Lost in the controversy over the so-called “indefinite detention” provisions in the Fiscal Year 2012 National Defense Authorization Act is a piece
of good news for cutting edge small business government contractors and firms looking to invest in them. Specifically, after years of delays and half-measures, Congress has finally taken action to extend the Small Business Innovation and Research (“SBIR”) program for a period of longer than a single year. This extension comes with a series of reforms of importance to small businesses and venture capital investors, as the new legislation expands the size of SBIR awards and expands access to the program for venture capital-backed firms. Although this expansion comes with some risks, these changes should create new investment opportunities for a variety of firms.
