This bill aims to help small businesses turn research into real products faster by updating the SBIR and STTR programs. It tells agencies to weigh how likely a project is to reach the market during reviews and to include at least one reviewer with real commercialization experience. It also shortens a key timeline in both programs from one year to 180 days, speeding decisions and next steps for awardees.

Key points:

• Who is affected: Small businesses with SBIR or STTR awards, the federal agencies that run these programs, and the U.S. Patent and Trademark Office.
• What changes:
  • Agencies must name a Technology Commercialization Official to guide awardees, help move ready technologies to later-stage awards or other contracts, work across agencies, and report on progress and application streamlining.
  • Awardees can choose their own technical and business help. They may use up to $6,500 in Phase I and up to $50,000 in Phase II per project for these services, including hiring or training staff.
  • Agencies with an I-Corps program must offer SBIR/STTR awardees the option to take an I-Corps teams course; costs can be covered by an I-Corps grant, technical-assistance funds, team funds, or a mix.
  • The SBA will publish an annual commercialization impact report with measures like sales, patents, outside investment, jobs, and Phase III awards for firms with many Phase II awards over the past nine years.
  • The SBA and USPTO will create a prioritized patent examination program for SBIR/STTR awardees and provide outreach on USPTO assistance and scam prevention.
  • A funding flexibility option is capped for fiscal years 2025–2027: generally up to 10% of an agency’s SBIR/STTR funds, up to 30% at NIH, and no cap at the Department of Defense.
• When: The funding flexibility rules apply in fiscal years 2025–2027.