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

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
June 17, 2009                                                                                                                 (202) 226-3636

Committee Examines Legislation Updating Small Business Research Programs

WASHINGTON, D.C. —The House Committee on Small Business today examined draft legislation to modernize the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, two initiatives that lawmakers say will help small businesses bring new products to market.

“Despite massive changes in the marketplace, the SBIR and STTR products haven’t been updated in eight years,” said Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business. “The draft legislation before the Committee will bring these programs into the 21st century, so they better serve the needs of entrepreneurs who want to generate new ideas, develop innovative products, and, ultimately, create jobs.”

The Small Business Innovation Research program requires federal agencies to reserve a portion of their external Research & Development (R&D) budgets for small businesses. The Small Business Technology Transfer provides funding to joint research efforts between small businesses and nonprofit institutions like universities and colleges. If enacted, the draft bill would streamline the two programs to encourage innovation and help more firms bridge the gap between initial research and commercialization of a product. Other provisions in the draft would expand outreach to rural enterprises and businesses owned by veterans, women and minorities.

“With this bill, we will broaden participation in the SBIR and STTR programs, while ensuring grants are targeted to the entrepreneurs who are involved in the most promising research,” Velázquez said. “Small businesses already generate 14 times more patents than big companies and, by enhancing these two initiatives, we can ensure small firms continue to be the inventors and pioneers of the new economy.”

Absent reauthorization by Congress, both the SBIR and STTR programs are set to expire by the end of July. The Small Business Committee has moved reauthorization legislation through “regular order,” initially holding a Subcommittee hearing on legislation in early June before proceeding to last week’s Subcommittee mark-up. Today’s full Committee hearing on the draft bill is a continuation of that process.

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Click here to view video of the hearing.