Enhancing small business success in the STTR program

Section 9 of the Small Business Act (15 U.S.C. 638 et seq.) is amended— (1) in subsection (e)— (A) in paragraph (6)— (i) in subparagraph (A), by adding and at the end; and (ii) by striking subparagraphs (B) and (C) and inserting the following: (B) opportunities for follow-on funding in Phases II and III of the SBIR program;; and (B) in paragraph (7)— (i) by striking 40 and inserting 50; and (ii) by striking 30 and inserting 20; (2) in subsection (f)(1)— (A) in subparagraph (H), by striking and at the end; (B) in subparagraph (I), by striking and each fiscal year thereafter, and inserting; and; and (C) by adding at the end the following: (J) not less than 3.45 percent of such budget in fiscal year 2026 and every year thereafter,; and (3) in subsection (n)— (A) in paragraph (1)(B)— (i) in clause (iv), by striking and at the end; (ii) in clause (v), by striking and each fiscal year thereafter. and inserting; and; and (iii) by adding at the end the following: (vi) not less than 0.20 percent for fiscal year 2026 and each fiscal year thereafter.; (B) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (C) by inserting after paragraph (1) the following: (2) Purpose of STTR program (A) In general Each Federal agency shall use its STTR budget to fund small business concerns conducting fundamental, basic, or other scientific research that stands to benefit most from partnerships with eligible research institutions. (B) DoD and NASA The Department of Defense and the National Aeronautics and Space Administration shall use their STTR budget to solely fund research at technology readiness levels 1, 2, and 3..