Summary of Small Business Innovation Research (SBIR) Reauthorization Act of 2000 (H.R. 5667)

WASHINGTON, DC–Senator John Kerry (D-MA), the Ranking Democrat on the Senate Committee on Small Business, announced that the "Small Business Reauthorization Act of 2000, H.R. 5667" has passed in Congress as part of the FY 2001 Omnibus Appropriations Act and is headed to the President for signature. The legislation reauthorizes and makes improvements to virtually all of the Small Business Administration's (SBA) programs, including the SBIR program.

"I am greatly pleased that the Congress has passed this critical legislation, authorizing the SBIR program for an unprecedented 8 years," said Senator Kerry.

The SBIR program gives companies access to Federal research and development money and encourages those who conduct the research to commercialize their results. Because research is crucial to ensuring the United States is the leader in knowledge-based industries, which will generate the largest job growth in the next century, the SBIR program is a good investment for the future.

"For the past decade, growth in the high-technology field has been a major source of the resurgence of the American economy we now enjoy. While many Americans know of the success of Microsoft, Oracle, and many of the dot.com companies, few realize that it is America's small businesses who are working in industries like biotechnology, computer software and hardware, aerospace technologies, and medical research that are helping to fuel this resurgence—and that it is the SBIR program that makes much of this possible," Kerry said.

Since the start of the SBIR program in 1983, more than 17,600 firms have received more than $9.8 billion in funding agreements. In 1999 alone, nearly $1.1 billion was awarded to small high-technology firms through the SBIR program, assisting more than 4,500 firms.

Massachusetts companies receive the second largest amount of SBIR money.

Key provisions of the bill include:

• Extension of the SBIR program for 8 additional years
• A new mentoring program for companies in areas underserved by the program
• An annual reporting requirement on the SBIR program
• Improved SBA reporting and database requirements

For questions, contact: David Wade or John DaSilva at (202) 224-4159.

The SBIR Reauthorization Act of 2000 (H.R. 5667) states:

• The SBIR program is extended for 8 years (terminates September 30, 2008).
• The SBA will report to both the House Committee on Small Business and the Committee on Science.
• The SBA will begin to collect data.
• A public database will be developed to search for Phase I and II awards; the database willl include the name, address, and abstract of awardees and mentoring network information.
• A government database will contain commercialization information for Phase II awardees to be used for evaluation purposes only and Phases I and II nonawardee submission information.
• A study of the SBIR program will be performed by the National Academy of Sciences for the National Research Council.
• There will be a review of the quality of funded projects (comparative study of SBIR awards to non-SBIR Research and Development [R&D] awards).
• The SBA will determine the economic rate of return and evaluation of noneconomic benefit.
• The SBA will analyze whether agencies are making sufficient effort to use SBIR Phase II awardees for their procurement needs.
• It will be determined whether companies should be allowed to apply for Phase II without a Phase I award.
• Phase II applications must include a succinct commercialization plan.
• Federal and State Technology Partnership will be developed.
• Support programs will be developed by the states to enhance R&D, technology transfer, and/or outreach.
• The SBA will establish and operate a Mentoring Network for business advice and counseling.
• Matching funds will be required.
• Ten million dollars will be available each year for 2001–2005.