Source:  Press Release, 3/14/11

 

U.S. Senator Kay R. Hagan, a member of the Senate Small Business Committee, today voted for a long-term extension of two successful programs that give small businesses opportunities to participate in federal research and development. In a key procedural vote, the Senate voted 84-12 to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, both under the Small Business Administration, for the next eight years. The programs are set to expire on May 31. In 2009, North Carolina companies won a total of 94 SBIR/STTR awards totaling $55 million, a 43% increase over 2007.

"By extending these successful programs for an eight-year period, our North Carolina small business entrepreneurs will have the certainty they need to continue to produce innovative research, expand their companies and add jobs," Hagan said. "Small businesses remain the key to our economic recovery in North Carolina, and I have long been an advocate for these programs that allow our smaller companies to participate in high-level research and the development of next generation technologies. Given today's overwhelming bipartisan support for these programs, I look forward to quickly passing this bill in the Senate and getting it to the President' desk as soon as possible."

The SBIR program designates resources to increase the participation of small, innovative companies in federally funded research and development. Similarly, the STTR program provides federal funding for small firms to work jointly with non-profit research institutions, such as research and development centers, universities, university-affiliated hospitals, and other non-profits.

In North Carolina, matching grants through the state Board of Science and Technology have contributed to a significant increase of SBIR and STTR awards given to North Carolina companies. From 1999-2005, North Carolina awards tripled from $14 million to $41.4 million. In 2006, as co-chair of the North Carolina State Senate Budget Committee, Hagan allocated $5 million to match the SBIR and STTR grants awarded to North Carolina. These programs have led to numerous innovations by North Carolina small businesses.

For example, Raleigh-based Agile Sciences, founded in 2007 by professors at North Carolina State University, has won four separate SBIR/STTR awards, which have supported the development of products designed to fight bacteria. Recently, the company won a $252,000 NIH Phase I SBIR award to study the effectiveness of its products to prevent tooth decay.

"Each of Agile Sciences' SBIR awards has been immensely important to our ability to conduct innovative research and transition advancements from the lab to the marketplace," said John Cavanagh, Chief Scientific Officer of Agile Sciences. "Without this crucial federal funding, our company would have never had the resources to hire employees, expand our facilities and develop the type of innovations we produce today."