New SBA Regulations on SBIR Stir Discussion; Comments Accepted Until July 16

Two of the Small Business Administration's (SBA) proposed changes to the federal SBIR/STTR programs have caught the attention of small business advocates and groups warning of loopholes in the language that they say could negatively impact U.S. companies and affect eligibility.

The proposed rule amends the size eligibility requirements by addressing ownership, control and affiliation issues raised in the reauthorization act passed by Congress last year (see the Dec. 21, 2011 issue of the Digest). Specifically, advocates of SBIR/STTR are concerned that foreign-owned companies would be provided a mechanism to compete for awards under SBA's proposed size standard rule and that venture capitalists, hedge funds and private equity firms would be given more opportunity to participate in the program than what was intended in the reauthorization act. Another proposed change calls for determining an applicant's size and eligibility both at the time of application and the time of award.

To learn more about the proposed changes, please visit: http://www.gpo.gov/fdsys/pkg/FR-2012-05-15/pdf/2012-11586.pdf. Interested parties are encouraged to make their voices heard by submitting comments, both for and against, on or before July 16 at: http://www.regulations.gov (Search for RIN: 3245-AG46).