SBIR/STTR Foreign Interference Safeguard Act
- Bill Number
- H.R. 4775
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-07-25: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-09-17T15:03:42Z
AI-Generated Summary
Summary of H.R. 4775: SBIR/STTR Foreign Interference Safeguard Act
Purpose of the Legislation
This bill aims to protect the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs from foreign interference by barring certain small businesses with foreign ownership or control ties from receiving awards. It also extends an existing program for checking security risks in these awards.
Key Provisions Outlined
- Extension of Due Diligence Program: Amends the Small Business Act to extend the due diligence program for assessing security risks in SBIR and STTR awards until September 30, 2030 (previously set to end on September 30, 2025).
- New Ineligibility Rules for Foreign Ownership:
- A small business majority-owned by venture capital firms, hedge funds, or private equity firms becomes ineligible for SBIR awards if it is found to be owned or controlled by a "covered foreign entity."
- The Administrator of the Small Business Administration (SBA) must evaluate direct or indirect ownership, including subsidiaries of foreign-owned firms.
- New size standards will be set for small businesses participating under these rules.
- Broad Definitions of Restricted Entities:
- A "covered foreign entity" includes foreign entities of concern, foreign governments or political parties from countries of concern, non-U.S. citizens or protected individuals, and various related persons or organizations (such as agents, those with 25% or more ownership, or entities organized under laws of restricted countries).
- A "foreign entity of concern" covers entities designated as foreign terrorist organizations, those on the U.S. Treasury's SDN list, entities tied to certain foreign governments (like "covered nations"), individuals convicted of espionage or export control violations, and those engaged in activities harmful to U.S. national security.
- Applicability: These new rules apply only to SBIR awards made after the bill's enactment.
Significant Changes to Existing Law
- Builds on current SBIR/STTR rules by adding explicit foreign ownership restrictions for businesses backed by venture capital or similar firms, where none existed in this specific form.
- Extends the timeline for the security risk assessment program by five years.
- Introduces detailed criteria for identifying foreign control, including indirect ownership and influence through agents or financing.
Potential Impacts
- On Government Agencies: The SBA Administrator gains new responsibilities for ownership reviews and setting size standards; federal agencies running SBIR/STTR programs (such as those in defense or science) may face added review processes, potentially slowing award distributions.
- On Citizens and Businesses: U.S.-based small businesses with foreign investment ties could lose access to funding, affecting innovation in tech and research sectors; this may encourage domestic-only ownership structures.
- On International Relations: Restricts participation by entities linked to countries of concern or foreign actors, which could strain ties with certain nations or deter foreign investment in U.S. small businesses.
Main Stakeholders Affected
- Small businesses seeking SBIR/STTR funding, especially those with venture capital or private equity backing.
- Venture capital operating companies, hedge funds, and private equity firms investing in eligible small businesses.
- The Small Business Administration and other federal agencies administering the programs.
- Foreign entities, governments, or individuals connected to restricted countries or activities.
- U.S. citizens and protected individuals involved in small business ownership.
Notable Legal, Constitutional, or Political Implications
- Strengthens national security safeguards in federal innovation funding without altering core program structures.
- The broad definitions of foreign entities and control could raise questions about due process in ownership determinations, though the bill focuses on administrative reviews by the SBA.
- Introduced with bipartisan support, reflecting emphasis on protecting U.S. research from foreign influence.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-07-25: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-25: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-25: Introduced in House
- 2025-07-25: Introduced in House
Bill Versions
- SBIR/STTR Foreign Interference Safeguard Act — issued 2025-07-25 — PDF (8 pages)