Small Business Innovation and Economic Security Act

Extends the federal SBIR and STTR small business research programs through September 30, 2031 and strengthens oversight, funding, and participation rules. Allows agencies to deny awards for national security risks such as foreign ties, with notice and a chance to reapply. Permits larger Phase II awards up to $30 million for projects with matching funds and requires updates to simplify contracts and expand follow-on Phase III awards.

Limits how many proposals a small business can submit each year starting in 2027, with only limited waivers. Requires training for federal staff on handling later-stage awards and protecting small business data rights. Directs agencies to track how funded technologies are used in federal contracts and link them to earlier awards.

Gives awardees more flexibility to buy business support services and hire staff, with capped spending per project. Affects small businesses seeking federal research funding, federal agencies running the programs, and contractors using the resulting technologies.