119-hr4775

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4775 Introduced in House

    (IH) ]

<DOC>

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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