99 -- SMALL BUSINESS INNOVATION PROGRAM (SBIR) - SBA HAS PUBLISHED ITS FINAL RULE

The U.S. Small Business Administration (SBA) has finalized a rule revising the ownership and control requirements for businesses participating in the Small Business Innovation Research (SBIR) Program. According to the new rule, an SBIR awardee must be a for-profit business that is either at least 51% owned and controlled by one or more U.S. citizens or permanent resident aliens, or at least 51% owned and controlled by another for-profit entity that itself meets the same ownership criteria. The size standard remains unchanged, requiring that the awardee and its affiliates have no more than 500 employees. This rule aims to clarify and reinforce the eligibility criteria to ensure that SBIR awards benefit genuinely small U.S.-controlled businesses. In response to extensive public comments, particularly regarding the participation of Venture Capital Companies in SBIR ownership, the SBA plans to issue an Advanced Notice of Proposed Rulemaking (ANPRM) to gather further input on this topic. Additionally, the ANPRM will seek comments on the potential restructuring of SBA’s small business size standards, which were initially proposed earlier in 2004. Interested parties can contact the SBA’s Office of Size Standards for more information, with Carl G Jordan serving as the key program analyst. This final rule marks an important step in refining SBIR program requirements and ensuring alignment with SBA’s broader efforts to support and define small business eligibility.