U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) met with small businesses in Iowa City on June 10 in support of the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs.
Ernst introduced The INNOVATE Act in March (S.853) which reauthorizes the programs.
“Senator Ernst understands the importance of the SBIR/STTR program to Iowa’s biotech entrepreneurs and to the long-term economic growth of our state,” said Jessica Hyland, Executive Director, Iowa Biotechnology Association.
“The SBIR/STTR program plays a critical role in growing Iowa’s biotech ecosystem,” Hyland said. “The funding helps to grow and scale companies developing new cures, better crops, new energy sources, innovative materials and foods, while creating new jobs for Iowans. The reauthorization of these vital programs produce an outsized return on investment to the economy and provides crucial capital to these early-stage companies. We applaud Senator Ernst for her leadership, her vision and her commitment to ensuring that Iowa and America leads the world in innovative biotechnology breakthroughs.”
“Vita has benefited greatly from the SBIR program,” said Caleb Carr, President and CEO, Vita Inclinata Technologies. “And passing Sen. Ernst’s INNOVATE Act will create meaningful improvements to ‘America’s seed fund’ and will make sure it is viable for years to come.”
Other Bills to Reauthorize SBIR & STTR
For over four decades, the SBIR and STTR programs have fueled American innovation by providing early-stage funding to small businesses, allowing them to develop cutting-edge technologies that strengthen our economy and support our
military. From lifesaving medical advancements to next generation defense capabilities, these programs have empowered Main Street to turn ideas into reality for the government and private sector.
Prominent companies, including Qualcomm, and Bose, began as small businesses that leveraged the SBIR program to become industry leaders, demonstrating the program’s power to drive innovation and economic growth.
The current authorization for the SBIR and STTR programs is set to expire on September 30, 2025. This means that unless Congress acts to reauthorize the programs before that date, they will expire, and federal agencies will not be able to continue making new SBIR and STTR awards.
Efforts aside from the INNOVATE Act are underway in Congress to address this. Senator Ed Markey (D-Mass.) introduced the SBIR/STTR Reauthorization Act of 2025 (S. 1573) in the Senate, the bill’s house corollary is H.R. 3169 introduced by Congresswoman Nydia Velázquez (NY-7).
The SBIR/STTR Reauthorization Act of 2025 aims to make the programs permanent, while the INNOVATE Act proposes extending the program for a shorter period, until September 30, 2028.
Recent SBIR Grants Awarded
Several SBIR/STTR announcements and opportunities were made in June 2025:
LyoWave Secures $304K – Awarded June 4, 2025
LyoWave Inc. received a $304,436 Phase I SBIR grant from the
National Science Foundation. The project aims to commercialize its innovative microwave-based heating technology for lyophilization in injectable biopharmaceutical production.
Continuous Composites and Aurora Flight Sciences Awarded U.S. Army SBIR Contract – June 9, 2025
Continuous Composites will collaborate with Aurora Flight Sciences on advanced composite structures for Launched Effects, backed by a U.S. Army SBIR award.
Reflect Orbital Receives Grant for Satellite-Based Sunlight Redirection – June 4, 2025
Reflect Orbital was selected for a $1.25 million Phase II SBIR award to continue development of its orbital mirrors for sunlight redirection — aimed at enhancing satellite operations and energy distribution.
HEBI Robotics Gets SBIR Grant for Hazardous Environment Robotics – June 8, 2025
HEBI Robotics received an SBIR grant to enhance its modular robotics systems, focusing on enabling safe operation in hazardous environments with explosive materials.
IperionX Awarded SBIR Contract – June 10, 2025
Multiple outlets including 3DPrint.com and ExecutiveBiz confirm IperionX’s $99M Phase III IDIQ contract to supply titanium components for the U.S. Department of Defense.
Small Businesses Advocating for SBIR and STTR
In April, ML Mackey, CEO of Beacon Interactive Systems, provided testimony before the House Committee on Small Business in February on the SBIR and STTR programs.
Beacon is a defense contractor that leverages commercial-sector expertise to develop and deliver digital products to address critical national security needs for the U.S. Department of Defense, Partners & Allies.
“Attracting and retaining new entrants that can rapidly deliver innovative technologies and capabilities to the warfighter is a critical element to building a modern, diverse, and resilient U.S. Defense Industrial Base, Mackey said. “These technologies can also provide the decisive advantage needed to deter or win a fight. Your work to defend deliberate and efficient approaches to include small business high-tech innovators in the U.S. DIB is a valuable proposition for the government and a direct enabler of innovation and growth.”
At the hearing titled “Fostering American Innovation: Insights into SBIR/STTR Programs,” Roger Williams, chair of the committee, and a republican from Texas’ 25th district, said the committee is “working alongside the Trump Administration,” and continues “to prioritize policies that protect our innovators, cut bureaucratic red tape, and create an environment where Main Street America can survive and thrive.”