BIO Applauds House Passage of SBIEA</a>

Measure to Help Modernize Definition of Small Businesses

WASHINGTON, D.C. (September 28, 2007) -- The Biotechnology Industry Organization (BIO) hailed the passage yesterday of the Small Business Investment Expansion Act (H.R. 3567), a bill that aims to facilitate economic growth, job creation and continued American innovation.

“H.R. 3567 allows small biotechnology and medical device companies to secure critical financial resources for their frontline research and innovation,” said BIO President and CEO Jim Greenwood.  “This legislation updates the current Small Business Administration (SBA) regulations to allow access for those small biotechnology companies who also rely on private-sector financing to conduct life-saving and life-enhancing research.”

Outdated SBA regulations currently preclude small businesses, even those with only a handful of employees, from receiving assistance because they rely on venture capital to fund their research and development (R&D).  H.R. 3567 corrects this inequity by allowing these small businesses to access SBA programs while also receiving necessary R&D investments from eligible venture capitals firms (VC).

H.R. 3567 also amends the Small Business Act to ensure that small business that receive VC dollars remain “independently owned and controlled,” as long as the investing VC is not owned by a large company and meets other limitations.   The legislation does not allow VCs to receive SBA dollars, instead it narrowly defines the type of VC investment that a small business can receive to remain eligible for SBA programs. 

“The development of biotech therapies is an incredibly capital intensive venture that often is a money-losing proposition.  That is why more and more small companies rely on outside investors such as the venture capital market,” Greenwood said.  “It is critical that H.R. 3567 recognizes this dilemma facing emerging small businesses and reclassify those innovative small companies who do receive VC investments.”

“We appreciate the overwhelming support of the 325 Members of Congress who voted for the legislation and want to especially thank the leadership displayed by Chairwoman Nydia Velazquez (D, NY-12), Ranking Member Steve Chabot (R, OH-1), and Representatives Jason Altmire (D, PA-4) and Sam Graves (R, MO-6) in shepherding this critical legislation through the House floor,” Greenwood added.

About BIO

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products.  BIO also produces the annual BIO International Convention, the global event for biotechnology.  www.bio.org

Upcoming BIO Events

·         BIO InvestorForum 2007

October 9-11, 2007

San Francisco, CA

·         Pacific Rim Summit on Industrial Biotechnology and Bioenergy
November 14-16

Honolulu, Hawaii

·         BIO International Convention
June 17–20, 2008

San Diego, CA

###