Pentagon Projects Get Big Boost As Senate Poised To Reauthorize Critical Small Business Fund

The Senate is on the cusp of reauthorizing a key small business fund used by the Pentagon, providing a significant boost to defense-focused projects that have been slowed or paused due to the lack of funding authorization. The Small Business Innovation Research program, a critical tool for nurturing innovation and economic growth, has been without a new authorization since October.

At the forefront of this effort is the Senate’s small business committee, with Sens. Joni Ernst, chairwoman of the committee, and Ed Markey, its top Democrat, coming together to introduce a bipartisan bill that would reauthorize SBIR for the next five years. The legislation aims to strengthen the integrity of America’s seed fund while unlocking new innovation.

The bill resolves a months-long gridlock between Ernst and Markey over how to reform the SBIR program, which has been plagued by concerns about foreign nations gaining control of US technology. A contentious provision in the original proposal, the Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence (INNOVATE) Act, imposed new rules meant to root out these risks, but its most controversial provision was the creation of a $75 million cap on SBIR funds a company could win throughout its lifetime.

The bill now addresses this concern by introducing an annual limit on applications, which Ernst’s office claims will allow the program to prioritize truly small businesses over large, entrenched companies. Federal agencies like the Pentagon will have flexibility in implementing the rule, allowing directors of the SBIR office at each agency to determine whether the applications ceiling limits how many proposals can be provided during a given fiscal year, to a specific topic or to a particular solicitation.

These officials will also have the authority to waive the proposal limit if a technology is time-sensitive or urgently needed. Pentagon officials had threatened to redirect funding if the program was not quickly reauthorized, and provided assurances to Markey about how the application limit would be implemented.

The breakthrough on the SBIR reauthorization happened earlier this week, after months of negotiations between Ernst and Markey. The deal ensures that necessary reforms will strengthen the integrity of America’s seed fund while unlocking new innovation, and prioritizes truly small businesses over large companies.

The reauthorization is a win for American small businesses, innovation, and the workforce. Markey expressed disappointment at the unnecessary suffering caused by the program’s longest shut down in its history – a shutdown that he fought hard to prevent as negotiations progressed.

The reauthorization of the SBIR program will be welcomed news for the Pentagon, with a Space Force official revealing that three contractors were prepared to award contracts for satellite communications and warning payloads before the lapse in funding. These sensors are crucial for “own-ship awareness,” where experiments have been underway for years.

The Small Business Innovation Research program has been instrumental in supporting innovation and economic growth, with numerous success stories across various industries. The reauthorization of the program will undoubtedly have a positive impact on the nation’s defense capabilities, as well as its competitiveness in the global market.

In a statement, Defend SBIR, an industry group that has been advocating for the reauthorization of the SBIR program without Ernst’s lifetime cap provisions, hailed the new bill as good news for American innovation and economic competitiveness. The legislation ensures that the renewal of these investments includes common sense reforms to protect our know-how from potential adversaries, keep their merit-based competitive principles, and broaden participation.

The Senate’s small business committee has worked tirelessly with its colleagues in both parties to make sure what makes these programs successful are not undermined by arbitrary restrictions. The reauthorization of the SBIR program is a testament to the committee’s commitment to supporting American innovation and economic growth.

As lawmakers move forward with the reauthorization, it is essential that they prioritize the needs of small businesses and the nation’s defense capabilities. The Small Business Innovation and Economic Security Act provides a crucial framework for nurturing innovation and economic growth, while also protecting our national security interests.

The fate of the SBIR program has significant implications for the nation’s defense capabilities and its competitiveness in the global market. The reauthorization will undoubtedly have a positive impact on the country’s ability to innovate and grow, both domestically and internationally.