Bacon, Tran Celebrate Bipartisan Small Business Legislation Signed into Law

Bacon, Tran Celebrate Bipartisan Small Business Legislation Signed into Law

Washington - U.S. Representatives Don Bacon (NE-02) and Derek Tran (CA-45) are celebrating their bipartisan legislation to continue intellectual property protections for small businesses being signed into law. The Small Business Innovation Research (SBIR) Foreign Interference Safeguard Act will extend small businesses' due diligence programs that identify and mitigate the risk of intellectual property theft by foreign entities like the Chinese Communist Party (CCP). It was signed into law on April 13 as part of the Small Business Innovation and Economic Security Act.

The SBIR Foreign Interference Safeguard Act will reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Due Diligence programs for five years. This extension gives agencies more time to strengthen their programs, assess risks, and collect additional data for Congress to determine the best security strategies for small businesses.

"Protecting American innovation from foreign adversaries such as the Chinese Communist Party remains one of our most critical national security challenges," said Rep. Bacon. "After the CCP hacked into my own email accounts, I know firsthand how aggressive these operations can be. That's why I'm pleased to see our SBIR Foreign Interference Safeguard Act signed into law. This legislation strengthens due diligence programs and helps prevent adversaries from exploiting SBIR-funded technologies. I'm grateful to work with Rep. Tran on this bipartisan effort."

"Small businesses are at the forefront of American innovation. Congress must ensure that these groundbreaking technologies are protected and best positioned to benefit American consumers," said Rep. Tran. "I'm so proud to have passed this common-sense, bipartisan legislation to extend the SBIR Due Diligence Program and give our agencies the resources they need to safeguard American technologies from malign actors like the Chinese Communist Party. This legislation will strengthen our national security, ensuring that Orange County's small businesses can continue driving innovation for generations to come."

The SBIR program provides funding to small businesses developing innovative technologies, fast-tracking these life-changing technologies so that they can reach consumers more quickly. Because of the sensitivity of many of these innovations, foreign malign actors like the CCP exploit cybersecurity gaps and other vulnerabilities to steal technology and slow the progress of American innovation. The Due Diligence Program helps small businesses guard against such exploitation.

The Due Diligence Program was established in the SBIR/STTR Extension Act of 2022 to require agencies to assess security risks for all small businesses applying for SBIR or STTR grants - specifically risks regarding cybersecurity, intellectual property, and foreign ownership. Agencies set up these systems throughout 2023, and they have only been in full effect for one solicitation cycle thus far. By extending the program, small businesses can continue to receive critical support for innovative technologies while mitigating the risk of intellectual property theft.

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