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SBIR Reauthorization: Improving the Impact of FAST: An Editorial

Last week, SSTI reported the draft SBIR Reauthorization bill circulated by the House Small Business Committee in mid-March included language that would reauthorize the Federal & State Technology Partnership (FAST) for two years at its current $10 million level. FAST was created with the 2000 SBIR reauthorization and received appropriations through the Small Business Administration (SBA) for three of the next four years.
 
In its first iteration between 2000-2004, FAST received mixed reviews. It could be made better through the present reauthorization process. Before that, however, an important and often overlooked point must be made: there is little to no criticism with the underlying concept or mission of FAST to provide financial support to state and local efforts to promote the federal SBIR program and improve the quality of small business participation in SBIR across the country.
 
That lack of criticism can easily be attributed to the fact that promotion of the opportunities afforded small tech firms through SBIR and the provision of high-quality proposal development assistance does make a difference in the number of competitive proposals received from the geographic area served by the outreach and assistance efforts. In its assessment of the SBIR program, the National Academy of Sciences concluded that despite the small dollar amounts of the FAST awards, the short-lived program did appear to make a difference.
 
FAST did develop a sizable collection of critics, however, including many grantees. The situation after the first three funding cycles was so dire, in fact, that there was little fight for appropriations in fiscal year 2005 when the Administration did not request more funding. FAST has remained on the books as an unfunded Small Business Administration (SBA) program ever since.
 
The conclusion: good idea, poorly executed.
 
In February 2008, SSTI convened conference calls with its core state members to develop suggestions regarding how FAST could be improved. Past criticisms essentially could be divided into two groups: 1.) variable quality of FAST grantee service delivery and performance; and 2.) administrative/oversight issues at SBA. There are easy and affordable ways to address each set of concerns.
 
In this issue of the Digest, we highlight some recommendations addressing the first group of concerns dealing with grantee quality, including:

SBA Names FY 2004 FAST, ROP Winners

Earlier this week, 22 states and Puerto Rico were named recipients of more than $2.2 million in combined fiscal year 2004 Federal and State Technology Partnership (FAST) and Rural Outreach Program (ROP) awards. All but one of the 21 FAST awards distributed by the Small Business Administration (SBA) were worth $95,000 -- they totaled nearly $1.98 million. Five ROP awards of $49,470 also were made by SBA.

SBA Awards FY 2002 FAST Winners

The Small Business Administration (SBA) recently named 27 states winners of the second Federal and State Technology Partnership (FAST) awards. At $100,000 each, the awards totaled $2.7 million. Created in December 2000 legislation that reauthorized the Small Business Innovation Research (SBIR) Program, FAST provides matching funds to enable states to augment or expand their tech business assistance and SBIR outreach efforts. The FY 2002 winners are:

SBIR/STTR Rural Outreach Awards Made

The U.S. Small Business Administration (SBA) has selected 10 states to receive continuation awards of up to $47,000 for the SBIR/STTR Rural Outreach Program. The three-year-old program provides matching grants to states to establish or expand programs to assist small high technology businesses to increase their participation and success in SBIR and STTR programs through training, counseling and outreach.

Senate SBIR Language Offers $10 Million to States

SSTI has learned the Small Business Innovation Research (SBIR) reauthorization language the Senate Small Business Committee (SBC) will be marking up on Tuesday, March 21 is substantially different than HR 2392, passed by the House last fall. While HR 2392 basically makes housekeeping revisions to the $1.1 billion SBIR program, the SBC version includes several components addressing issues a majority of states identified as problems for their own SBIR outreach and assistance efforts. SSTI understands the proposed Senate language has support from key Committee members from both political parties.

SBA To Offer $1 Million for SBIR Assistance

The Small Business Administration (SBA) has announced plans to accept applications for funding to support selected local Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) assistance efforts. The program announcement will be available by mail beginning Monday March 22, according to Maurice Swinton, SBA point of contact.

SBIR Funding to Reach $1.1 Billion

Funds available for the federal Small Business Innovation Research (SBIR) Program are estimated to top $1.1 billion in FY97 if the President’s budget request is enacted. With FY96 budget appropriations still pending for some agencies, SBIR managers are hesitant to project FY97 set asides for their programs, but in interviews with SSTI staff, the managers provided projections for FY97 based on the President’s budget request.

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