• Reauthorization Opens Up SBIR Funds To Small Businesses With Venture Capital, Hedge Fund, Or Private Equity Backing
  • January 5, 2012 | Authors: Scott A. Freling; Alan A. Pemberton; Jennifer L. Plitsch
  • Law Firm: Covington & Burling LLP - Washington Office
  • On December 31, 2011, President Obama signed into law the National Defense Authorization Act for Fiscal Year 2012 (H.R. 1540), which, among other things, reauthorized the Small Business Innovation Research (“SBIR”) Program through September 30, 2017. As detailed below, this legislation provides long-term certainty for small businesses hoping to take advantage of the federal grant program, increases the amount of funding available per grant, enlarges the amount of grant funds that agencies must set aside for inclusion in the program, and opens the door to certain small businesses that are owned in substantial part by venture capital operating companies, hedge funds, or private equity firms. These small businesses had previously been barred from participating in the Program.