SBIR/STTR Foreign Interference Safeguard Act

SBIR/STTR Foreign Interference Safeguard Act would (1) extend the SBA’s due-diligence program for security risks in SBIR/STTR awards from September 30, 2025 to September 30, 2030, and (2) create new safeguards to bar SBIR/STTR awards to small business concerns that are majority-owned by venture capital operating firms, hedge funds, or private equity firms if those businesses are owned or controlled by a “covered foreign entity.” A covered foreign entity is defined very broadly to include foreign entities of concern (as designated by various U.S. agencies), individuals not authorized to reside or be citizens in the U.S., governments or political parties of foreign countries of concern, and entities connected to or controlled by such entities. The bill would require the SBA Administrator to determine eligibility on a case-by-case basis (including for indirect subsidiaries) and to establish size standards for these specific SBIR participants. The protections would apply to SBIR program awards made after enactment. In short, the bill expands security-screening for SBIR/STTR funding, introducing explicit disqualification criteria for firms heavily owned or controlled by foreign-linked private equity or VC funds, and broadens the criteria used to identify “foreign entities of concern.” This could reduce SBIR/STTR access for certain VC/PE-backed U.S. firms with foreign ties, while increasing the program’s emphasis on national-security considerations.