Combating discriminatory practices in the SBIR and STTR programs

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended— (1) in subsection (b)(7)(C), by striking owned and controlled by women or by socially and economically disadvantaged individuals and inserting owned by individuals who reside in emerging States or rural areas; (2) in subsection (e)— (A) in paragraph (18), by striking and at the end; (B) in paragraph (19), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (20) the term emerging State means the 25 States with the fewest combined number of award recipients in the SBIR program and the STTR program that have received their first Phase I award in the previous 10 fiscal years; (21) the term rural area means a county or other political subdivision of a State that the Bureau of the Census has defined as mostly rural or completely rural in the most recent decennial census;; (3) in subsection (g)(8)(A)— (A) by striking clause (iii); (B) by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and (C) in clause (iii), as so redesignated, by striking a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual and inserting an individual who resides in an emerging State or rural area or has an individual who resides in an emerging State or rural area; (4) in subsection (j)— (A) by adjusting the margins for paragraphs (2) and (3) 2 ems to the left; and (B) in paragraph (2)— (i) by striking subparagraph (F); (ii) by redesignating subparagraphs (G), (H), and (I) as subparagraphs (F), (G), and (H); and (iii) in subparagraph (H), as so redesignated, by striking subparagraph (H) and inserting subparagraph (G); (5) in subsection (k)(1)(F)— (A) by striking clause (ii); (B) by redesignating clauses (iii), (iv), and (v) as clauses (ii), (iii), and (iv), respectively; and (C) in clause (ii), as so redesignated, by striking a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual and inserting an individual who resides in an emerging State or rural area or has an individual who resides in an emerging State or rural area; (6) in subsection (o)(9)(A)— (A) by striking clause (iii); (B) by redesignating clauses (iv), (v), and (vi) as clauses (iii), (iv), and (v), respectively; and (C) in clause (iii), as so redesignated, by striking a socially or economically disadvantaged individual or has a socially or economically disadvantaged individual and inserting an individual who resides in an emerging State or rural area or has an individual who resides in an emerging State or rural area; and (7) in subsection (mm)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking and until September 30, 2025; and (ii) in subparagraph (F), by striking or abuse to ensure compliance and inserting abuse, or adversarial influence to ensure compliance; (B) in paragraph (2)(A), by striking to carry out the policy directive required under subsection (j)(2)(F) and and inserting to increase the participation of States with respect to which a low level of SBIR awards have historically been awarded; and (C) by adding at the end the following: (7) Eligibility For an agency to be eligible to utilize funds allocated to the SBIR program of that Federal agency under this subsection, the agency shall not— (A) consider the race, gender, or ethnicity of the principal investigator, founder, or key personnel of the small business concern applying for an SBIR or STTR award in an award decision under the SBIR or STTR program of the agency; (B) require or consider a statement or plan to promote diversity or equity as part of an application for an SBIR or STTR award under the SBIR or STTR program of the agency; or (C) offer supplemental funds to a recipient of an SBIR or STTR award based on the race, gender, or ethnicity of the principal investigator, founder, or key personnel of a small business concern..