Washington, D.C.— Today, the House Small Business Committee under Chairwoman Nydia M. Velázquez (D-NY) held a hearing focused on the status of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which help entrepreneurs commercialize federal R&D innovations. The hearing focused heavily on efforts to reauthorize both programs. As it stands, authorization for SBIR and STTR will expire on September 30th, 2022.
“Even a short-term disruption would deliver a substantial setback to R&D-focused small firms and potentially delay groundbreaking technological innovations,” said Chairwoman Velázquez. “Small innovators operating on the cutting edge of their industries need more certainty and stability to invest the time, money, and staff in applying for SBIR or STTR awards and carrying out the research. To avoid these consequences, it is my greatest hope that we can extend and reauthorize the programs in a timely manner.”
Since the 1980s, SBIR and STTR have created partnerships between federal agencies, public research institutions, and small businesses to develop innovative technologies with commercial applications. These programs assisted companies like iRobot, Sonicare electric toothbrushes, 23&Me, and Qualcomm Communications in their early days. In FY2020, SBIR and STTR delivered nearly $3.9 billion to more than 4,000 small businesses.
A program lapse could potentially impact entrepreneurs and America’s technological progress severely. As Congress works to reauthorize SBIR and STTR, the hearing allowed lawmakers to hear from the Small Business Administration (SBA) about issues related to reauthorization and efforts to improve the programs.
“My concern is that, if Congress does not extend the programs soon, agencies may start to delay new solicitations due to the potential that the SBIR and STTR program authority will expire. This would create a gap in new starts that cannot be made up,” said John Williams, Director of Innovation and Technology of the Office of Investment and Innovation at the Small Business Administration. “Federal offices executing the programs will face inefficiencies but can also absorb the impact of the uncertainty and instability to some degree. The real burden will fall heavily on small business innovators, especially new program entrants.”
“Today’s hearing has provided many concrete examples of the ways SBIR/STTR helps small businesses and our country as a whole,” said Chairwoman Velázquez. “It has also shed a light on the importance of reauthorizing these programs. As these companies pursue groundbreaking research that will benefit society, they need assurance that the federal government will support them in their efforts. We can provide that by passing legislation to make these programs permanent and codifying the central tenets of the program”
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