SBIR/STTR Foreign Interference Safeguard Act
Summary
The SBIR/STTR Foreign Interference Safeguard Act aims to strengthen national security by preventing foreign entities of concern from accessing Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program awards. It extends the due diligence program for security risk assessment to 2030 and codifies safeguards for small businesses majority-owned by venture capital, hedge funds, or private equity firms. The bill defines 'covered foreign entity' and 'foreign entity of concern' to clarify ineligibility criteria.
Expected Effects
This act will likely reduce the risk of intellectual property theft and economic espionage within the SBIR/STTR programs. It will also add complexity to the application process for small businesses with foreign investment. The changes could potentially limit access to funding for some legitimate businesses with foreign ties.
Potential Benefits
- Enhanced national security by preventing foreign interference in critical research and development.
- Protection of intellectual property and sensitive technologies developed through SBIR/STTR programs.
- Increased transparency and accountability in the allocation of government funding.
- Level playing field for domestic small businesses without significant foreign ownership.
- Extension of due diligence program ensures continued vigilance against security risks.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased administrative burden and compliance costs for small businesses.
- Risk of inadvertently excluding legitimate businesses with foreign investment from SBIR/STTR programs.
- Possible chilling effect on foreign investment in US small businesses.
- Complexity in determining 'control' and 'ownership' may lead to legal challenges.
- May require additional resources for the Small Business Administration to implement and enforce the new regulations.
Constitutional Alignment
The bill aligns with the constitutional mandate to provide for the common defense (Article I, Section 8). By safeguarding critical technologies and preventing foreign interference, the act supports national security interests. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).