Providing for Consideration of H.R. 2965, Enhancing Small Business Research and Innovation Act of 2009
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Mr. POLIS. One minor correction, to the gen tle lady from North Carolina. The rule is a structured rule as opposed to a closed rule. I know that my colleague on the Rules Committee is aware of the difference as well.
Specifically, this rule calls for five amendments to be in order, including three Republican amendments and two Democratic amendments. I think it's a very fair rule. There were 34 amendments that were submitted to the Rules Committee. Thirteen of those were withdrawn by the sponsors, and two were nongermane.
With that, I would like to yield 2 minutes to the gentleman from Georgia (Mr. Barrow).
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Mr. POLIS. With the Nation facing a historically tight credit market, H.R. 2965 makes it easier for small businesses that participate in SBIR to find capital and lets the business owners--not Washington bureaucrats--decide how to raise that capital.
The commonsense improvements to the SBIR program, clarifying its mission and which businesses qualify, will make an already successful program run more efficiently and yield better results for taxpayers and for American businesses.
The new focus on bringing products to market will help create even more job growth in manufacturing as well as support industries. America can be competitive and will continue to be competitive in manufacturing jobs in the high-tech sector. As technology improves at a lightning pace, the investments we make today in high-tech companies will ensure our Nation's technological advantage for many years to come.
The success of these companies brings new technology, efficiency and economic activity to Federal agencies and private industry alike. But more importantly, these successes will spark interest in science and technology in our youth. The advances we make now need a steady pipeline of new lines to keep us on track. We can leave no better legacy to the next generation of Americans than our example of intellectual prowess. Our colleagues on the Small Business Committee and the Science and Technology Committee understand the importance of taking action now for a stronger economic future. It is for this reason that both committees voted unanimously to bring this legislation to the floor of the House of Representatives.
Mr. Speaker, let us follow the example of our colleagues by putting partisanship aside and reauthorizing this program which has been so beneficial for our constituents. Let us show the American people that this is what we can accomplish when Democrats and Republicans work together for the common good.
I reserve the balance of my time.
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Mr. POLIS. I yield myself such time as I may consume.
To address the points made by my colleague Mr. Manzullo of Illinois, previous to this change, we effectively require that recipient companies take government money in Phase I in order to be eligible for Phase II. By making this change, we're saying, You know what, you don't need to rely on the government. You can raise private capital to make yourself eligible for Phase II. And we can actually have more funding available for Phase II by reducing the need for Phase I money by using private capital sources rather than government capital, rather than the taxpayer money that would otherwise go into it.
We also have protections to ensure that a majority of the company is owned by those inventors and entrepreneurs who start the company. Venture capital investment is typically 20, 30, 40 percent of the company. Under this bill, we also stipulate that it can't be a majority of the company.
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Mr. POLIS. Reclaiming my time, why should companies be forced to accept government grants when there's private capital out there that would be willing to save taxpayer money, invest in those companies, bring that technology to the next stage and preserve that taxpayer money to be able to invest in the commercialization of those products and technologies?
With that, I would like to yield 2 minutes to the gentleman from Oregon (Mr. Wu), the chairman of the Subcommittee on Technology and Innovation.
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Mr. POLIS. Mr. Speaker, I would share with my colleague from Illinois that in my previous career before I came to Congress, I had been on various sides of this equation. I have been a venture capital investor. I have been in venture-backed companies. I have been a limited partner in venture capital companies, and I have raised money from individual investors as well.
I can't see any good reason why the government should discriminate on the form of capital based on the form of capital the company has raised. It might be debt financing from a bank. It might be private capital from individual investors. It might be professional venture capital. It might be a grant under DARPA. It might be a Phase I grant under SBIR. These are all valid ways to raise money. These are all perfectly fine ways. Personally, I think it's better when they raise money from people rather than taxpayers. If they raise money from venture capital investors, that's a plus. If they raise money from a bank through credit, that's a plus too.
The truth is, a lot of types of businesses aren't bankable. They can't borrow. They can't leverage because they are not buying a tangible asset with that. If you are in software, if you are in e-commerce, you can't borrow to develop that company. You need to rely on equity capital. By discriminating based on equity capital, which is what we are talking about with venture capital, you are basically favoring companies that have a bankable asset that they're purchasing.
Now I'm sure both kinds of companies are critical for the future of our economy, but many of the very technology companies we need to support and are going to be a powerful growth sector in biotech, in computer technology, are going to be companies that can only raise money through equity capital. And by allowing them to do that, through allowing venture capital- backed companies to be eligible for these programs, we're furthering our engine of economic growth.
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Mr. POLIS. To address the points of the gen tle lady from North Carolina, when we are talking about this bill, we are talking about a pro business bill. There are no taxes in this bill. This is all budgeted for already in the budget that was passed.
The Democrats have already delivered a number of tax cuts for small businesses. Tax cuts are certainly part of the solution. We have done that through the American Recovery and Reinvestment Act for small businesses. Soon we will be taking up health care, which will be a tremendous benefit to the small businesses of this country.
This bill, H.R. 2965, which invests in small businesses, is supported by the Advanced Medical Technology Association, the Biotechnology Industry Association, the Medical Device Manufacturers Association, the National Venture Capital Association, and the U.S. Women's Chamber of Commerce. It is also supported by many of the patient advocacy groups who recognize that this type of investment will help cure the health concerns and address the health concerns of many American families. It is supported by the Cystic Fibrosis Foundation, the Parkinson's Action Network and the ALS Association.
These are all critical reasons that, for American small business to create jobs and for the health of our population and the continued growth of our economy, we need to pass this rule and pass this bill.
I would like to reserve the balance of my time.
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Mr. POLIS. To address the points of the gen tle lady from North Carolina, when we are talking about this bill, we are talking about a pro business bill. There are no taxes in this bill. This is all budgeted for already in the budget that was passed.
The Democrats have already delivered a number of tax cuts for small businesses. Tax cuts are certainly part of the solution. We have done that through the American Recovery and Reinvestment Act for small businesses. Soon we will be taking up health care, which will be a tremendous benefit to the small businesses of this country.
This bill, H.R. 2965, which invests in small businesses, is supported by the Advanced Medical Technology Association, the Biotechnology Industry Association, the Medical Device Manufacturers Association, the National Venture Capital Association, and the U.S. Women's Chamber of Commerce. It is also supported by many of the patient advocacy groups who recognize that this type of investment will help cure the health concerns and address the health concerns of many American families. It is supported by the Cystic Fibrosis Foundation, the Parkinson's Action Network and the ALS Association.
These are all critical reasons that, for American small business to create jobs and for the health of our population and the continued growth of our economy, we need to pass this rule and pass this bill.
I would like to reserve the balance of my time.
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Mr. POLIS. Mr. Speaker, if small businesses are the engine that drives our economy, then investment is the fuel. By ensuring that a portion of Federal research dollars are invested in small businesses, SBIR and STTR are fueling job creation and technological innovation. Since 1992, SBIR has issued 65,000 grants to small companies that are engaged in cutting-edge research to cure diseases, strengthen our national defense, and reduce our dependence on foreign energy sources.
This Congress has been tasked with helping American families keep their jobs through the worst economic down turn since the Great Depression. We now have an unemployment rate of 9.5 percent. While there has been disagreement and spirited debate on the best prescription to get our economy moving again, we are fortunate that we have in place programs that are time tested. Every year the SBIR program invests $2.2 billion in small businesses, helping 1,500 new firms get off the ground.
Mr. Speaker, I speak on behalf of Tech-X in Boulder; Coherent Technologies in Louisville; Community Power Corporation in Littleton; NavSys in Colorado Springs; and the many other small businesses which have benefited from the SBIR in my State of Colorado and across the country.
Again, I commend the Members and staff who have worked diligently to bring this bipartisan bill to the floor.
Mr. Speaker, as I said before and will continue to say, so much of our work thus far in Congress has moved us in the direction of creating more jobs. Whether it was passing the budget or work on health care, clean energy, education, the Recovery Act, the Green Schools bill, and even the Water Quality Investment Act created jobs. This bill is just another step on the road to recovery.
I urge a ``yes'' vote on the previous question and on the rule.
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