Small Business Innovation Voucher Act of 2025
- Bill Number
- S. 3415
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-12-10: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-06-30T20:01:45Z
AI-Generated Summary
Purpose of the Legislation
The Small Business Innovation Voucher Act of 2025 aims to create a new grant program through the Small Business Administration (SBA) to help small businesses partner with universities and research organizations. It focuses on providing financial support for small businesses to obtain technical help in developing innovative products or services, ultimately boosting economic growth, job creation, and U.S. leadership in technology.
Key Provisions
- Establishment of the Program: The SBA Administrator must set up the "Innovation Voucher Grant Program" within 180 days of the bill's enactment. Grants are awarded competitively to small businesses to cover part of the costs for buying technical assistance and services from eligible entities (such as universities or nonprofit research labs) for research, development, or commercialization projects.
- Grant Details:
- Grant amounts range from $15,000 to $75,000 and remain available until used.
- Federal funding covers up to 75% of costs for grants under $50,000 and up to 50% for grants of $50,000 or more.
- Purposes:
- Encourage partnerships between small businesses and research institutions.
- Provide access to expensive equipment, expert knowledge, and advanced research tools.
- Support creation of new products/services, increase business competition, build a skilled workforce, and create jobs.
- Application and Selection:
- Small businesses apply jointly with an eligible entity.
- SBA selects recipients within 180 days of the application deadline.
- Evaluation considers the project's novelty, feasibility, and whether it could succeed without the grant.
- Reporting Requirements:
- Grant recipients submit a report 180 days after project completion, detailing outcomes, business integration, and innovation improvements.
- SBA submits biennial reports to congressional committees on grants awarded, impacts, and knowledge transfer; a final report is due after funds are spent.
- Funding Authorization: $10 million per fiscal year from 2026 to 2030, with no more than 5% for administrative costs; funds remain available until used.
Significant Changes to Existing Law
This bill introduces an entirely new program under the SBA, with no direct amendments to prior laws like the Small Business Act. It expands SBA's role in innovation support by creating a voucher-style grant mechanism, similar to but distinct from existing programs like the Small Business Innovation Research (SBIR) initiative, focusing specifically on partnerships for technical services.
Potential Impacts
- On Government Agencies: The SBA gains a new responsibility to administer the program, including application reviews, grant awards, and reporting, which could increase workload but is limited by the 5% administrative cap.
- On Citizens and Businesses: Small businesses, especially startups, may gain easier access to research expertise, leading to faster product development, job creation, and economic vitality in local communities. It could accelerate workforce training in advanced fields.
- On International Relations: By promoting U.S. innovation and technology leadership, the program may enhance America's competitive edge globally, potentially influencing trade and tech diplomacy without direct foreign policy changes.
Main Stakeholders Affected
- Small Businesses: Primary beneficiaries, as they receive grants to fund innovation projects.
- Eligible Entities: Universities, nonprofit research labs, and similar organizations that provide services and partner with businesses.
- SBA: Responsible for program implementation, evaluation, and oversight.
- Congressional Committees: The Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business, which receive reports and oversee the program.
- Broader Economy: Workers, consumers, and communities benefiting from job growth and new technologies.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill aligns with existing SBA authorities under the Small Business Act, using standard competitive grant processes without raising federalism concerns (as it operates nationally). It emphasizes accountability through required reports, reducing risks of misuse.
- Constitutional: No apparent conflicts; it supports Congress's power to regulate commerce and promote general welfare via economic development programs.
- Political: Reinforces bipartisan support for small business innovation (introduced by senators from both parties), potentially serving as a tool for economic policy in a competitive global tech landscape, though funding levels may spark debates on federal spending priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Cortez Masto, Catherine [D-NV]
Cosponsors (1)
Recent Actions
- 2025-12-10: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-12-10: Introduced in Senate
Bill Versions
- Small Business Innovation Voucher Act of 2025 — issued 2025-12-10 — PDF (7 pages)