[Congressional Record Volume 171, Number 133 (Friday, August 1, 2025)]
[Senate]
[Pages S5469-S5474]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3676. Mr. MARKEY submitted an amendment intended to be proposed by
him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end, add the following:
DIVISION E--SBIR AND STTR REAUTHORIZATION
TITLE XXXIII--REAUTHORIZATION OF PROGRAMS
SEC. 5001. EXTENSION OF SBIR AND STTR AUTHORITY.
(a) SBIR.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended by striking subsection (m).
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15
U.S.C. 638(n)(1)(A)) is amended by striking ``through fiscal
year 2025''.
SEC. 5002. EXTENSION OF FAST PROGRAM.
Section 34(i) of the Small Business Act (15 U.S.C. 657d(i))
is amended by striking ``September 30, 2005'' and inserting
``September 30, 2030''.
TITLE XXXIV--ENHANCING COMPETITION
SEC. 5101. INCREASING AGENCY EXPENDITURES FOR SBIR AND STTR
PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended--
(1) in subsection (f)(1)--
(A) in subparagraph (H), by striking ``and'';
(B) in subparagraph (I), by striking ``fiscal year 2017 and
each fiscal year thereafter,'' and inserting ``each of fiscal
years 2017 through 2025;''; and
(C) by inserting after subparagraph (I) the following:
``(J) not less than 4 percent of such budget in fiscal
years 2026 and 2027;
``(K) not less than 5 percent of such budget in fiscal
years 2028 and 2029;
``(L) not less than 6 percent of such budget in fiscal
years 2030 and 2031; and
``(M) not less than 7 percent of such budget in fiscal year
2032 and each fiscal year thereafter,''; and
(2) in subsection (n)(1)--
(A) in subparagraph (A), by striking ``through fiscal year
2025''; and
(B) in subparagraph (B)--
(i) in clause (iv), by striking ``; and'' and inserting a
semicolon;
(ii) in clause (v), by striking ``fiscal year 2016 and each
fiscal year thereafter.'' and inserting ``each of fiscal
years 2016 through 2025;''; and
(iii) by adding at the end the following:
``(vi) 0.5 percent for fiscal year 2026 and 2027;
``(vii) 0.65 percent for fiscal year 2028 and 2029;
``(viii) 0.8 percent for fiscal year 2030 and 2031; and
``(ix) 1 percent for fiscal year 2032 and each fiscal year
thereafter.''.
SEC. 5102. SBIR AND STTR FELLOWSHIPS.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended--
(1) in subsection (f), by adding at the end the following:
``(5) Fellowships.--
``(A) In general.--A Federal agency may provide grants or
awards, either directly or in partnership with a third party,
to small business concerns that have received SBIR or STTR
Phase II awards to provide fellowship and internship
opportunities at the undergraduate, baccalaureate, graduate,
and postdoctoral levels in fields that are important to the
Federal agency.
``(B) Enhanced outreach.--Each Federal agency that makes an
award or enters into a partnership under subparagraph (A)
shall provide for enhanced outreach to increase the
participation of women, socially disadvantaged individuals
(as described in section 8(a)(5)), and economically
disadvantaged individuals (as described in section
8(a)(6)(A)) in the fellowship and internship opportunities
described in subparagraph (A).
``(C) Support organization.--Each Federal agency that makes
an award or enters into a partnership under subparagraph (A)
may partner with or provide grants or awards to a third-party
organization to support and facilitate the enhanced outreach
under subparagraph (B), provided that the third-party
organization is a nonprofit organization with relevant
experience and demonstrated expertise in delivery of services
described in subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a Federal
agency may use only the following amounts:
``(i) With respect to a Federal agency that uses the
authority under subsection (mm), the funds authorized under
such subsection.
``(ii) With respect a Federal agency other than a Federal
agency described in clause (i), not more than 3 percent of
the funds required to be expended under paragraph (1).''; and
(2) in subsection (n), by adding at the end the following:
``(4) Fellowships.--
``(A) In general.--A Federal agency may provide grants or
awards, either directly or in partnership with a third party,
to small business concerns that have received SBIR or STTR
Phase II awards to provide fellowship and internship
opportunities at the undergraduate, baccalaureate, graduate,
and postdoctoral levels in fields that are important to the
Federal agency.
``(B) Enhanced outreach.--Each Federal agency that makes an
award or enters into a partnership under subparagraph (A)
shall provide for enhanced outreach to increase the
participation of women, socially disadvantaged individuals
(as described in section 8(a)(5)), and economically
disadvantaged individuals (as described in section
8(a)(6)(A)) in the fellowship and internship opportunities
described in subparagraph (A).
``(C) Support organization.--Each Federal agency that makes
an award or enters into a partnership under subparagraph (A)
may partner with or provide grants or awards to a third-party
organization to support and facilitate the enhanced outreach
under subparagraph (B), provided that the third-party
organization is a nonprofit organization with relevant
experience and demonstrated expertise in delivery of services
described in subparagraph (B).
``(D) Funding.--In carrying out this paragraph, a Federal
agency may use only the following amounts:
``(i) With respect to a Federal agency that uses the
authority under subsection (mm), the funds authorized under
such subsection.
``(ii) With respect a Federal agency other than a Federal
agency described in clause (i), not more than 3 percent of
the funds required to be expended under paragraph (1).''.
SEC. 5103. APPLICATION ASSISTANCE TO BROADEN PARTICIPATION.
(a) In General.--Section 9(mm)(1) of the Small Business Act
(15 U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (J), by striking ``and'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(L) providing small business concerns with assistance
applying to the SBIR program or STTR program of the Federal
agency, including providing such assistance to carry out the
policy directives required under paragraphs (2)(F) and (5) of
subsection (j) and subsection (p)(2)(H) to increase the
participation of States with respect to which a low level of
SBIR or STTR awards have historically been awarded.''.
(b) Enhanced Minority Institution Participation.--
(1) SBIR.--Section 9(j) of the Small Business Act (15
U.S.C. 638(j)), is amended by adding at the end the
following:
``(5) Increased outreach requirements.--Not later than 90
days after the date of enactment of this paragraph, the
Administration shall modify the policy directives issued
pursuant to this subsection to require enhanced outreach
efforts to increase the participation of individuals
conducting research at minority institutions (as defined in
section 365 of the Higher Education Act of 1965
[[Page S5470]]
(20 U.S.C. 1067k)) and Hispanic-serving institutions (as
defined in section 502(a) of such Act (20 U.S.C. 1101a(a)))
in SBIR programs.''.
(2) STTR.--Section 9(p)(2) of the Small Business Act (15
U.S.C. 638(p)(2)) is amended--
(A) in subparagraph (F), by striking ``and'' at the end;
(B) in subparagraph (G)(iii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(H) procedures for outreach efforts to increase the
participation of individuals conducting research at minority
institutions (as defined in section 365 of the Higher
Education Act of 1965 (20 U.S.C. 1067k)) and Hispanic-serving
institutions (as defined in section 16 502(a) of such Act (20
U.S.C. 1101a(a))) in STTR programs.''.
SEC. 5104. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638(q)) is
amended--
(1) in subsection (q)--
(A) in paragraph (1), in the matter preceding subparagraph
(A)--
(i) by striking ``may enter into an agreement with 1 or
more vendors selected under paragraph (2)(A) to provide small
business concerns engaged in SBIR or STTR projects with
technical and business assistance services'' and inserting
``shall authorize recipients of awards under the SBIR program
or the STTR program to select, if desired, technical and
business assistance provided under subparagraph (A), (B), or
(C) of paragraph (2) with respect to SBIR or STTR projects'';
(ii) by inserting ``cybersecurity assistance,'' after
``intellectual property protections,''; and
(iii) by striking ``such concerns'' and inserting ``such
recipients''; and
(B) in paragraph (2), by adding at the end the following:
``(C) Staff.--A small business concern may, by contract or
otherwise, use funding provided under this section to hire
new staff, augment staff, or direct staff to conduct or
participate in training activities consistent with the goals
listed in paragraph (1).'';
(C) in paragraph (3)--
(i) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Phase i.--A Federal agency described in paragraph (1)
shall authorize a recipient of a Phase I SBIR or STTR award
to use not more than $6,500 per project, included as part of
the award of the recipient or in addition to the amount of
the award of the recipient as determined appropriate by the
head of the Federal agency, for the services described in
paragraph (1)--
``(i) provided through a vendor selected under paragraph
(2)(A);
``(ii) provided through a vendor other than a vendor
selected under paragraph (2)(A);
``(iii) achieved through the activities described in
paragraph (2)(C); or
``(iv) provided through any combination of clauses (i) and
(ii).
``(B) Phase ii.--A Federal agency described in paragraph
(1) shall authorize a recipient of a Phase II SBIR or STTR
award to utilize not more than $50,000 per project, included
as part of the award of the recipient or in addition to the
amount of the award of the recipient as determined
appropriate by the head of the Federal agency, for the
services described in paragraph (1)--
``(i) provided through a vendor selected under paragraph
(2)(A);
``(ii) provided through a vendor other than a vendor
selected under paragraph (2)(A);
``(iii) achieved through the activities described in
paragraph (2)(C); or
``(iv) provided through any combination of clauses (i),
(ii), and (iii).''; and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(aaa) I-Corps Participation.--
``(1) In general.--Each Federal agency that is, as of
January 1, 2025, required to conduct an SBIR or STTR program
with an Innovation Corps program (established under section
601 of the American Innovation and Competitiveness Act (42
U.S.C. 1862s-8) and commonly known as `I-Corps') shall--
``(A) provide an option for participation in an I-Corps
teams course, I-Corps bootcamp, or another equivalent
training program to recipients of an award under the SBIR or
STTR program; and
``(B) authorize the recipients described in subparagraph
(A) to use amounts authorized under this subsection to
participate in the I-Corps teams course, I-Corps bootcamp, or
another equivalent training program.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps
course, I-Corps bootcamp, or another equivalent training
program may be provided by--
``(A) an I-Corps team grant;
``(B) funds awarded to the recipient under this subsection;
``(C) the participating teams or other sources as
appropriate; or
``(D) any combination of sources described in subparagraphs
(A), (B), and (C).''.
SEC. 5105. IMPROVEMENTS TO WEBSITE RELATING TO THE SBIR
PROGRAM AND STTR PROGRAM.
(a) SBIR Program.--Section 9(g)(8) of the Small Business
Act (15 U.S.C. 638(g)(8)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(D) for each research institution subcontracted by a
recipient of a Phase I, Phase II, or Phase III SBIR award to
perform research or research and development with respect to
the award--
``(i) the name and location of the research institution;
``(ii) whether the research institution is--
``(I) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
``(II) a nonprofit institution (as defined in section 4 of
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3703)) other than an institution of higher education
(as defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)); or
``(III) a federally funded research and development center
(as identified by the National Scientific Foundation in
accordance with the Federal Acquisition Regulation); and
``(iii) for each research institution that is an
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)), whether
the research institution is--
``(I) a part B institution (as defined in section 322 the
Higher Education Act of 1965 (20 U.S.C. 1061));
``(II) a Hispanic-serving institution (as defined in
section 502 of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or University (as defined in
section 316 of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving institution or a Native
Hawaiian-serving institution (as defined in section 317(b) of
such Act (20 U.S.C. 1059d(b)));
``(V) a Predominantly Black Institution (as defined in
section 371(c) of such Act (20 U.S.C. 1067q(c)));
``(VI) an Asian American and Native American Pacific
Islander-serving institution (as defined in section 371(c) of
such Act (20 U.S.C. 10 1067q(c))); or
``(VII) a Native American-serving nontribal institution (as
defined in section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(b) STTR Program.--Section 9(o)(9) of the Small Business
Act (15 U.S.C. 638(o)(9)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(D) for each research institution subcontracted by a
recipient of a Phase I or Phase II STTR award to perform
research or research and development with respect to the
award--
``(i) the name and location of the research institution;
``(ii) whether the research institution is--
``(I) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
``(II) a nonprofit institution (as defined in section 4 of
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3703)) other than an institution of higher education
(as defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)); or
``(III) a federally funded research and development center
(as identified by the National Scientific Foundation in
accordance with the Federal Acquisition Regulation); and
``(iii) for each research institution that is an
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)), whether
the research institution is--
``(I) a part B institution (as defined in section 322 the
Higher Education Act of 1965 (20 U.S.C. 1061));
``(II) a Hispanic-serving institution (as defined in
section 502 of such Act (20 U.S.C. 1101a));
``(III) a Tribal College or University (as defined in
section 316 of such Act (20 U.S.C. 1059c));
``(IV) an Alaska Native-serving institution or a Native
Hawaiian-serving institution (as defined in section 317(b) of
such Act (20 U.S.C. 1059d(b)));
``(V) a Predominantly Black Institution (as defined in
section 371(c) of such Act (20 U.S.C. 1067q(c)));
``(VI) an Asian American and Native American Pacific
Islander-serving institution (as defined in section 371(c) of
such Act (20 U.S.C. 25 1067q(c))); or
``(VII) a Native American-serving nontribal institution (as
defined in section 371(c) of such Act (20 U.S.C.
1067q(c)));''.
(c) Database Reporting.--
(1) In general.--Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended--
(A) by striking ``Phase I or Phase II SBIR or STTR'' each
place it appears and inserting ``Phase I, Phase II, or Phase
III SBIR or STTR'';
(B) in paragraph (1)(B)--
(i) in clause (ii), by striking ``and'' at the end;
(ii) in clause (iii), by adding ``and'' at the end; and
(iii) by adding at the end the following:
``(iv) information regarding any research institution
subcontracted by that small business concern to perform
research or research and development with respect to the
award, including--
[[Page S5471]]
``(I) the name and location of the research institution;
``(II) whether the research institution is--
``(aa) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
``(bb) a nonprofit institution (as defined in section 4 of
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3703)) other than an institution of higher education
(as defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)); or
``(cc) a federally funded research and development center
(as identified by the National Scientific Foundation in
accordance with the Federal Acquisition Regulation); and
``(III) for each research institution that is an
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)), whether
the research institution is an institution described in
paragraphs (1) through (7) of section 371(a) of such Act (20
U.S.C. 1067q(a));'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``Phase I or Phase II
of the SBIR program or the STTR'' and inserting ``Phase I,
Phase II, or Phase III of the SBIR program or the STTR'';
(ii) in subparagraph (F), by striking ``and'' at the end;
(iii) in subparagraph (G)(ii), by striking the period at
the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(H) contains information for each research institution
subcontracted by a recipient of a Phase I, Phase II, or Phase
III STTR or SBIR award to perform research or research and
development with respect to the award, including--
``(i) the name and location of the research institution;
``(ii) whether the research institution is--
``(I) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
``(II) a nonprofit institution (as defined in section 4 of
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3703)) other than an institution of higher education
(as defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)); or
``(III) a federally funded research and development center
(as identified by the National Scientific Foundation in
accordance with the Federal Acquisition Regulation); and
``(iii) for each research institution that is an
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)), whether
the research institution is an institution described in
paragraphs (1) through (7) of section 371(a) of such Act (20
U.S.C. 1067q(a)).''; and
(D) in paragraph (3)(C), by striking ``Phase I or Phase II
award'' each place it appears and inserting ``Phase I, Phase
II, or Phase III award''.
(2) Database update deadline.--Notwithstanding paragraphs
(1) or (2) of section 9(k) of the Small Business Act (15
U.S.C. 638(k)), the Administrator shall, not later than 1
year after the date of enactment of this Act, include--
(A) in the database described such paragraph (1) the
information required under such paragraph, as amended by
subparagraphs (A) and (B) of paragraph (1) of this
subsection; and
(B) in the database described such paragraph (2) the
information required under such paragraph, as amended by
subparagraphs (A) and (C) of paragraph (1) of this
subsection.
TITLE XXXV--COMMERCIALIZATION IMPROVEMENTS
SEC. 5201. PHASE III AWARD EDUCATION.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r))
is amended by adding at the end the following:
``(5) Workforce training.--
``(A) In general.--The Administrator, in coordination with
the Secretary of Defense, the Administrator of General
Services, and the head of any other Federal agency that the
Administrator determines appropriate, shall establish
training activities for contracting officers and the agency
acquisition workforce of Federal agencies to ensure that all
such individuals are fully aware of all aspects of Phase III
acquisitions under the SBIR and STTR programs, as applicable.
``(B) Training topics.--The training activities required
under subparagraph (A) shall include training on--
``(i) the missions, goals, and authorities of the SBIR and
STTR programs;
``(ii) the use of Phase III agreements;
``(iii) Phase III data rights; and
``(iv) the execution of Phase III sole source award
contracts.
``(C) Definitions.--In this paragraph:
``(i) Agency acquisition workforce.--The term `agency
acquisition workforce' means the employees of a Federal
agency that have procurement or acquisition responsibilities,
including--
``(I) employees described in section 1703 of title 41,
United States Code; and
``(II) individuals that are part of the acquisition
workforce (as that term is defined in section 101(a) of title
10, United States Code).
``(ii) Phase iii acquisition.--The term `Phase III
acquisition' means an acquisition of a good or service from a
participant in Phase III that such participant has
commercialized or is seeking to commercialize as such a
participant.''.
SEC. 5202. REPORT ON CERTAIN DENIALS OF PHASE III.
Section 9(r) of the Small Business Act (15 U.S.C. 638(r)),
as amended by this division, is further amended by adding at
the end the following:
``(6) Reporting.--Not later than 30 days after the date on
which the Department of Defense denies a small business
concern Phase III agreement, the Secretary of Defense shall
report that denial to the Administrator.''.
SEC. 5203. TECHNOLOGY COMMERCIALIZATION OFFICIAL.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this division, is amended by adding at the end the
following:
``(bbb) Technology Commercialization Official.--The head of
each Federal agency required to establish an SBIR or STTR
program shall--
``(1) designate an existing official within the Federal
agency as the Technology Commercialization Official of that
Federal agency, who shall--
``(A) have sufficient experience with commercialization;
``(B) provide guidance to SBIR and STTR program awardees in
commercializing and transitioning technologies;
``(C) coordinate with the Administrator and the Technology
Commercialization Officials of other Federal agencies to
identify additional markets and commercialization pathways
for promising SBIR and STTR program technologies;
``(D) submit to the Administrator an annual report on the
number of technologies from that SBIR or STTR program that
have advanced commercialization activities, including
information required in the commercialization impact
assessment report under subsection (ccc);
``(E) identify and advocate for SBIR and STTR technologies
with sufficient technology and commercialization readiness to
advance to Phase III awards or other non-SBIR or STTR program
contracts;
``(F) submit to the Administrator an annual report on--
``(i) the actions taken by that Federal agency to simply,
standardize, and expedite the application process and
requirements, procedures, and contracts as required under
subsection (hh); and
``(ii) the results of the actions taken under clause (i);
and
``(G) carry out such other duties as the head of that
Federal agency determines necessary; or
``(2) identify an official in that Federal agency carrying
out responsibilities that are substantially similar to those
described in subparagraphs (A) through (F) of paragraph
(1).''.
SEC. 5204. PHASE III IMPROVEMENTS.
(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act
(15 U.S.C. 638(j)(4)) is amended by inserting before the
period at the end the following: ``, and advocate for the
maximum practicable use and transition of products, services,
and technologies developed under SBIR or STTR programs to
Phase III by means of Phase III awards to small business
concerns''.
(2) Modification deadline.--Not later than 1 year after the
date of enactment of this Act, the Administrator of the Small
Business Administration shall modify the policy directives
issues pursuant to subsection (j) of section 9 of the Small
Business Act (15 U.S.C. 638(j)) in accordance with paragraph
(4) of that subsection, as amended by paragraph (1).
(b) Phase III Award Simplification.--Section 9(r)(4) of the
Small Business Act (15 U.S.C. 638(r)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) report to the Administrator on the actions taken by
the Federal agency or Federal prime contractor to develop
simplified and standardized procedures and model contracts
for Phase I, Phase II, and Phase III SBIR awards; and
``(D) issue standardized solicitation provisions and
contract clauses that provide clear guidance on the
information that small business concerns participating in
SBIR or STTR programs can be expected to provide as part of
market research or as part of a proposal by those small
business concerns to establish eligibility for Phase III
awards.''.
TITLE XXXVI--PILOT PROGRAMS
SEC. 5301. EXTEND AND MODIFY ASSISTANCE FOR ADMINISTRATIVE,
OVERSIGHT, AND CONTRACT PROCESSING COSTS.
(a) In General.--Section 9(mm)(1) of the Small Business Act
(15 U.S.C. 638(mm)(1)), as amended by this division, is
further amended--
(1) by redesignating subparagraphs (A) through (L) as
clauses (i) through (xii), respectively, and adjusting the
margins accordingly;
(2) by striking ``Subject to paragraph (3)'' and inserting
the following;
``(A) Use of funds.--Subject to subparagraph (B) and
paragraph (3)'';
(3) in subparagraph (A), as so redesignated--
(A) by striking ``September 30, 2025'' and inserting
``September 30, 2030''; and
(B) by striking ``3 percent'' and inserting ``3.3
percent''; and
[[Page S5472]]
(4) by adding at the end the following:
``(B) Transfer of funds.--
``(i) In general.--Not later than 60 days after the date of
enactment of an Act providing appropriations for the
Department of Defense, the Department of Energy, the
Department of Health and Human Services, the National
Aeronautics and Space Administration, or the National Science
Foundation, the head of each such entity for which that Act
provided appropriations shall transfer not less than 10
percent of the amount of the funds used for the purposes
described in clauses (i) through (xii) of subparagraph (A) to
the Administrator to increase the resources of the
Administration for administering the SBIR and STTR programs.
``(ii) Fund use limits.--None of the funds transferred
under clause (i) may be used for or with respect to any
program established under the Small Business Investment Act
of 1958 (15 U.S.C. 661 et seq.).''.
(b) 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 may 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
``including'' and all that follows through the period at the
end and inserting the following: ``including--
``(A) the use of funds transferred under subparagraph (B)
of paragraph (1) for the uses authorized under that
subparagraph and to achieve the objectives of paragraph (2);
and
``(B) the use of other funds under this subsection to
achieve those objectives.''.
SEC. 5302. EXTEND AND EXPAND THE DIRECT TO PHASE II
AUTHORITY.
Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc))
is amended--
(1) by striking ``During'' and inserting the following:
``(1) In general.--During'';
(2) in paragraph (1), as so designated--
(A) by striking ``2012 through 2025'' and inserting ``2012
through 2030''; and
(B) by striking ``the National Institutes of Health, the
Department of Defense, and the Department of Education may
each'' and inserting ``each Federal agency required to carry
out an SBIR program may''; and
(3) by adding at the end the following:
``(2) Limitation.--The total value of awards provided by a
Federal agency under this subsection in a fiscal year shall
be--
``(A) except as provided in subparagraph (B), not more than
10 percent of the total funds allocated to the SBIR program
of the Federal agency during that fiscal year; and
``(B) with respect to the National Institutes of Health,
not more than 15 percent of the total funds allocated to the
SBIR program of the National Institutes of Health during that
fiscal year.
``(3) Report.--Each head of a Federal agency that exercises
the authority under this subsection shall include in the next
report submitted by that Federal agency under subsection
(g)(9) following that exercise of authority the number and
amount of awards provided under this subsection by that
Federal agency during the period covered by that report.''.
SEC. 5303. EXTEND COMMERCIALIZATION READINESS PROGRAM FOR
CIVILIAN 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'' and
inserting ``Civilian Agencies Commercialization Readiness'';
(2) by striking ``pilot program'' each place that term
appears and inserting ``covered program''; and
(3) in paragraph (7), by striking ``fiscal year 2025'' and
inserting ``fiscal year 2030''.
SEC. 5304. EXTENSION OF CERTAIN SBIR AND STTR PILOT PROGRAMS.
(a) Phase 0 Proof of Concept Partnership Program.--Section
9(jj)(7) of the Small Business Act (15 U.S.C. 638(jj)(7)) is
amended by striking ``at the end of fiscal year 2025'' and
inserting ``on September 30, 2030''.
(b) Commercialization Assistance Pilot Programs.--Section
9(uu)(3) of the Small Business Act (15 U.S.C. 638(uu)(3)) is
amended by striking ``September 30, 2025'' and inserting
``September 30, 2030''.
SEC. 5305. EXTENSION OF DUE DILIGENCE PROGRAM TO ASSESS
SECURITY RISKS.
Section 9(vv)(3)(C) of the Small Business Act (15 U.S.C.
638(vv)(3)(C)) is amended by striking ``September 30, 2025''
and inserting ``September 30, 2030''.
TITLE XXXVII--OVERSIGHT AND SIMPLIFICATION INITIATIVES
SEC. 5401. ANNUAL REPORTS TO CONGRESS.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended--
(1) in subsection (g)--
(A) in paragraph (9)--
(i) by inserting ``the Committee on Small Business and
Entrepreneurship of the Senate, the Committee on Small
Business of the House of Representatives,'' after ``SBIR
program to'';
(ii) by inserting a comma after ``Administration''; and
(iii) by inserting after ``Technology Policy'' the
following: ``and publish that report on the website of that
Federal agency as soon as practicable''; and
(B) in paragraph (10), by striking ``applicable),,'' and
inserting ``applicable),'';
(2) in subsection (o)--
(A) in paragraph (8), by striking ``applicable),,'' and
inserting ``applicable),''; and
(B) in paragraph (10)--
(i) by inserting ``the Committee on Small Business and
Entrepreneurship of the Senate, the Committee on Small
Business of the House of Representatives,'' after ``STTR
program to'';
(ii) by inserting a comma after ``Administration''; and
(iii) by inserting after ``Technology Policy'' the
following: ``and publish that report on the website of that
Federal agency as soon as practicable''; and
(3) in subsection (gg)(6), by inserting ``Congress and''
after ``agency to''.
SEC. 5402. COMPTROLLER GENERAL REPORT ON DIVERSIFICATION AND
COMMERCIALIZATION.
(a) Definitions.--In this section:
(1) Federal agency; sbir; sttr.--The terms ``Federal
agency'', ``SBIR'', and ``STTR'' have the meanings given
those terms in section 9(e) of the Small Business Act (15
U.S.C. 638(e)).
(2) New entrant.--The term ``new entrant'' means a small
business concern that has not previously received an SBIR or
STTR award.
(3) Underrepresented groups.--The term ``underrepresented
groups'' means small business concerns located in States with
respect to which a low level of SBIR and STTR awards have
historically been awarded, small business concerns owned and
controlled by women, and small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(4) Participating agency.--The term ``participating
agency'' means a Federal agency carrying out an SBIR or STTR
program under section 9 of the Small Business Act (15 U.S.C.
638).
(5) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(6) Small business concern owned and controlled by socially
and economically disadvantaged individuals; small business
concern owned and controlled by women.--The terms ``small
business concern owned and controlled by socially and
economically disadvantaged individuals'' and ``small business
concern owned and controlled by women'' have the meanings
given those terms in section 8(d) of the Small Business Act
(15 U.S.C. 637(d)).
(b) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the
effectiveness of the SBIR and STTR programs with respect to
diversification of participants and commercialization.
(c) Contents.--The report shall include, to the extent
practicable, an assessment of--
(1) the demographics of small business concerns receiving
SBIR or STTR awards, including new entrants and
underrepresented groups;
(2) the efforts of participating agencies to broaden
representation and participation of new entrants and
underrepresented groups in the SBIR and STTR programs;
(3) how participating agencies develop solicitation topics
and attract applicants;
(4) the efforts of participating agencies to support
technology commercialization;
(5) the extent to which the SBIR and STTR awards made by
each participating agency align with the research priorities
and technology needs of that participating agency; and
(6) such other matters as the Comptroller General, in
consultation with the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, determines
appropriate.
SEC. 5403. EXTEND THE REPORT ON AWARD TIMELINESS.
Section 9(ii)(2)(A) of the Small Business Act (15 U.S.C.
638(ii)(2)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``3
years'' and inserting ``11 years'';
(2) in clause (i), by striking ``and'' at the end;
(3) by redesignating clause (ii) as clause (iii); and
(4) by inserting after clause (i) the following:
``(ii) provides the average and median amount of time that
each Federal agency with an SBIR or STTR program takes to
review and make a final decision on proposals submitted under
the program; and''.
SEC. 5404. PILOT PROGRAM TO ACCELERATE NATIONAL INSTITUTES OF
HEALTH EVALUATION PROCESS.
(a) In General.--Section 9(hh) of the Small Business Act
(15 U.S.C. 638(hh)) is amended by adding at the end the
following:
``(3) Pilot program to accelerate the national institutes
of health sbir and sttr awards.--
[[Page S5473]]
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Director of the National
Institutes of Health shall establish a pilot program to
reduce the time for awards under the SBIR and STTR programs
of the National Institutes of Health.
``(B) Award procedures.--In carrying out the pilot program
under subparagraph (A), the Director of the National
Institutes of Health shall develop simplified and
standardized procedures across all relevant awarding offices
at the National Institutes of Health and reduce the amount of
time between the provision of notice of those awards and the
subsequent release of funding with respect to the awards to
be as close to 90 days as possible.
``(C) Merit review.--
``(i) In general.--Under the pilot program under
subparagraph (A), the Director of the National Institutes of
Health may, with respect to awards under the SBIR and STTR
programs of the National Institutes of Health, use such peer
review procedures (including consultation with appropriate
scientific experts) as the Director determines to be
appropriate to obtain assessments of scientific and technical
merit and potential for commercialization.
``(ii) Deemed.--The use of peer review procedures under
clause (i) shall be deemed to fulfill any requirements
applicable to the award under the SBIR or STTR program of the
National Institutes of Health under sections 406(a)(3)(A) and
492 of the Public Health Service Act (42 U.S.C.
284a(a)(3)(A), 289a).
``(D) Termination.--The pilot program under subparagraph
(A) shall terminate on September 30, 2030.''.
(b) Evaluation Report.--Not later than 3 years after the
date of enactment of this Act, the Director of the National
Institutes of Health 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 an evaluation of
the pilot program established under paragraph (3) of section
9(hh) of the Small Business Act (15 U.S.C. 638(hh)), as added
by subsection (a), including an analysis of the peer review
procedures used under subparagraph (C) of that paragraph and
the effects on award times.
SEC. 5405. CODIFYING SAFEGUARDS FOR SMALL BUSINESS CONCERNS
MAJORITY-OWNED BY VENTURE CAPITAL OPERATING
COMPANIES, HEDGE FUNDS, OR PRIVATE EQUITY
FIRMS.
(a) In General.--Section 9(dd) of the Small Business Act
(15 U.S.C. 638(dd)) is amended--
(1) in paragraph (6)(B), by striking ``If a Federal'' and
inserting ``Except as provided in paragraph (8), if a
Federal''; and
(2) by adding at the end the following:
``(8) Participation limits.--
``(A) Definitions.--In this paragraph:
``(i) Covered foreign entity.--the term `covered foreign
entity'--
``(I) means--
``(aa) a foreign entity of concern;
``(bb) a government or political party of a foreign country
of concern;
``(cc) a natural person who is not a lawful permanent
resident of the United States, citizen of the United States,
or any other protected individual (as that term is defined in
section 274B(a)(3) of the Immigration and Nationality Act (8
U.S.C. 1324b(a)(3))); or
``(dd) a partnership, association, corporation,
organization, or other combination of persons organized under
the laws of or having its principal place of business in a
foreign country of concern; and
``(II) includes--
``(aa) any entity owned by, controlled by, or subject to
the jurisdiction or direction of an entity listed in
subclause (I);
``(bb) any person, wherever located, who acts as an agent,
representative, or employee of an entity listed in subclause
(I);
``(cc) any person who acts in any other capacity at the
order, request, or under the direction or control, of an
entity listed in subclause (I), or of a person whose
activities are directly or indirectly supervised, directed,
controlled, financed, or subsidized in whole or in majority
part by an entity listed in subclause (I);
``(dd) any person who directly or indirectly through any
contract, arrangement, understanding, relationship, or
otherwise, owns 25 percent or more of the equity interests of
an entity listed in subclause (I);
``(ee) any person with significant responsibility to
control, manage, or direct an entity listed in subclause (I);
``(ff) any person, wherever located, who is a citizen or
resident of a country controlled by an entity listed in
subclause (I); or
``(gg) any corporation, partnership, association, or other
organization organized under the laws of a country controlled
by an entity listed in subclause (I).
``(ii) Foreign entity of concern.--The term `foreign entity
of concern' means a foreign entity that is--
``(I) designated as a foreign terrorist organization by the
Secretary of State under section 219(a) of the Immigration
and Nationality Act (8 U.S.C. 1189(a));
``(II) included on the list of specially designated
nationals and blocked persons maintained by the Office of
Foreign Assets Control of the Department of the Treasury
(commonly known as the SDN list);
``(III) owned by, controlled by, or subject to the
jurisdiction or direction of a government of a foreign
country that is a covered nation (as that term is defined in
section 4872 of title 10, United States Code);
``(IV) alleged by the Attorney General to have been
involved in activities for which a conviction was obtained
under--
``(aa) chapter 37 of title 18, United States Code (commonly
known as the `Espionage Act');
``(bb) section 951 or 1030 of title 18, United States Code;
``(cc) chapter 90 of title 18, United States Code (commonly
known as the `Economic Espionage Act of 1996');
``(dd) the Arms Export Control Act (22 U.S.C. 2751 et
seq.);
``(ee) section 224, 225, 226, 227, or 236 of the Atomic
Energy Act of 1954 (42 U.S.C. 2274, 2275, 2276, 2277, and
2284);
``(ff) the Export Control Reform Act of 2018 (50 U.S.C.
4801 et seq.); or
``(gg) the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.); or
``(V) determined by the Secretary of Commerce, in
consultation with the Secretary of Defense and the Director
of National Intelligence, to be engaged in unauthorized
conduct that is detrimental to the national security or
foreign policy of the United States.
``(B) Ownership by a covered foreign entity.--A small
business concern that is majority-owned by multiple venture
capital operating companies, hedge funds, or private equity
firms is ineligible to receive an award under any SBIR
program if the Administrator determines that such small
business concern is, or is owned and controlled in majority
part by, a covered foreign entity.
``(C) Ownership determination.--In determining whether a
small business concern is ineligible to receive an award
under any SBIR program under subparagraph (A), the
Administrator shall consider whether the small business
concern is a direct or indirect subsidiary of a foreign-owned
firm.
``(D) Size standards.--The Administrator shall establish
size standards for small business concerns seeking to
participate in an SBIR program solely under the authority
under this section.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply only with respect to awards made under a Small
Business Innovation Research Program (as defined in section
9(e) of the Small Business Act (15 U.S.C. 638(e))) after the
date of enactment of this Act.
SEC. 5406. COMMERCIALIZATION IMPACT ASSESSMENT.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this division, is amended by adding at the end the
following:
``(ccc) Commercialization Impact Assessment.--
``(1) In general.--The Administrator shall coordinate with
the head of each Federal agency with an SBIR or STTR program
to develop an annual commercialization impact assessment,
which shall measure, for each small business concern that has
received not less than 50 Phase II awards on or after October
1 of the ninth full fiscal year beginning before the fiscal
year in which the assessment is carried out--
``(A) the total dollar value of Federal awards, subgrants,
contracts, and subcontracts, other than SBIR or STTR awards,
received by the small business concern in the preceding 9
fiscal years;
``(B) the total dollar value of all SBIR and STTR Phase I
and Phase II awards received by the small business concern in
the preceding 9 fiscal years;
``(C) the average annual gross revenue of the small
business concern over the preceding 9 fiscal years;
``(D) the total revenue of the small business concern
received or realized in the preceding 9 fiscal years from the
sale or licensing of any product or service resulting from
research conducted under an SBIR or STTR award, which shall
be disaggregated by the revenue from those sales and the
revenue from that licensing;
``(E) additional investments in the small business concern
from any source, other than Phase I or Phase II SBIR or STTR
awards, to further the research and development conducted
under an SBIR or STTR award received by the small business
concern in the preceding 9 fiscal years;
``(F) any mergers and acquisitions of SBIR or STTR award
recipients during or after the completion of a Phase II
award;
``(G) new, unique spin-out companies and third party
revenues from any businesses in the preceding 9 fiscal years
resulting from research conducted by the small business
concern under an SBIR or STTR award;
``(H) the year in which the first Phase II award was
received by the small business concern and the total number
of employees of the small business concern at the time of the
first Phase II award;
``(I) the number of employees, as of the end of the most
recently completed fiscal year; and
``(J) the total number and value of Phase III awards
received by the small business concern.
``(2) Publication.--The Administrator shall create a report
on the findings of each commercialization impact assessment
and shall--
``(A) include that report in the annual report required
under subsection (b)(7); and
``(B) submit that report to--
``(i) the Committee on Small Business and Entrepreneurship
of the Senate; and
``(ii) the Committee on Science, Space, and Technology and
the Committee on Small Business of the House of
Representatives.''.
[[Page S5474]]
TITLE XXXVIII--TECHNICAL CHANGES
SEC. 5501. INCLUSION OF SBICS IN THE SBIR AND STTR PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638), as
amended by this division, 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 (18), by striking ``and'' at the end;
(B) in paragraph (19), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(20) 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. 5502. PHASE III AND SOLE-SOURCE AWARDS.
Section 9(r) of the Small Business Act (15 U.S.C. 638) is
amended--
(1) in the heading, by inserting ``Sole Source and Other''
after ``Justification for''; and
(2) in the heading for paragraph (4), by inserting ``sole
source and other'' after ``justification for''.
______