Reps. Poe and Westmoreland Introduce Legislation that would Overturn a Ruling by the Small Business Administration

On the Small Business Innovation Research (SBIR) front, MDMA has been able to make good progress. Two members of Congress - Rep. Ted Poe (R-TX) and Lynn Westmoreland (R-GA) on the Small Business Committee have decided to co-sponsor legislation, HR 2943, introduced by Rep. Sam Graves (R-MO), which would overturn the Small Business Administration's interpretation of the 51% rule. This rule means that in order to qualify for a SBIR grant, a business must be "small" (fewer than 500 employees) and "at least 51% owned and controlled by one or more individuals." This interpretation is problematic for many small medical device companies because it precludes companies that are majority owned by venture capital firms from qualifying for SBIR grants. MDMA will continue to work to have this legislation passed by this Congress.