating fourteen times more patents than big companies, and these programs help them serve as technological pioneers,” said Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business. “A lot has changed since SBIR and STTR were last updated eight years ago and this bill will make sure the programs can meet today’s challenges.”

Absent action by Congress, the SBIR and STTR programs are set to expire at the end of July. Not only does the legislation passed by the Committee today reauthorize the two initiatives, but it makes vital improvements that will help small businesses remain engaged in cutting edge R&D. H.R. 2965 expands the size of grants that firms are eligible for in the SBIR program. Through expanded outreach, the measure will bring research dollars to rural communities not traditionally considered research hubs and draw new companies into the SBIR program. Members of the Committee also praised the bill for expanding the commercialization potential of the programs, ensuring that SBIR and STTR fund the kinds of research most likely to yield a workable product.

“With this legislation, we are making critical changes to the SBIR and STTR programs so that they can meet the challenges of today and allow small businesses to generate the jobs of tomorrow,” Velázquez said. “By expanding the pool of talent that participates in the program, ensuring research is focused on developing new products for the marketplace, and increasing the size of grants, we will keep these programs fresh and vital.”

SBIR and STTR have proven economic benefits. Every year, 1,500 new start-up companies get their start through SBIR and STTR. With unemployment hovering at 9%, Members of the Committee said the job creating potential of the two programs is particularly important right now.

“Whenever the United States has recovered from previous recessions, the key ingredient has been innovation,” Velázquez said. “Through improvements to the SBIR and STTR programs, we can foster small business innovation, spark the creation of new products and, ultimately, support the kind of sustained job growth our nation needs right now.”

H.R. 2965 passed the Committee unanimously by a vote of 22 to 0. It must now go before the full House for consideration. The legislation enjoys strong support in the research community and has been endorsed by the Biotechnology Industry Organization, the Advanced Medical Technology Association, the Parkinson’s Action Network, the National Venture Capital Association, the Cystic Fibrosis Foundation, the US Women’s Chamber of Commerce, and the Medical Device Manufacturers Association.

Click here for a copy of H.R. 2965. Click here for a summary of the bill. Click here for the roll call votes on the bill.

###