HR7217-119

What This Bill Does

The SBIR Administrative Funding Act updates section 9(mm) of the Small Business Act. It extends the authority to use SBIR and STTR funds for administrative, oversight, and contract-processing costs from September 30, 2025, to September 30, 2030, and raises the amount that can be used from 3 percent to 3.3 percent. It also adds a transfer rule: within two months after appropriations are enacted for the Department of Defense, Department of Energy, Department of Health and Human Services, NASA, or the National Science Foundation, the head of each funded entity must transfer at least 10 percent of its administrative-use amount to the SBA Administrator to increase SBA resources for administering SBIR and STTR. Those transferred funds cannot be used for Small Business Investment Act programs. Participating agencies may use a portion of the authorized funds for outreach and technical assistance designed to increase participation by States that historically receive a low level of SBIR awards.

Who Benefits and How

The Small Business Administration, SBIR applicants, STTR applicants, small research firms, technology startups, universities working with small businesses, and companies in historically low-award States benefit from a longer and slightly larger administrative funding stream, SBA resources for program administration, and outreach or technical assistance aimed at broadening participation. Federal agencies benefit from continued authority to pay contract processing, oversight, and program-management costs out of SBIR/STTR funds.

Who Bears the Burden and How

Participating agencies such as DOD, DOE, HHS, NASA, and NSF must transfer at least 10 percent of specified administrative-use funds to SBA within two months after appropriations, track allowable uses, and ensure transferred funds do not support Small Business Investment Act programs. Federal program managers must update procedures through 2030, and some agency-level SBIR/STTR administrative budgets may be reduced by the transfer to SBA.

Key Provisions

• Extends SBIR and STTR administrative, oversight, and contract-processing funding authority through September 30, 2030.
• Raises the authorized administrative-use percentage from 3 percent to 3.3 percent.
• Requires DOD, DOE, HHS, NASA, and NSF to transfer at least 10 percent of covered administrative-use funds to SBA.
• Bars transferred funds from being used for Small Business Investment Act programs.
• Allows participating agencies to fund outreach and technical assistance for historically low-award States.
• Updates program reports to cover transferred funds and other subsection funding uses.