[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)''.
                                 ______