‘Dual Use’ of Small Business Set-Aside Touted Amid Paul’s Attack

Government officials are coming to the defense of a federal small business contracting program that’s under fire for its recurring award winners whose research doesn’t immediately yield a tangible product.

The Small Business Innovation Research program (SBIR), used by eleven federal agencies, gives “early catalytic funding” for startups with few employees and years of experience, said Ben Schrag, SBIR program director for the National Science Foundation.

A SBIR award “fills a capital gap” that a company might not get from venture capital funds because its research services or products don’t have a clear commercial application, according to a senior Defense ...