Bipartisan Effort to Safeguard Small Business Innovation from Foreign Interference

Strategic Insights -

U.S. Representative Derek Tran (D-CA-45) and Representative Don Bacon (R-NE-02) have introduced the Small Business Innovation Research (SBIR) Foreign Interference Safeguard Act, legislation aimed at strengthening small business due diligence programs to identify and mitigate the risk of intellectual property theft by foreign entities like the Chinese Communist Party (CCP). The bill would reauthorize the SBIR Due Diligence Program through FY 2030, set to expire in September 2025 under current law.

Key Takeaways:

  • The SBIR Foreign Interference Safeguard Act would extend the SBIR Due Diligence Program, which assesses risks from foreign threats regarding cybersecurity practices, patents, employee relationships, and foreign ownership of small businesses seeking awards from the SBIR program.
  • The legislation would give federal agencies more time to strengthen their programs, assess those risks, and collect more data for Congress to determine the best security strategies for small businesses.
  • The SBIR program provides funding to small businesses developing innovative technologies, with the goal of fast-tracking these life-changing technologies' path to reach consumers.
  • The Due Diligence Program was established in the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Extension Act of 2022 to require agencies to assess risks from foreign threats.
  • Representative Tran, a small business owner, has remained dedicated to uplifting small businesses in Congress, and has co-led several bipartisan pieces of legislation to ensure that small businesses across the country have the resources necessary to succeed.
  • Tran serves as Ranking Member of the House Small Business Committee Subcommittee on Oversight, and has introduced several bills to support small businesses, including H.R. 787, the Plain Language in Contracting Act, H.R. 832, the Small Business Advocacy Improvements Act, and H.R. 1642.

Statistics:

  • The SBIR program has provided funding to hundreds of small businesses developing innovative technologies.
  • The Due Diligence Program was established in 2022, and has only been in full effect for one solicitation cycle thus far.
  • The bill aims to strengthen due diligence programs to prevent foreign adversaries, like the Chinese Communist Party, from exploiting SBIR-funded technologies.
  • The SBIR Due Diligence Program is set to expire in September 2025 under current law.

Sources:

  • Office of the MP Derek Tran's official news release.
  • H.R. 787, the Plain Language in Contracting Act.
  • H.R. 832, the Small Business Advocacy Improvements Act.
  • H.R. 1642, the Connecting Small Businesses with Career and Technical Education Graduates Act.
  • H.R. 881, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act.