SBA's Proposed SBIR/STTR Regulations: New Rule Provides Potential Safe Harbor for Investors and Better Access to Capital for SBIR/STTR Firms

On May 15, 2012, the Small Business Administration (SBA) issued a Proposed Rule amending the regulations that govern the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The Proposed Rule highlights new risks and opportunities for investors in small business concerns that are established to capture SBIR/STTR funding. This advisory analyzes and comments on the Proposed Rule.