SBIR/STTR Update: Temporary Extension Anticipated

Senate legislation that would re-authorize the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program has stalled, failing to receive the necessary 60 votes to move the legislation to the floor for a vote.  While the bill sailed through the Senate Small Business Committee by a vote of 18-1, disagreements erupted over amendments to the bill on the Senate floor. 

The SBIR Program provides small tech companies with opportunities to provide R&D to the government.  Under a three-phase competitive structure, the program provides as much as $100K during the first phase for a feasibility study to evaluate the scientific and technical merit of an idea.  During the second phase, applicants can apply for as much as $750K to expand upon development of the product or process, while the third phase requires non-SBIR or private funding.  Both the House and Senate bills would increase these limits to $150K and $1 million, respectively.

While these programs are set to expire on May 31, Sen. Landrieu has just filed a 1-year extension, which will now have to be passed by both the Senate and House.  This is business as usual, as these programs have been operating under temporary extensions since 2006.

In the House, the Small Business Committee reported its version of the SBIR/STTR legislation out of committee, and this legislation will now move for a vote by the full House.  However, given the problems of passage in the Senate, it is looking more like we will see another temporary extension, without the increased grants limits provided under the pending legislation.