What does Preamble of Small Business Innovation and Economic Security Act do?

This bill is formally titled Public Law 119-83. The stated purpose of the bill is to extend the SBIR and STTR programs.

What does > SHORT TITLE. of Small Business Innovation and Economic Security Act do?

This bill is formally titled the Small Business Innovation and Economic Security Act.

What does BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS. of Small Business Innovation and Economic Security Act do?

This section amends Section 9 of the Small Business Act to bolster research security for SBIR and STTR awards. The amendments require Federal agencies to evaluate small business concerns for security risks, considering factors like due diligence, disclosures, and coordination with the intelligence community. These security risk evaluations include assessing connections to entities or individuals on various lists, such as the UFLPA Entity List, the Non-SDN Chinese Military-Industrial Complex Companies List, and others. Federal agencies must provide notifications to small business concerns if an award is denied based on a security risk determination, outlining the basis for the determination. The amendments clarify that a denial of an award does not preclude a small business concern from applying in subsequent award cycles. Subsection (vv)(2) is amended to assess cybersecurity practices, patent analysis, employee analysis, and foreign ownership/affiliations of small business concerns. The GAO study mandated by the SBIR and STTR Extension Act of 2022 is extended from 3 years to 8 years.

What does PHASE II STRATEGIC BREAKTHROUGH FUNDING. of Small Business Innovation and Economic Security Act do?

This section establishes a 'Strategic Breakthrough Funding' program within the Small Business Act. It amends Section 9 of the Small Business Act to define a 'strategic breakthrough allocation' as an expenditure of not more than 0.50 percent of a Federal agency's extramural research budget. Federal agencies can award up to $30,000,000 to small businesses using these funds, with a project period not exceeding 48 months. Small businesses receiving these awards must have prior Phase II SBIR/STTR awards, demonstrate matching funds (new private capital or government funding), and prove their technology is a viable solution. For Department of Defense awards, businesses must also demonstrate a commitment for inclusion in a program objective memorandum and provide a certain percentage of matching funds from the Department of Defense. Agencies must complete contract awards within 90 days of receiving a proposal. Federal agencies are required to brief Congress within 60 days of the Act's enactment regarding their plans to use this authority. The provisions of this section are set to terminate on September 30, 2031, after which the original law will be restored.

What does REDUCING ADMINISTRATIVE BURDEN. of Small Business Innovation and Economic Security Act do?

This section amends the Small Business Act to establish a process for limiting the number of proposals small business concerns can submit in response to Phase I and Phase II solicitations under the SBIR or STTR program. Federal agencies must set a limit, effective fiscal year 2027, using one of three methods: a limit per fiscal year, per solicitation, or per topic. The Director of the SBIR or STTR program office within each Federal agency is responsible for setting these limits, and this authority cannot be delegated. A waiver of the proposal limit may be granted on a topic-by-topic basis for time-sensitive and urgent topics, requiring written justification and approval within 15 days. Federal agencies are limited to granting waivers for no more than 5 percent of topics each fiscal year. Agencies must report the methodology and impact of any limit changes to the Senate and House Small Business and Entrepreneurship Committees, and the House Science, Space, and Technology Committee. The Director must establish the proposal limit 90 days before the start of each fiscal year.

What does PHASE III AWARD EDUCATION. of Small Business Innovation and Economic Security Act do?

This section amends Section 9 of the Small Business Act to define 'agency acquisition workforce'. The definition of 'agency acquisition workforce' includes employees with procurement or acquisition responsibilities, as described in sections 1703 of Title 41 and 101(a) of Title 10. The Administrator, in coordination with the Secretary of Defense and other agencies, is directed to establish training activities for contracting officers and the agency acquisition workforce. Training topics will include the missions, goals, authorities of the SBIR and STTR programs, use of Phase III agreements, data rights, and execution of sole source award contracts. Funding for these training activities may be sourced from funds available for subsections (y) and (mm).

What does PHASE III IMPROVEMENTS. of Small Business Innovation and Economic Security Act do?

This section modifies Section 9(j)(4) of the Small Business Act to require Procurement Center Representatives to advocate for the maximum practicable use and transition of products, services, and technologies developed under SBIR or STTR programs to Phase III. The Administrator of the Small Business Administration must modify policy directives within one year of the Act's enactment to align with the amended Section 9(j)(4). Section 9(r)(4) of the Small Business Act is amended to include new subparagraphs (C) and (D). Subparagraph (C) requires Federal agencies to develop simplified procedures and model contracts for Phase I, Phase II, and Phase III SBIR awards and report actions to the Administrator. Subparagraph (D) allows for the issuance of standardized solicitation provisions and contract clauses providing guidance on information small businesses should provide for Phase III awards.

What does TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS. of Small Business Innovation and Economic Security Act do?

This section amends Section 9 of the Small Business Act to improve technical and business assistance for small business concerns engaged in SBIR or STTR projects. Recipients of SBIR or STTR awards are now authorized to select technical and business assistance providers, rather than agencies entering into agreements with vendors. The amendments include provisions for cybersecurity assistance and screening for potential foreign involvement in technology development. Small business concerns can now use funding to hire or augment staff for training activities related to their SBIR or STTR projects. Federal agencies are authorized to allow recipients of Phase I SBIR or STTR awards to use up to $6,500 per project and Phase II awards to use up to $50,000 per project for these services. Federal agencies may perform targeted reviews of technical and business assistance funding. Each Federal agency with an Innovation Corps program is required to provide an option for requesting participation in I-Corps training programs to SBIR or STTR recipients. Recipients can use funds authorized under Section 9(q) to participate in I-Corps programs, with costs potentially covered by various sources including grants, subsection (mm) funds, and other sources.

What does IMPROVING SBIR AND STTR DATA COLLECTION. of Small Business Innovation and Economic Security Act do?

This section amends Section 9(k)(1) of the Small Business Act to add data fields to the SBIR database regarding award classifications. The amendments require reporting on whether an award is direct to Phase II, subsequent Phase II, a strategic breakthrough award, or a Phase III prime or subcontract award. The Administrator of General Services is directed to update the Federal Procurement Data System to include reporting on SBIR and STTR awards. The updated system will require reporting on Phase III contract designations and the use of SBIR/STTR-funded technology in non-SBIR contracts. Contracting officers must reference SBIR or STTR contract identification numbers when recording Phase II or Phase III contracts that build upon prior SBIR/STTR work.

What does EXTENDING SBIR AND STTR AUTHORIZATION. of Small Business Innovation and Economic Security Act do?

This section amends Section 9 of the Small Business Act. It extends authorization for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The authorization expiration date is extended from September 30, 2025, to September 30, 2031. Federal agencies participating in the SBIR or STTR program may carry over unexpended funds from fiscal year 2026 to fiscal year 2027.

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Small Business Innovation and Economic Security Act

Last updated: 4/13/2026 · Introduced: 3/3/2026

Author: Joni Ernst (R-IA)

TL;DR (AI)

This bill extends the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through September 30, 2031, ensuring continued funding and opportunities for small businesses.
It establishes a 'Strategic Breakthrough Funding' program providing up to $30 million to small businesses with prior SBIR/STTR awards to support innovative technologies, terminating on September 30, 2031.
The bill aims to reduce administrative burdens by allowing federal agencies to set limits on the number of proposals small businesses can submit, with waivers available for urgent topics.
It mandates training for federal acquisition workforces on SBIR/STTR programs, Phase III agreements, and data rights to facilitate the transition of small business innovations into government use.
The legislation improves technical and business assistance for small businesses participating in SBIR/STTR projects, enabling them to utilize funds for cybersecurity assistance, staff training, and participation in Innovation Corps programs.

119th CongressenactedOfficial page

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Includes provisions on preamble, <<note: 15 usc 631 note.>> short title., and 9 more.

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