HR 4775
SBIR/STTR Foreign Interference Safeguard Act
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
This bill, the SBIR/STTR Foreign Interference Safeguard Act, aims to protect the Small Business Innovation Research (SBIR) and Small Technology Transfer (STTR) programs from potential foreign influence. It extends the program’s due diligence requirements for assessing security risks through 2030 and introduces new safeguards for small businesses that are majority-owned by venture capital firms, hedge funds, or private equity firms. Specifically, it prohibits awards to such businesses if the Administrator determines they are owned or controlled in majority part by a covered foreign entity.
Key provisions
- Extends the due diligence program for security risk assessment to September 30, 2030.
- Prohibits SBIR awards to small businesses majority-owned by venture capital operating companies, hedge funds, or private equity firms if they are linked to a covered foreign entity.
- Defines ‘covered foreign entity’ broadly, including foreign governments, designated terrorist organizations, and individuals with ties to foreign countries of concern.
- Requires the Administrator to establish size standards for small businesses seeking SBIR participation under this section.
- Specifies that ownership determination should consider direct or indirect subsidiaries of foreign-owned firms.
- Includes a list of specific laws and regulations that could trigger designation as a ‘covered foreign entity’.
- The provisions apply only to awards made after the enactment of the Act.
Who is affected
- Small businesses
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
119th CONGRESS — 1st Session
H. R. 4775
IN THE HOUSE OF REPRESENTATIVES
A BILL
To ensure small business concerns indirectly owned or controlled by certain foreign entities are ineligible to receive SBIR or STTR awards, and for other purposes.
This Act may be cited as the SBIR/STTR Foreign Interference Safeguard Act
.
Section 9(vv)(3)(C) of the Small Business Act (15 U.S.C. 638(vv)(3)(C)) is amended by striking September 30, 2025
and inserting September 30, 2030
.
Section 9(dd) of the Small Business Act (15 U.S.C. 638(dd)) is amended—
in paragraph (6)(B), by striking If a Federal
and inserting Except as provided in paragraph (8), if a Federal
; and
by adding at the end the following new paragraph:
A small business concern that is majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms is ineligible to receive an award under any SBIR program if the Administrator determines that such small business concern is, or is owned and controlled in majority part by, a covered foreign entity.
In determining whether a small business concern is ineligible to receive an award under any SBIR program under subparagraph (A), the Administrator shall consider whether the small business concern is a direct or indirect subsidiary of a foreign-owned firm.
The Administrator shall establish size standards for small business concerns seeking to participate in an SBIR program solely under the authority under this section.
In this paragraph:
the term covered foreign entity—
means—
a foreign entity of concern;
a natural person who is not a lawful permanent resident of the United States, citizen of the United States, or any other protected individual (as such term is defined in section 274B(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3))); or
a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern; and
includes—
any entity owned by, controlled by, or subject to the jurisdiction or direction of a an entity listed in subclause (I);
The term foreign entity of concern means a foreign entity that is—
included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the SDN list);
owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation (as such term is defined in section 4872 of title 10, United States Code);
alleged by the Attorney General to have been involved in activities for which a conviction was obtained under—
chapter 37 of title 18, United States Code (commonly known as the Espionage Act);
section 951 or 1030 of such title;
chapter 90 of such title (commonly known as the Economic Espionage Act of 1996);
the Arms Export Control Act (22 U.S.C. 2751 et seq.);
section 224, 225, 226, 227, or 236 of the Atomic Energy Act of 1954 (42 U.S.C. 2274, 2275, 2276, 2277, and 2284);
the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.); or
the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or
determined by the Secretary of Commerce, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States.
The amendments made by subsection (a) shall apply only with respect to awards made under an Small Business Innovation Research Program (as defined in section 9(e) of the Small Business Act (15 U.S.C. 638(e))) after the date of the enactment of this Act.