Representatives Tran and Bacon Celebrate Bipartisan Small Business Legislation Signed into Law

Washington, DC - U.S. Representatives Derek Tran (CA-45) and Don Bacon (NE-02) 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 affords agencies more time to strengthen their programs, assess risks, and collect additional data for Congress to determine the best security strategies for small businesses.

"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 Representative 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."

"Protecting American innovation from foreign adversaries such as the Chinese Communist Party remains one of our most critical national security challenges," said Representative 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."

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.

As a former small business owner and Ranking Member of the House Small Business Committee Subcommittee on Oversight, Representative Tran has remained dedicated to uplifting small businesses in Congress. Tran has co-led several bipartisan pieces of legislation, which passed the House with overwhelming majorities, to ensure that small businesses across the country have the resources necessary to succeed:

• H.R. 5788, the 504 Program Risk Oversight Act, introduced alongside Representative Jimmy Patronis (R-FL-01), would increase transparency and efficiency in the SBA's 504 loan program to support small businesses' continued access to capital;
• H.R. 787, the Plain Language in Contracting Act, introduced alongside Representative Nick LaLota (R-NY-01), would require contracting opportunities for small businesses to be written in clear, accessible language;
• H.R. 832, the Small Business Advocacy Improvements Act, introduced with Representative Roger Williams (R-TX-25), would ensure that the Office of Advocacy of the Small Business Administration represents the interests of American small businesses before foreign governments, and;
• H.R. 1642, the Connecting Small Businesses with Career and Technical Education Graduates Act, co-led with Representative Roger Williams, would make it easier for small businesses to recruit and retain a strong workforce of graduates from career and technical education programs.

National security also remains a top priority for Tran. He voted in favor ofH.R. 881, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act, to safeguard U.S. research and innovation and protect against Chinese intellectual property theft. Representative Tran is also a member of the powerful House Armed Services Committee, overseeing the Department of Defense, and serves as Co-Chair of the House Democratic National Security Task Force.

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Congressman Derek Tran represents California's 45th Congressional District. Serving his first term in Congress, Congressman Tran is a member of the House Armed Services Committee and House Small Business Committee, where he is Ranking Member of the Oversight, Investigations, and Regulations Subcommittee. Congressman Tran is the son of Vietnamese refugees, a Veteran, and fought for consumers as an attorney before entering Congress.