The SBA recently issued new rules setting transition rate benchmarks for Phase I to Phase II awards. Under the new rule, SBIR firms would be required to maintain a ratio of one Phase II award for every 4 Phase I awards from a particular agency over a 5, 10 or 15 year average in order to remain eligible for any additional Phase I awards. The Small Business Technology Council believes that these new transition rules are overly strict and rigid, and could result in a number of good companies being driven out of the program.

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