SBIR/STTR Reauthorization Act of 2025

This bill renews and updates the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. It raises how much of each agency’s research budget must go to these programs over time—at least 4% in 2026–27, 5% in 2028–29, 6% in 2030–31, and 7% from 2032 onward for SBIR, and up to 1% by 2032 for STTR. It also extends several support efforts through 2030, including the FAST program, commercialization readiness work, early “Phase 0” pilots, and security due‑diligence checks .

To make it easier and faster for small businesses to win and use awards, the bill adds fellowships and internships through Phase II companies with outreach to women and disadvantaged groups ; boosts application help and outreach to underrepresented states and schools, including minority‑serving and Hispanic‑serving institutions ; expands technical and business help funding ($6,500 in Phase I and $50,000 in Phase II), allows staff training, and opens access to I‑Corps entrepreneurship courses. It improves public websites and databases to show which research institutions are subcontracted on awards and whether they are minority‑serving colleges and universities . Each agency must name a Technology Commercialization Official to guide firms, train contracting staff on Phase III, and help standardize steps to move from research to real‑world contracts . Agencies can use “direct to Phase II” more broadly through 2030, within set limits, to speed promising work. Oversight increases too: a GAO study on diversity and commercialization, a longer (11‑year) report on how long agencies take to decide proposals, and an NIH pilot to cut award times to about 90 days; plus an annual assessment of commercialization results for firms with many Phase II awards .

Key points

• Who is affected: small businesses seeking SBIR/STTR funding; federal agencies and contracting staff; colleges and research institutions (including minority‑serving and Hispanic‑serving institutions); NIH applicants looking for faster decisions .
• What changes:
  • Agencies dedicate more of their R&D budgets to SBIR/STTR, rising through 2032.
  • Fellowships and internships via Phase II firms, with strong outreach to women and disadvantaged groups.
  • More application help for underrepresented states and schools, including minority‑serving and Hispanic‑serving institutions.
  • Up to $6,500 (Phase I) and $50,000 (Phase II) for technical/business help and staff training; I‑Corps participation allowed.
  • Clearer, standardized Phase III steps and training; each agency names a commercialization lead .
  • “Direct to Phase II” authority expanded for all agencies and extended to 2030, with usage caps; other pilot programs extended to 2030 .
  • Better public info on subcontracted research institutions on SBIR/STTR websites and databases .
  • More oversight: GAO report on diversity/commercialization, longer award‑timing reports, an NIH speed‑up pilot, and a yearly commercialization impact assessment for frequent awardees .
• When:
  • Budget shares ramp up starting in 2026 and reach new levels by 2032.
  • Many extensions run through September 30, 2030.
  • The NIH pilot must begin within 1 year and ends September 30, 2030; the GAO report is due within 3 years .