Encouraging Small Business Innovators

Floor Speech

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Mr. ESPAILLAT. Mr. Speaker, before I begin, I thank Ranking Member Velazquez and Chairman Chabot for their leadership in the Small Business Committee, and the colead in this bill, the Congressman from South Carolina (Mr. Norman).

Mr. Speaker, I rise today in support of H.R. 6368, Encouraging Small Business Innovators.

Mr. Speaker, access to capital remains limited for underrepresented minority- and women-owned small businesses. I hear this concern from many in New York City whose ventures in science and technology are full of promise and potential for success.

However, a 2013 report commissioned by the Small Business Administration found that women-owned businesses do not have equal access to capital from the private sector as compared to their male peers. The Small Business Administration's own Office of Advocacy has said that ``there are fewer minority-owned businesses representing high-patenting industries than in all industries.''

Through the Small Business Innovation Research and the Small Business Technology Transfer programs, the Small Business Administration works with partners in 11 Federal agencies, ranging from agriculture to NASA, to support small businesses, and especially those that are minority and disadvantaged owned.

These programs are committed to fostering and encouraging participation and innovation and entrepreneurship by socially and economically disadvantaged individuals and expanding private-sector commercialization of innovations resulting from federally funded research and development. But this is limited only to research and development. There is no consideration given for testing and evaluation.

What good is a product or a method when you don't know if it works effectively, efficiently, or can be used in variable ways?

H.R. 6368 addresses this problem by including testing and evaluation among the activities that SBIR and STTR participants can apply for. This is how we can encourage more underrepresented entrepreneurs and their expertise into a process where they can develop new products, ideas, and gain respected external validators.

H.R. 6368 also incentivizes mentorship with previous SBIR and STTR companies that have found success in the programs to share and impart that knowledge and experience.

Today's bill is endorsed by the National Defense Industrial Association, an association whose majority are small businesses.

Mr. Speaker, I urge my colleagues to support this bipartisan legislation.

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