Following the reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs on April 13, 2026, through the Small Business Innovation and Economic Security Act (Public Law 119-83), updates to the Department’s security review process were mandated. The Department of War (DoW) has redesignated the SBIR adn STTR Due Diligence Program to the SBIR and STTR Foreign Risk Evaluation (FRE) Program. The FRE Program implements these vital updates to reduce the risks of adversarial technology transfer. Furthermore, it serves to educate small businesses entering the Defense Industrial Base about the inherent risks associated with foreign ownership, control, influence, or affiliation.

Key program updates include:

• Enhanced and standardized areas of risk assessment.
• Explicitly identified risk areas to be assessed during an FRE review.
• Redefined prohibitive behaviors and affiliations.
• Mandated minimum response requirements for small businesses denied due to a security risk.