INNOVATE Act

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Bill ID: 119/s/853

Last Updated: September 7, 2026

INNOVATE Act

S. 853, 119th Congress — read as touching Defense Contractors.

The sponsor

Sen. Ernst, Joni [R-IA]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$383,500 raised

23 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Small Business Administration" section, p. 786-788 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Committee on Small Business and Entrepreneurship. Hearings held.

July 22, 2025

Introduced

Committee Review

📍 Current Status

Next: The bill moves to the floor for full chamber debate and voting.

🗳️

Floor Action

✅

Passed Senate

🏛️

House Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Summary Style:

**Analysis of S 853: INNOVATE Act**

As a visionary entrepreneur and thought leader, I'll distill the essence of this bill, stripping away the bureaucratic jargon to reveal its true implications for my interests.

**Main Purpose & Objectives:** The INNOVATE Act aims to revamp the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs under the Small Business Act. The primary objective is to enhance the transition of innovative technologies from research institutions to small businesses, with a focus on national security and competitiveness.

**Key Provisions & Changes to Existing Law:**

1. **Streamlined Commercialization:** The bill simplifies the commercialization process for SBIR and STTR awardees, allowing for more efficient transition of technologies. 2. **Increased Funding:** The Act increases funding for the STTR program, with a focus on research institutions and small businesses collaborating on early-stage technologies. 3. **Strategic Breakthrough Allocation:** The Department of Defense is authorized to allocate up to $30 million for strategic breakthrough projects without requiring a waiver from the Administrator. 4. **Enhanced Research Security:** The bill strengthens research security measures to protect American innovation from adversarial influence.

**Affected Parties & Stakeholders:**

1. **Small Businesses:** The Act aims to support small businesses in transitioning innovative technologies, potentially creating new opportunities for growth and revenue. 2. **Research Institutions:** Universities and research institutions will benefit from increased funding and collaboration with small businesses on early-stage technologies. 3. **Government Agencies:** Federal agencies, particularly the Department of Defense, will play a crucial role in implementing the Act's provisions.

**Potential Impact & Implications:**

1. **Increased Innovation:** The INNOVATE Act could lead to more efficient commercialization of innovative technologies, driving growth and competitiveness in key industries. 2. **Consolidation of Power:** By streamlining commercialization processes, larger corporations may be better positioned to acquire or partner with small businesses, potentially leading to consolidation and reduced competition. 3. **Regulatory Environment:** The Act's emphasis on research security could lead to increased regulatory scrutiny, potentially creating new barriers for smaller players in the market.

As a visionary entrepreneur, I recognize that this bill presents both opportunities and challenges. By understanding its implications, I can position my interests to capitalize on emerging trends and navigate potential regulatory hurdles.

💰 Campaign Finance Network

Sen. Ernst, Joni [R-IA]

Congress 119 • 2024 Election Cycle

Total Contributions

$383,500

22 donors

PACs

Organizations

$7,700

Committees

Individuals

$375,800

No PAC contributions found

SAC & FOX TRIBE OF MISSISSIPPI IN IOWA

2 transactions

$6,700

SHAKOPEE MDEWAKANTON SIOUX COMMUNITY

1 transaction

$1,000

No committee contributions found

ABEL, ANDREA MS.

1 transaction

$50,000

MCINERNEY, THOMAS E. MR.

1 transaction

$50,000

NICOLLS, BOB MR.

1 transaction

$25,000

GRAY, C. BOYDEN

1 transaction

$25,000

CATSIMATIDIS, JOHN A. MR.

1 transaction

$25,000

KOTICK, ROBERT MR.

1 transaction

$16,600

VINCZE, CHRISTOPHER

1 transaction

$15,800

FRANCE, BRIAN Z. MR.

1 transaction

$15,000

BAKER, BERNARD J. MR. III

1 transaction

$15,000

HEGYI, ALBERT P. MR.

1 transaction

$15,000

DAVISON, JAMES E. MR.

1 transaction

$15,000

BROIN, JEFF MR.

1 transaction

$15,000

SHERRILL, STEPHEN C. MR.

1 transaction

$15,000

GLEESON, JOHN W. MR.

1 transaction

$12,500

RAY-GLEESON, KAREN S. MRS.

1 transaction

$12,500

POPOLO, JOE

1 transaction

$11,800

PFAUTCH, ROY MR.

1 transaction

$11,600

GOLDMAN, MARC STANLEY

1 transaction

$10,000

SCHLOEMER, JAMES H. MR.

1 transaction

$10,000

SABIN, ANDREW MR.

1 transaction

$10,000

Donor Network - Sen. Ernst, Joni [R-IA]

Show Also Donated To

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Hub layout: Politicians in center, donors arranged by type in rings around them.

Showing 42 nodes and 39 connections

Total contributions: $39

Top Donors - Sen. Ernst, Joni [R-IA]

Showing top 22 donors by contribution amount

2 Orgs20 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 helped.

+Defense Contractorsconfidence 0.90
Section 102 creates a strategic breakthrough allocation for the Department of Defense to award up to $30 million to small businesses for Phase II SBIR contracts, with requirements that the technology meet military readiness levels and be integrated into defense acquisition processes, directly benefiting defense contractors through increased funding opportunities.
+AI & Cloud Infrastructureconfidence 0.70
The bill's focus on advancing national security capabilities, future cost savings, and military lethality/efficiency in Section 102's selection criteria could benefit AI and cloud infrastructure providers developing dual-use technologies for defense applications, though the connection is indirect as the bill targets small businesses generally.
+Semiconductors & Hardwareconfidence 0.60
Section 102's emphasis on advancing national security capabilities and providing new technologies that enable alternatives to existing programs could benefit semiconductor companies developing defense-related hardware, though the bill's small business focus limits direct impact on large semiconductor firms.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Sen. Ernst, Joni [R-IA])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

AI & Cloud Infrastructure$19,800
from 6 contributions
- SANKAR, SHYAM$9,900
- KARP, ALEXANDER C. DR.$9,900

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Small Business Administration

Strong

Vector: 67%

Pages: 786-788AI Enhanced

AI Analysis:

"The INNOVATE Act aligns closely with Project 2025's objectives for the SBIR and STTR programs by seeking to enhance small business innovation, streamline participation, strengthen research security, and promote technology transition—all of which mirror Project 2025's call to continue and expand these programs while ensuring funds are used for domestic capital investment and national competitiveness."

Key themes:SBIR/STTR program supportsmall business innovationtechnology transitionresearch securitydomestic investment

— 754 — Mandate for Leadership: The Conservative Promise Disaster Loan Program and Direct Lending. The SBA’s disaster loan pro- gram provides low-interest loans to personal, business, and nonprofit borrowers following a federally declared disaster. The program suffers from problems of coordination with Federal Emergency Management Administration (FEMA) disas- ter assistance. For example, disaster relief applicants have an incentive to avoid being approved for SBA disaster loans in order to increase the amount of FEMA assistance for which they are eligible. Moreover, the availability of disaster loans reduces individuals’ incentives to purchase disaster-related insurance. More than 90 percent of SBA disaster loans are loans to individuals such as homeowners, not to small businesses. In view of the challenges the SBA has experienced in its administration of this program, as well as the fraud and abuse in the EIDL COVID-19–related program and the IG’s concern that the systemic problems within this lending program undermine the SBA’s work, the next Administration should: l Work with Congress to assess the extent to which disaster loans should be offered by another agency rather than the SBA and explore private-sector channels for administering the loans. l Specify clearly that no new direct lending programs will be developed at the SBA. Eligibility of Religious Entities for SBA Loans. Current SBA regulations46 and SBA Form 197147 make certain religious entities ineligible to participate in several SBA loan programs. The Trump Administration proposed a rule that would remove the provisions on the ground that they violate the First Amendment.48 Subsequent Supreme Court decisions have made their unconstitutionality clearer.49 In an April 3, 2020, letter to Congress pursuant to 28 U.S. Code § 530D,50 the Trump Administration SBA advised that two such provisions violate the Free Exer- cise Clause of the First Amendment and that it therefore would not enforce them. On January 19, 2021, the Trump Administration SBA proposed a rule to remove all of the unconstitutional religious exclusions from its regulations.51 The SBA has not acted on the proposed rule. A similar religious exclusion once appeared in the regulation governing eligibil- ity for SBA Business Loan Programs,52 but it was removed in a June 2022 final rule that noted tension with the First Amendment and Supreme Court precedent.53 That final rule announced that the SBA would nonetheless continue to make religious eligibility determinations for business loan applicants to comply with putative Establishment Clause requirements,54 but Supreme Court precedent and Office of Legal Counsel memoranda refute the notion that large government-backed loan programs raise any Establishment Clause concerns.55 — 755 — Small Business Administration The SBA uses the same “Religious Eligibility Worksheet,” SBA Form 1971, to make eligibility determinations for all affected programs, including the Business Loan Programs. Thus, the SBA continues to act as though the unconstitutional regulation were still in place, and there is no Establishment Clause basis for doing so. The next Administration should immediately: l Notify Congress under 28 U.S. Code § 530D that it will not enforce these unconstitutional regulations. l Take down SBA Form 1971. l Finalize the Trump Administration’s proposed rule or publish its own updated proposed rule to remove the unconstitutional regulations. Small Business Innovation Research and Small Business Technology Transfer Programs. The SBA “coordinates and monitors the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) pro- grams for all federal agencies with extramural budgets for research or research and development (R/R&D) in excess of the expenditures established in sections 9(f) and 9(n) of the Small Business Act.”56 The SBIR and STTR Extension Act of 2022 extended these programs from September 30, 2022, through September 30, 2025.57 SBIR requires that 3.2 percent of spending by agencies with extramural R&D budgets of $100 million or more must be directed to small businesses. STTR allo- cates 0.45 percent of federal research spending to small firms.58 Research has shown that this small portion of federal R&D spending is disproportionately effective.59 The SBIR program has consistently demonstrated its ability to fund advanced technologies through to private-market viability and invests more in America’s heartland than venture capital invests.60 SBIR and STTR have overcome the tendency of federal contracting officers to deal only with large firms that are familiar to them and have the expertise and lobbying clout to navigate the federal procurement process. The next Adminis- tration should: l Continue the SBIR and SBTT programs as they successfully fund the next wave of technological innovation to compete with Big Tech. l Urge Congress to expand the amount that other agencies are required to set aside from their general R&D budgets for the SBIR program. l Ensure the enactment of stricter rules requiring that SBIR funds must be expended on capital investments in the United States.

Department of Energy and Related Commissions

Strong

Vector: 66%

Pages: 425-427AI Enhanced

AI Analysis:

"The INNOVATE Act’s focus on enhancing SBIR/STTR funding, streamlining participation, protecting American innovation from adversarial influence, and accelerating transition of battle-ready technologies aligns closely with Project 2025’s DOE objectives of safeguarding R&D advances, swiftly transferring them to American private interests, increasing oversight, and ensuring economic benefits flow back to taxpayers."

Key themes:technology transferinnovation protectionstreamlined administrationnational security focusprivate sector benefits

— 393 — Department of Energy and Related Commissions l Ensure that R&D funds are used for projects that protect and advance that edge. l Ensure that successful advances, with a focus on new natural resource development technologies, artificial intelligence, cybersecurity, and space, are transferred swiftly to American interests in the private sector. New Policies l Focus on benefits to Americans. OTT’s operations should be based on the recognition that the new technologies generated by American taxpayers’ investment in DOE are a significant national security asset rather than some neutral scientific gift to humanity. l Increase oversight and coordination. OTT needs to be vigilant in overseeing and coordinating OTT offices associated with each National Lab. For security and economic espionage reasons, the work funded by the American people needs to be protected, and when commercialized, it needs to go to American businesses. OFFICE OF SCIENCE (SC) Mission/Overview The Office of Science (SC) supports and oversees research facilities and pro- grams that cover basic science through its application to the demonstration and deployment of energy technologies. SC oversees 10 of the 17 DOE National Labs and 28 major federal research user facilities. Its mission is to preserve U.S. leader- ship in science, fund and perform basic research, and provide the scientific facilities that the private sector is unable or unwilling to provide. New initiatives include quantum information sciences and artificial intelligence. SC is led by a Senate-con- firmed Director at the Assistant Secretary level and has eight program offices.82 Needed Reforms The next conservative President should commit the United States to scientific dominance to support national and economic security, especially in light of similar efforts by China. To aid in this effort, the Office of Science should: l Return to its primary mission: nonpartisan and basic science. SC’s mission should be international leadership in basic and early applied science and provision of world-leading facilities for this work. The Infrastructure Investment and Jobs Act and Inflation Reduction Act mark the major — 394 — Mandate for Leadership: The Conservative Promise reorientation of DOE primarily from defense applications in the NNSA and basic and early applied science across SC and the applied offices to a massive federal research, development, demonstration, and commercialization body.83 Distraction from SC’s basic science mission should be prevented. l Increase the level of accountability. The National Laboratories need to be more directly accountable to the Secretary of Energy and Congress for their work and management. New Policies l Commit to U.S. science dominance. The United States is losing its dominance in scientific discoveries and technological development. China and other adversaries have been stealing American science and technology for years and are now on the verge of dominating science—a development that is fraught with negative strategic and economic implications for the United States. The next Administration must commit itself to ensuring that the U.S. continues to dominate scientific discovery and technological advancement. l Refocus on mission and eliminate duplication and waste. The Administration should work with Congress to rationalize the National Lab network to meet specific national objectives (such as the NNSA laboratories’ role in national defense) and conduct basic research that the private sector would not otherwise conduct. Activities that duplicate those of other government agencies or the private sector should be eliminated. l Properly manage the National Labs’ contributions to the private sector. SC should improve private-sector access to the National Labs, through programs like the GAIN voucher program and consistent with national security considerations, while ensuring that the economic benefits of taxpayer-funded technologies flow back to taxpayers through patent- review sharing or a revolving fund. Budget The Office of Science was appropriated slightly more than $7 billion in FY 2021, and DOE requested slightly less than $7.8 billion for FY 2023.84 OFFICE OF ENVIRONMENTAL MANAGEMENT (EM) Mission/Overview The Office of Environmental Management’s mission is to “complete the safe cleanup of [the] environmental legacy resulting from decades of nuclear

Department of Energy and Related Commissions

Strong

Vector: 66%

Pages: 425-427AI Enhanced

AI Analysis:

"The INNOVATE Act’s focus on strengthening SBIR/STTR programs, increasing funding for small businesses, streamlining participation, and protecting American innovation aligns closely with Project 2025’s goals for the Office of Technology Transitions to accelerate technology transfer, safeguard intellectual property, and ensure DOE R&D benefits American national security and economic interests."

Key themes:technology transferinnovation protectionsmall business supportstreamlined administrationnational security focus

— 392 — Mandate for Leadership: The Conservative Promise Needed Reforms l Help to develop policy. Because the appointees running DOE’s various program offices are properly focused on managing their programs, not enough thought is given to identifying future challenges and developing potential solutions to benefit the American people. l Help to ensure that policies are properly implemented. Policy initiatives from the Secretary are often understood or implemented inconsistently by program offices. OP can help the Secretary to ensure that important policy initiatives are implemented, particularly when they involve multiple program offices. New Policies l Develop a National Energy Security Strategy. OP could be tasked with developing a National Energy Security Strategy for the Secretary. This strategy could be prepared in conjunction with the White House National Security Strategy and the DOD National Defense Strategy to convey these priorities to Congress and design policy initiatives for their implementation. Such a strategy could summarize cyber and physical threats to energy infrastructure, challenges involved in obtaining rare earth minerals to support domestic energy production and consumption, and foreign actions that threaten U.S. energy security and dominance. However, it would be important to guard against attempts to transform the strategy into a government-led industrial policy or, in a progressive Administration, an economy-wide climate policy. OFFICE OF TECHNOLOGY TRANSITIONS (OTT) Mission/Overview The Secretary of Energy authorized the creation of this office in 2015. Its mis- sion “is to expand the public impact of the department’s research, development, demonstration, and deployment (RDD&D) portfolio to advance the economic, energy and national security interests of the nation.” OTT serves as “the front door to U.S. Department of Energy’s…products, facilities and expertise” and “integrates ‘market pull’ into its planning to ensure the greatest return on investment from DOE’s RDD&D activities to the taxpayer.”81 Needed Reforms OTT should ensure that the best emerging technologies from DOE and the National Labs are properly supported and protected. Because America’s techno- logical edge is a key national security asset, and in view of China’s predatory thefts of intellectual property, OTT should: — 393 — Department of Energy and Related Commissions l Ensure that R&D funds are used for projects that protect and advance that edge. l Ensure that successful advances, with a focus on new natural resource development technologies, artificial intelligence, cybersecurity, and space, are transferred swiftly to American interests in the private sector. New Policies l Focus on benefits to Americans. OTT’s operations should be based on the recognition that the new technologies generated by American taxpayers’ investment in DOE are a significant national security asset rather than some neutral scientific gift to humanity. l Increase oversight and coordination. OTT needs to be vigilant in overseeing and coordinating OTT offices associated with each National Lab. For security and economic espionage reasons, the work funded by the American people needs to be protected, and when commercialized, it needs to go to American businesses. OFFICE OF SCIENCE (SC) Mission/Overview The Office of Science (SC) supports and oversees research facilities and pro- grams that cover basic science through its application to the demonstration and deployment of energy technologies. SC oversees 10 of the 17 DOE National Labs and 28 major federal research user facilities. Its mission is to preserve U.S. leader- ship in science, fund and perform basic research, and provide the scientific facilities that the private sector is unable or unwilling to provide. New initiatives include quantum information sciences and artificial intelligence. SC is led by a Senate-con- firmed Director at the Assistant Secretary level and has eight program offices.82 Needed Reforms The next conservative President should commit the United States to scientific dominance to support national and economic security, especially in light of similar efforts by China. To aid in this effort, the Office of Science should: l Return to its primary mission: nonpartisan and basic science. SC’s mission should be international leadership in basic and early applied science and provision of world-leading facilities for this work. The Infrastructure Investment and Jobs Act and Inflation Reduction Act mark the major

Small Business Administration

Moderate

Vector: 68%

Pages: 789-791AI Enhanced

AI Analysis:

"The INNOVATE Act and Project 2025 both aim to strengthen small business innovation and competitiveness, but the bill focuses on SBIR/STTR grant programs while Project 2025 emphasizes SBA loan programs, manufacturing capital access, and SBIC reform, resulting in moderate thematic overlap."

Key themes:small business supportinnovation promotiontechnology transitioncapital accessresearch security

— 756 — Mandate for Leadership: The Conservative Promise Domestic Manufacturing and Small Business. Small businesses in the manufacturing sector face shortfalls in access to capital.61 As manufacturing employment, domestic business investment, and non–information technology output have declined,62 expectations for market returns and the capital available to small manufacturing enterprises have diminished. This is especially true for capital-intensive sectors like transportation and energy that require large up-front investments and relatively lower-margin sectors like plastics, textiles, furniture, and agriculture. Yet these industries and others like them traditionally have been the backbone of American manufacturing employment. They also are sources of self-sufficiency and resilience at a time when global supply chains are increas- ingly uncertain. The public policy problems that are caused by declining small manufacturing are especially acute when it comes to the production of advanced technologies. Other agencies and programs invest immense taxpayer resources in basic science and research. Over time, that research results in some breakthrough technologies, but when it is time to put these breakthroughs into practice by manufacturing goods and services, much of the necessary productive capacity is offshore.63 For many technologies, the American economy lacks the capacity to “scale up” inno- vations that might not be immediately profitable. Instead, those technologies are put into practice abroad. In this way, foreign companies and foreign productive sites buy and implement taxpayer-funded American technologies. The SBA’s existing programs should be reformed to expand the private market for capital in small-manufacturer expansion. The next Administration should: l Ask Congress to make available a category of Section 7(a) loans with a larger available principal that is used to finance manufacturing facility construction and equipment upgrading. The proposed SBA Reauthorization and Improvement Act of 2019, for example, would have increased the maximum loan principal to $50 million for advanced manufacturing construction and upgrading.64 The Section 7(a) loan program operates through private lenders and guarantees a portion of private-sector loans made to qualifying small businesses. The maximum principal available is $5 million, but small businesses in capital-intensive sectors require significantly larger amounts of capital to finance up-front capital costs. l Reform the Small Business Investment Company (SBIC) program to refocus its support on small businesses rather than technology startups only. The SBIC program operates through private venture capital and private equity funds by providing eligible funds with guaranteed debt financing to support investments in small businesses. However, the program — 757 — Small Business Administration largely duplicates private-sector venture capital to the extent that the sector receiving much of its support is software and information technology, which already receive the lion’s share of venture capital investment.65 In addition, Congress should reform the SBIC program to make its financing more favorable to capital-intense investments and small manufacturers. The Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, introduced in 2020,66 and American Innovation and Manufacturing Act, introduced in 2021,67 would allow SBIC to offer longer-term financing to manufacturers and make the program more fiscally sustainable. Small-Business Size Standard Modernization. Many small-business pro- grams both inside and outside the SBA use the SBA’s definition of “small business.” Under the Small Business Act, the SBA is tasked with defining what counts as a small business and ensuring that the definition varies from industry to industry to reflect differences in regular size by industry. However, the SBA’s small-business size standards reflect a one-size-fits-all approach under which all businesses within its size standard are considered small businesses for all eligible purposes, from gov- ernment contracting preferences to eligibility for SBA loans through private banks. At the same time, the SBA is an outlier among competing economies in not considering medium-sized enterprises along with small businesses, often referred to collectively as small and medium-sized enterprises (SMEs). Medium-sized and regional businesses are increasingly critical to maintaining competition. The next Administration should: l Encourage Congress to create a “medium-sized business” classification with its eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist. SBA POLICY PRIORITIES FOR 2025 AND BEYOND Legislation. The new Administration can support SBA reform legislation pro- posed in Congress that aligns with key measures outlined in this chapter. It also can support legislative initiatives that would help SBA to focus on its core statutory activities such as capital access, federal contracting opportunities, and regulatory advocacy. For example: l The IMPROVE the SBA Act68 would strengthen accountability, transparency, and oversight of the SBA and aligns with many of the reforms outlined in this chapter.

Small Business Administration

Moderate

Vector: 65%

Pages: 789-791AI Enhanced

AI Analysis:

"The INNOVATE Act focuses on enhancing SBIR/STTR grant programs and DoD technology transition, which shares the Project 2025 goal of improving small business access to capital and fostering innovation, but does not directly address the specific Project 2025 recommendations regarding SBIC reform, size‑standard modernization, or creating a medium‑sized business classification."

Key themes:small business innovationcapital accessprogram streamliningtechnology transition

— 757 — Small Business Administration largely duplicates private-sector venture capital to the extent that the sector receiving much of its support is software and information technology, which already receive the lion’s share of venture capital investment.65 In addition, Congress should reform the SBIC program to make its financing more favorable to capital-intense investments and small manufacturers. The Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, introduced in 2020,66 and American Innovation and Manufacturing Act, introduced in 2021,67 would allow SBIC to offer longer-term financing to manufacturers and make the program more fiscally sustainable. Small-Business Size Standard Modernization. Many small-business pro- grams both inside and outside the SBA use the SBA’s definition of “small business.” Under the Small Business Act, the SBA is tasked with defining what counts as a small business and ensuring that the definition varies from industry to industry to reflect differences in regular size by industry. However, the SBA’s small-business size standards reflect a one-size-fits-all approach under which all businesses within its size standard are considered small businesses for all eligible purposes, from gov- ernment contracting preferences to eligibility for SBA loans through private banks. At the same time, the SBA is an outlier among competing economies in not considering medium-sized enterprises along with small businesses, often referred to collectively as small and medium-sized enterprises (SMEs). Medium-sized and regional businesses are increasingly critical to maintaining competition. The next Administration should: l Encourage Congress to create a “medium-sized business” classification with its eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist. SBA POLICY PRIORITIES FOR 2025 AND BEYOND Legislation. The new Administration can support SBA reform legislation pro- posed in Congress that aligns with key measures outlined in this chapter. It also can support legislative initiatives that would help SBA to focus on its core statutory activities such as capital access, federal contracting opportunities, and regulatory advocacy. For example: l The IMPROVE the SBA Act68 would strengthen accountability, transparency, and oversight of the SBA and aligns with many of the reforms outlined in this chapter. — 758 — Mandate for Leadership: The Conservative Promise l The Small Business Regulatory Flexibility Improvements Act69 would require federal agencies to perform more thorough RFA economic analysis and provide a rationale for proposed regulations. It also would waive fines for certain first-time paperwork violations. l The Small Business Regulatory Enforcement Fairness Act70 (SBREFA) panel process allows small businesses to provide input on agency rulemakings, gives participating small businesses greater procedural rights, and allows for judicial review of agency violations of the SBREFA panel process. SBREFA panel requirements should be extended to all federal agencies. l The Fair and Open Competition Act71 would disallow the use of project labor agreements (PLAs) in federal contracting as required in President Biden’s Executive Order 14063,72 which puts small businesses at a competitive disadvantage and works against the SBA’s governmentwide contracting goal for small businesses. l The JOBS Act 4.073 would advance regulatory improvements and modernization of various Securities and Exchange Commission (SEC) rules to enhance capital formation and access. ORGANIZATIONAL ISSUES AND BUDGET Administrator and Key Staff. The position of Administrator should not be considered a symbolic or messaging-related position as some past Administrations have viewed it. Rather, the Administrator should have the requisite experience, skills, and knowledge to ensure that the SBA fulfills its statutory authorities. Because much of the SBA’s statutory authority relates to financing and reg- ulatory policy, and in order to make the SBA a more effective agency within the Administration, the Administrator and his or her key staff should have experience in small-business finance and investment and/or administrative law. For example, during the COVID-19 pandemic, the SBA was often forced to outsource key deci- sions and administrative follow-through to the Department of the Treasury. The SBA Administrator and leadership team must share the President’s mission and vision and execute the Administration’s policies effectively. Budget The next Administration should undertake a comprehensive review of the effectiveness of its various loan and grant programs and provide a report to Congress within six months. The report should rank programs by cost-effective- ness. In the interim, the roughly $1 billion overall agency budget should be held constant until the report is considered, after which Congress should terminate

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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INNOVATE Act

INNOVATE Act

Sen. Ernst, Joni [R-IA]

$383,500 raised

85% match to Project 2025

Bill's Journey to Becoming a Law

Introduced

Committee Review

Floor Action

Passed Senate

House Review

Passed Congress

Presidential Action

Became Law

Bill Summary

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💰 Campaign Finance Network

Donor Network - Sen. Ernst, Joni [R-IA]

Top Donors - Sen. Ernst, Joni [R-IA]

Industry Impact

Who funds the sponsor on these industries

Industries this bill HELPS

Project 2025 Policy Matches

Small Business Administration

Department of Energy and Related Commissions

Department of Energy and Related Commissions

Small Business Administration

Small Business Administration

About These Correlations

Full Policy Text

Related Bills

Other Bills by Sen. Ernst, Joni