9 House Republicans Vote Against Bill Requiring Background Checks to Small Business Programs Exploited by China

Nine House Republicans voted on Sept. 29 against passing a bill that would require federal agencies to do background checks on companies that are seeking government funds through small business programs while having ties to foreign nations deemed a national security risk, including China.

The bill is titled the SBIR and STTR Extension Act and passed Thursday in a 415–9 vote. Changes made to the bill aim to ensure that foreign countries of concern cannot access national security-related technology.

Nine GOP lawmakers: Reps. Andy Biggs (R-Ariz.) Dan Bishop (R-N.C.), Mo Brooks (R-Ala.)  Matt Gaetz (R-Fla.), Marjorie Taylor Greene (R-Ga.), Thomas Massie (R-Ky.), Tom McClintock (R-Calif.), Ralph Norman (R-S.C.), and Chip Roy (R-Texas) opposed the measure.

The bill, led by Small Business committee chair Sen. Ben Cardin (D-Md.) and Sen. Joni Ernst (R-Iowa), passed the Senate unanimously last week. It now heads to President Biden’s desk to be signed.

Specifically, the measure requires federal agencies with Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs to establish and implement a “due diligence program” that would assess the security risks posed by small businesses seeking federal funds.

Both the SBIR and STTR are U.S. government-funded programs that aim to help certain small businesses conduct research and development projects that have the potential for commercialization.

The due diligence program should use a risk-based approach to assess “the cybersecurity practices, patent analysis, employee analysis, and foreign ownership” of a small business seeking funding, including the “financial ties and obligations (which shall include surety, equity, and debt obligations) of the small business concern and employees of the small business concern to a foreign country, foreign person, or foreign entity,” according to the bill.

It should also “assess awards and proposals or applications, as applicable, using a risk-based approach as appropriate, including through the use of open-source analysis and analytical tools,” the bill states.

Sen. Joni Ernst (R-IA) speaks at a Senate

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