SBIR/STTR Reauthorization Act of 2025
Sponsored By: Representative Velazquez
Introduced
Summary
Modernize and expand SBIR and STTR programs to accelerate commercialization. It would raise agency funding floors, extend pilot programs through 2030, add new commercialization roles and training, expand technical and cybersecurity assistance, and tighten ownership rules tied to certain foreign entities.
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- Small businesses and researchers: Sets rising agency minimum budget shares from 4% (2026–2027) to 7% (2032 and thereafter) and adds per‑project technical assistance caps of Phase I up to $6,500 and Phase II up to $50,000.
- Federal agencies and acquisition teams: Requires Technology Commercialization Officials and workforce training to ease Phase III awards, standardizes Phase I–III contracting and reporting, creates a 10% interagency transfer to boost administration, and raises the SBIR/STTR cost‑control target to 3.3%.
- Equity, outreach, and security: Expands fellowships and outreach to minority and low‑award states, mandates public reporting of subcontracted research institutions, caps direct‑to‑Phase II awards at 10% per agency (15% for NIH), and bars awards tied to defined covered foreign entities after enactment.
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 7 benefits, 1 costs, 2 mixed.
Keep SBIR and STTR running long term
This bill would remove the SBIR sunset and let the program continue. It would also remove the “through fiscal year 2025” limit on STTR so it could keep going after 2025. Several related pilots, including FAST and commercialization readiness programs, would be extended through September 30, 2030. Civilian commercialization pilots would be renamed to reflect ongoing programs.
Easier path to Phase III contracts
Agencies and prime contractors would standardize procedures, model contracts, and solicitation language for Phase I–III. Procurement reps would be told to push SBIR/STTR results into Phase III awards. SBA and partner agencies would train contracting staff on Phase III rules, data rights, and sole‑source awards. Each agency would name a Technology Commercialization Official to guide awardees and report on progress. SBA would also publish yearly commercialization assessments for companies with at least 50 Phase II awards, covering the prior 9 years.
Faster NIH award funding pilot
NIH would start a pilot within one year to cut the time from award notice to funding to about 90 days. The pilot would end September 30, 2030. NIH would report results to Congress within three years.
Higher SBIR/STTR set-aside rates
Agencies would have to set aside more of their budgets for SBIR and STTR. The rates would be at least 4% in FY2026–2027, 5% in FY2028–2029, 6% in FY2030–2031, and 7% in FY2032 and later. The bill would also add alternative baseline percentages of 0.5% (FY2026–2027), 0.65% (FY2028–2029), 0.8% (FY2030–2031), and 1% (FY2032+).
More technical help and training
Phase I awardees could use up to $6,500 per project, and Phase II awardees up to $50,000, for technical and business help, including cybersecurity. Agencies could include these amounts in the award or add them on top. You could use technical‑assistance funds to hire or train staff if it fits program goals. Agencies that ran I‑Corps by January 1, 2025 would have to offer I‑Corps courses; costs could come from I‑Corps grants, award funds, teams, or other sources. Agencies could also fund fellowships and internships at Phase II firms, with outreach to women and disadvantaged groups, using authorized funds or up to 3% of required spending.
Tighter SBIR rules on foreign ties
Some firms would lose SBIR eligibility if the SBA finds they are majority‑owned by a covered foreign entity. The test would look at indirect ownership, ties to foreign governments, sanctions lists, and 25% or greater ownership thresholds. It would apply to awards made after enactment and includes firms majority‑owned by multiple VC, hedge fund, or private equity investors.
Direct-to-Phase II expanded with caps
The direct‑to‑Phase II option would run through 2030 and be open to all SBIR agencies. But each agency could use no more than 10% of its SBIR funds for these awards each year. NIH could use no more than 15%. Agencies that use this option would report how many such awards they made and for how much.
Clarifies SBIC investment references
The bill would add “SBIC investment” where rules now say private equity. It would also name SBICs using their legal definition. This would clarify how SBIC investments are treated in SBIR/STTR rules.
More help and outreach for applicants
Agencies could give application help, with a focus on States that have had few awards. They could use some program funds for outreach and assistance to boost participation. SBIR rules would add outreach to minority‑serving and Hispanic‑serving institutions within 90 days, and STTR would add outreach procedures. Agencies would send annual reports to Congress and post them online. They would also report average and median review times and use 11 years of data to track timeliness.
More SBA admin funding transfer
DOD, DOE, HHS, NASA, and NSF would have to transfer at least 10% of certain program funds to SBA within two months after each related appropriations law. The money would be for SBA to administer SBIR/STTR and could not fund SBIC programs. The SBIR/STTR cost‑control target would rise from 3% to 3.3%.
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Sponsors & CoSponsors
Sponsor
Velazquez
NY • D
Cosponsors
Amo
RI • D
Sponsored 7/23/2025
Pappas
NH • D
Sponsored 9/9/2025
Chu
CA • D
Sponsored 11/7/2025
Roll Call Votes
No roll call votes available for this bill.
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