SBIR/STTR Reauthorization Act

SBIR/STTR REAUTHORIZATION ACT -- (House of Representatives - April 23, 2008)

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Ms. JACKSON-LEE of Texas. Madam Chairman, I rise today in support of H.R. 5819, to reauthorize the ``SBIR/STTR Reauthorization Act.'' This legislation extends the federal government's largest small business research and development programs for two years, increases funding for small research firms by half a billion dollars, and modernizes the Small Business Innovation Research (SBIR) Program so that it is better aligned with the needs of small research firms. I would like to thank my colleague Congresswoman VELÁZQUEZ for introducing this legislation, as well as for her ongoing leadership as Chairwoman of the Committee on Small Business.

Madam Chairman, this legislation is very important to the constituents of my community and the nation as a whole because it will continue to provide funding for small business innovation research and small business technology transfer programs by extending these programs until FY2010. Small businesses represent more than the American dream--they represent the American economy. Small businesses account for 95 percent of all employers, create half of our gross domestic product, and provide three out of four new jobs in this country.

Minority businesses are also crucial to our communities and our country. According to statistics published by the United States Census Bureau, in 2002 nearly 2 in 5 black-owned firms operated in health care and social assistance. Black entrepreneurs owned 9.7 percent of all such businesses in the United States. Statistics gathered between 1997 and 2002 show substantial increases in the number of black owned firms with receipts of $1 million or more, as well as the number of black owned firms with 100 employees or more. Black-owned firms accounted for 5 percent of all non-farm business in the United States in 2002.

In my home city of Houston, small businesses are vital to our economy. In 2002, Harris County ranked 6th in the nation for counties with the largest number of black-owned firms, with 27,770 firms with receipts totaling 1,817 million dollars. I have worked to introduce minority, women, and small business owners to contracting officials at NASA to help promote and develop Houston small businesses. I was proud to support H.R. 1873, the Small Business Fairness in Contracting Act, which passed the House in May of last year, and to introduce two amendments, both of which were accepted to the bill. The first amendment brings transparency, accountability and responsiveness to the process of procuring federal contracts. I also successfully introduced an amendment mandating that whenever there is a disagreement between the SBA and the contracting procurement agency, the appropriate House and Senate committees with jurisdiction over the matter are informed.

Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STIR) Program are two crucial research and development programs. Through these two competitive initiatives, the Small Business Administration, SBA, ensures that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. Created by Congress in 1982, SBIR is the largest government-wide research and development initiative in existence. According to SBA, eleven federal departments participate in the SBIR program, and five departments participate in the STIR program, awarding $2billion to small high-tech businesses.

The legislation that we are considering today updates the SBIR program, bringing into step with today's technologically-driven world. It will both increase access to SBIR funding, and

work to leverage the advances made by small businesses to benefit the competitiveness of the U.S. economy.

Madam Chairman, this legislation includes provisions designed to encourage more small firms to apply for SBIR and STIR awards. It doubles the size of SBIR and STIR awards for Phase I and Phase II grants, and provides access to technical assistance. This legislation also places an emphasis on areas where further research is particularly needed, providing incentives for small business innovation research on alternative fuels and orphan diseases. Through these provisions, this legislation speaks both to the needs of small businesses and of the broader American population.

Madam Chairman, I am particularly pleased that this legislation establishes an initiative to diversify participation in these important programs. This legislation aims to increase participation by small businesses located in underrepresented geographic areas, as well as those owned and controlled by women, veterans, and minorities. I believe this provision will both diversify the program and increase competition for the important awards.

Further, the act increases partnerships between SBIR awardees and prime contractors, venture capital operating companies, and larger businesses. This act has laudable goals and will ensure that small businesses have at their disposal more advanced technology that can be used for the development of our local communities. This act ensures that the technology and innovation would be used to further small businesses and local economic development.

Madam Chairman, over the past 25 years the SBIR program has supported many of our nation's most successful entrepreneurial enterprises. Many of these small, innovative businesses have grown into powerful technical companies that have kept the United States on the cutting edge of technological enterprise. Today, by voting for this legislation, we are making sure that this important program is of the maximum benefit both to American entrepreneurs and to all the citizens of this nation.

I strongly urge my colleagues to join me in supporting this important legislation.

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