H.R. 1425: The Creating Jobs Through Small Business Innovation Act of 2011

H.R. 1425, The Creating Jobs Through Small Business Innovation Act of 2011

There is a very strong case for reauthorizing the SBIR and STTR programs.  They have a proven track record of creating jobs, advancing innovative science to the marketplace, and solving federal agency problems.   The legislative goal is to strengthen these programs to ensure efficient use of taxpayer dollars to help create more jobs by investing in the best science offered by small firms.  Moreover, the bill does not authorize appropriations, but rather continues to set aside 2.5% of all federal extramural research dollars for small businesses to compete for.

            Among other things, the bill would:
o Reauthorize the SBIR and STTR programs for three years;
o Encourage greater commercialization success by instituting commercialization initiatives at Federal agencies that administer SBIR programs;
o Increase Phase I and Phase II award sizes for both programs;
o Allow for greater participation of small companies regardless of their financial structure;
o Shorten the time frame between application and notice of award, and between notice of award and dispersal of funds;
o Codify in statue the programmatic flexibility that Federal agencies need in order to administer SBIR awards in a manner that is most consistent with the agency’s specific mission;
o Reduce the programs’ risk of waste, fraud, and abuse by requiring the SBA to develop additional prevention measures and by requiring the Inspector General of each participating agency to establish fraud detection measures and share best practices amongst themselves; and
o Permit agencies to use three percent of their SBIR and STTR budget for administrative, oversight, and contract processing costs.

  • These are two great programs available for us to use in assisting small and medium sized businesses in South Carolina. I hope they will continue to be available! Also, what we think is needed is to find a way to reduce the tax burden, the regulation burden and generally get the government out of the way so we can create more jobs by improving and stabilizing the business climate in the USA so we can increase employment, get people to feel comfortable in spending again and create the NEED for more production of goods and services. It does no good to increase employment if stuff we make is sitting on our shelves! Let's get some BUYERS out there! Charles M. (Charleston, SC) Small Business Development Center
  • The Government should consider accelerating the award of Small Business Innovative Research (SBIR) grants that have the opportunity to commercialize in the next 6-9 months. SBIR proposals generally represent new products and services that have fast growth potential of creating NEW jobs as opposed to ADDING jobs. A great deal of rhetoric surrounds of Nation’s need to INNOVATE our way out of our current economic situation and the Government has a pipeline of ideas that are waiting to be funded and moved forward. We should also open up additional proposal cycles for the short term instead of the current annual cycle to spur additional proposal and increase distribution of stimulus funds in smaller amounts. The benefits of this approach are that any small business that receives funding will actually SPEND the money to move the project forward without a focus on profits in an effort to launch their product or service. Funded small businesses will require additional goods and services, feeding the economy from the ground level up. This approach will also afford a much wider distribution of stimulus funding rather than concentrating it with large, established companies who are experienced at profiting from large, Government sponsored projects – a top down approach. Continuing to pour more money into the existing corporate infrastructure will only promote slow, continuous growth by the ADDITION of jobs and increased corporate profits. INNOVATIVE small businesses distributed around the country offers the possibility of high growth of NEW jobs and provide infusion of stimulus money at local levels. Neil M. (Longmont, CO)
  • Mr Chairman, Whereas, the push so far for job creation, and in deed,economic recovery contribution, is incredibly laudable, it is further urged, very strongly,that law makers explore and create a more fertile ground for, both,government grants and low interest time specific yielding loans to small businesses that fulfill requisite growth requirements, in the short term or long term considerations. Lending institutions are using inflexible conditions to withhold loans from needy small businesses. Congress may step in to push for more flexible conditions, or at best, guarantee- loans to promising and management proven small businesses. Such a move, in addition to already explored moratorium of taxes and regulations,will galvanize,propel and alter job market dynamics of today's stalled unemployment national registry. This is the critical point holding down small businesses from recruitment drive and competition. Martin Atayo (MPGATECHNOLOGIES,INC) Martin A. (Washington, DC) MPGATECHNOLOGIES, INC
  • Small Business Innovation Research Program concerns The SBIR program is a wonderful way to support grass roots innovation, but some companies have miss used the concept and developed their business model around winning SBIR funding. I retired from the Federal Government performing acquisition management for DOD. During that period I witnessed many new concepts and ideas being developed under the SBIR program. When I retired I went to work for an 8a company. I quickly discovered their primary business development was winning SBIR I & II. They had not won a single competitive contract, only SBIRs. The company was content with the business model and structured their hiring and training around this. There should be some certification from companies that a percentage of their business is under SBIR programs and not their total income. This is not helping the companies or the Government. Thank you Bob N. (Coldwater, MI)

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