Congress should reauthorize small business grant program

Editor’s note: Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development around the state. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.



Now that the frenzy of conversation is starting to quiet down on Capitol Hill in regards to the Stimulus Package, another extremely important measure to our nation’s small businesses lies in their hands. Actually the measure is in danger of ending in April if action is not taken quickly. The Small Business Innovator Grant (SBIR) program is ready to sunset this year unless Congress votes to continue the measure.

The SBIR program was started to help small businesses win governmental contracts to engage in research and development of departmental needs. Each department within the Federal government is to ear mark a percent of their annual R&D budgets toward this program that is run by the Small Business Administration.

SBIR grants are highly competitive and each business interested in competing for a grant must meet the needs of the department for which they choose to apply toward. SBIR grants are awarded in phases and the business needs to apply for funds within each phase of the program.

Businesses engaged in research and product development whose ideas would benefit a governmental agency (like the Defense Department), are prime candidates to apply for a grant. The Small Business Technology Development Center offers an occasional class on how to write an SBIR grant, and the course is highly recommended to assist the business in producing an application that complies with all the Request for Proposal requirements.

While SBIR grants are not going to touch 95% of the small businesses in our country, the companies that do win such grants are an extremely important component to a local economy. Not only are the salaries paid in such a company well above the median average, but for every SBIR company position that is created due to the grants, an additional 4 jobs are created by supporting companies within the community. In case you didn’t know, three companies within the River Valley have won more 10 SBIR grants.

Stockman can be reached at [email protected]