The SBIR program came into law in 1982, founded by Roland Tibbetts, whose goal was to fund innovation that supports American companies and give them the support to take ideas to a stage where other private investors can take over. It was last renewed as part of the 2017 National Defense Authorization Act and is currently authorized to September 2022.All federal agencies with a large R&D budget are required to set aside part of that budget (3.2%) exclusively for small businesses with 500 or fewer employees, that are majority-owned by Americans and permanent residents. Eleven agencies administer SBIRs – the Department of Defense (DoD) and National Institutes of Health (NIH) are by far the largest and account for nearly 70% of the approximate $2.5 billion of funding.