Rep. Latimer Introduces Bill to Strengthen Small Business Innovation and Commercialization

Washington, DC - U.S. Congressman George Latimer (D-NY) introduced the SBIR Administrative Funding Act, legislation to facilitate long-term agency planning and coordination 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 business innovation and commercialization. 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," said Congressman Latimer. "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. The SBIR Administrative Funding Act will facilitate long-term agency planning and coordinate shared goals to optimize resources and mitigate duplication. 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."

The National Defense Authorization Act for Fiscal Year 2012 authorized agencies to use up to 3% of their SBIR funds for costs relating to administrative, oversight, and contract processing activities. Agencies use the administrative funds for activities including the acceleration of proposal and award processes; outreach to underserved states and communities; site visits and conferences; oversight and Congressional reporting; fraud prevention; and the acceleration of commercializing projects. The statutory authority for this allowance, as well as the overall SBIR and STTR programs, expired on September 30, 2025.

In addition, agencies are required to use a portion of their SBIR administrative funds to comply with certain policy directives, including a directive that requires agencies to conduct enhanced outreach to increase the participation of socially and economically disadvantaged small businesses in the SBIR program. Agencies must also use this funding to increase the participation of small businesses in states with historically low levels of SBIR awards. Under current law, a federal agency may request that the Administrator of the Small Business Administration waive this outreach and technical assistance requirement.

The SBIR Administrative Funding Act would:

• Extend the administrative funding allowance for five years until September 30, 2030, and increase the funding percentage from 3% to 3.3%.
• Eliminate the outreach and technical assistance waiver, meaning that all agencies would be required to comply with the outreach requirements.
• Require the five largest participating SBIR agencies (the Department of Defense, Department of Energy, Department of Health and Human Services, National Aeronautics and Space Administration, and National Science Foundation) to transfer at least 10% of their administrative funds to the Small Business Administration (SBA) for SBIR and STTR program administration.
• Clarify the need for the SBA to report on their uses of these funds.

Read the bill text here.

Rep. Latimer is a Member on the House Committee on Small Business. He sits on subcommittees on Contracting and Infrastructure, and Economic Growth, Tax, and Capital Access.

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