On May 31, the Department of Health and Human Services (HHS) reissued its Omnibus Funding Opportunity Announcement (FOA) for the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs in order to implement venture capital provisions of the SBIR/STTR Reauthorization Act of 2011.
HHS notice NOT-OD-13-071 will allow small business concerns that are majority-owned by multiple venture capital operating companies (VCOCs), hedge funds and/or private equity firms to apply for the NIH SBIR program and compete for up to 25 percent of NIH’s SBIR set-aside in the Omnibus FOA or any other NIH SBIR funding announcement issued hereafter. With this notice, NIH is the first agency to elect to use its authority under Section 5107 of the reauthorization to make awards to majority-owned firms, signaling new and significant opportunities for venture capital in the future.