Sponsors
Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Updated 5 hours ago
Last progress May 1, 2025 (10 months ago)
Last progress June 9, 2025 (8 months ago)
Introduced on June 9, 2025 by Johnny Olszewski
Extends and strengthens parts of the federal SBIR/STTR small business innovation programs by moving several expiration dates from 2025 to 2030. It broadens and extends the “direct to Phase II” authority so more agencies can use it, sets yearly percentage limits on awards made under that authority, and requires agencies to report amounts and counts of those awards. It also extends two pilot programs (Phase 0 proof-of-concept partnerships and commercialization assistance pilots) and extends the civilian-agency commercialization readiness program through FY2030.
Designate the existing text of subsection (cc) of Section 9 of the Small Business Act as paragraph (1).
Replace the phrase "2012 through 2025" with "2012 through 2030" in subsection (cc), extending the period covered by the authority to 2030.
Replace the agency-specific phrase "the National Institutes of Health, the Department of Defense, and the Department of Education may each" with the broader phrase "each Federal agency required to carry out an SBIR program may," allowing any such agency to exercise the authority.
Add a Limitation: Except as provided for NIH, the total value of awards provided by a Federal agency under this subsection in a fiscal year shall be not more than 10 percent of the total funds allocated to that agency's SBIR program during that fiscal year.
Add a Limitation specific to NIH: With respect to the National Institutes of Health, the total value of awards provided under this subsection in a fiscal year shall be not more than 15 percent of the total funds allocated to NIH's SBIR program during that fiscal year.
Who is affected and how:
Small businesses participating in SBIR/STTR: They get extended program continuity and potentially faster paths to Phase II (direct-to-Phase-II), which can shorten the development timeline and improve commercialization chances. The extension of Phase 0 and commercialization assistance pilots also provides more time and opportunities for early-stage proof-of-concept work and commercialization support.
Federal agencies that run SBIR/STTR programs: More agencies may opt to use direct-to-Phase-II authority, but they must stay within the new percentage limits and meet new reporting requirements. Agencies will need to update program practices, tracking, and annual reporting.
Research partners and commercialization service providers: Entities that partner with small businesses (universities, incubators, accelerators, non‑profits) may see sustained demand for Phase 0 and commercialization services through 2030.
Program administrators and oversight bodies: Increased reporting requirements create modest administrative burden but improve transparency about how the direct-to-Phase-II pathway is used.
Potential benefits:
Potential downsides and risks:
Overall, the changes are largely administrative and programmatic extensions designed to support commercialization while adding guardrails and transparency. No direct new spending or tax policy changes are included in the text provided.