Encouraging Small Business Innovation Act
This bill expands and otherwise revises certain requirements for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. Specifically, it includes small business investment companies (SBICs) in such programs.
SBICs are included as a type of investor whose investment must be considered for various purposes under the programs.
The bill requires the Small Business Administration (SBA), when calculating the outstanding leverage of an SBIC, to exclude investments made in SBIR and STTR participants. Under current law, SBICs are subject to a limit on their outstanding leverage.
Finally, the bill (1) encourages participation in the SBA mentor-protege program by past small business SBIR and STTR program participants and (2) sets forth provisions to increase participation of states to which a low level of SBIR awards have historically been awarded.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 206 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 206
To amend the small business laws to create certain requirements with
respect to the SBIR and STTR program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2019
Mr. Rouda introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committee on
Science, Space, and Technology, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the small business laws to create certain requirements with
respect to the SBIR and STTR program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Encouraging Small Business
Innovation Act''.
SEC. 2. INCLUSION OF TESTING AND EVALUATION IN THE DEFINITION OF
RESEARCH AND DEVELOPMENT.
Section 9(e)(5) of the Small Business Act (15 U.S.C. 638(e)(5)) is
amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively (and conforming the
margins accordingly);
(2) by striking ``means any activity which is'' and
inserting the following: ``means--
``(A) any activity which is--''; and
(3) in clause (iii), as so redesignated, by adding ``and''
after the semicolon at the end; and
(4) by adding at the end the following new subparagraph:
``(B) any testing or evaluation in connection with
such an activity;''.
SEC. 3. INCLUSION OF SMALL BUSINESS INVESTMENT COMPANIES IN SBIR AND
STTR.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) by striking ``or private equity firm investment'' each
place such term appears and inserting ``private equity firm, or
SBIC investment'';
(2) by striking ``or private equity firms'' and inserting
``private equity firms, or SBICs'';
(3) in subsection (e)--
(A) in paragraph (12)(B), by striking ``and'' at
the end;
(B) in paragraph (13)(B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(14) the term `SBIC' means a small business investment
company as defined in section 103 of the Small Business
Investment Act of 1958.''; and
(4) in the heading for subsection (dd), by striking ``or
Private Equity Firms'' and inserting ``Private Equity Firms, or
SBICs''.
SEC. 4. CALCULATION OF LEVERAGE OF SMALL BUSINESS INVESTMENT COMPANIES
THAT INVEST IN SBIR OR STTR PARTICIPANTS.
Section 303(b)(2) of the Small Business Investment Act of 1958 (15
U.S.C. 683(b)(2)) is amended by adding at the end the following new
subparagraph:
``(E) Investments in sbir and sttr participants.--
``(i) In general.--Subject to clause (ii),
in calculating the outstanding leverage of a
company for purposes of subparagraph (A), the
Administrator shall exclude the amount of any
investment made in a SBIR or STTR participant,
if such investment is made in the first fiscal
year after the date of enactment of this
subparagraph or any fiscal year thereafter by a
company licensed during the applicable fiscal
year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an investment in
any one SBIR or STTR participant in an
amount equal to more than 20 percent of
the private capital of that company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.
``(iii) Definitions.--In this subparagraph,
the term `SBIR or STTR participant' means a
small business concern that receives contracts
or grants pursuant to section 9 of the Small
Business Act.''.
SEC. 5. ENCOURAGING PARTICIPATION IN THE MENTOR-PROTEGE PROGRAM.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended by
adding at the end the following:
``(tt) Encouraging Participation in the Mentor-Protege Program.--
The Administrator shall provide an increase to the past performance
rating of any small business concern that has participated in the SBIR
or STTR program that serves as a mentor under section 45 to a small
business concern that seeks to participate in the SBIR or STTR
program.''.
SEC. 6. ANNUAL MEETING FOR FEDERAL AGENCIES WITH A SBIR OR STTR
PROGRAM.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638), as amended by section 3, is further amended by adding at the end
the following new subsection:
``(uu) Annual Meeting.--
``(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--
``(A) to improve the collection of data under this
section;
``(B) to improve the reporting of data to the
Administrator under this section;
``(C) to make the application processes for
programs under this section more efficient; and
``(D) to increase participation in the programs
under this section.
``(2) Reporting.--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.''.
(b) Funding for Annual Meeting.--Section 9(mm)(1) of the Small
Business Act (15 U.S.C. 638(mm)(1)) is amended--
(1) in subparagraph (I), by striking the ``and'' at the
end;
(2) in subparagraph (J), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(K) the annual meeting required under subsection
(uu).''.
SEC. 7. INCREASING PARTICIPATION OF UNDERSERVED POPULATIONS IN THE SBIR
AND STTR PROGRAMS.
(a) In General.--Section 9(mm)(2) of the Small Business Act (15
U.S.C. 638(mm)(2)) is amended to read as follows:
``(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.''.
(b) Conforming Amendment.--Section 9(mm)(6) of the Small Business
Act (15 U.S.C. 638(mm)(6)) is amended by striking ``paragraph (2)(A)
and any use of the waiver authority under paragraph (2)(B)'' and
inserting ``paragraph (2)''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Ms. Velazquez moved to suspend the rules and pass the bill.
Considered under suspension of the rules. (consideration: CR H526-528)
DEBATE - The House proceeded with forty minutes of debate on H.R. 206.
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.(text: CR H526)
On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H526)
Motion to reconsider laid on the table Agreed to without objection.
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Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.