New regulations proposed by the Small Business Administration (SBA) may reshape the way small businesses utilize federal research funds, aiming to foster true innovation while capping potential misuse of taxpayer money. The focus centers on the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which have frequently drawn attention for their significant funding potential.
Chair of the Senate Small Business Committee, Joni Ernst (R-Iowa), has expressed her support for new benchmarks under the SBIR and STTR programs that require companies winning more than 25 Phase II awards in five years to generate the majority of their revenue from commercial customers rather than federal grants. This initiative comes in response to concerns that some companies have leveraged these grants as an ongoing source of income instead of a launching pad for commercial innovation.
“The new commercialization standard rewards companies that convert research into customers and follow-on contracts that meet the mission, while limiting new seed awards to firms that have made SBIR grants their revenue model,” said Chair Ernst, highlighting the need for a shift in ho...