This bill extends and strengthens two federal programs that help small businesses develop innovative technologies: the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program. These programs provide federal funding to small companies working on research and development projects that benefit government agencies and the nation.

The bill makes several key changes. First, it tightens security screening for companies receiving funding, requiring agencies to check whether small businesses have connections to foreign entities on various government watchlists or have foreign ownership that could pose national security risks. Second, it creates a new "strategic breakthrough" funding track that allows agencies to award up to $30 million to promising small businesses that have already succeeded in earlier phases of the program, as long as they can match the government funding with private investment. Third, it reduces paperwork burdens by limiting how many proposals small businesses can submit each year, though agencies can waive this limit for urgent needs. Fourth, it improves training for government contracting officers so they better understand how to use these programs and transition successful technologies into actual government purchases. Finally, the bill extends the authorization for all these programs through September 30, 2031, instead of letting them expire in 2025.