H.R. 2763 — what changed

added “(2) Outreach and technical assistance—A Federal agency participating in the program under this subsection shall use a portion of the funds authorized for uses under paragraph (1) to carry out the policy directive required under subsection (j)(2)(F) and to increase the participation of States with respect to which a low level of SBIR awards have historically been awarded.”

added “(tt) Annual meeting

added “(1) In general—The head of each Federal agency required to have a program under this section (or a designee) and the Administrator (or a designee) shall meet annually to discuss methods—

added “(A) to improve the collection of data under this section;

added “(B) to improve the reporting of data to the Administrator under this section;

added “(C) to make the application processes for programs under this section more efficient; and

added “(D) to increase participation in the programs established under this section.

added “(2) Report—Not later than 60 days after the date on which an annual meeting required under paragraph (1) is held, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, a report on the findings of such meeting and recommendations on how to implement changes to programs under this section.”

added “(K) the annual meeting required under subsection (tt).”

added Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is amended by striking “, including sole source awards,” and inserting “as direct follow-on awards issued without further competition”.

added Section 9 of the Small Business Act (15 U.S.C. 638), as amended by section 8, is further amended by adding at the end the following new subsection:

added “(uu) Commercialization assistance pilot programs

added “(1) Pilot programs implemented

added “(A) In general—Except as provided in subparagraph (B), not later than one year after the date of the enactment of this subsection, a covered agency shall implement a commercialization assistance pilot program, under which an eligible entity may receive a subsequent Phase II SBIR award.

added “(B) Exception—If the Administrator determines that a covered agency has a program that is sufficiently similar to the commercialization assistance pilot program established under this subsection, such covered agency shall not be required to implement a commercialization assistance pilot program under this subsection.

added “(2) Percent of agency funds—The head of each covered agency may allocate not more than 5 percent of the funds allocated to the SBIR program of the covered agency for the purpose of making a subsequent Phase II SBIR award under the commercialization assistance pilot program.

added “(3) Termination—A commercialization assistance pilot program established under this subsection shall terminate on September 30, 2022.

added “(4) Application—To be selected to receive a subsequent Phase II SBIR award under a commercialization assistance pilot program, an eligible entity shall submit to the covered agency implementing such pilot program an application at such time, in such manner, and containing such information as the covered agency may require, including—

added “(A) an updated Phase II commercialization plan; and

added “(B) the source and amount of the matching funding required under paragraph (5).

added “(5) Matching funding

added “(A) In general—The Administrator shall require, as a condition of any subsequent Phase II SBIR award made to an eligible entity under this subsection, that a matching amount (excluding any fees collected by the eligible entity receiving such award) equal to the amount of such award be provided from an eligible third-party investor.

added “(B) Ineligible sources—An eligible entity may not use funding from ineligible sources to meet the matching requirement of subparagraph (A).

added “(6) Award—A subsequent Phase II SBIR award made to an eligible entity under this subsection—

added “(A) may not exceed the limitation described under subsection (aa)(1); and

added “(B) shall be disbursed during Phase II.

added “(7) Use of funds—The funds awarded to an eligible entity under this subsection may only be used for research and development activities that build on eligible entity’s Phase II program and ensure the research funded under such Phase II is rapidly progressing towards commercialization.

added “(8) Selection—In selecting eligible entities to participate in a commercialization assistance pilot program under this subsection, the head of a covered agency shall consider—

added “(A) the extent to which such award could aid the eligible entity in commercializing the research funded under the eligible entity’s Phase II program;

added “(B) whether the updated Phase II commercialization plan submitted under paragraph (4) provides a sound approach for establishing technical feasibility that could lead to commercialization of such research;

added “(C) whether the proposed activities to be conducted under such updated Phase II commercialization plan further improve the likelihood that such research will provide societal benefits;

added “(D) whether the small business concern has progressed satisfactorily in Phase II to justify receipt of a subsequent Phase II SBIR award;

added “(E) the expectations of the eligible third-party investor that provides matching funding under paragraph (5); and

added “(F) the likelihood that the proposed activities to be conducted under such updated Phase II commercialization plan using matching funding provided by such eligible third-party investor will lead to commercial and societal benefit.

added “(9) Evaluation Report—Not later than 3 years after the date of the enactment of this subsection, the Comptroller General of the United States shall submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate, a report including—

added “(A) a summary of the activities of commercialization assistance pilot programs carried out under this subsection;

added “(B) a detailed compilation of results achieved by such commercialization assistance pilot programs, including the number of eligible entities that received awards under such programs;

added “(C) the rate at which each eligible entity that received a subsequent Phase II SBIR award under this subsection commercialized research of the recipient;

added “(D) the growth in employment and revenue of eligible entities that is attributable to participation in a commercialization assistance pilot program;

added “(E) a comparison of commercialization success of eligible entities participating in a commercialization assistance pilot program with recipients of an additional Phase II SBIR award under subsection (ff);

added “(F) demographic information, such as ethnicity and geographic location, of eligible entities participating in a commercialization assistance pilot program;

added “(G) an accounting of the funds used at each covered agency that implements a commercialization assistance pilot program under this subsection;

added “(H) the amount of matching funding provided by eligible third-party investors, set forth separately by source of funding;

added “(I) an analysis of the effectiveness of the commercialization assistance pilot program implemented by each covered agency; and

added “(J) recommendations for improvements to the commercialization assistance pilot program.

added “(10) Definitions—For purposes of this subsection:

added “(A) Covered agency—The term covered agency means a Federal agency required to have an SBIR program.

added “(B) Eligible entity—The term eligible entity means a small business concern that has received a Phase II award under an SBIR program and an additional Phase II SBIR award under subsection (ff) from the covered agency to which such small business concern is applying for a subsequent Phase II SBIR award.

added “(C) Eligible third-party investor—The term eligible third-party investor means a small business concern other than an eligible entity, a venture capital firm, an individual investor, a non-SBIR Federal, State or local government, or any combination thereof.

added “(D) Ineligible sources—The term ineligible sources means the following:

added “(i) The eligible entity’s internal research and development funds.

added “(ii) Funding in forms other than cash, such as in-kind or other intangible assets.

added “(iii) Funding from the owners of the eligible entity, or the family members or affiliates of such owners.

added “(iv) Funding attained through loans or other forms of debt obligations.

added “(E) Subsequent Phase II SBIR award—The term subsequent Phase II SBIR award means an award granted to an eligible entity under this subsection to carry out further commercialization activities for research conducted pursuant to an SBIR program.”

added “(14) the term senior procurement executive means an official designated under section 1702(c) of title 41, United States Code, as the senior procurement executive of a Federal agency participating in a SBIR or STTR program.”

added “(10) to coordinate, where appropriate, with the senior procurement executive of the relevant Federal agency to assist small business concerns participating in a SBIR or STTR program with commercializing research developed under such a program before such small business concern is awarded a contract from such Federal agency.”

added “(4) Modifications relating to procurement center representatives—Upon the enactment of this paragraph, the Administrator shall modify the policy directives issued pursuant to this subsection to require procurement center representatives (as described in section 15(l)) to assist small business concerns participating in the SBIR program, particularly in Phase III. The procurement center representatives shall coordinate with the appropriate contracting officer and the appropriate Director of the Office of Small and Disadvantaged Business Utilization established pursuant to section 15(k) for the agency letting the contract.”

added “(G) procedures to ensure that procurement center representatives (as described in section 15(l))—

added “(i) assist small business concerns participating in the STTR program, particularly in Phase III; and

added “(ii) coordinate with the appropriate contracting officer and the appropriate Director of the Office of Small and Disadvantaged Business Utilization established pursuant to section 15(k) for the Federal agency letting the contract in providing the assistance described in clause (i).”

added “(J) assist small business concerns participating in a SBIR or STTR program under section 9 with Phase III;

added “(K) coordinate with the appropriate contracting officer and the appropriate Director of the Office of Small and Disadvantaged Business Utilization established pursuant to subsection (k) for the agency letting the contract; and”

added “(21) shall assist small business concerns participating in a SBIR or STTR program under section 9 with researching applicable solicitations for the award of a Federal contract (particularly with the Federal agency that has a funding agreement (as defined under section 9) with the concern) to market the research developed by such concern under such SBIR or STTR program; and

added “(22) shall provide technical assistance to small business concerns participating in a SBIR or STTR program under section 9 to submit a bid for an award of a Federal contract, including coordination with procurement center representatives and the appropriate senior procurement executive for the agency letting the contract.”

added Section 9(q) of the Small Business Act (15 U.S.C. 638(q)) is amended—

added “(A) In general—Each agency may select 1 or more vendors from which small business concerns may obtain assistance in meeting”

added “(B) Selection by small business concern—A small business concern may, by contract or otherwise, select 1 or more vendors to assist the small business concern in meeting the goals listed in paragraph (1).”

added “(E) Multiple award recipients—The Administrator shall establish a limit on the amount of technical and business assistance services that may be received or purchased under subparagraph (B) by a small business concern that has received multiple Phase II SBIR or STTR awards for a fiscal year.”

added Section 9(y)(6) of the Small Business Act (15 U.S.C. 638(y)(6)) is amended—

added “(D) not later than 120 days after the date of the enactment of this subparagraph, and not later than December 31 of each year thereafter, submit to the Committee on Science, Space, and Technology and the Committee on Small Business of the House of Representatives, and to the Committee on Small Business and Entrepreneurship of the Senate, a report describing the goals set under subparagraph (A) and the incentives used or created under subparagraph (B).”