S. 3971 · Signed into law · Commerce

Small Business Innovation and Economic Security Act

Sponsor: Joni Ernst (R-IA)

What it does

• Reauthorizes the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through fiscal year 2031.
• Requires federal agencies to evaluate security risks of small-business applicants for SBIR and STTR awards and provide written basis if denying an application for security reasons.
• Mandates each agency set a maximum number of proposals per fiscal year that a small business can submit for Phase I and Phase II solicitations.
• Expands training requirements for agency contracting officers and acquisition personnel on Phase III (commercialization) awards under SBIR and STTR programs.
• Establishes strategic breakthrough allocations providing additional Phase II awards to small businesses in critical technology areas that secure matching funds.

Official summary

Small Business Innovation and Economic Security Act This bill reauthorizes through FY2031 and modifies the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program, and related pilot programs. (The SBIR and STTR programs are administered by various federal agencies and provide competitive awards for domestic small businesses to conduct research and development projects that have the potential for commercialization.) Specifically, the bill expands the requirements for federal agencies administering these programs to evaluate the security risks of the small businesses that apply for awards under the programs. If an agency denies an application for security reasons, the agency must provide the small business with the basis for such determination. Further, each agency must set a maximum number of proposals per fiscal year that a small business concern may submit in response to Phase I and Phase II solicitations. The bill expands the training requirements for agencies' contracting officers and acquisition workforce with respect to Phase III (commercialization of technologies) awards under the SBIR and STTR programs. The bill also…

Latest action

Apr 13, 2026: Became Public Law No: 119-83.