Small Business Innovation and Economic Security Act | ChamberLight
Bills · S 3971
BECAME LAW· 119TH CONGRESS
Senate BillS 3971Military assistance, sales, and agreementsIntellectual property
Small Business Innovation and Economic Security Act
INTRO MAR 3· LAST ACTION APR 13
PASSAGE CHANCES
BECAME LAW
READING
28MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
LEGISLATIVE PROGRESS
STEP 8 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it aims to balance two important goals: supporting American innovation through small businesses and protecting national security. If this bill becomes law, it could lead to increased scrutiny for some small businesses seeking federal funding, potentially affecting their ability to secure grants. However, supporters argue it's crucial for preventing foreign adversaries from accessing or exploiting sensitive U.S. research and technology, thereby safeguarding national interests and taxpayer investments. Without this law, there might be fewer security controls over federal research grants, potentially leaving the door open for malicious actors to gain access to critical American technological advancements.
KEY PROVISIONS
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PROVISION 01
Requires federal agencies to evaluate whether small businesses applying for SBIR/STTR awards present a security risk, using due diligence, disclosures, and coordination with intelligence and law enforcement.
This provision introduces a formal and comprehensive process for vetting grant applicants for national security concerns.
PROVISION 02
Defines specific security risks, including connections between small businesses and entities or individuals on various government watchlists related to foreign military, restricted technology, or human rights issues.
This establishes clear criteria for what constitutes a security risk that could lead to an award denial, making the process more targeted.
PROVISION 03
Mandates that federal agencies notify small businesses when their application is denied due to a security risk, providing the basis for that determination without compromising national security.
This ensures transparency and allows businesses to understand why they were denied, potentially enabling them to address issues for future applications.
PROVISION 04
Clarifies that a denial based on security risk in one award cycle does not automatically disqualify a small business from applying for future awards.
This provision offers a path for small businesses to potentially rectify issues and reapply, promoting continued innovation.
Voters should care about this bill because it aims to balance two important goals: supporting American innovation through small businesses and protecting national security. If this bill becomes law, it could lead to increased scrutiny for some small businesses seeking federal funding, potentially affecting their ability to secure grants. However, supporters argue it's crucial for preventing foreign adversaries from accessing or exploiting sensitive U.S. research and technology, thereby safeguarding national interests and taxpayer investments. Without this law, there might be fewer security controls over federal research grants, potentially leaving the door open for malicious actors to gain access to critical American technological advancements.
KEY PROVISIONS
AI-extracted
high
Requires federal agencies to evaluate whether small businesses applying for SBIR/STTR awards present a security risk, using due diligence, disclosures, and coordination with intelligence and law enforcement.
This provision introduces a formal and comprehensive process for vetting grant applicants for national security concerns.
high
Defines specific security risks, including connections between small businesses and entities or individuals on various government watchlists related to foreign military, restricted technology, or human rights issues.
This establishes clear criteria for what constitutes a security risk that could lead to an award denial, making the process more targeted.
med
Mandates that federal agencies notify small businesses when their application is denied due to a security risk, providing the basis for that determination without compromising national security.
This ensures transparency and allows businesses to understand why they were denied, potentially enabling them to address issues for future applications.
med
Clarifies that a denial based on security risk in one award cycle does not automatically disqualify a small business from applying for future awards.
This provision offers a path for small businesses to potentially rectify issues and reapply, promoting continued innovation.
GLOSSARY
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SBIR Programs
Small Business Innovation Research programs provide federal grants to small businesses to engage in research and development that has the potential for commercialization.
STTR Programs
Small Business Technology Transfer programs are similar to SBIR but require small businesses to formally collaborate with a non-profit research institution, like a university.
Intelligence Community
A group of distinct U.S. government intelligence agencies and organizations that work separately and together to conduct intelligence activities to support the foreign policy and national security of the United States.
Due Diligence
A comprehensive investigation or review of a small business to confirm facts and identify potential risks before a government agency makes a grant award.
Security Risk
Any factor or connection that suggests a small business could pose a threat to national security, such as ties to hostile foreign entities or involvement in activities deemed harmful to U.S. interests.
UFLPA Entity List
A list maintained by the Department of Homeland Security identifying entities in China that are presumed to use forced labor in their supply chains, restricting goods from these entities from entering the U.S.