Bill > HR4775

This bill aims to strengthen safeguards for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs by preventing small businesses with significant foreign ownership or control from receiving awards. Specifically, the bill extends a due diligence program to assess security risks until September 30, 2030, and introduces new provisions to limit participation for small businesses majority-owned by venture capital firms, hedge funds, or private equity firms that have connections to foreign entities of concern. The bill defines "covered foreign entities" broadly, including foreign terrorist organizations, entities on sanctions lists, organizations controlled by foreign governments, and those alleged to have been involved in activities like espionage, economic espionage, or unauthorized conduct detrimental to U.S. national security. The Small Business Administration would be responsible for determining a business's eligibility by evaluating direct and indirect ownership, considering factors such as equity interests, management control, and ties to foreign countries. These new rules would apply to SBIR program awards made after the bill's enactment, with the goal of protecting U.S. technological innovation and national security interests.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4775/all-info