Congress Passes FAST; SBIR Reauthorization

The most common component of state tech-based economic development efforts -- technical and financial assistance to small, technology firms competing for federal research funding -- got a much needed boost last Friday with Congressional approval of legislation creating the Federal and State Technology Partnership (FAST). Equally important for proponents of better state outreach for the Small Business Innovation Research Program (SBIR) was a $3.5 million initial appropriation for FAST.

As one of the most thoroughly studied federal technology programs, SBIR has been found to be an effective instrument for accelerating innovation and commercialization by small businesses. For more than a decade most state science and technology programs have encouraged involvement in SBIR through outreach and technical assistance. Several states offer financial incentives for proposal development and matching grants for SBIR awards.

The FAST Partnership, crafted in the Senate Small Business Committee under the leadership of Senator Christopher "Kit" Bond (R-Mo.), has several design features to accommodate the unique characteristics of states' existing SBIR outreach efforts. For instance, eligibility is open to all 50 states and to any entity in a state; only one proposal is allowed per state, however, and it must include the Governor's endorsement. The flexibility addresses the fact that lead SBIR assistance organizations vary among states to include universities, state agencies, nonprofit technology-based economic development organizations, or some combination of the three. Requiring a Governor's sign off is meant to preclude funding new or marginal efforts that are duplicative of the state's existing outreach programs or are not integrated with the state's tech-based economic development system.

The Small Business Administration, which is required to administer FAST in partnership with the National Science Foundation and the Department of Defense, anticipates releasing the first FAST solicitation by early March.

SBIR assistance efforts in many states also will benefit from a $1.5 million appropriation for the SBA's existing Rural State SBIR Outreach (RSSO) Program. RSSO focuses on twenty-five states and territories under-performing in SBIR competition. SBA allocated only $500,000 for the program in FY 2000.

Language creating FAST was nested in reauthorization of the $1.2 billion federal SBIR Program. SBIR has been reauthorized until the end of fiscal year 2007. The SBIR legislation, contained within H.R. 5667, can be viewed on-line at: http://thomas.loc.gov/home/omni2000/omni2000.html