Enhancing Small Business Research and Innovation Act of 2009

ENHANCING SMALL BUSINESS RESEARCH AND INNOVATION ACT OF 2009 -- (House of Representatives - July 08, 2009)

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Mr. JOHNSON of Georgia. Mr. Chair, I rise today in support of H.R. 2965, to amend the Small Business Act with respect to the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes. I would like to thank my colleague Representative Jason Altmire from Pennsylvania for introducing this important piece of legislation.

I support this legislation because it increases the support of small businesses which are the lifeblood of the American economy. This legislation extends the previous termination date for SBIR and STTR programs to 2011, allowing more businesses to participate. It extends the authority to all agencies to develop programs supporting the commercialization of SBIR-funded research and increases the provision of funds to assist small businesses in rural areas. Importantly, it also provides for the special consideration of historically underrepresented groups, including small businesses operated by women, minorities, and service-disabled veterans.

Though I support this legislation, I have concerns over the provision extending eligibility of the SBIR and STTR programs to Venture Capital Operating Companies. The Small Business Administration defines small VCOCs as firms with annual earnings below $6.5 million, effectively identifying large businesses as small businsesses under the text of this legislation. Furthermore, the bill does not include limits for the level VCOC participation, failing to safeguard the overcrowding of small businesses within the SBIR and STTR programs. Both the National Academy of Sciences and the Government Accountability Office have recommended such safeguards be included in this legislation, yet the text remains unchanged. I have always been a supporter of small businesses and I am the sponsor of the Fairness and Transparency in Contracting Act, which would ensure that small businesses can take full advantage of federal contracting opportunities. Although H.R. 2965 fails to include the safeguards necessary to protect small businesses, I believe it is a step in the right direction.

Small businesses represent 99 percent of employer firms, employ half of all private sector employees, and comprise 97 percent of identified exporters. In the state of Georgia, the more than 860,000 small businesses employ more than 3.6 million workers. I urge my colleagues to vote in support of enhancing small business innovation, small businesses research, employment, and the economy by supporting this legislation.

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