Colorado Innovators Concerned About Long Waits for Small Business Innovation Research (SBIR) Funding

New Law Seeks to Cut Down SBIR Wait Times – Bennet Asks SBA If, How Agency Will Play Role

Colorado U.S. Senator Michael Bennet is asking the Small Business Administration (SBA) to clarify how it plans to respond to concerns voiced by several Colorado companies and entrepreneurs about the long wait times they must endure when applying for funding under the Small Business Innovation Research (SBIR) Program.

In a letter to SBA Administrator Karen Mills, Bennet highlighted a new law that requires most participating federal agencies to render SBIR decisions more quickly as well as shorten the time between when an application is approved and when funding is released. He also asked what role the SBA will play in implementing this new law, which will benefit Colorado companies and entrepreneurs.  

“The SBIR program is an incredibly important resource for many startup companies that conduct innovative research across the state of Colorado,” said Bennet. “I have nonetheless heard repeated concerns from small businesses about the overall length of the SBIR application process.  That lag time is particularly acute for companies that are struggling to obtain traditional forms of financing in this difficult economy.”  

Specifically, Bennet is asking Administrator Mills if the SBA will:

• Take an active role in monitoring agency compliance with the 90 day deadline;
• Provide guidance for agencies to follow so that they can successfully shorten the time period between the point at which they notify applicants of an award and the point at which they release the funding; and
• Analyze whether certain departments have developed best practices at expediting the application and awards process so that such practices can be applied at other agencies.    

Improving the timeliness of the SBIR grant process is one of many policy recommendations presented to Senator Bennet as part of “Colorado Competes,” a report prepared by Coloradans for an Innovation Economy that provides a framework designed to make Colorado a place where innovators and entrepreneurs can thrive.

The full copy of Bennet’s letter to Administrator Mills is included below:

The Honorable Karen G. Mills

Administrator

U.S. Small Business Administration

409 3rd Street, SW

Washington, DC 20416

Dear Administrator Mills:

I write to inquire how the Small Business Administration (“SBA”) intends to monitor and implement a recently enacted statute that seeks to expedite the application and awards process under the Small Business Innovation Research (“SBIR”) program.

The SBIR program is an incredibly important resource for many startup companies that conduct innovative research across the state of Colorado.  The program often provides a critical bridge for these companies as they seek to expand in the private marketplace. 

I have nonetheless heard repeated concerns from small businesses about the overall length of the SBIR application process.  Similarly, many small businesses that are awarded a grant must often wait several months before they actually receive it.  That lag time is particularly acute for companies that are struggling to obtain traditional forms of financing in this difficult economy.   

As you know, the National Defense Authorization Act, which the President recently signed into law, requires most federal agencies to render a decision on an SBIR proposal within ninety days that a business submits it.  Furthermore, the statute requires federal agencies “to the extent possible, attempt to shorten the amount of time between the provision of notice of an award under the SBIR program or STTR program and the subsequent release of funding  . . .” P.L. 112-81 (Dec. 31, 2011).

As the various federal departments implement this law, I am interested in learning whether the SBA will:

• take an active role in monitoring agency compliance with the 90 day deadline;
• provide guidance for agencies to follow so that they can successfully shorten the time period between the point at which they notify applicants of an award and the point at which they release the funding; and
• analyze whether certain departments have developed best practices at expediting the application and awards process so that such practices can be applied at other agencies.      

I would be happy to meet with you about the SBIR grant process to discuss this issue further. 

In the meantime, if you have any questions regarding the foregoing, please do not hesitate to contact me. 

Thank you in advance for your consideration. 

Sincerely,

Michael F. Bennet

United States Senator