⚠️ Why S.853 Must Be Stopped

  • The INNOVATE Act (S.853) is not reform—it's dismantlement disguised as modernization. Crafted to favor venture capital (VC) interests, it penalizes the 65 to 70 companies driving the SBIR ecosystem's success. These firms, responsible for most innovations, face a $75 million lifetime cap that could force them to halt operations, lay off thousands of skilled engineers, scientists, and professionals within a year.

    • Support a clean SBIR reauthorization for 1–3 years to allow proper evaluation by Congress and enable responsible planning by current SBIR participants
  • 🧬 Strips the SBIR Program of Its Core Mission: Omits the first and second statutory purposes of SBIR — to stimulate U.S. innovation and meet federal R&D needs.
  • 🔐 Creates National Security Risks: Discourages participation from trusted, security-cleared U.S. firms while enabling greater access for unvetted venture capital-backed companies — many with ties to Chinese co-investors or CCP-affiliated funds.
  • ⚙️ Bypasses Normal Legislative Process: Crafted outside regular order, with no DoD request, no hearings, limited stakeholder input, and no transparent data review.
  • 📜 Violates Executive Order 14219: Contradicts the President's directive to reduce burdens on small businesses and advance innovation.
  • 🚨 Could Be Rammed Through Without Scrutiny: Being considered as a last-minute add-on to the FY2025 NDAA or Continuing Resolution — circumventing proper debate and oversight.

The RIGHT Choice: Protect SBIR & Small Businesses

Congress should take a measured approach:

  • Support a Clean SBIR Reauthorization for 1–3 years to allow proper evaluation by Congress and enable responsible planning by current SBIR participants
  • Request open hearings and transparency before making structural changes to this remarkably successful federal innovation program
Take Action: Contact Congress

The Poison Pills Punishing Success

Provision Potential Impact Concern
$75M Lifetime Cap Eliminates many experienced firms from eligibility Reduces capacity during critical innovation windows
Stripped Agency Discretion Applies uniform rules to diverse agencies (DoD, DOE, etc.) Limits adaptability to evolving missions
Security Narrative Based on outdated information Ignores post-2022 reforms that addressed key risks
Process Transparency No hearings or full congressional review Limits accountability and stakeholder trust