H.R. 4775 — SBIR/STTR Foreign Interference Safeguard Act

This section amends the exception in section 9(dd)(6)(B) of the Small Business Act for small business concerns majority-owned by venture capital operating companies, hedge funds, or private equity firms by inserting a carve-out for new paragraph (8). New paragraph (8) renders such concerns ineligible for Small Business Innovation Research (SBIR) program awards if the Small Business Administration Administrator determines the concern is, or is majority-owned and controlled by, a covered foreign entity (considering direct or indirect subsidiary status of foreign-owned firms); requires the Administrator to establish size standards for such concerns; and defines *covered foreign entity* (incorporating *foreign entity of concern*, governments or political parties of foreign countries of concern, certain non-U.S. persons or entities, and related agents or owners) and *foreign entity of concern* (e.g., foreign terrorist organizations, specially designated nationals, entities tied to covered nations under 10 U.S.C. 4872, or those involved in specified national security violations). The amendments apply only to SBIR awards made after the date of enactment.