Yet Another Extension for SBIR Expected

Yet Another Extension for SBIR Expected

Jan 27, 2010

The highly successful Small Business Innovation Research (SBIR) program is set to expire on Jan. 31, 2010. With only a handful of days left to go, the House is expected to pass a 90-day continuing resolution (CR) today, with the Senate likely to follow suit in the next few days. Unfortunately, this is just another in a long line of CRs due to the House’s refusal to work toward compromise language with the Senate. A complete reauthorization of the SBIR program has already has been delayed by more than 18 months.

Both the Senate and House have passed reauthorizing legislation leaving reconciliation the next logical step. Unfortunately there are some significant differences between the two bills which still haven’t been reconciled. The Senate Committee on Small Business and Entrepreneurship has crafted compromise legislation of which NSBA and the Small Business Technology Council (SBTC)—a council of NSBA—have been very supportive. Unfortunately, the House has thus far refused to compromise on key components of their bill, components NSBA and SBTC have adamantly opposed.

The House favors a significant increase in access to the program for venture capital (VC) controlled firms; much larger Phase I and Phase II awards than currently allowable; allowing some awards to go directly to large Phase II contracts, bypassing the Phase I competition; and reauthorizing the program for only 2 years instead of the Senate’s 14 years. The Senate bill, on the other hand, has aimed to offer a certain level of compromise that would allow for more reasonable increased participation by VC controlled firms in certain agencies’ SBIR programs without making such drastic and devastating changes to the program.

NSBA and SBTC have registered significant concerns with the House bill and believe it stands to dramatically change the program from a small-business program with a level playing field for the smallest companies to one that favors larger, well-funded companies with lobbyists and large marketing departments.

The SBIR program has been an extremely successful program, and a responsible reauthorization of this program is one of NSBA’s top priorities. Please click here for more details.