Dear Member of the House Committee on Small Business:

The Small Business & Entrepreneurship Council (SBE Council) is pleased to support H.R. 2767, the "Investing in Tomorrow's Technology Act." Most venture capital (V.C.) companies are themselves small firms that invest in innovative small companies. Providing these innovative companies the opportunity to compete for Small Business Innovation Research (SBIR) grants is a positive step that will spur innovation and investment at a time when our economy needs it most. By modernizing the SBIR and Small Business Technology Transfer (STTR) programs, promising V.C.-backed entrepreneurial firms will have another option to compete for investment capital to fund other projects and innovations in the pipeline. In addition, H.R. 2767 is fashioned in a way to safeguard these programs against large interests.

For example, a business that has one V.C. company with more than 50 percent ownership is prohibited from qualifying for a small business award. H.R. 2767 does not allow big companies from taking control of a small business and receiving small business grants. A business whose board's majority is from a V.C. company cannot qualify for an award. And, H.R. 2767 prohibits more than two V.C. companies that are owned by a business with over 500 employees from owning more than 20 percent of a company.

In order for our nation to stay competitive and strong, U.S. small businesses must remain at the forefront of innovative research and development. Providing all small businesses the opportunity to compete for SBIR and STTR programs will help us maintain this edge.

SBE Council urges your support for H.R. 2767. Thank you, in advance, for your leadership and continued support of America's small business and entrepreneurial sector. Please do not hesitate to contact our offices if we can be of assistance.

Sincerely,

Karen Kerrigan, President & CEO