Last Friday, Congress eliminated funding for the Federal and State Technology Partnership (FAST) and Rural Outreach Program (ROP) for 2003, totaling $3.5 million. I am requesting your support to require the Small Business Administration to reinstate funding for these two programs.

By way of background, FAST and ROP were enhancements to the reauthorization of the Small Business Innovation Research (SBIR) program in 2000. As such, FAST and ROP provide outreach and counseling services to small high technology companies to promote greater awareness and participation in the SBIR program. Congress effectively created a franchise of 27 FAST centers to help companies with the many facets of the SBIR program. The ROP, which is targeted to those states that historically have under performed in the SBIR program, has provided support to 25 states. Each center is required to match the federal dollars with non-federal dollars. (Please note the attached list of centers.)

According to the National Science Foundation, innovation in science and technology has been the dominant source of productivity gains and new enterprises in the United States economy over the last fifty years, accounting for as much as fifty percent of United States economic growth.

With the continued economic sluggishness and the general stagnation of commercial markets, now more than ever high technology companies need to focus on federal market opportunities. The projected FY 2003 extramural research and development budgets (across agency) will exceed $115 billion, representing a tremendous opportunity for small high technology companies.

The SBIR program is a superb catalyst for high technology job creation and retention with higher than average annual salaries. SBIR promotes a strong technology foundation to enhance business growth and expansion, increased company revenues and federal, state and local tax contributions.

In 2002, Minnesota SBIR awards totaled over $25 million

I look forward to your continued support of these valuable small business programs.