[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4775 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4775
To ensure small business concerns indirectly owned or controlled by
certain foreign entities are ineligible to receive SBIR or STTR awards,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2025
Mr. Tran (for himself and Mr. Bacon) introduced the following bill;
which was referred to the Committee on Small Business, and in addition
to the Committee on Science, Space, and Technology, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To ensure small business concerns indirectly owned or controlled by
certain foreign entities are ineligible to receive SBIR or STTR awards,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SBIR/STTR Foreign Interference
Safeguard Act''.
SEC. 2. EXTENSION OF DUE DILIGENCE PROGRAM TO ASSESS SECURITY RISKS.
Section 9(vv)(3)(C) of the Small Business Act (15 U.S.C.
638(vv)(3)(C)) is amended by striking ``September 30, 2025'' and
inserting ``September 30, 2030''.
SEC. 3. CODIFYING SAFEGUARDS FOR SMALL BUSINESS CONCERNS MAJORITY-OWNED
BY VENTURE CAPITAL OPERATING COMPANIES, HEDGE FUNDS, OR
PRIVATE EQUITY FIRMS.
(a) In General.--Section 9(dd) of the Small Business Act (15 U.S.C.
638(dd)) is amended--
(1) in paragraph (6)(B), by striking ``If a Federal'' and
inserting ``Except as provided in paragraph (8), if a
Federal''; and
(2) by adding at the end the following new paragraph:
``(8) Participation limits.--
``(A) In general.--A small business concern that is
majority-owned by multiple venture capital operating
companies, hedge funds, or private equity firms is
ineligible to receive an award under any SBIR program
if the Administrator determines that such small
business concern is, or is owned and controlled in
majority part by, a covered foreign entity.
``(B) Ownership determination.--In determining
whether a small business concern is ineligible to
receive an award under any SBIR program under
subparagraph (A), the Administrator shall consider
whether the small business concern is a direct or
indirect subsidiary of a foreign-owned firm.
``(C) Size standards.--The Administrator shall
establish size standards for small business concerns
seeking to participate in an SBIR program solely under
the authority under this section.
``(D) Definitions.--In this paragraph:
``(i) Covered foreign entity.--the term
`covered foreign entity'--
``(I) means--
``(aa) a foreign entity of
concern;
``(bb) a government or
political party of a foreign
country of concern;
``(cc) a natural person who
is not a lawful permanent
resident of the United States,
citizen of the United States,
or any other protected
individual (as such term is
defined in section 274B(a)(3)
of the Immigration and
Nationality Act (8 U.S.C.
1324b(a)(3))); or
``(dd) a partnership,
association, corporation,
organization, or other
combination of persons
organized under the laws of or
having its principal place of
business in a foreign country
of concern; and
``(II) includes--
``(aa) any entity owned by,
controlled by, or subject to
the jurisdiction or direction
of a an entity listed in
subclause (I);
``(bb) any person, wherever
located, who acts as an agent,
representative, or employee of
an entity listed in subclause
(I);
``(cc) any person who acts
in any other capacity at the
order, request, or under the
direction or control, of an
entity listed in subclause (I),
or of a person whose activities
are directly or indirectly
supervised, directed,
controlled, financed, or
subsidized in whole or in
majority part by an entity
listed in subclause (I);
``(dd) any person who
directly or indirectly through
any contract, arrangement,
understanding, relationship, or
otherwise, owns 25 percent or
more of the equity interests of
an entity listed in subclause
(I);
``(ee) any person with
significant responsibility to
control, manage, or direct an
entity listed in subclause (I);
``(ff) any person, wherever
located, who is a citizen or
resident of a country
controlled by an entity listed
in subclause (I); or
``(gg) any corporation,
partnership, association, or
other organization organized
under the laws of a country
controlled by an entity listed
in subclause (I).
``(ii) Foreign entity of concern.--The term
`foreign entity of concern' means a foreign
entity that is--
``(I) designated as a foreign
terrorist organization by the Secretary
of State under section 219(a) of the
Immigration and Nationality Act (8
U.S.C. 1189(a));
``(II) included on the list of
specially designated nationals and
blocked persons maintained by the
Office of Foreign Assets Control of the
Department of the Treasury (commonly
known as the SDN list);
``(III) owned by, controlled by, or
subject to the jurisdiction or
direction of a government of a foreign
country that is a covered nation (as
such term is defined in section 4872 of
title 10, United States Code);
``(IV) alleged by the Attorney
General to have been involved in
activities for which a conviction was
obtained under--
``(aa) chapter 37 of title
18, United States Code
(commonly known as the
Espionage Act);
``(bb) section 951 or 1030
of such title;
``(cc) chapter 90 of such
title (commonly known as the
Economic Espionage Act of
1996);
``(dd) the Arms Export
Control Act (22 U.S.C. 2751 et
seq.);
``(ee) section 224, 225,
226, 227, or 236 of the Atomic
Energy Act of 1954 (42 U.S.C.
2274, 2275, 2276, 2277, and
2284);
``(ff) the Export Control
Reform Act of 2018 (50 U.S.C.
4801 et seq.); or
``(gg) the International
Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.); or
``(V) determined by the Secretary
of Commerce, in consultation with the
Secretary of Defense and the Director
of National Intelligence, to be engaged
in unauthorized conduct that is
detrimental to the national security or
foreign policy of the United States.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to awards made under an Small Business
Innovation Research Program (as defined in section 9(e) of the Small
Business Act (15 U.S.C. 638(e))) after the date of the enactment of
this Act.
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