SBIR reauthorization, a top BIO priority, is passed by Congress

Reauthorization of federal seed funding, a top priority for BIO’s work with Congress, passed the House with hefty bipartisan support on March 17 and is set to become law by month’s end.

Biotech firms should soon be able to apply for grants from the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) seed-funding programs, which were reauthorized for five years. The Biotechnology Innovation Organization (BIO) will be cooperating with federal agencies and biotech firms to facilitate this support for innovation.

“The SBIR/STTR program has a long and proven track record of supporting and growing the most innovative American biotechnology companies,” said Brad Zakes, Senior Vice President for Emerging Companies and Economic Affairs at BIO. “BIO applauds Congress for its leadership and for reauthorizing this important program.”

The SBIR/STTR programs provide federal grants so that small firms can develop innovations to the point where they can attract commercial investment. Since their beginning in 1982 and 1992 respectively, SBIR and STTR have provided more than $77 billion in funding to 33,000 businesses.

SBIR/STTR grants are especially important for a research-intensive industry like biotech, and are credited with helping support 12% of all FDA-approved drugs. The National Institutes of Health (NIH) operates the second-largest SBIR/STTR programs after the Department of Defense.

SBIR/STTR funding lapsed in October. The Senate voted unanimously on March 3 to reauthorize the funding, and it was sent to the House, where it was passed by 345-41 on March 17, with all legislators who chose to speak before the vote voicing their support.

Looking to build on success

“Since its inception, the program has helped bolster the type of early-stage companies that drive economic growth, medical innovation and job creation,” said BIO’s Zakes. “This program has ignited innovative science and helped to fuel America’s leadership in this critical sector. We look to build on that success with new medicines, new research and new companies that position the U.S. for success for years to come.”

The opening of applications for SBIR/STTR grants is anticipated soon and will be announced on the federal government’s Grants.gov website.