[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4158 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4158
To amend the small business laws to create certain requirements with
respect to the SBIR and STTR program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 5, 2022
Mr. Padilla introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To amend the small business laws to create certain requirements with
respect to the SBIR and STTR program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Encouraging Small Business
Innovation Act''.
SEC. 2. INCLUSION OF TESTING AND EVALUATION FOR ALL FEDERAL AGENCIES.
Section 9(gg) of the Small Business Act (15 U.S.C. 638(gg)) is
amended--
(1) in the subsection heading, by striking ``Pilot
Program'' and inserting ``Testing, Evaluation, and
Commercialization'';
(2) in paragraph (1), in the matter preceding subparagraph
(A), by inserting ``establish a program to'' after ``may'';
(3) in paragraph (2)(A), by striking ``pilot program'' each
place that term appears and inserting ``covered program'';
(4) in paragraph (3), by striking ``pilot program'' and
inserting ``covered program'';
(5) in paragraph (4), by striking ``pilot program'' and
inserting ``covered program'';
(6) in paragraph (6), by striking ``pilot program'' and
inserting ``covered program''; and
(7) by striking paragraphs (7) and (8) and inserting the
following:
``(7) Definitions.--In this subsection--
``(A) the term `covered Federal agency' means a
Federal agency participating in the SBIR program or the
STTR program; and
``(B) the term `covered program' means a program
established under paragraph (1).''.
SEC. 3. INCLUSION OF SMALL BUSINESS INVESTMENT COMPANIES IN SBIR AND
STTR.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) by striking ``or private equity firm investment'' each
place that term appears and inserting ``private equity firm, or
SBIC investment'';
(2) by striking ``or private equity firms'' each place that
term appears and inserting ``private equity firms, or SBICs'';
(3) in subsection (e)--
(A) in paragraph (13)(B), by striking ``and'' at
the end;
(B) in paragraph (14), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(15) the term `SBIC' means a small business investment
company as defined in section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662).''; and
(4) in the heading for subsection (dd), by striking ``or
Private Equity Firms'' and inserting ``Private Equity Firms, or
SBICs''.
SEC. 4. CALCULATION OF LEVERAGE OF SMALL BUSINESS INVESTMENT COMPANIES
THAT INVEST IN SBIR OR STTR PARTICIPANTS.
Section 303(b)(2) of the Small Business Investment Act of 1958 (15
U.S.C. 683(b)(2)) is amended by adding at the end the following:
``(E) Investments in sbir and sttr participants.--
``(i) Definitions.--In this subparagraph--
``(I) the term `cost' has the
meaning given the term in section 502
of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a); and
``(II) the term `SBIR or STTR
participant' means a small business
concern that receives contracts or
grants pursuant to section 9 of the
Small Business Act (15 U.S.C. 638).
``(ii) Exclusion.--Subject to clause (iii),
in calculating the outstanding leverage of a
company for purposes of subparagraph (A), the
Administrator shall exclude the amount of any
investment made in a SBIR or STTR participant,
if such investment is made in the first fiscal
year after the date of enactment of this
subparagraph or any fiscal year thereafter by a
company licensed during the applicable fiscal
year.
``(iii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an investment in
any 1 SBIR or STTR participant in an
amount equal to more than 20 percent of
the private capital of that company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost with respect to
purchasing or guaranteeing any
debenture involved.''.
SEC. 5. ANNUAL MEETING FOR FEDERAL AGENCIES WITH A SBIR OR STTR
PROGRAM.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(vv) Annual Meeting.--
``(1) In general.--The head of each Federal agency required
to have a program under this section (or a designee) and the
Administrator (or a designee) shall meet annually to discuss
methods--
``(A) to improve the collection of data under this
section;
``(B) to improve the reporting of data to the
Administrator under this section;
``(C) to make the application processes for
programs under this section more efficient; and
``(D) to increase participation in the programs
under this section.
``(2) Reporting.--Not later than 60 days after the date on
which an annual meeting required under paragraph (1) is held,
the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business and the Committee on Science, Space, and
Technology of the House of Representatives a report on the
findings of the meeting and recommendations on how to implement
changes to programs under this section.''.
SEC. 6. INCREASING PARTICIPATION OF UNDERSERVED POPULATIONS IN THE SBIR
AND STTR PROGRAMS.
(a) In General.--Section 9(mm)(2) of the Small Business Act (15
U.S.C. 638(mm)(2)) is amended to read as follows:
``(2) Outreach and technical assistance.--A Federal agency
participating in the program under this subsection shall use a
portion of the funds authorized for uses under paragraph (1) to
carry out the policy directive required under subsection
(j)(2)(F) and to increase the participation of States with
respect to which a low level of SBIR awards have historically
been awarded.''.
(b) Conforming Amendment.--Section 9(mm)(6) of the Small Business
Act (15 U.S.C. 638(mm)(6)) is amended by striking ``paragraph (2)(A)
and any use of the waiver authority under paragraph (2)(B)'' and
inserting ``paragraph (2)''.
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