“(1) PILOT PROGRAMS IMPLEMENTED.—
"(A) IN GENERAL.—Except as provided in subparagraph (B), not
later than one year after the date of the enactment of this
subsection, a covered agency shall implement a commercialization
assistance pilot program, under which an eligible entity may
receive a subsequent Phase II SBIR award.
“(B) EXCEPTION.—If the Administrator determines that a covered
agency has a program that is sufficiently similar to the
commercialization assistance pilot program established under
this subsection, such covered agency shall not be required to
implement a commercialization assistance pilot program under
this subsection.
“(2) PERCENT OF AGENCY FUNDS.—The head of each covered agency
may allocate not more than 5 percent of the funds allocated to
the SBIR program of the covered agency for the purpose of making
a subsequent Phase II SBIR award under the commercialization
assistance pilot program.
“(3) TERMINATION.—A commercialization assistance pilot program
established under this subsection shall terminate on September
30, 2022.
“(4) APPLICATION.—To be selected to receive a subsequent Phase
II SBIR award under a commercialization assistance pilot
program, an eligible entity shall submit to the covered agency
implementing such pilot program an application at such time, in
such manner, and containing such information as the covered
agency may require, including—
“(A) an updated Phase II commercialization plan; and
“(B) the source and amount of the matching funding required
under paragraph (5).
“(5) MATCHING FUNDING.—
“(A) IN GENERAL.—The Administrator shall require, as a condition
of any subsequent Phase II SBIR award made to an eligible entity
under this subsection, that a matching amount (excluding any
fees collected by the eligible entity receiving such award)
equal to the amount of such award be provided from an eligible
third-party investor.
“(B) INELIGIBLE SOURCES.—An eligible entity may not use funding
from ineligible sources to meet the matching requirement of
subparagraph (A).
“(6) AWARD.—A subsequent Phase II SBIR award made to an eligible
entity under this subsection—
“(A) may not exceed the limitation described under subsection (aa)(1);
and
“(B) shall be disbursed during Phase II.
“(7) USE OF FUNDS.—The funds awarded to an eligible entity under
this subsection may only be used for research and development
activities that build on eligible entity’s Phase II program and
ensure the research funded under such Phase II is rapidly
progressing towards commercialization.
“(8) SELECTION.—In selecting eligible entities to participate in
a commercialization assistance pilot program under this
subsection, the head of a covered agency shall consider—
“(A) the extent to which such award could aid the eligible
entity in commercializing the research funded under the eligible
entity’s Phase II program;
“(B) whether the updated Phase II commercialization plan
submitted under paragraph (4) provides a sound approach for
establishing technical feasibility that could lead to
commercialization of such research;
“(C) whether the proposed activities to be conducted under such
updated Phase II commercialization plan further improve the
likelihood that such research will provide societal benefits;
“(D) whether the small business concern has progressed
satisfactorily in Phase II to justify receipt of a subsequent
Phase II SBIR award;
“(E) the expectations of the eligible third-party investor that
provides matching funding under paragraph (5); and
“(F) the likelihood that the proposed activities to be conducted
under such updated Phase II commercialization plan using
matching funding provided by such eligible third-party investor
will lead to commercial and societal benefit.
“(9) EVALUATION REPORT.—Not later than 6 years after the date of
the enactment of this subsection, the Comptroller General of the
United States shall submit to the Committee on Science, Space,
and Technology and the Committee on Small Business of the House
of Representatives, and the Committee on Small Business and
Entrepreneurship of the Senate, a report including—
“(A) a summary of the activities of commercialization assistance
pilot programs carried out under this subsection;
“(B) a detailed compilation of results achieved by such
commercialization assistance pilot programs, including the
number of eligible entities that received awards under such
programs;
“(C) the rate at which each eligible entity that received a
subsequent Phase II SBIR award under this subsection
commercialized research of the recipient;
“(D) the growth in employment and revenue of eligible entities
that is attributable to participation in a commercialization
assistance pilot program;
“(E) a comparison of commercialization success of eligible
entities participating in a commercialization assistance pilot
program with recipients of an additional Phase II SBIR award
under subsection (ff);
“(F) demographic information, such as ethnicity and geographic
location, of eligible entities participating in a
commercialization assistance pilot program;
“(G) an accounting of the funds used at each covered agency that
implements a commercialization assistance pilot program under
this subsection;
“(H) the amount of matching funding provided by eligible
third-party investors, set forth separately by source of
funding;
“(I) an analysis of the effectiveness of the commercialization
assistance pilot program implemented by each covered agency; and
“(J) recommendations for improvements to the commercialization
assistance pilot program.
“(10) DEFINITIONS.—For purposes of this subsection:
“(A) COVERED AGENCY.—The term ‘covered agency’ means a Federal
agency required to have an SBIR program.
“(B) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a small
business concern that has received a Phase II award under an
SBIR program and an additional Phase II SBIR award under
subsection (ff) from the covered agency to which such small
business concern is applying for a subsequent Phase II SBIR
award.
“(C) ELIGIBLE THIRD-PARTY INVESTOR.—The term ‘eligible
third-party investor’ means a small business concern other than
an eligible entity, a venture capital firm, an individual
investor, a non-SBIR Federal, State or local government, or any
combination thereof.
“(D) INELIGIBLE SOURCES.—The term ‘ineligible sources’ means the
following:
“(i) The eligible entity’s internal research and development
funds.
“(ii) Funding in forms other than cash, such as in-kind or other
intangible assets.
“(iii) Funding from the owners of the eligible entity, or the
family members or affiliates of such owners.
“(iv) Funding attained through loans or other forms of debt
obligations.
“(E) SUBSEQUENT PHASE II SBIR AWARD.—The term ‘subsequent Phase
II SBIR award’ means an award granted to an eligible entity
under this subsection to carry out further commercialization
activities for research conducted pursuant to an SBIR program.”.
