[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Pages S3213-S3214]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1743. Mr. PADILLA submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to
establish a new Directorate for Technology and Innovation in the
National Science
[[Page S3214]]
Foundation, to establish a regional technology hub program, to require
a strategy and report on economic security, science, research,
innovation, manufacturing, and job creation, to establish a critical
supply chain resiliency program, and for other purposes; which was
ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. MODIFICATIONS TO SBIR AND STTR PROGRAMS.
(b) Inclusion of Testing and Evaluation in the Definition
of Research and Development.--Section 9(e)(5) of the Small
Business Act (15 U.S.C. 638(e)(5)) is amended to read as
follows:
``(5) the term `research' or `research and development'
means--
``(A) any activity which is--
``(i) a systematic, intensive study directed toward greater
knowledge or understanding of the subject studied;
``(ii) a systematic study directed specifically toward
applying new knowledge to meet a recognized need; or
``(iii) a systematic application of knowledge toward the
production of useful materials, devices, and systems or
methods, including design, development, and improvement of
prototypes and new processes to meet specific requirements;
and
``(B) any testing or evaluation in connection with such an
activity;''.
(c) 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''.
(d) 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.''.
(e) Encouraging Participation in the Mentor-protege
Program.--Section 9 of the Small Business Act (15 U.S.C. 638)
is amended by adding at the end the following:
``(vv) Encouraging Participation in the Mentor-Protege
Program.--The Administrator shall provide an increase to the
past performance rating of any small business concern that
has participated in the SBIR or STTR program that serves as a
mentor under section 45 to a small business concern that
seeks to participate in the SBIR or STTR program.''.
(f) Annual Meeting for Federal Agencies With a SBIR or STTR
Program.--
(1) In general.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by subsection (e), is amended by
adding at the end the following:
``(ww) 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.''.
(2) Funding for annual meeting.--Section 9(mm)(1) of the
Small Business Act (15 U.S.C. 638(mm)(1)) is amended--
(A) in subparagraph (J), by striking the ``and'' at the
end;
(B) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(L) the annual meeting required under subsection (ww).''.
(g) Increasing Participation of Underserved Populations in
the SBIR and STTR Programs.--
(1) 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.''.
(2) 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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