It's Official - SBIR Reauthorized with the signing of HR.1540

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On New Year's Eve, just as 2011 was running out, President Obama signed HR.1540, the bill that contains the SBIR reauthorization provisions, into law. Whew! Not that I thought he wouldn't, but...

Here's the White House Press Release on the signing: http://www.whitehouse.gov/the-press-office/2011/12/31/statement-president-hr-1540 . SBIR wasn't mentioned, of course. Sigh...

I do want to read the bill that was signed, just to make sure no Federal Agency sneakily weaseled out of their SBIR obligation. Not that I'd think that any of them would be so callous as to do that, but...

The next step if for the SBA to revise the Policy Directive to incorporate the changes into policies for the Agencies to administer. We're going to help them with that. They have 180 days to get the revision done, but we'd like to see it done a whole lot faster - especially since some of the provisions (e.g., eligibility) must be implemented within 120 days!!

The coordination of that help will be through the Small Business Technology Council (SBTC), an arm of the National Small Business Association (NSBA). Jere Glover, Executive Director of the SBTC, will be at the point. White papers will be submitted to each Agency with suggestions for productive implementation.

If you'd like to get involved, especially with regard to a particular Agency with whom you do (or would like to do) business, join one of the committees being formed by (a) joining the SBTC, and (b) contacting Alec Orban (alec@sbtc.org) at the SBTC and letting him know of your interest.

[Note: it's not necessary to join the SBTC to get involved, but it's the right thing to do. They are the voice of the SBIR advocacy in DC. Please support them.]

I will be making the rounds on the lecture circuit during 2012, talking about capitalizing on non-dilutive funding opportunities via strategic implementation of the new SBIR and STTR laws and policies. If you'd like to arrange to have me speak to your organization, please contact Brenda Keefer (info@willowmistpro.com) at Willow Mist Professional Services to discuss details.

My SBIR Coach's Newsletters for 2012 will focus on the new SBIR/STTR Laws and Policies, so be sure to subscribe. They're free, of course.

Well, at this point, all that's left is to wish you a ...

Fred Patterson - The SBIR Coach®

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SBIR LIVES, despite Nydia's best efforts to kill it!

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The current incarnation of SBIR has more lives than a cat. Twelve and counting. (Details HERE) This SBIR CR life segment will be four months long. Then what? Will small business innovation be sold out to the bigger better funded entities?

If Nydia has her way it will. She's so dedicated to that sell out that she even campaigned to kill SBIR rather than continue it as is. Yes, the Ranking Member of the House Small Business Committee sent out a Dear Colleague letter to her fellow Democrats in the House urging a NO vote on S.1082. She wanted SBIR to die, rather than continue "as is" to allow open debate.

She even addressed the House at the time the vote was called, and appealed for its defeat. But in that appeal, she carefully never mentioned that it was SBIR she was killing. Very clever Nydia!

Don't believe me? Here's the proof - a YouTube video of her calling for S.1082's defeat:

http://www.youtube.com/watch?v=uxH12E1fuZk

Then she called for a recorded vote, and only 33 NO votes were recorded!

THANK YOU NYDIA! Now we know who needs remedial education.

Here's the list of those who voted NO:

Is your Congressional representative on this list? If so, YOU have work to do. The SBTC, SBBC and others will be providing materials to ensure that when the actual SBIR Reauthorization Bill is passed, it improves the Program, not destroys it.

Watch SBIRreauthorization.com for updates and information you can use to educate your Congressional Representatives and Senators. The current posting there is a detail map and demographics on the recorded vote on S.1082. Check it out.

If you'd like to keep up with things in an active way, join the SBIR Advocacy. We have a Google-Group. Here's the link to join: http://groups.google.com/group/sbir-advocacy/subscribe?hl=en¬e=1

I've been rather silent in the past few months in this column. But expect some noise from me in the coming months. I don't know about you, but I've about had it with the political posturing. Huggem-Muggem must stop!
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SBIR Still Alive - Obama Misses Opportunity

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We're still alive! The Congress approved the 10th Continuing Resolution (H.R. 366) in this now 28-month-long drama on SBIR Reauthorization, and SBIR, STTR, and the DOD's Commercialization Pilot Program (CPP) have all been extended four more months, until May 31st.

Hopefully, more of FY2011's SBIR funds will be released soon to the Agencies, and contract and grant processing can resume in those Agencies who have had to suspend those activities after their money for this ran out.

I watched the President's State of the Union address on Tuesday evening. For a moment my heart began to race with anticipation. Here's (verbatim) what he was saying:

"Now, the true engine of job creation in this country will always be America's businesses. (Applause.) But government can create the conditions necessary for businesses to expand and hire more workers.

We should start where most new jobs do -- in small businesses, companies that begin when -- (applause) -- companies that begin when an entrepreneur -- when an entrepreneur takes a chance on a dream, or a worker decides it's time she became her own boss. Through sheer grit and determination, these companies have weathered the recession and they're ready to grow. But when you talk to small business owners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they're mostly lending to bigger companies. Financing remains difficult for small business owners across the country, even those that are making a profit.

So tonight, I'm proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (Applause.) I'm also proposing a new small business tax credit -- one that will go to over one million small businesses who hire new workers or raise wages. (Applause.) While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (Applause.) "

He then moved on to another subject, and my heart rate slowly went back to normal. RATZ! What I REALLY wanted to hear and wished he would have said next was,

“And, while we’re at it, let’s expand and improve the successful Small Business Innovation Research Program, to give those entrepreneurs who have good ideas the opportunity to build a company and create high-paying jobs, by asking them for more proposals on how to solve some of the toughest technological problems our Government Agencies face, and then funding the best of those proposals. And the good news is that this doesn’t take any new spending. SBIR is included as a portion of those R&D budgets already.”

Betcha that would have gotten some bi-partisan applause and a standing ovation too!

Unfortunately, he didn't say that. What a missed opportunity!

But he did give us precisely the platform we needed to drive the message home to our elected Representatives.

So that’s got to be our message. Let’s get it out there! The Small Business Technology Council (SBTC) will be providing guidance on fact sheets and letters to send. The NSBA's "capwiz" system will help you with sending it. Plan to send a letter to your House District's Representative, your two Senators, and to every member of the Small Business Committees in the House and Senate.

We'll have full support for the letters, contact info for all members of the 112th Congress, and links to the systems on www.SBIRreauthorization.com, so be sure to monitor that website.

So, here we go again. Maybe this time they'll actually get it done. I don't know about you, but, for me, this continually being on life support is exhausting!
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Camouflage! An Innovative but Crappy Use for SBIR Reauthorization

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Just when you thought you’d seen everything. The lengths our limping quackers will go to make their Lame Duck session productive is absolutely stunning. But you’ve got to give them credit for innovation.

I use GovTrack to keep me informed of activities on bills in process with regard to SBIR. One I was tracking was H.R.2965 – the House version of SBIR Reauthorization. When it showed action last week, I eagerly went to see what was up. The Title hadn’t changed. But the bill’s Text had changed – to the repeal of “Don’t Ask, Don’t Tell”! Huh?

I made some quick inquiries, and was given a quick brief on the tactic being employed – using H.R.2965 as camouflage because it was far enough along in the process to avoid having to be further discussed by either chamber and could be immediately voted upon. The title of the bill wasn’t changed, just the text. We know our legislators don’t read the bills they vote on. It was to be a sneak attack. And, it worked.

I was asked to not rattle the cage yet, as some behind-the-scenes action was simultaneously happening with the Senate’s version (S.1233) along with discussions with BIO that just might get things settled, and we were to “stay out of the way”. OK. I’m a good soldier. I put the “pen” down and waited.

Last night Rick Shindell published an SBIR Insider about this monkey business. As they used to say: READ ALL ABOUT IT: SBIR Insider of December 19, 2010. The cat’s out of the bag, so I got out the pen.

I know this is how things get done in Washington, but I don’t have to like it. Resorting to camouflage and subterfuge to sneak things by is just wrong. I don’t care what the issue is. Not that this is anything new to us -- the NIH's sneaky ARRA SBIR exclusion is a case in point.

Frankly, I’m fed up with political posturing, pouting, pontificating, and prevaricating. No one tells the truth about anything. They tell the politically expedient story and use perception management to make it seem like the truth.

Yes, I have mixed emotions. On the one hand I’m delighted to see the guts ripped out of H.R.2965. It was a bad bill. But I know one thing for sure. The deliberate use of SBIR’s name for unrelated political expediency was distasteful. The crappy tactic of not changing the title when the bill has been totally changed should be illegal, but the Congress makes its own rules, and holds itself to a different standard, both legal and ethical.

I guess I wouldn’t make a good politician. I know how to play the SBIR game, and I think I’ve played it well. But this game is another story. To have used a small business bill in this way is flat out dishonest. No one asked me, but I’m telling!

Now what? Will this be another instance of Huggem-Muggem? Now that they've used us for their own nefarious purposes, will SBIR be summarily cast aside and handed off to the next Congress to start over?

Or will the Senate, the House, BIO, NVCA, SBTC, and the NSBA all agree to do what's best for small business and emerge yet this session with an SBIR Reauthorization compromise we can all live with?

Will the egos of our legislators, especially those in the House, be soothed to where they’ll act responsibly instead of selfishly? Will Nydia put her purse away? Will pigs fly?

Don't let my disgust with the process and those who would use it for their own selfish purposes make you think I've given up. I'm basically an optimist. And a realist.

Maybe pigs really will fly. Stay tuned.
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Let’s End “Huggem-Muggem”!

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An open letter to the Republican House Leadership:

Legendary SBIR advocate, Milt Stewart, said it best in observing how Congress treats small business, “In public they hug them, in private they mug them!” I call this the Huggem-Muggem syndrome.

As the House of Representatives changes leadership, and with Republicans once again controlling Committee Chairmanships, perhaps we can get the legislative agenda changed back to enabling free market growth. Crucial to this will be what policies are driving enacted legislation that truly enables small businesses to fulfill their historical position of driving the innovation economy and making major contributions to US economic growth. Unfortunately, small business currently gets Huggem-Muggem: lots of lip service but very little productive legislative action that facilitates their creation of non-government jobs.

The new Chairmanship of the House Small Business Committee will be key to successfully fulfilling that job-creation goal. The incumbent, Nydia Velazquez (D-NY), has steadfastly blocked all efforts to openly debate many SBA initiatives, including the Small Business Innovation Research (SBIR) Program before her committee. Instead she has openly demeaned the small businesses she is supposed to support in favor of advancing the agendas of larger special interests which fund her re-election campaigns. Unfortunately, the heir apparent to the SBC Chair, Ranking Member Sam Graves (R-MO), has, time and time again, supported her outrageous behavior. Lots of Muggem without any Huggem!

Regarding the very successful 28 year-old SBIR Program, which has languished with Continuing Resolutions for two years due to Velazquez’s refusal to consider the Senate’s reasonable compromise to the differences between Senate and House versions of a reauthorization bill, having a House SBC Chairman who will take small business interests into consideration is of extreme importance. Please exert whatever influence you can to ensure that this happens.

SBIR has enjoyed considerable bi-partisan support over the years, and frankly, some of its most faithful supporters have been Democrats. Passing an SBIR Reauthorization bill acceptable to all sides of the issues is certainly possible. Just think of the positive message this will send to the country. All it takes is the willingness of both sides to be reasonable.

As it stands at the moment under the current CR, the SBIR Program will expire at the end of January, 2011. While it’s not impossible that a compromise SBIR Reauthorization bill could be approved in the upcoming Lame Duck session, it’s very unlikely that will occur. What must be prevented is Lame Duck SBC Chair Velazquez getting her way, performing another Muggem, and sneaking the current House version into law against, among other things, the will of the Senate.

I would be pleased to fully brief any House Member and his or her legislative aides on the issues at play with SBIR. One source for information is the website www.SBIRreauthorization.com. Others are the Small Business Technology Council (www.SBTC.org), the SBIR Insider (www.zyn.com/sbir/insider/) and my SBIR Coach’s Playbook opinion column (www.SBIRplaybook.com).

Thanks for paying attention to this. With new leadership and the proper resolve, let’s make ending Small Business “Huggem-Muggem” syndrome a top priority for the 112th Congress! Please!
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Velazquez Caves Under Pressure -- SBIR Extended

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We did it! Hundreds of calls and letters produced an overwhelming level of bipartisan peer pressure that even the most stubborn Committee Chair couldn't stand up against.

A special issue of Rick Shindell's Insider, written from the scene of the almost crime, reports on some of the details:

HOUSE PASSES SBIR/STTR/CPP EXTENSION THROUGH JANUARY 31, 2011

Borrowing the title of a song from My Fair Lady, "You Did It!" There was thunder on Capitol Hill today as hundreds of you responded to an emergency call to action (from many people and organizations) to save the SBIR program from lapsing, and that you did it!

Around 7:00pm this evening, Nydia Velazquez under pressure from her peers and the House leadership, accepted the Senate's SBIR and SBA extender bill, she and moved to suspend the rules to pass S.3839 without amendments. That has now happened and the SBIR program will be extended through January 31, 2011, pending signature of the President (virtually automatic), who supports the bill.

This is the 9th continuing resolution for SBIR, which in and of itself is an outrage, but perhaps Velazquez & Day are now wounded and certainly embarrassed, having been rolled over by the House leadership twice in as many weeks. The Senate has worked strenuously in bipartisan fashion to construct a compromise that Nydia & Day would accept, but they showed little interest.

We will provide a postmortem of this escapade in a future issue to show how close we came to a programmatic lapse. Your voices played a major role in getting the support to overrule Velazquez.

Nowhere were the cries for passing S.3839 stronger than from the great state of Massachusetts. Not only are they the second largest SBIR award winning state, but also the most organized. To that end, two of their congressionals played major roles in this victory, Ed Markey (D-MA) and Niki Tsongas (D-MA). Tsongas wrote a powerful "Dear Colleague" letter (signed by supporters) that truly made a difference. There are many more heros and we'll cover that next week.

So, we can stop holding our collective breath for a little while, but there's much to do. Rick continues:

WHAT'S NEXT

This fight is far from over, but the tide is turning. The big challenge for you is to get out and educate the candidates running for election. Do it not only for the candidate of your choice, but to the opposition as well. Attend their rallies, talk to their staff, and to the press. Undoubtedly there will be many new freshman congressmen and senators coming in to the next congress and you'll want them to know about the importance of the SBIR/STTR programs to your business and the economy. Also, step up to the plate and publicly thank those who have supported your programs, and don't be afraid to criticize those who didn't.

So thanks to all of you who jumped on this and turned around the hostage situation with a favorable outcome.

Jere Glover's Small Business Technology Council (SBTC) has promised to provide some good educational information for us to use in this educational effort. I urge you to please join the SBTC and help support Jere and the others who volunteer their time for SBIR advocacy. If you're an SBIR supporter, it's the right thing to do.
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Re-inventing SBIR?

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They've been meeting for almost a year with good intent: make SBIR more "effective and efficient". They're calling it SBIR 2.0 - borrowing on the Web 2.0 lexicon that heralded the shift from passive viewing of web content to active interaction among all elements of the web community (from content creators to content users) in a collaborative fashion.

Don't be fooled. It's not the same thing. Not even close. They're talking the talk. But not walking the walk.

Collaboration? Among newbie Agency SBIR Directors (the content creators) - maybe. Are SBIR funded companies (the content users) involved? Nope. Were past and retired SBIR Program Directors consulted? Nope. Were SBIR's founders consulted? Nope. (I'm certainly not in the loop -- not that I should be, although I do have ideas that could have merit -- so if some of the "Nopes" are erroneous, I apologize. But I bet the Nopes are pretty accurate.)

The SBIR 2.0 effort is being spearheaded by Sean Greene, the SBA's Associate Administrator for Investment and Special Advisor for Innovation. (Don'tcha just love government titles?) He's a good guy, a true friend to SBIR, and, as I said, well intentioned. But the naivete here is disturbing.

Here's a quick outline of what's included in the SBA's SBIR 2.0 initiative:

Simplification and Streamlining
- Shortening the contract/grant initiation period after award
- Building a web portal to search for available open topics
- Clarify and simplify SBIR Data Rights
Shared Best Practices
- Expanding bridge financing programs (between Phases)
- Expanding SBIR to facilitate tech transfer (ala NIST)
- Issuing joint agency solicitations
Better Performance Management
- Implement common performance metrics across agencies
- Share performance data publicly

Ambitious for sure! It would be marvelous to get all of that to work. But, folks, it ain't gonna happen quickly. Some aspects may not happen at all. The challenges are daunting. Some of the issues have been debated for years without consensus!

Every one of the agencies can improve the efficiency of project initiation after award. All it takes is money allocated to pay for administration. They haven't got any for this. Current SBIR law doesn't allow use of SBIR apportioned funds for admin. Unfortunately, last I knew, SBIR reauthorization which may fix that provision, hasn't happened yet.

And, at least for DOD, the SBIR Program Managers have NO CLOUT WHATEVER with component contracting authorities, who completely control the contract initiation process. I've seen contracting delays of as much as two YEARS! And, if they did have some clout, the current Army default of Phase I payments every two or three months (instead of monthly) wouldn't be the practice. Can you spell "cash flow"?

A "one-stop-shop" portal with a topic search feature? Gee, don't we already have one? It's called The SBIR Gateway. Not a penny of government money funds it, by the way. The "official" SBIR website (SBIR.gov) certainly could use some work - and a topic search engine - but why waste taxpayer money re-creating something that already works? Or is it simply a control issue?

Getting agencies to work together for improved SBIR efficiency? Don't make me laugh. The agencies are too different and too bureaucratically rigid to make any "one style fits all" approach work. Just the difference in competition compliance requirements between contracting and granting agencies alone makes the whole effort quite unlikely.

Clarifying SBIR Data Rights? PLEASE DO! But this involves getting lawyers to agree. Good luck with that. Ron Cooper, another good guy from the SBA, is at the point for this. If you have ideas, he'd like to hear them.

They're trying a working-together experiment - a five-agency (NIH, DARPA, DHS, NSF, and USDA) joint solicitation on Robotics. Just announced. Here's the info: http://grants.nih.gov/grants/guide/pa-files/PAR-10-279.html. Warning: Take two aspirin before reading, and call me in the morning. Heaven help us, the NIH SBIR application system will be used to collect all five agencies' Robotics proposals!

The NIH's system? Yikes! Y'all know what I think about it: It Sucks! For those of you who are used to doing DOD SBIR proposals, be prepared for EXTREME frustration! I've even put out an SBIR Coach's Newsletter issue about what to expect.

Regarding expanding bridge and commercialization funding, Kristina Johnson, the person at DOE who got their first of its kind Phase III funding initiatives in place, is apparently and suddenly leaving the agency. And the NIST "SBIR TT" program cited as the example for innovative SBIR tech transfer just lost it's creator, Cara Asmail, who's moved on to another NIST post. We have a leadership gap.

The turnover issue also extends to agency SBIR Program Director/Manager roles, as many newcomers are sitting in those chairs this year. I wonder how many of them have actually read the SBIR Policy Directive? Probably about as many as our legislators who actually read the bills they vote for.

Finally, common performance metrics? Oh, please! The agencies don't currently have ANY meaningful SBIR performance metrics. At the Beyond Phase II Conference last week, we were shown some (I thought suspicious) statistics on alleged SBIR performance, but there's no consensus on what constitutes SBIR success and no data gathering that has integrity or accuracy. I'm sure the SBIR funded companies have quite a different view of "success metrics" than do the agencies. Who provides the data? Who collects it? Who is to analyze it? What's to be done with the results? All still undefined.

I'm not usually pessimistic, but it's hard to have optimism about SBIR 2.0. Just being well intentioned doesn't cut the mustard. Maybe I'm jaded. Maybe I'm tired of being told to "trust" and "have hope" for "change" we can count on.

Change huh? This Administration's idea of "change" makes me shudder. (And make no mistake about it, the SBA is an arm of this Administration.) Will "simplification" mean adoption of the NIH's horribly complex SBIR collection and evaluation system? Will "best practices" for laying SBIR eggs (and making them into omelets) be defined by the eggs rather than the chickens? Will "performance metrics" have anything to do with creating jobs and producing innovative technology by giving small businesses access to Federal R&D opportunities?

Until SBIR is reauthorized, much of this is moot. Any efficiency changes will be limited and intra-agency. And, Lord knows, intra-agency efficiency changes are sorely needed! Effectiveness changes? Who knows what that even means?

I do applaud what Sean Greene and the Agency SBIR Program Directors (with a special nod to Chris Rinaldi at DOD) are trying to do with SBIR 2.0. They're sincere and trying hard to do what's best for SBIR. I just entreat them to do it smart and not ignore the user community and what's been tried in the past. Involve Roland Tibbetts, Ann Eskesen, and Jere Glover in the dialog and listen to what they have to say. Involve small business and their advocacy arm, the SBTC, too. Make SBIR 2.0 truly collaborative.

If you're going to talk the talk, please walk the walk.
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Greed Drives Continued Campaign to Hijack SBIR's Funding Base

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We're getting it from all sides. Small business is being pushed by big bullies. What we get from SBIR funding is tantamount to lunch money -- just enough to keep us from starving. But they want it. Want it all. Want it bad enough to lie and cheat to get it.

Yes, lie.

The bullies make statements asserting that VC funded businesses can't participate in SBIR. Of course they can. The companies just can't be controlled by VCs and still be eligible. And they tearfully make statements asserting that VC controlled company SBIR eligibility was "taken away" in 2002. Bullfrogfeathers. It was never allowed. Tell a lie often enough and people begin to believe it. Trouble is, it's our elected officials who believe the lies. Or (tucking campaign fund envelopes in their pockets or purses) choose to ignore the truth.

And, yes, cheat.

Will someone please ask Representative Jason Altmire (D-PA-4) why he keeps trying to cheat the system by sneaking the House version of SBIR Reauthorization (HR. 2965) into other legislation? This is a bad bill. Viewed by everyone other than the NVCA/BIO bullies as being destructive to true small business innovation.

Altmire tried a couple of months ago to sneak it into the first Jobs Bill. Word is it was stopped by the Speaker after a rather rapid and loud outcry by small businesses all over the country. Altmire's on the House Small Business Committee. Isn't he supposed to be looking out for small business interests? Why is he taking the side of the bullies?

And, he's trying again. In a "dear colleague" letter sent out a few days ago, Altmire asked for support for including HR 2965 in the new "Jobs" bill, asserting that this was a "compromise" and good for small business. More bullfrogfeathers! In fact, the House Small Business Committee has steadfastly refused to negotiate with the Senate's Small Business Committee and hasn't even considered a compromise version of their much more reasonable SBIR reauthorization bill (S.1233) that was presented to it last October!

What's more, Altmire's letter was not signed by a single true small business. Lots of Universities and Big Businesses signed it though. This hijacking attempt is both a lie and a cheat!

We're appealing to the Speaker to again quash this attempt to cheat the system. (Join the Stop Altmire campaign!)

The bullies have gotten $1.5 BILLION in new funding from a combination of provisions in the recently enacted Health Care Reform Bill and the Jobs Bill. You'd think that would make them happy and they'd leave us alone for a while. All it's done is make them more greedy, emboldened to go and get it all. They're well funded and determined. And did I say greedy?

Even the Finance Reform bill inadvertently threatens small business via an unintended consequence of redefining accreditation of Angel investors and the process of doing funding deals. (Join the Save the Angels campaign!)

There have been a few voices out there on behalf of small business. The SBTC, Ann Eskesen, and Rick Shindell, for example, have tried valiantly to get out the word and counter the lies. And there are a host of other advocates who do their best to spread the word. Largely, these efforts have been ad hoc and woefully underfunded.

A new group has formed to try and organize some truth and reasonableness into this mess. It's called the Small Biotechnology Business Coalition (SBBC). Check out their website: http://www.smallbiotech.org. See everything they're into. If you're a biotech small business, join. If you're interested in supporting small biotech businesses, join. Any of you not covered by that? Join anyhow.

And, finally, in my last column, I mused about antibacterial lip balm for our legislators' excessive lip-service challenged chapped lips. Little did I know there actually is one. And, it's incredibly (some might say appropriately) branded:


Nothing to add to this, folks. I rest my case.
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SBIR Companies' Futures Threatened by Finance Reform Unintended Consequences

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UPDATE: The Senate's Cloture Vote failed on Monday, but they'll try again. It's not too late to follow this guidance ...
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It's so tiresome. Every time I hear one of our politicos, from the top guy on down, talk up the importance of small business I just want to puke. Not because what they're saying isn't true. Quite the contrary. It is true. It's the lip service they pay.

Not only do they not find the time or take the effort to actually enact legislation that's beneficial to the growth of small business, but they don't even stop to think about the consequences to small business when they try and fix something they think is broken.

This time it's Finance Reform. S.3217 to be precise. The Congress is hell bent on fixing Wall Street. We're not going to debate here whether they're doing it right, and God knows there are aspects that do need overhaul, but it's the unintended consequence to small business that I'm upset about.

SBIR only takes you so far. To proof-of-concept. Right up to the edge of the Valley of Death. Then other funding is needed to get you to a marketplace. So what does S.3217 do? Cut off the most likely funding source. Angel Investors. That's right, S.3217 kills the Angels.

The Small Business Technology Council (SBTC), led by my friend Jere Glover, began beating the drum on this as soon as the bill was made available for reading. (Yes, some of us actually do read these things.) Senator Dodd has assured Jere that they'll put in some amendments to save the Angels, but you'll pardon me if I don't just sit back and trust it to get done.

The deadline for introducing amendments to S.3217 is TODAY, Monday, April 26th, as the Senate will call for a Cloture vote at around 5PM EDT. So it's time to marshal the troops, warm up the fax machines, and be proactive.

I sent out an URGENT ALERT Newsletter to my clients and friends list yesterday. Here's a short link to the Newsletter:

http://budurl.com/SaveTheAngels

It has the Call to Action with links to resource materials and a template of a letter you can send to your Senators urging inclusion of the "Save the Angels" amendments.

Read the information in the Newsletter carefully. Follow all the links and get informed. Send a letter or two or twenty. Then, spread the word. Forward this info around to anyone who can help us.

I've already heard from some of my contacts that they're re-broadcasting the Alert to their lists, doing Tweets and recruiting Facebook friends to help Save the Angels. One of these is my friend The Fiscal Doctor. (Thanks, Gary! Much appreciated.) Check him out -- he has good advice for emerging companies.

All that lip service has to be quite chafing. I wonder if they have trouble keeping lip balm in stock at the Capitol commissary? Hope they offer an anti-bacterial version for use with lobbyists!
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SBIR dodges a bullet -- for now. But they'll reload, so let's get busy!

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The House passed the so called Jobs Bill (HR.2847) on Thursday with only minor changes from the Senate version. SBIR Reauthorization does NOT appear to have been one of those changes. We haven't seen the actual wording of this bill yet, however, and we do know how sneaky they can be. But apparently Speaker Pelosi wasn't willing to back the Altmire/Velazquez maneuver to fold the House version of SBIR Reauthorization (HR.2965) into this bill.

The Jobs Bill now goes back to the Senate for approval of those minor changes before getting signed. It's doubtful that the Senate will do anything to delay enactment, so we can breathe a sigh of relief.

But make that a brief breath please. We have only a few weeks to get the attention of our legislators to actually get a compromise together that will include the Senate's bill (S.1233) and improve SBIR, not harm it. And there's much work to do

I spoke to Deb Santy earlier this week. She runs the Connecticut SBIR office as an arm of Connecticut Innovations. Deb's group has stepped up to again host the National SBIR Conference. It will be April 21-23 in Hartford. We figure this will be right around the time that SBIR Reauthorization goes on the front burner on Congress before it's expiry date of April 30th. Here's Deb's message to y'all:

"The SBIR Program is under attack. All of us are trying to figure out how to get our government to properly reauthorize the SBIR program. A demonstration of your commitment and support is to show up -- attend the 2010 SBIR National. If you have won awards over the years and want to continue winning them -- you need to show your support and get your "you know whats" over to the SBIR National in Hartford. Make this the best attended SBIR National ever -- because it really needs to be the best. If you want this program to continue, if you want the billions of grant dollars to continue, you need to come and make headlines. Hey, you might even make some great contacts and help commercialize your technologies -- because there is a great lineup of networking and "Partner for Profit" activities. I'll be there .. and so should you. No excuses. Just Register"

I'll be there too, Deb. We know our collective voices can make a difference. We just showed that to be true.

The SBTC is leading this fight, and Jere Glover will be hosting a special meeting of the SBTC in Hartford. We had 100+ at the last such meeting in Reno. Let's double or even triple that for Hartford. Better schedule a big room, Deb!

Make no mistake about it. Those who would hijack SBIR for their own bigger business Wall Street focused agendas will reload and take aim at Main Street's small business interests. We've raised the awareness of SBIR among our legislators to unprecedented levels, but we have to even do more.

Pay attention to the strategies that will be suggested on www.SBIRreauthorization.com. Pick up your pens (or Blackberries/iPhones/etc.) and keep the information flowing. We may be small business, but we have big voices.

Come to Hartford. We'll get some national attention on our National Conference. Together, we will make a difference.

And, a personal thanks to all of you who wrote me with expressions of support and copies of the letters you wrote to counter the Altmire/Velazquez maneuver. It's exhilarating to know that someone is actually reading what I write! Yee-Haw!
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The Jobs Bill Train is Leaving the Station -- and SBIR is being smuggled aboard!

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Evan Bayh said it true. The process Congress uses is flawed. It's more about partisan deal making than the public interest. Back room deals. Sneaking legislative provisions into sometimes unrelated bills to serve private interests and avoid scrutiny and discussion.

We have new evidence today, as they're at it again. With SBIR the victim! And they do it with smug satisfaction, unabashedly sanctimonious. They talk up the little guy (small business) but serve big money (VC) interests instead.

Basically, the House, via Rep Jason Altmire (D-PA), is attempting to bypass the SBIR reauthorization negotiations with the Senate and force the House version of the bill (S.2965) through the back door. If he succeeds in including it in the Job Stimulus bill, it will be difficult for the Senate to oppose it, especially since the President wants this legislation passed quickly.

The alert was sounded yesterday by both Rick Shindell in his SBIR Insider, and by the Small Business Technology Council (SBTC) in a Special Alert. Follow the links, or just go to www.SBIRreauthorization.com to see them in their entirety, along with an open letter from my good friend Gary Marsden of Trout Green Technologies (a savvy SBIR Awardee), who by asking a simple question at the Navy Opportunity Forum, created a small firestorm.

It's not over until its over (thanks Yogi), but I fear this train is gathering speed. The Engineer (Pelosi) has blinders on, the Conductor (Velazquez) has had her pockets stuffed and refuses to look at (let alone punch) our tickets, and the Fireman (Altmire) is stoking the furnace with false fuel.

Somehow we need to find the right switch, and divert this train to a siding. We need a bunch of Evan Bayhs to stand up and say ENOUGH! Any more of you out there?
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Congress Extends SBIR Program for 90 Days

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Jere Glover, Executive Director of the Small Business Technology Council (SBTC), issued the following announcement this morning:

"The House of Representatives voted on Wednesday to extend the SBIR program for another 90 days. The program had been set to expire on Jan. 31, 2010, but the new continuing resolution now pushes the expiration date back to April 30. The Senate is also expected to pass this legislation in short order.

This is the sixth CR passed since the SBIR program was originally up for expiration in 2008. Although reauthorization bills have been passed in the House and the Senate, the language in the two bills was very different, and the two Chambers have so far been unable to reconcile the differences in the two bills into a single bill that can be sent to the President for his signature.

While we are happy that Congress has not allowed this important program to lapse, it is important that the two sides can reach an agreement this year, before the new Congress starts next year and this process will have to start all over again.

SBTC has endorsed the Senate’s language as an acceptable compromise, and urges the House to do so as well."

Keep tuned to www.SBIRreauthorization.com for updates.
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Aaargh! Two more months of SBIR Reauthorization torture!

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You'd think they already had enough time to do this. But no such luck.

We're talking about SBIR Reauthorization, of course. It's not going to happen by the end of the month. Surprise! Hah.

Word is that we'll have another Continuing Resolution that will extend the deadline one more time to September 30th. So we've got two more months of torture to endure.

The SBTC put out this notice on Monday:

The Senate passed a continuing resolution on Friday that would extend the SBIR program another two months. That would make the new expiration date for the SBIR program September 30th, 2009. This CR also needs to pass the House of Representatives to be enacted, and we expect it to pass the House on Tuesday.

Currently, the staff from the House Small Business and Science Committees are in negotiations in conference with the staff from the Senate Small Business Committee to produce a compromise SBIR reauthorization bill that will incorporate elements from both the House and the Senate Reauthorization Bills. We have heard and have reason to believe that both sides are negotiating in good faith, and that no party is acting unreasonably or otherwise sabotaging the process. Because there is an agreement between the staffers in the conference, we won't know what's in the compromise bill until it is finished and released to the public.

The SBTC will be hosting a conference call on Thursday to discuss these developments. Contact Alec Orban if you'd like the call-in number and code.

Thankfully, it appears that our Committee Staffers are not following the Conyers model and are taking time to actually read and analyze the provisions of the two bills.

We'll stay on top of the continuing madness, both with updates here, and on www.SBIRreauthorization.com.

As a side note, one of my clients has been following the DOD's history of topic offerings and has made the following startling observations: "There are 15.6% fewer DoD topics in FY09 than the average over the two previous years. Air Force had a staggering 44% reduction in topic count, MDA had a 23% reduction, and DARPA had a 17% reduction." Anybody have any ideas as to what's driving this? Might it be the uncertainty over reauthorization?

And finally, I'm pleased to report that two Texas editions of the Business Journal featured articles about the SBIR Reauthorization struggle last week. The SBIR Coach was interviewed and quoted in a front page article by the Austin Business Journal, and was featured on the Editorial page in the San Antonio Business Journal.
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Final SBIR Strategy Set - Urgent Action Needed

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We're in the bottom of the Ninth. Score is tied. Wall Street (House Team) 1, Main Street (Senate Team) 1.

There's very little sentiment to send this to extra innings, and we don't want the whole game to be called off.

Fellow SBIR Advocist Les Bowen presents the strategy to break the tie and win the game for Main Street:

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Dear SBIR Advocates:

Click HERE: (SBIR_Conferee_Letter.pdf) to see the letter that will be sent from House Representatives to Senator Landrieu, Chair of the Senate Small Business and Entrepreneurship Committee, expressing their support for S. 1233, the Senate SBIR Reauthorization Bill.

We need about fifty House Representatives to sign on in order to swing the SBIR House/Senate conference deliberations to support the Senate bill.

As you know, the Senate SBIR reauthorization bill, unlike its House counterpart, H.R. 2965, preserves most of the SBIR program for genuinely small businesses like ours, while the House bill sells out the SBIR program to large venture capital-controlled businesses. You will recall that several House representatives, including those who have already signed on to this letter, proposed amendments to H.R. 2965 that would have made it less onerous to small businesses, but this amendment was shot down by the House Rules Committee. We believe the reason was that your prior outreach efforts to your House representatives caused widespread consternation in the House that the Markey/Tsongas/Hodes/Welch amendment would pass, much to the consternation of the VC-lobby that has taken over the House SBIR reauthorization process.

By signing onto this letter, your representatives get a second bite of that apple. Their signature supporting the Senate bill gives much better insight into what most House representatives really felt about House bill H.R. 2965 and its bad consequences for true small businesses. It provides Senator Landrieu and the Senate conference committee delegates with much-needed leverage to achieve a compromise SBIR reauthorization bill that is more like S. 1233 than its House counterpart. We need SBIR to remain a program that works for innovative, independently-owned small businesses like ours, rather than becoming a bail-out fund for well-heeled venture-capitalists.

You do need to take action today. These negotiations will be over early next week. Your representative has already received a copy of this letter. Please call your House representative’s small business staffer, email the letter and ask him or her to bring it to their boss’ attention and get them to sign on this week.

Thank you for this last effort in support of the 2009 SBIR reauthorization.

We will keep you posted as information emerges from conference.

Leslie J. Bowen, President
Materials Systems Inc.
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The SBTC's Jere Glover adds this suggestion, which was provided by another ardent supporter:

I ask that you urge your Congressional Representative to sign onto the Markey letter today. (Next week will be too late.) I also ask that you ask him or her to personally contact members of the House Small Business and Science Committees and ask them to consider how they are going to explain to small businesses in their state why they voted to kill jobs on Main Street so more Wall Street billionaires could have access to more Federal funds.

Here's a Dear Colleague letter sent to all Members of the House of Representatives by Rep. Niki Tsongas and others: Tsongas Dear Colleague Letter.pdf. Get your Representatives to sign onto this letter! They can do that by contacting Mitch Robinson (Rep. Markey) at 5-2836 or Mitchell.Robinson@mail.house.gov, or Kate Lynch (Rep. Tsongas) at 5-4311 or Kate.Lynch@mail.house.gov.

If you'd like to write your own letter to make a point, and would like some talking points, here's a letter from the SBTC to Senator Landrieu: SBTC Letter to Sen Landrieu.doc

Updates to all of this and links for contacting your Representatives and Senators can be found on www.SBIRreauthorization.com.
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Senate passes SBIR Reauthorization Bill - Conference Committee is Next

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It was unanimous. The Senate wasn't swayed by pressure from the special interest lobbies and stuck to their guns.

Yes, a few amendments were added to S.1233, but they're constructive. (The full text of what they passed will be on on GovTrack soon.)

Rick Shindell's Insider of 7/14/09 has a good summary of the amendments:

Senator Tom Coburn (R-OK) issued an amendment that basically prohibits earmarking of SBIR award funds, and that SBIR funds must be competitive and merit based. His changes also include better metrics, and an 8 year reauthorization period, as has been customary for SBIR reauthorizations.

Senator Russ Feingold (D-WI) also had an amendment passed that reads: .."SBIR program or STTR program shall encourage the submission of applications for support of projects relating to security, energy, transportation, or improving the security and quality of the water supply of the United States to such program.’’.

So, S.1233 is now "engrossed" and passed, along with H.R.2965, to a yet to be named Conference Committee.

We have heard that Representatives Ed Markey and Nikki Tsongas will be circulating a Dear Conferee Letter encouraging that provisions in their disallowed amendment to H.R.2965 be considered by the Committee.

The SBIR Advocacy, led by the Small Business Technology Council (SBTC), is formulating a strategy, a position paper, and template letters for you to send. We'll have them available soon.

Keep tuned to this Blog and to to www.SBIRreauthorization.com for updates.
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It's a Prize Fight: Wall Street vs. Main Street. The Prize: SBIR Money and more.

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Are you ready to rumble? There's gonna be a big fight! A Floor Fight! In the House of Representatives!

In one corner: Wall Street. The Challenger. Big. Brawny. Polished. Well heeled. Slickly packaged and promoted. Big guys trying to muscle in on the little guys' territory and grab some money.

In the other corner: Main Street. The Defender. Small. Scrappy. Agile. Impecunious. Ragtag organization and promotion. Little guys trying to hold onto the only source of money they've got.

The Prize: Money of course. Millions, even billions of dollars. But wait -- There's more! (Be patient, we'll get to it...)

In the ring for the Wall Street Challenger: Velazquez the Chairwoman. A Rep from New York. The Big City. The Challenger's home territory. Tough. Stubborn. Aloof. Bows to the almighty VC. Believes that the only ones worthy of her time are those who've been anointed by the almighty VC. Won't even let the little guys speak in her presence. (Huh! Doesn't she actually lead the Gang that allegedly protects the little guys' interests? What's she doing in the Challenger's corner anyhow?)

In the ring for the Main Street Defender: Markey the Magnificent. A Rep from Massachusetts. Bows to no one. Energy is his thing. Willing to stand up for the little guy and challenge the Gang. Gets it that small businesses can have great ideas and innovate even if they haven't been anointed by a VC yet. Just as stubborn as the Challenger's avatar. Ready to fight. Ready to lead.

The Referee: Pelosi the Speaker. All powerful. Owns the ring, so to speak. She can stop the fight by imposing rules that no one else understands. Both of the avatars in this fight are "Dems", Pelosi's Party, so it's really gonna be interesting! Hopefully, she'll decide to preside over a fair fight and give both sides a chance to throw some punches.

The Prize: SBIR Money. Not a lot per award actually -- just enough to get started. Plant the seeds and grow a product. Prove it works.

Is SBIR really worth fighting for? The little guy thinks so. He has no other source for seed money. The already anointed have VCs with deep pockets. And the VC's bucks are bigger, much bigger. So what's the deal?

The deal is -- there's more! Along with the prize money comes Validation. Acceptance. Proof that a great idea can produce solid results. Results that make money. (The almighty VC reveres money over all else.)

And, for the little guy it's jobs. The SBIR prize creates jobs. Especially valuable when jobs are hard to find.

How does the winner of this fight get chosen? All the House Reps vote. Winner gets to define SBIR (H.R.2965). So, there's a lot at stake.

Women and minorities don't get anointed by VCs much. If the Wall Street Challenger wins, they should probably just forget about SBIR.

Most VCs seem to live in big cities by the ocean. Not many live elsewhere. What's more, they only anoint those who live near them! If they find someone to anoint who doesn't - they usually force them to move close by. If the Wall Street Challenger wins, SBIR money will flow to the big cities on the coasts.

So what about the middle of the country and away from the big cities? If the Wall Street Challenger wins, fewer SBIR Prizes will be won there. If I were a House Rep from ANYWHERE the VCs don't hang out, I'd back the Main Street Defender!

That's what makes Markey the Magnificent so special. He's from a big city by the ocean that does have VCs hanging out. But he's not swayed by their slick talk. You other Reps need a role model? He's your guy. Follow his lead. We Main Street Defenders are proud to have him in our corner.

So, get ready for the Big Fight. Bell rings just after the Fourth of July fireworks. They're lacing up the gloves as we speak.

We'll be covering the fight on www.SBIRreauthorization.com. There will be lots of information from the SBTC and others you can use to cheer on the Defenders and try and influence the House Reps to back our cause. The more cheering and influencing we do the better.

All together now: "Follow Markey's Lead! Follow Markey's Lead!"

House Reps can be convinced if you find their WIIFM (What's In It For Me). More than anything, they want to get re-elected. They need to be able to show how they did good to protect and support those who vote for them. Give them a reason to back the Main Street Defender. Give them several reasons. We have the data you need on www.SBIRreauthorization.com.

Hang on! And get ready for a really raucous rumble!
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BIO Endorses Senate SBIR Reauthorization Bill -- Co-Sponsors Sought

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They said it couldn't be done! Impossible. Never happen. But it did!

The SBIR Advocacy and the Biotechnology Industry Organization (BIO) agree on an SBIR Reauthorization bill!

In a unanimous endorsement, the Senate Small Business and Entrepreneurship (SBE) Committee passed S.1233 up to the full Senate for consideration yesterday.

BIO immediately endorsed it too, joining the SBTC in recommending its passage!

In an article that appeared on GenomeWeb.com moments after the SBE Committee's action was announced, Jim Greenwood, BIO's CEO, is cited as having lauded the Bill! That's not to say that BIO won't promote amendments, but lauding is lauding! Guess we'll just have to wait and see what ensues in the full Senate debate.

Greenwood is quoted as urging Congress to reauthorize the SBIR program "as soon as possible in a way that provides a level playing field." Oh, really? Sort of ironic, eh what! A tip of my hat to you, JG! I appreciate chutzpah, being somewhat unabashed myself!

And, way to go, SBE Committee! And especially, thank you Senators Landrieu and Snowe for leading the way on this.

OK, let's get S.1233 Co-Sponsors lined up! If we can show overwhelming bi-partisan support for this Bill, there will be intense pressure put on the House to conform to it.

There's a Call to Action for enlisting S.1233 Co-Sponsors on the www.SBIRreauthorization.com website.

You'll find a model letter, links to Senatorial contact information, and a copy of the GenomeWeb article to attach.

Any questions? OK, team, let's get busy! Everybody's in the game! Fax letters, make calls.

We can do this. Nothing is impossible. It just takes a little longer!
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Small Bio speaks out on changing the SBIR eligibility rules

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Watch out BIG BIO, small bio has a bigger voice than you might think! Responding to the call to action from the SBTC, a group of FIFTY small biotech and medical device businesses have signed a letter to Chairman David Wu (House Science & Technology’s Technology & Innovation Subcommittee) saying, in effect, “BIG BIO doesn’t speak for us! Changing the SBIR rules will be harmful to the innovation economy being supported by the majority of small biotech businesses!”

Here’s the body of their letter:

The undersigned leaders of small biotechnology and medical device companies from throughout the U.S. respectfully request your assistance in opposing legislation that would give companies owned by venture capital (VC) firms unlimited access to the SBIR program.

Last year the House of Representatives passed HR 5819 that, if it had become law, would likely have permitted companies with tens of millions in financing to win an unlimited number of SBIR grants of unlimited dollar amounts. NIH grant reviewers in particular typically give significant weight to the preliminary data generated by applicants. Exceptionally well capitalized companies with expansive laboratory infrastructure and scientific personnel necessarily have an advantage in competing for these awards.

If VC owned firms are permitted to win the lion’s share of the mere 2.8% SBIR/ STTR set aside this would effectively shut out most of the small companies for which the SBIR program was originally created. This would have profound consequences to our nation’s economy and health care system. Companies in fields traditionally out of favor with VC firms, including vaccine development, orphan diseases, biodefense, diagnostics, research tools, and most early stage, high risk R&D, but which play a critical role in solving technical challenges facing the US, will be particularly disadvantaged if deep pocketed VC owned companies are permitted to usurp the SBIR program.

To the extent that the law is changed to permit more VC participation in SBIR it is imperative that safeguards be put in place to protect access to the program by firms that lack VC financing. These safeguards should include, at a minimum, the following:

(1) Caps on award size and total dollars awarded to any one firm should be established. Agencies would be permitted to exceed these caps only with funds taken from outside of the SBIR/STTR set aside;

(2) Limits should be placed on the overall percentage of the SBIR pool that may go to VC owned firms for at least the first few years to gauge the impact and any consequences of these changes;

(3) The SBIR/STTR set aside should be increased by at least a few percentage points to compensate for the increased competition in the program.

The above protections would expand access to the SBIR program while protecting small biotech companies that do not have VC investors, which includes the vast majority of emerging biotech firms.

Thank you for your consideration of our views.

Unlike others who have already made up their minds without knowing all the facts, Chairman Wu has been open to hearing both sides of this debate, and we applaud his refreshing willingness to include small businesses in discussions that involve them. Gee, what a concept!

If you agree with these sentiments, please copy the letter onto your own letterhead, add your own words for emphasis, and send it off to your Congressional Representatives and Senators. You’ll find contact information on www.SBIRreauthorization.com. You’ll also find this letter there complete with the fifty original signatories.

The National Small Business Association (NSBA) will hold its annual Washington Presentation, which includes a White House briefing, on June 9th and 10th. This year the focus will be on SBIR Reauthorization and Economic Stimulus procurement opportunities. The SBIR Coach will be there. See details at http://www.nsba.biz/wp. You’re invited to join us.
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Should the NIH be allowed to play by different SBIR rules?

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It's the issue that just won't go away. Eligibility for SBIR awards for VC controlled companies.

Will somebody please tell me why companies that now have received millions of dollars of outside investment would even care about grabbing a relatively few thousand dollars of grants intended for startups.

Reminds me of the rich bully on the playground stealing lunch money from the weaker and poorer kids.

The Small Business Technology Council (SBTC) sent out an appeal to its membership yesterday. I'm going to provide it verbatim:

Sign on to the NIH Letter Today!

During a recent hearing SBTC Executive Director Jere Glover testified before the Technology and Innovation Subcommittee of the House of Representatives’ Science and Technology Committee. Glover documented the success of the federal Small Business Innovation Research (SBIR) Program, which is due for renewal by Congress.

During the hearing Chairman David Wu (D-Ore.) suggested a compromise that would allow National Institute of Health (NIH) applicants to be exempt from affiliation rules preventing large venture capital (VC) owned companies from participating in the SBIR program, while keeping the restrictions in place for all other agencies. Glover objected to this compromise, pointing out that many small biotech companies oppose VC involvement in the SBIR, including those in the SBTC membership.

In response to this, an SBTC NIH member has drafted a letter to send to Rep. Wu urging him not to allow VC owned companies unrestricted access to the SBIR program. SBTC would like as many biotech and medical device firms as possible to sign on to this letter to show Wu that opposition to VC involvement in this program is not just limited to Department of Defense (DoD) awardees.

If you are a NIH awardee and would like your name on this letter, please send an email to Alec Orban.

Take Action Today!

View the NIH Letter
View Jere Glovers Testimony
Sign on to the NIH Letter

OK, here's your chance to voice your opinion. If you're a "biotech or medical device" company and wish to sign onto the letter, click the links above and do so.

If you have a good reason that you don't want to sign the letter (other than not wanting to stick your neck out), please use the Comments feature on this Blog and tell me your reasoning. I really want to understand the underlying thinking here.

My position on the VC issue is well documented. I am opposed to changing the eligibility rules. However, I'm a realist. If we must compromise on this in order to get SBIR reauthorized, than so be it. But let's do it smart and not fundamentally change the program.

So, convince me it's a good idea to broaden SBIR eligibility. Even selectively.

And please cut the crap about having had eligibility "taken away". We all know that really isn't true.
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House begins deliberations on SBIR Reauthorization

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The House of Representatives began deliberations this week on reauthorizing SBIR. Two House Committees held hearings.

The Small Business Committee met on Wednesday. They actually did allow a few small businesses to testify. (Press Release, Written Testimony, Video of Hearing)

Jere Glover testified yesterday at the Science and Technology (S&T) Committee's Technology and Innovation (T&I) Subcommittee hearing. (Press Release, Written Testimony, Video of Hearing - coming soon)

I talked to Jere yesterday after his testimony. He said that, by and large, the hearings went well. We're being included in discussions invited to testify for the first time in two years, and that's progress.

There's a new letter from S&T/T&I Subcommittee Chairman David Wu (D-OR) rumored to be circulating countering our Dear Colleague letter to Chairwoman Velazquez and promoting reintroducing of H.R.5819 support of provisions similar to what were in H.R.5819. After the hearing, Chairman Wu admitted that he learned some new facts and probably would change his stance on that. I certainly hope that hearing all sides of the story will prompt him to change his stance on that.

[Curious about the strikeouts? -- Sorry, Chairman Wu. Didn't mean to misquote you. -- See the Comments...]

When I visited some congressional offices on the Hill earlier this year, I saw a booklet available in every office: "How Our Laws Are Made". I leafed through it and laughingly said that there should be a subtitle: "Like a Visit to the Sausage Factory -- you really don't want to know!"

The process is ponderous, with lots of rules that permit strange shenanigans and partisan interests to get their way. We must be cognizant of how things work, and play the game smartly. Being persistent and factual (always providing references) is the way we'll get our message through. The staffers are the key. Educate them and they'll advise their bosses.

Jere promises that the SBTC website will have some new information up in a few days. I'm sure Rick Shindell's Insider will provide some insight soon.

I'll have some more analysis of all of this in a few days, and some recommendations on strategy, but I wanted everyone to have a good source of facts on what's going on. Your comments are always welcome.
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