WASHINGTON – Yesterday, the U.S. Senate Small Business Committee passed bipartisan legislation to allow awardees of federal research and development grants to use a greater portion of their funding on business and technical services needed to support their startup business. The legislation, led by U.S. Senators Chris Coons (D-Del.), Cory Gardner (R-Colo.), and Kirsten Gillibrand (D-N.Y.), now heads to the full Senate for consideration.
The bill authorizes Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program Phase II awardees to use up to $35,000 of their awards for activities that are critical to building businesses, including services such as market validation, intellectual property protection, market research, and business model development. The bill also allows awardees to use the funds to develop regulatory and manufacturing plans and gives them greater flexibility to select local vendors for such services. Currently, the SBIR/STTR programs offers limited financial support to awardees for these critical commercialization activities.
“I’m thrilled the committee came together to pass our legislation to support the startup businesses that are the engine of job creation in Delaware and across the country,” said Senator Coons. “This bill helps startup companies hit the ground running by providing entrepreneurs the support and flexibility they need to translate their cutting-edge research into marketable products and services.”
“The entrepreneurial spirit of Americans is part of what makes this country so unique. Startups will grow our economy and that’s why we must do everything we can to support them and the jobs they create,” said Gardner. “I’m pleased the Small Business Committee recognizes the value of startups and the need to make it easier for them to innovate, develop, and succeed.”
“This is an important step for many researchers and entrepreneurs in New York and around the country who are looking to bring their innovations to market by creating new businesses but don’t have access to the resources or services they need to do so,” said Senator Gillibrand. “Now that this bill has passed out of committee, it is one step closer to becoming law and giving our startup community the access it needs to a vital source of funding to ensure new technologies are made here in America, creating more jobs and growing our economy.”