❗Let's close the gap: We still need your help to raise $40,000 by April 1. Donate now

Congress may stop some start-up funds

Mitchell Hartman Jul 24, 2009
HTML EMBED:
COPY

Congress may stop some start-up funds

Mitchell Hartman Jul 24, 2009
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: Congress faces a deadline next week to keep government R&D money flowing to small businesses. And there is a battle brewing over whether any of that funding should go to firms backed by venture capitalists — those powerful wheeler-dealers of the high-tech economy. From the Entrepreneurship Desk at Oregon Public Broadcasting, Mitchell Hartman reports.


Mitchell Hartman: The Small Business Innovation Research program sets aside $2 billion a year for everything from robotics to weapons research. Until now, only “independently-owned” small firms could qualify. The House bill would let in companies that have significant venture capital funding or are even controlled by VCs.

Mark Heesen: Just because you get venture financing doesn’t mean you’re rolling in the money.

Mark Heesen heads the National Venture Capital Association. He says start-ups often can’t make it without VC money, but that shouldn’t cut them off from government R&D.

Lloyd Chapman of the American Small Business League disagrees. He says small businesses face enough challenges already.

Llyod Chapman: I don’t think we need a federal law that changes the definition of a small business to include firms that are actually owned by not only some of the nation’s wealthiest investors, but potentially some of the largest VC firms.

A Senate bill maintains most current restrictions. If the chambers can’t compromise, they’ll probably extend the program as-is into the fall.

I’m Mitchell Hartman for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.