Lawmakers press SBA on canceled regional innovation clusters, missing reports and unobligated program funds

Multiple House members used the committee hearing to press Joshua Carter, the SBA associate administrator for investment and innovation, for details on canceled regional innovation cluster awards and unobligated program funds.

Representative Cisneros and others said they were told that some RAIC (regional innovation cluster) awards were canceled — reports the witnesses did not dispute — and asked what the SBA did to support small businesses left without the expected resources. Carter said the office had reviewed all programs for alignment with administration priorities and accountability, and he promised to provide a written accounting of obligation and unobligated balances and timelines. "We are planning to obligate all of the money appropriated to us by September 30," Carter told the committee.

Members also faulted the agency for limited advance briefings. Several members said they learned about cancellations only when award notifications were changed or removed from agency pages. Carter acknowledged technical and communication issues on the SBA website and pledged to correct discrepancies and to follow up with the committee on the exact status of awards and unobligated funds.

Members asked about the Growth Accelerator Fund Competition: Congress appropriated $9 million in each of the past three fiscal years, and the committee was told by members that only $5.7 million of fiscal‑24 funds had been awarded so far. Carter said the office is processing remaining obligations and expects to make program solicitations or awards before the end of the fiscal year.

FAST program and access concerns: lawmakers from states and territories described instances of limited program reach — for example, no observed SBIR/SBTT awards to firms in the Northern Mariana Islands — and urged OI to use virtual outreach mechanisms and site visits to expand access. Carter described virtual summits and industry outreach he said OI had used to broaden participation and noted the agency is examining how to increase engagement in remote districts.

Next steps and follow‑up: Carter did not provide all requested obligation totals on the record but committed to returning the detailed figures in writing through legislative affairs. Several members said they will pursue a written explanation for how award decisions were made and how unobligated funds will be spent.