Engine statement regarding “The Small Business Innovation and Economic Security Act”

The following statement is attributed to Emma Kortebein, Policy Manager and Kate Tummarello, Executive Director of Engine:

Statement:

Final passage of the Small Business Innovation and Economic Security Act (S. 3971) makes important updates and restores a critical source of funding for early-stage research and development after months of uncertainty for startups. Now President Trump must sign this much needed legislation. This has been an unprecedented lapse in these programs, and Congress should continue work to strengthen the programs' accessibility and long-term stability.

Background:

For decades, SBIR and STTR programs have served as a lifeline for startups engaged in costly R&D activities. The five-month lapse in authorization created unnecessary disruption for founders, underscoring the importance of predictable and sustained support for early-stage innovation. The bill makes important updates for startups, including creating a new Strategic Breakthrough track to help bridge the gap between research and commercialization, increasing security due diligence, and expanding data collection to better understand program outcomes. At the same time, the approach to addressing concerns around multi-award winners preserves agency flexibility while maintaining access to the program.

Looking ahead, policymakers should continue working to strengthen the program by improving accessibility, streamlining the application process, and exploring longer-term reforms such as making SBIR and STTR permanent and expanding opportunities for first-time applicants.