NEWS | Congressional Urgency Grows to Restart Critical Small Business SBIR/STTR Innovation Funding - NSBA and SBTC Priority Issues
- NSBA
- 4 minutes ago
- 2 min read
NSBA and our Small Business Technology Council (SBTC) continue to urge Congress to act to reinstate the SBIR/STTR programs, applauding recent efforts to revive the critical innovation and development funds.
DEC. 12, 2025 | After tireless advocacy from NSBA and our Small Business Technology Council (SBTC) members, congressional leaders in the Senate are sounding the alarm over the shutdown of two cornerstone federal innovation programs supporting small business research and development, warning that continued inaction risks undermining the nation’s innovation ecosystem and hampering small business competitiveness.
Ranking Member Sen. Ed Markey (D-Mass.) issued a statement calling for immediate reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, federal initiatives collectively providing more than $4 billion annually in R&D awards to small firms and startups nationwide.
These programs expired on September 30, 2025, after congressional negotiations failed to include an extension in the House’s version of the Fiscal Year 2026 National Defense Authorization Act (NDAA).
Markey and other lawmakers had pushed a bipartisan bill to extend SBIR/STTR funding through September 30, 2026, in order to provide more time to reach a compromise for longer-term or permanent reauthorization, but efforts stalled in the Senate.
"We must reopen these vital programs so small businesses can continue important life sciences, energy efficiency, and defense research,” Markey said, urging passage of the bipartisan extension already approved by the House.
For small firms engaged in high-risk, high-reward research, especially in life sciences, clean energy, defense technologies, and advanced manufacturing, SBIR and STTR are lifelines to capital that private investors often won’t provide. These programs help bridge early-stage funding gaps, enabling small innovators to develop new products, form partnerships, and scale. Their lapse means millions in forgone opportunities for startups and firms on more than Main Street.
NSBA continues to emphasize the critical importance of small business access to capital in all its forms, not just debt and equity, but also federal innovation awards that enable firms to translate ideas into market-ready solutions. The SBIR/STTR shutdown highlights the broader challenge small firms face when funding pipelines are interrupted by legislative gridlock.
Markey has been leading the call for a temporary reauthorization while lawmakers negotiate a long-term extension and improvements to ensure the programs remain competitive, accessible, and responsive to the needs of small innovators. All chairs and ranking members of the House Small Business and Science Committees are reportedly aligned on advancing the extension as the most responsible near-term path.
NSBA will continue monitoring developments and advocating for policies securing reliable access to federal capital for small businesses, especially in sectors where innovation drives growth and global competitiveness.
Read the full release here.
