Jenner & Block

Client Alert: New SBIR Rule Opens Door for Private Equity Investment and Contains Significant Affiliation Revisions

Recently, the Small Business Administration (“SBA”) issued its final regulations for implementing changes to the Small Business Innovation and Research (“SBIR”) program after passage of the Fiscal Year 2012 National Defense Authorization Act, passed on December 31, 2011. The authors, Partner Les Lepow and Associate Damien Specht, write how the new regulations and SBIR affiliation revisions increase the opportunity for venture capital investment in small business SBIR participants and may set the stage for future revision of affiliation rules generally.  If these regulatory changes are expanded beyond SBIR to small business procurement matters, they will likely have a material impact on small business set aside strategies.