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Prolonged Lapse in SBIR/STTR Authorization Has Devastating Effects on US Innovation
RALEIGH, N.C. - ncarol.com -- Over 1,300 CEOs and innovation leaders representing all 50 states, Washington, DC, and Puerto Rico are calling for immediate Congressional action to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
In a letter sent today to Congressional leadership, the CEOs underscore that SBIR/STTR has been one of the federal government's most successful innovation programs, enabling small businesses to translate cutting-edge research into commercial products, high-quality jobs, and national security solutions. Federal authorization for the SBIR/STTR programs lapsed on September 30, 2025, disrupting thousands of small businesses, halting federal agencies' innovation pipelines, and weakening the broader U.S. economy. The reauthorization delay is already impacting small businesses nationwide, leading to layoffs of skilled workers, stalled technology development, and company closures.
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"SBIR and STTR are lifelines for America's most innovative startups," said Eva Garland, Ph.D., CEO of Eva Garland Consulting, a firm that has supported thousands of small businesses over the past decade in obtaining and managing SBIR/STTR funding to advance cutting edge technologies. "Reauthorization is essential to ensure that small businesses can continue to pursue high-risk, high-reward research that would otherwise go unfunded, strengthening our economy and delivering solutions to critical national challenges."
Each year, approximately 5,000 small businesses receive more than $4 billion in SBIR/STTR funding, supporting breakthroughs across healthcare, energy, advanced manufacturing, agriculture, and defense. These awards help de-risk early-stage technologies and enable companies to attract private capital and bring innovations to market.
"Our company lost access to a $2M SBIR award at a pivotal moment in our development, significantly disrupting our R&D plans," said Brad Estes, Ph.D., CEO and Co-Founder of CytexOrtho in Durham, NC. "We are advancing a life-altering medical implant designed to restore function and delay or prevent major surgery, but delayed SBIR reviews have forced us to slow key research and defer hiring. Because SBIR cycles are already long, missing even one cycle can delay progress by years. In an economy where risk capital is scarce, SBIR funding is critical to delivering transformative treatments to patients."
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The letter is accompanied by more than 400 case studies submitted to Congress, documenting the real-world consequences of the SBIR/STTR lapse on small businesses, workers, and the U.S. innovation economy.
The letter and case studies are available here (https://www.evagarland.com/resources/advocacy/sbir-sttr-reauthorization/).
About Eva Garland Consulting: Eva Garland Consulting was founded in 2013 to help scientists and entrepreneurs advance development of their innovative technologies. The firm specializes in developing and executing non-dilutive funding strategies as well as accounting, compliance, tax, and advisory services. For more information, visit www.evagarland.com.
In a letter sent today to Congressional leadership, the CEOs underscore that SBIR/STTR has been one of the federal government's most successful innovation programs, enabling small businesses to translate cutting-edge research into commercial products, high-quality jobs, and national security solutions. Federal authorization for the SBIR/STTR programs lapsed on September 30, 2025, disrupting thousands of small businesses, halting federal agencies' innovation pipelines, and weakening the broader U.S. economy. The reauthorization delay is already impacting small businesses nationwide, leading to layoffs of skilled workers, stalled technology development, and company closures.
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"SBIR and STTR are lifelines for America's most innovative startups," said Eva Garland, Ph.D., CEO of Eva Garland Consulting, a firm that has supported thousands of small businesses over the past decade in obtaining and managing SBIR/STTR funding to advance cutting edge technologies. "Reauthorization is essential to ensure that small businesses can continue to pursue high-risk, high-reward research that would otherwise go unfunded, strengthening our economy and delivering solutions to critical national challenges."
Each year, approximately 5,000 small businesses receive more than $4 billion in SBIR/STTR funding, supporting breakthroughs across healthcare, energy, advanced manufacturing, agriculture, and defense. These awards help de-risk early-stage technologies and enable companies to attract private capital and bring innovations to market.
"Our company lost access to a $2M SBIR award at a pivotal moment in our development, significantly disrupting our R&D plans," said Brad Estes, Ph.D., CEO and Co-Founder of CytexOrtho in Durham, NC. "We are advancing a life-altering medical implant designed to restore function and delay or prevent major surgery, but delayed SBIR reviews have forced us to slow key research and defer hiring. Because SBIR cycles are already long, missing even one cycle can delay progress by years. In an economy where risk capital is scarce, SBIR funding is critical to delivering transformative treatments to patients."
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The letter is accompanied by more than 400 case studies submitted to Congress, documenting the real-world consequences of the SBIR/STTR lapse on small businesses, workers, and the U.S. innovation economy.
The letter and case studies are available here (https://www.evagarland.com/resources/advocacy/sbir-sttr-reauthorization/).
About Eva Garland Consulting: Eva Garland Consulting was founded in 2013 to help scientists and entrepreneurs advance development of their innovative technologies. The firm specializes in developing and executing non-dilutive funding strategies as well as accounting, compliance, tax, and advisory services. For more information, visit www.evagarland.com.
Source: Eva Garland Consulting
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