Congressman George Latimer, a Democrat who represents New York’s 16th Congressional District that includes part of Westchester and the Bronx has introduced legislation that, if passed, would require certain federal agencies to do more and spend more to help small businesses innovate and then commercialize what they create.
The legislation is known as the the SBIR Administrative Funding Act. SBIR stands for the Small Business Innovation Research (SBIR) Program. The SBIR and Small Business Technology Transfer (STTR) programs, otherwise known as America’s Seed Fund, require certain federal agencies to allocate a portion of their research and development funding to support small businesses. Small businesses in New York that have received SBIR and STTR grants are innovating in sectors from aviation and health care to manufacturing and agriculture.
“Small businesses in Westchester County and the Bronx are on the cutting edge of research, development, and innovation,” Latimer said. “The SBIR and STTR programs are a critical tool for the federal government to support this innovation and assist small businesses in achieving commercial success. I look forward to working with my colleagues on the Small Business Committee to advance this legislation as we work to reauthorize the SBIR and STTR programs.”
After being introduced by Latimer, the legislation was referred to the House Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a length of time to be determined by Republican Speaker of the House Mike Johnson.
Funding to establish the technical merit and commercial potential of an idea typically ranges from $50,000 to $314,363 for six to 12 months. Follow-up awards to develop prototypes typically range from $750,000 to $2,095,748 and can last for two years.
The 11 agencies participating in SBIR include: Department of Agriculture; Department of Commerce; Department of Defense (DOD); Department of Education; Department of Energy (DOE); Department of Health and Human Services( HSS); Department of Homeland Security; Department of Transportation; Environmental Protection Agency; NASA; and the National Science Foundation (NSF). Only the DOD, DOE, HHS, NASA, and NSF participate in the STTR program.
Latimer explains that one element of his SBIR Administrative Funding Act would require the five largest participating SBIR agencies (the DOD, DOE, HHS, NASA, and NSF to transfer at least 10% of their administrative funds to the Small Business Administration (SBA) for SBIR and STTR program administration. It also would clarify the need for the SBA to report on the uses of these funds.
