SBA proposes to incorporate changes to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Policy Directive to reflect changes made through legislation, including the National Defense Authorization Act (NDAA) of 2020 to section 9 of the Small Business Act, 15 U.S.C. section 638, which governs the SBA’s SBIR/STTR programs. Section 880 of the NDAA amends 15 U.S.C. section 638(b) and authorizes SBA to consult with personnel from the agencies that participate in the SBIR/STTR programs to assist small business concerns with commercializing research developed under the programs before receiving a funding agreement. Section 880 of the NDAA also amends 15 U.S.C. sections (j) and (p), which require that SBA modify the Policy Directive to require procurement center representatives (as described at 15 U.S.C. section 644(l)) to consult with personnel from participating agencies to assist SBCs participating in the SBIR/STTR programs, and particularly with Phase III. Section 881 of the NDAA modifies 15 U.S.C. section 638(q), and adds cybersecurity technical assistance as one of the services that small businesses participating in the SBIR/STTR programs may fund with technical and business assistance funding, as detailed in that section. Additionally, section 884 of the NDAA authorizes the Department of Defense to establish and administer the Defense Investment Pilot Program, which expands eligibility for SBIR/STTR awards to entities that are owned exclusively by multiple U.S.-owned venture capital operating companies (VCOCs), hedge funds (HFs), or private equity firms (PEFs). Under this pilot program, eligibility is also expanded to entities that are majority owned by multiple U.S.-owned VCOCs, HFs, and PEFs, if the minority foreign ownership is limited to members of the national technology and industrial base, as defined at 10 U.S.C. section 2500. In addition to these and other updates to the policy directive resulting from statutory changes, SBA proposes miscellaneous changes to update section 12 on supporting programs and initiatives, and two clarifications regarding: (1) phase III award eligibility; and (2) simplification of the SBIR/STTR certification language. The FY2020 NDAA (Pub. L. 116-92) sections 880, 881, and 884 mandated updates to the conduct of the SBIR and STTR programs, which must be reflected in the SBIR/STTR Policy Directive. The additional clarifications proposed will address administration priorities and frequent questions or concerns expressed by small businesses and participating agencies regarding clarity on policy interpretation.