Key Legislation for Small Businesses Advances in the Senate

Press Release

Key Legislation for Small Businesses Advances in the Senate
Wyo. firms participating in fed's Small Business Innovation Research program will gain access, funds with reauthorization bill, Enzi says

Wyoming small businesses are one step closer to being assured continued access to important federal dollars for innovation, development and research. The Senate Small Business and Entrepreneurship Committee unanimously passed today the Small Business Innovation Research (SBIR) Reauthorization Act of 2008, according to U.S. Senator Mike Enzi, R-Wyo., a senior senator on the committee.

"Ninety-eight percent of all Wyoming businesses are small businesses. It's important that our entrepreneurs have the chance to benefit from federal research and development funding," Enzi said. "The SBIR program spurs innovation by requiring a certain percentage of all outside government research and development funds to be accessible to privately owned small businesses. Wyoming businesses should benefit from those dollars and the new sales opportunities that come along with them."

"Throughout history, the government has turned to the entrepreneurs of this great nation to find innovative solutions to some of its toughest challenges. Wyoming has the talent and the innovative ideas to provide federal agencies with the products and services they need," said Enzi. "Everyone from new inventors to existing businesses can benefit from SBIR program grants. I'm pleased the Small Business and Entrepreneurship Committee approved the legislation today."

The current SBIR program will expire on Sept. 30 unless Congress takes action to extend the program, which has generated more than 84,000 patents and created millions of jobs since its inception in 1982. The bill approved by the Small Business and Entrepreneurship Committee today would extend the program for another 14 years through 2022.

Improvements for Wyoming

The SBIR Reauthorization Act of 2008 includes a number of improvements for Wyoming entrepreneurs. Specifically, the new bill would increase the mandatory percentage of a government agency's purchasing budget that is to be spent on SBIR contracts. The required percentage would rise from 2.5 percent to 3.5 percent of the agency's budget over the course of the next 10 years among participating agencies. Additionally, award amounts for entrepreneurs would increase from $100,000 to $150,000 for Phase I awards, which provide funding for the initial development of a product, and from $750,000 to $1 million for Phase II awards, which give entrepreneurs capital to refine a working model of their products.

The Act also increases funding for the Federal and State Technology Partnership (FAST) program, which is geared toward recruiting high-tech small business firms in rural states for participation in the SBIR program. The award sizes for FAST, which Enzi helped create, would increase from $2 million to $5 million, under the reauthorization bill.

The SBIR Reauthorization Act now awaits full Senate approval. The House of Representatives passed the bill in April.

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