SBIR/STTR Foreign Interference Safeguard Act

This bill tightens who can get SBIR/STTR research awards and keeps security checks in place longer. It extends the government’s security-risk screening program for these awards through September 30, 2030. It also says that a small business that is majority-owned by multiple venture capital, hedge fund, or private equity firms cannot receive an SBIR award if the Small Business Administration decides it is, or is mostly owned or controlled by, a “covered foreign entity”. The SBA will consider indirect ownership (like being a subsidiary of a foreign-owned firm) and will set size standards for these applicants.

The bill defines “covered foreign entity” and “foreign entity of concern” broadly. This can include groups on U.S. sanctions lists, foreign terrorist organizations, entities tied to certain espionage or export-control violations, and organizations or people heavily owned, directed, or controlled by governments of concern . These changes apply to awards made after the bill becomes law.

• Who is affected: Small businesses seeking SBIR/STTR awards, especially those majority-owned by multiple VC, hedge fund, or private equity firms.
• What changes: Extended security screening to 2030; blocks SBIR awards to firms judged to be controlled by certain foreign entities; clarifies how ownership is judged and sets size standards.
• When: Applies to awards after enactment; screening extended through September 30, 2030 .