The Small Business Investment Expansion Act of 2007 (H.R. 3567) contains a provision (Title V) that will open Small Business Innovation Research grants to venture capital firms, banks and other conglomerates. The National Association of Government Contractors, is leading the effort to oppose this action that will allow big business to access funds set aside for small business innovation.

The bill was reported out of the U.S. House of Representatives Committee on Small Business unanimously today, but reservations were expressed about Title V. Committee Chairwoman Nydia Velázquez, D-N.Y., stated that she would work with members to address their concerns over Title V. However, the bill has been "fast tracked" meaning that a vote will come with little time to review the legislation and solicit feedback from constituents and trade groups like NAGC. The bill also contains many positive provisions that will make it attractive for a representative to support.

The legislation comes just months after billions in contracts awarded to Fortune 1000 companies were found being counted toward the government-wide agency small business procurement goal of 23 percent annually.

"We are disappointed Congress has decided to create a loophole right after we got one closed," said J.R. Claeys, president and CEO of NAGC. "Democrats, who control both houses, now have the opportunity to show America's small businesses if they support Wall Street or Main Street."

Title V repeals the defining characteristics of a small business defined in the Small Business At of 1958, including that it be independently owned and that it not be dominant in its field. While it maintains the requirement that a business have fewer than 500 employees, this would not stop any of the nation's venture capital firms from owning a small business to access SBIR funds. Venture capital firms could own stakes in countless small businesses, accessing SBIR funds through each.

Please help stop big business access to SBIR grants. Encourage your representatives to oppose H.R. 3567 to keep small business funds available to America's real small businesses.