President Donald Trump on Monday signed into law a bill that seeks to reauthorize the Small Business Innovation Research and Small Business Technology Transfer programs through fiscal year 2031.
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What Did SBA Director Kelly Loeffler Say About the SBIR-STTR Reauthorization Bill?
In a statement published Monday, Kelly Loeffler, administrator of the Small Business Administration, said the Small Business Innovation and Economic Security Act will sustain support for startups developing advanced technologies and contributing to the U.S. industrial base.
“Driven by innovative startups, the United States leads the world in scientific breakthroughs and transformative technology – and thanks to this law, SBIR and STTR will continue to power entrepreneurs who are building the industrial base of the future,” said Loeffler, a 2026 Wash100 awardee.
“Amid intense global competition and America’s reindustrialization, this law reinforces the Administration’s commitment to accelerating American ingenuity. I applaud lawmakers for advancing this critical measure and am grateful to President Trump for signing it into law to unleash the potential of the next generation of innovators,” she added.
What Are the Provisions of the Small Business Innovation & Economic Security Act?
The measure reauthorizes the SBIR and STTR programs through Sept. 30, 2031, and includes provisions to strengthen program integrity and safeguard research from foreign adversaries.
The law also expands access for new entrants, enhances oversight and modernizes program operations to ensure measurable outcomes from federal investments.
According to congressional records, the Small Business Innovation and Economic Security Act will expand requirements for federal agencies to evaluate national security risks posed by small business applicants. If an agency denies an application on security grounds, it must provide the applicant with the basis for that determination.
It also requires agencies to set a maximum number of proposals a small business may submit per fiscal year in response to Phase I and Phase II solicitations.
In addition, the legislation expands training requirements for contracting officers and the acquisition workforce related to Phase III awards, which focus on the commercialization of SBIR and STTR-supported technologies.
The law also establishes strategic breakthrough allocations for critical technology areas, providing additional Phase II awards to small businesses that demonstrate effective technologies and secure matching funds.
Sen. Joni Ernst, R-Iowa, chair of the Senate Small Business and Entrepreneurship Committee, sponsored the measure, which was carried in the House by Rep. Roger Williams, R-Texas, chairman of the House Small Business Committee.
What Are the SBIR & STTR Programs?
According to SBA, the SBIR and STTR programs, known collectively as America’s Seed Fund, have provided more than $81 billion in funding to over 34,000 small businesses since 1982. The programs operate across multiple federal agencies, including the Department of War, Department of Energy, Department of Health and Human Services, Department of Agriculture, NASA and the Environmental Protection Agency.
Companies such as Anduril, Biogen, Qualcomm, Illumina and iRobot received early-stage support through the SBIR program.
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