DEPARTMENT OF WAR ANNOUNCES FOREIGN RISK EVALUATION (FRE) PROGRAM TO SECURE CRITICAL SMALL BUSINESS INNOVATION
In an aggressive move to combat foreign adversaries attempting to exploit the United States' technological advantage, the Department of War (DoW) has redesignated the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Due Diligence Program to the SBIR and STTR Foreign Risk Evaluation (FRE) Program.
Following the reauthorization of the SBIR and 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 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.
This redesignation ensures the Office for Small Business Innovation is communicating clear expectations to small businesses, security professionals, and external partners regarding the rigorous research security reviews statutorily required for all SBIR and STTR proposals. The establishment of the FRE Program allows the Department to focus on securing U.S. innovation and knowledge that is key to maintaining capability overmatch, protecting DoW-funded small businesses, and accelerating next-generation warfighting technologies.
Effective immediately, the DoW Office for Small Business Innovation has updated the FRE Program Common Decision Matrix for all topics and solicitations.
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.
RESOURCES
Foreign Risk Evaluation Common Decision Matrix
Small Business Innovation and Economic Security Act