Small Business Innovation and Economic Security Act

The Small Business Innovation and Economic Security Act, if signed by the President, would reauthorize two federal programs that provide competitive research and development funding to small businesses through 2031. The SBIR and STTR programs, administered across various federal agencies, currently award grants to small companies for research projects with commercial potential. This bill extends these programs' authority and makes several modifications to how they operate.

The bill requires federal agencies to evaluate the security risks of small businesses applying for awards and to provide written explanations if applications are denied for security reasons. Additionally, agencies must establish limits on how many proposals a single small business can submit each year for certain funding phases. These changes aim to balance innovation support with national security considerations.

The legislation also expands training requirements for federal contracting officers overseeing the commercialization phase of these programs. It establishes new "strategic breakthrough allocations" that provide additional Phase II funding to small businesses working on critical technologies, provided they can secure matching funds from other sources. If signed, these changes would take effect pending implementation by the relevant federal agencies.