It’s been a long 5 months since SBIR/STTR authorization ended on September 30, 2025! However, as of Feb 25, 2026, it looks like key Senators have finally agreed to an SBIR/STTR re-authorization bill!
Senator Ernst and Senator Markey have introduced the ‘‘Small Business Innovation and Economic Security Act’’, with the goal of it being quickly passed by the Senate and sent to the House before arriving on the President’s desk.
Here’s what we know about key changes to the SBIR/STTR program included in this new Legislation:
- Extends authorization of the SBIR/STTR program and related pilot programs through September 30, 2031 — securing the runway for innovation
- Caps the number of proposals any single small business can submit per fiscal year, solicitation, or topic — ending the volume game
- Expands Technical and Business Assitance (TABA) to cover cybersecurity assistance and unlock funding for strategic hiring and employee development
Requires agencies to deploy standardized model contracts across Phase I, II, and III- Tightens and standardizes foreign risk and due diligence requirements across all agencies
- Creates a “Strategic Breakthrough Award” — a post-Phase II mechanism enabling agencies to deploy jumbo awards up to $30M for high-impact opportunities
- Mandates rigorous Phase III award training for federal agency acquisition teams to ensure better transition from SBIR awardee to federal contractor.
- Activates agency procurement center representatives as proactive Phase III champions
- Overhauls SBIR/STTR data collection — mandating precise tracking of direct-to-Phase II transitions, Phase III awards, and subcontracting outcomes
So, what should you do now?
- We don’t know how these changes will end up reflected in new solicitations, so, although teams can plan and work on key elements, writing to an old solicitation isn’t a good use of time
- Focus on Customer Discovery and building out your Business Model (and business model canvas) in order to lend credibility to your commercialization plan
- Research topics as they have existed and develop your “SBIR Pipeline” strategy – different agencies to fund different parts of your overal technology strategy.
- Fine tune key proposal elements such as an outline of your research strategy and technical work plan / technical objectives recognizing you may have to scale the size of the work plan to new budget levels
- Get housekeeping done including SAM registrations which can take a month or more, cleaning up corporate and equity distribution issues and making sure you have a strong founding and technical team with a healthy culture, both for the technical work and on the business side
Don’t forget, if you need more help, check out our online course, Develop a Winning SBIR Strategy, and don’t forget your free guide below! It is truly unique in the industry, make sure to grab your copy!
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