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<dc:title>118 S4414 RS: State Trade Expansion Program Modernization Act of 2024</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2024-05-23</dc:date>
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<dc:language>EN</dc:language>
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<distribution-code display="yes">II</distribution-code><calendar>Calendar No. 408</calendar><congress>118th CONGRESS</congress><session>2d Session</session><legis-num>S. 4414</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20240523">May 23, 2024</action-date><action-desc><sponsor name-id="S324">Mrs. Shaheen</sponsor>, from the <committee-name committee-id="SSSB00">Committee on Small Business and Entrepreneurship</committee-name>, reported the following original bill; which was read twice and placed on the calendar</action-desc></action><legis-type>A BILL</legis-type><official-title>To improve the State Trade Expansion Program of the Small Business Administration.</official-title></form><legis-body display-enacting-clause="yes-display-enacting-clause"><section section-type="section-one" id="S1"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>State Trade Expansion Program Modernization Act of 2024</short-title></quote>.</text></section><section id="id329CC563963A4394935DAC38215B33BF"><enum>2.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text><paragraph id="idf41ce19f17014d14ae36db2d5dbd2f71"><enum>(1)</enum><text>The State Trade Expansion Program established under section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) (in this section referred to as <quote>STEP</quote>) was created by Congress in 2010 to grow the number of small business concerns (as defined under section 3 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632</external-xref>) and in this section referred to as a <quote>small business concern</quote>) that export, increase the value of goods exported by the small business sector, and help businesses identify new markets.</text></paragraph><paragraph id="idcd0b053d7e354a08be84bf4785248e74"><enum>(2)</enum><text>Helping small firms in the United States begin to export or build upon their existing export capacity generates investment in local economies and spurs employment.</text></paragraph><paragraph id="idbfc63ef88a48458cb0ca3886e5f97b42"><enum>(3)</enum><text>Despite 95 percent of global consumers living outside of the United States, less than 4 percent of small business concerns in the United States export their products or services.</text></paragraph><paragraph id="id6603191dacdd4fc08b1ab23af05b3a2a"><enum>(4)</enum><text>Many small business concerns in the United States that could grow by exporting lack the dedicated staff, required technical skills, and necessary budgetary resources for international expansion.</text></paragraph><paragraph id="id4a95f97eb30d4c5f84a78dbba873371e"><enum>(5)</enum><text>STEP provides vital assistance to small business concerns, particularly to those that have never had the opportunity to sell their products or services abroad.</text></paragraph><paragraph id="id926cf8a0252a4174b861c3e70d4e2b2e"><enum>(6)</enum><text>According to data of the Bureau of the Census, there were approximately 5,900,000 employer firms in the United States as of 2021, of which more than 1,200,000, or approximately 22 percent, were women-owned. However, according to the data, of the 128,460 exporting small firms, only 21,626, or 17 percent, were women-owned firms, meaning that, of small firms, 5 times as many male-owned firms export as women-owned firms. The data show that the overall disparity in business ownership between men and women is even greater among exporting businesses.</text></paragraph><paragraph id="idd01591c2e5b34ded8c2abbc618eee2b5"><enum>(7)</enum><text>According to research conducted by the Small Business Administration, smaller firms tend to produce fewer outputs and are less likely to export than larger firms. Data of the Bureau of the Census show that women-owned firms employ 33 percent fewer workers on average than male-owned firms and are less likely to enjoy the benefits of international trade.</text></paragraph><paragraph id="id2b3dc0e73fe84fe2a152afdfca946d7b"><enum>(8)</enum><text>Exporting is a highly effective way for businesses to expand their markets and increase their productivity. As States expand export-enhancing activities through STEP, additional small firms will benefit from the higher demand for their goods and services and increased profits associated with international trade.</text></paragraph><paragraph id="idd55e26af412f4a9f9c29ec481b59de6a"><enum>(9)</enum><text>During the first 10 years of operation, STEP enabled more than 12,000 small business concerns to explore export opportunities, helping them reach markets in 141 countries.</text></paragraph><paragraph id="idfda72db3e3964808883a189625ae5f61"><enum>(10)</enum><text>Congress recognizes that STEP can be improved to reduce the administrative burden for grantees, streamline reporting and compliance requirements, give grantees more flexibility, make grant awards more transparent and consistent, and set more predictable application deadlines.</text></paragraph><paragraph id="iddb3b9d3613eb472b8f57f4178a9c1cd2"><enum>(11)</enum><text>Congress also recognizes that making awards under STEP more consistent and transparent will simplify the program and incentivize more States to participate so that small business concerns are supported in all States. </text></paragraph></section><section commented="no" display-inline="no-display-inline" id="id89f141264a71453ebf30c4d57db94f84"><enum>3.</enum><header>Streamlining application, reporting, and compliance requirements</header><subsection id="id46bad67bda57489cb91f7872ecdbf048"><enum>(a)</enum><header>Requirement for funding information To be kept current</header><text>Section 22(l)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idf2726a7acf254701953c83e14c2913bc"><subparagraph id="id86e9f38fb2db4c1eb19cff8b6edfbc80"><enum>(E)</enum><header>Requirement for funding information To be kept current</header><text>The Associate Administrator shall— </text><clause id="ide56066ea85374bd598b148bcc0ad35e3"><enum>(i)</enum><text>maintain on the website of the Administration a publicly accessible list of links to documents containing the most up-to-date information about program requirements and application procedures, including the latest notice of funding opportunity, all active Director’s Memos, and any determination made related to eligible expenditures or the classification of expenditures as direct or indirect; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id31c920848593406e8fb5f70f2751a312"><enum>(ii)</enum><text>update the list described in clause (i) before any new clarification, instruction, directive, requirement, determination, or classification relating to the program takes effect.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id1c91662355b046b987ff25b1cdc54251"><enum>(b)</enum><header>Timing of funding information release</header><text>Section 22(l)(3)(D) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)(D)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id02C6F48B60334482BDD2FB2249C556C1"><clause id="id0793BC3A9D984C2792088F8AB1DB4992"><enum>(iii)</enum><header>Timing</header><text>The Associate Administrator shall—</text><subclause id="idF64965A990B1475C948A69A8F7DA001D"><enum>(I)</enum><text>publish information on how to apply for a grant under this subsection, including specific calculations and other determinations used to award such a grant, not later than March 31 of each year;</text></subclause><subclause id="idCE3F4458F1364EC692E55C6E6F385C28"><enum>(II)</enum><text>establish a deadline for the submission of applications that is— </text><item commented="no" display-inline="no-display-inline" id="id8D41423D4EED4B569F216C6126F2C16A"><enum>(aa)</enum><text display-inline="yes-display-inline">not earlier than 60 days after the date on which the information is published under subclause (I); and </text></item><item commented="no" display-inline="no-display-inline" id="id326A772D058646F6A5EFF3BCDB8CF22B"><enum>(bb)</enum><text display-inline="yes-display-inline">not later than— </text><subitem commented="no" display-inline="no-display-inline" id="id23A538D556FF4F50874ACE19219199A4"><enum>(AA)</enum><text display-inline="yes-display-inline">May 31 of each year; or</text></subitem><subitem commented="no" display-inline="no-display-inline" id="idC195FEE8998B4E6C87044F8FF968E312"><enum>(BB)</enum><text display-inline="yes-display-inline">in the event that full-year appropriations for the program for a fiscal year have not been enacted as of February 1 of such fiscal year, 120 days after full-year appropriations are enacted; and</text></subitem></item></subclause><subclause id="id1330B4E3D49F4C1A8E01FF05FC3E0DFE"><enum>(III)</enum><text>announce grant recipients not later than— </text><item commented="no" display-inline="no-display-inline" id="id661E8A88255F460EA353A4A820CB3EDB"><enum>(aa)</enum><text display-inline="yes-display-inline">September 30 of each year; or</text></item><item commented="no" display-inline="no-display-inline" id="id49FB517C53F14479A05A2710C9E6A3E7"><enum>(bb)</enum><text display-inline="yes-display-inline">in the event that full-year appropriations for the program for a fiscal year have not been enacted as of February 1 of such fiscal year, 210 days after full-year appropriations are enacted.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id34f0f45be4594b3e923decb04b391bb7"><enum>(c)</enum><header>Application streamlining</header><text>Section 22(l)(3)(D) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)(D)</external-xref>), as amended by subsection (b) of this section, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6fea00b39a4947079f7ba469b7c08912"><clause id="idc0b20d879e5e4b8c97de406151ffa3e0"><enum>(iv)</enum><header>Application streamlining</header><subclause commented="no" display-inline="no-display-inline" id="id13e4019e774f4ad18732c2c4014eb28e"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text>The Associate Administrator shall establish a concise application for grants under the program that shall encompass all necessary information, including— </text><item commented="no" display-inline="no-display-inline" id="id666c20db89934e309042b707b901940d"><enum>(aa)</enum><text display-inline="yes-display-inline">the proposal of the State, territory, or commonwealth to manage the program; </text></item><item commented="no" display-inline="no-display-inline" id="id6267ca0d1448470f8f4327bf86924c1d"><enum>(bb)</enum><text display-inline="yes-display-inline">an overview of the trade office and staff of the State, territory, or commonwealth; </text></item><item commented="no" display-inline="no-display-inline" id="id7da6e47203f849689ae145e1a617ab9d"><enum>(cc)</enum><text display-inline="yes-display-inline">a description of the key mission and objective, key activities planned, and estimated key performance indicators; </text></item><item commented="no" display-inline="no-display-inline" id="id64a5a83bd13e4fceaf7b255f17823057"><enum>(dd)</enum><text display-inline="yes-display-inline">a detailed budget, which, for a State, shall include a description of the cash, indirect costs, and in-kind contributions the State has committed to provide for the non-Federal share of the cost of the trade expansion program of the State to be carried out using a grant under the program; and</text></item><item commented="no" display-inline="no-display-inline" id="id4fce401edb3e462dbe6f8201149aa17b"><enum>(ee)</enum><text>for a State, whether the State is requesting to receive additional funds allocated under paragraph (5)(F), if applicable. </text></item></subclause><subclause id="idaad8b274de7f4daa83f8dd3fb73bf1fc"><enum>(II)</enum><header>Scope</header><text>The application established under subclause (I) shall— </text><item commented="no" display-inline="no-display-inline" id="id7ee06286f7174ca7bd45fc2db7bdc3d3"><enum>(aa)</enum><text display-inline="yes-display-inline">include all the information required for the technical proposal; </text></item><item commented="no" display-inline="no-display-inline" id="idf45ad46b2ec94a0a885c3822c09b27b4"><enum>(bb)</enum><text display-inline="yes-display-inline">eliminate any unnecessary or duplicative materials, except to the extent the duplication is due to the use of standard forms or documents that are not specific to the Administration and are used by other Federal grant programs; and</text></item><item commented="no" display-inline="no-display-inline" id="id7db1d12520f244f1a137de172426efe6"><enum>(cc)</enum><text display-inline="yes-display-inline">to the extent feasible, use forms common to other Federal trade and export programs.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id2fb8083b887b4b34938b90d1f6bdba46"><enum>(d)</enum><header>Ability to review applications after award</header><text>Section 22(l)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)</external-xref>), as amended by subsection (a) of this section, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idf0a393e11b654046b2b79b3b573fef7a"><subparagraph id="idc6a34411780f49619d44bd45e3e6f9ee"><enum>(F)</enum><header>Application information</header><text>The Associate Administrator shall clearly communicate to applicants and grant recipients information about award decisions under this subsection, including—</text><clause commented="no" display-inline="no-display-inline" id="id6bcb9095d46944d380cba86cd937ce3a"><enum>(i)</enum><text display-inline="yes-display-inline">for each unsuccessful applicant for a grant awarded under this subsection, providing recommendations to improve a subsequent application for such a grant; </text></clause><clause commented="no" id="ideb640bf4a6a94d8b847a47d726f841e8"><enum>(ii)</enum><text>for each successful applicant for such a grant, providing an explanation for the amount awarded, if different from the amount requested in the application; and</text></clause><clause commented="no" id="id5B7190046FB843B6933C3DBB02DC765B"><enum>(iii)</enum><text>upon request, offering to have the program manager who reviewed the application discuss with the applicant how to improve a subsequent application for such a grant.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="idded0bf26248a4f0b9bc4265d67ad32eb"><enum>(e)</enum><header>Budget plan submission and revisions</header><text>Section 22(l)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)</external-xref>), as amended by subsection (d) of this section, is amended— </text><paragraph id="idBEE9B92A69B94225B81453A5062082CA"><enum>(1)</enum><text>in subparagraph (D)(i), by inserting <quote>, including a budget plan for use of funds awarded under this subsection</quote> before the period at the end; and </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9ce7b787001d437fa9102c43400b4a14"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1D3879DDFB174EB19DCD60F14C304732"><subparagraph id="id5518B24B673A4ECBAAC330E34A87FAB7"><enum>(G)</enum><header>Budget plan revisions</header><clause id="id61871100D1154C9ABAEA6FD5A3B52A1F"><enum>(i)</enum><header>In general</header><text>A State, territory, or commonwealth receiving a grant under this subsection may revise the budget plan of the State, territory, or commonwealth submitted under subparagraph (D) after the disbursal of grant funds if—</text><subclause id="id8089B2BCBE20461585F59705C4B007A6"><enum>(I)</enum><text>the revision complies with allowable uses of grant funds under this subsection; and</text></subclause><subclause id="id3CB04D650470421F90C510F3E54FE098"><enum>(II)</enum><text>such State, territory, or commonwealth submits notification of the revision to the Associate Administrator.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id531A707C633346B49DB8545C00012B3B"><enum>(ii)</enum><header>Exception</header><text>If a revision under clause (i) reallocates 10 percent or more of the amounts described in the budget plan of the State, territory, or commonwealth submitted under subparagraph (D), the State, territory, or commonwealth may not implement the revised budget plan without the approval of the Associate Administrator, unless the Associate Administrator fails to approve or deny the revised plan within 20 days after receipt of such revised plan.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="ida3e69369741245b9a09138920c9c1a2e"><enum>(f)</enum><header>Reporting by recipients; processing of reimbursements</header><text>Section 22(l)(7) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(7)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id682851f90d2b40629188ff151ce3e240"><subparagraph id="id5b6bf1df2d694f079566b54ae881295d"><enum>(C)</enum><header>Reporting by recipients; processing of reimbursements</header><clause commented="no" display-inline="no-display-inline" id="id2261ffa3c683464da3d086a9f2cc22d2"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>The Associate Administrator shall establish for recipients of grants under the program a streamlined reporting process, template, or spreadsheet format to report information regarding the program and key performance indicators required by an Act of Congress that—</text><subclause id="id94e8659fac5f43dd849e25604d258271"><enum>(I)</enum><text>a State, territory, or commonwealth may use to upload required compliance reports relating to the grants;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id582cb481456a475db62e4fa70d48185e"><enum>(II)</enum><text>minimizes the manual entry of specific data regarding eligible small business concerns, including performance data;</text></subclause><subclause id="id1025e23015f84baa892a370846d6f7ec"><enum>(III)</enum><text>eliminates any duplicative or unnecessary reporting requirements that are not required for the Associate Administrator to— </text><item commented="no" display-inline="no-display-inline" id="id1cf9e507fd6040edb388c72038062b94"><enum>(aa)</enum><text display-inline="yes-display-inline">report the information specified in subparagraph (B); </text></item><item commented="no" display-inline="no-display-inline" id="id79ABEE7A68C94527B13FAC4DE757DEB6"><enum>(bb)</enum><text display-inline="yes-display-inline">make allocations under paragraph (5)(B); or </text></item><item commented="no" display-inline="no-display-inline" id="id77130f18f37743ac8023f1a32a3f01a1"><enum>(cc)</enum><text display-inline="yes-display-inline">conduct necessary oversight of the program;</text></item></subclause><subclause id="id9bbd26d853de43e0a464b43f69c7b355"><enum>(IV)</enum><text>to the extent feasible, accommodates the use and uploading of spreadsheets or templates generated from customer relationship management or spreadsheet software; and</text></subclause><subclause commented="no" id="id24d421cc0f0a4d5c8a984c8d8ca09f0b"><enum>(V)</enum><text>may not require a State, territory, or commonwealth to submit information more frequently than twice per year.</text></subclause></clause><clause commented="no" id="id11636dd2eb1f40cfa44a4139b2910dc5"><enum>(ii)</enum><header>Processing of reimbursement requests</header><text>The Associate Administrator shall— </text><subclause commented="no" display-inline="no-display-inline" id="id956cd7da7bce46bb9d66b38bd22d7fd0"><enum>(I)</enum><text display-inline="yes-display-inline">process information submitted by a State, territory, or commonwealth for purposes of obtaining reimbursement for eligible activities in a timely manner, without regard to whether the information is submitted semiannually, as described in clause (i)(V), or quarterly, if the State, territory, or commonwealth elects to submit information quarterly; </text></subclause><subclause commented="no" display-inline="no-display-inline" id="idb437b3b852d540a7a6e755290157b695"><enum>(II)</enum><text display-inline="yes-display-inline">notify a State, territory, or commonwealth if such information is not processed on or before the date that is 21 days after the date such information is submitted; and </text></subclause><subclause commented="no" display-inline="no-display-inline" id="idd39eb6dcee3e4a44b1e353ca09d97d97"><enum>(III)</enum><text display-inline="yes-display-inline">provide an estimated completion timeline with any notification under subclause (II).</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id416a6bab9b6a43f19e09eb006cbc7d67"><enum>(iii)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in clause (i) shall be construed to prohibit a State, territory, or commonwealth from submitting information for purposes of obtaining reimbursement for eligible activities on a quarterly basis, at the election of the State, territory, or commonwealth, respectively.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id5d7982a010e14cc28d75b15d97093143"><enum>(g)</enum><header>Requirements related to State employees</header><text>Section 22(l)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)</external-xref>), as amended by subsection (e) of this section, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id53d1b1df9c664ad1b387492c7cb61238"><subparagraph id="id5a052a060e1345fcb70c42076649ab7e"><enum>(H)</enum><header>Limitation on collection of State official and employee information</header><clause commented="no" display-inline="no-display-inline" id="ida22b5c95efdc4c539faf20e402bbc7eb"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to clause (ii), the Associate Administrator—</text><subclause id="idcca23c47860b43d88fae4e06806a07e5"><enum>(I)</enum><text>may only require that a State, territory, or commonwealth include with an application for a grant under the program detailed information, such as a position description and resume, for the State, territory, or commonwealth official or employee that would manage the grant; </text></subclause><subclause id="id1df0b634d6994a0b87b8fbc3e3396afb"><enum>(II)</enum><text>may only require that a State, territory, or commonwealth receiving a grant under the program report the salary of a State, territory, or commonwealth official or employee to the extent that the State, territory, or commonwealth— </text><item commented="no" display-inline="no-display-inline" id="id5fea0fa1e55c48f49b1e1e2360bd08ba"><enum>(aa)</enum><text display-inline="yes-display-inline">includes such salary as part of the non-Federal share of the cost of the trade expansion program; or</text></item><item commented="no" display-inline="no-display-inline" id="idd2d4d7c246fd4a7e964989bd0618a980"><enum>(bb)</enum><text display-inline="yes-display-inline">uses amounts received under the grant for the cost of such salary, in whole or in part; and</text></item></subclause><subclause id="id7262c92ebe1f4ec49fdba11c215d423f"><enum>(III)</enum><text>with respect to a State, territory, or commonwealth official or employee who is not directly managing a grant under the program, may only require the State, territory, or commonwealth to report the name, position, and contact information of the official or employee.</text></subclause></clause><clause id="id3864262817c64670b4a72ec85cdb3ef3"><enum>(ii)</enum><header>Exceptions</header><text>The Associate Administrator may require a State, territory, or commonwealth to provide information about a State, territory, or commonwealth official or employee that is relevant to any investigation into suspected mismanagement, fraud, or malfeasance or that is necessary to comply with Federal grant requirements.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id8140f299f9f74d9ead121882dd4b4a99"><enum>(h)</enum><header>Limitation on compliance audits</header><text display-inline="yes-display-inline">Section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) is amended— </text><paragraph id="id33D24926A35D4114B586B9E859125A33"><enum>(1)</enum><text>by redesignating paragraphs (7), (8), and (9) as paragraphs (10), (11), and (12), respectively;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id54DE325E1DB948388D88F3C057C0920A"><enum>(2)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide6ef8dbfded84426b89f80f5b32ee34c"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (7), as so redesignated, the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9FAC8BF2C60F43E9BE3B1F48350A34A5"><paragraph id="id76c1f487f7144c01a5a786a9635fab4b"><enum>(8)</enum><header>Compliance audits</header><subparagraph commented="no" display-inline="no-display-inline" id="id49e36890eac7436bb2b06560f8b5d698"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Except as provided in subparagraph (B), the Associate Administrator may not conduct an audit of a State, territory, or commonwealth to evaluate compliance with this subsection more than once every 3 years.</text></subparagraph><subparagraph commented="no" id="id2791b689931f4bed83acf2999ba2b914"><enum>(B)</enum><header>Exceptions</header><text>The Associate Administrator may conduct an audit of a State, territory, or commonwealth to evaluate compliance with this subsection more than once every 3 years if— </text><clause commented="no" id="id514cb7ad900b446e8d589935363b3c71"><enum>(i)</enum><text>the amount allocated to the State, territory, or commonwealth under a grant under this subsection for a fiscal year is an increase of not less than 15 percent from the allocation for the State, territory, or commonwealth for the prior fiscal year; </text></clause><clause commented="no" display-inline="no-display-inline" id="ide7c5238b7bb7401cbeabaeec6cbf5329"><enum>(ii)</enum><text>the Associate Administrator believes that amounts received by the State, territory, or commonwealth under a grant under this subsection are being used for ineligible activities or as part of fraudulent activity; or</text></clause><clause id="id649dd5157a1547fe9e5b51168116d04c"><enum>(iii)</enum><text>the most recent audit report shows evidence of material noncompliance with program requirements, in which case the Associate Administrator may conduct an audit annually until compliance is reestablished.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section id="id64c804a0ecc1457fb455ef3c51c04245"><enum>4.</enum><header>Funding transparency and predictability</header><subsection commented="no" display-inline="no-display-inline" id="id78669f3ad9294d64b686ec62a842afe4"><enum>(a)</enum><header display-inline="yes-display-inline">Cap on reductions in grants</header><text display-inline="yes-display-inline">Section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) is amended by striking paragraph (4) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id71FFC33B03764BA28CC34A139AE78DA4"><paragraph id="idFF802B9B039E4A339C85CA07293F5A64"><enum>(4)</enum><header>Limitations</header><subparagraph commented="no" display-inline="no-display-inline" id="idB3E49A57446D4E9193033A6E68FB97BE"><enum>(A)</enum><header display-inline="yes-display-inline">Definitions</header><text>In this paragraph—</text><clause commented="no" display-inline="no-display-inline" id="id92135B0F0D7441089890D3F398714FC9"><enum>(i)</enum><text display-inline="yes-display-inline">the term <term>current fiscal year</term> means the fiscal year for which the Administrator is determining the amount of a grant to be awarded to a State, territory, or commonwealth under the program; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idDD35243153EF4ADEB00DDD6F057B0BF1"><enum>(ii)</enum><text>the term <term>prior fiscal year</term> means the most recent fiscal year before the current fiscal year for which a State, territory, or commonwealth received a grant under the program.</text></clause></subparagraph><subparagraph commented="no" id="idBA73395A0D3B4662B9C16D0F1B12D3EB"><enum>(B)</enum><header>General limitation on reductions in grants</header><text>Subject to subparagraphs (C) and (D), the Administrator may not award a grant to a State, territory, or commonwealth under the program for the current fiscal year in an amount that is less than 80 percent of the amount received by the State, territory, or commonwealth under a grant under the program for the prior fiscal year.</text></subparagraph><subparagraph commented="no" id="id6AF83D061CA148C78BEFB64DEAAFAD26"><enum>(C)</enum><header>Potential additional adjustments</header><clause commented="no" id="id931947E57A6E438C9CE2137A7DCAF7EC"><enum>(i)</enum><header>Exception for reduction in appropriations</header><text>Subject to subparagraph (D), if the total amount appropriated for the program for the current fiscal year is less than the amount appropriated for the program for the prior fiscal year, for purposes of applying subparagraph (B), the Administrator shall substitute for <quote>the amount received by the State, territory, or commonwealth under a grant under the program for the prior fiscal year</quote> the product obtained by multiplying—</text><subclause commented="no" display-inline="no-display-inline" id="idE7967CF2FCAF436F9BADB2627DC48406"><enum>(I)</enum><text display-inline="yes-display-inline">subject to clause (ii) of this subparagraph, the amount received by the State, territory, or commonwealth under a grant under the program for the prior fiscal year; by</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id358BFC5BF82946DA87A5887D92507B03"><enum>(II)</enum><text display-inline="yes-display-inline">the ratio of the appropriation for the current fiscal year to the appropriation for the prior fiscal year.</text></subclause></clause><clause commented="no" id="idE834BA9B715740A59CE8E60F5E43C39D"><enum>(ii)</enum><header>Exception for grantees that use less than 80 percent of the amount of a grant</header><text>Subject to subparagraph (D), if a State, territory, or commonwealth expends less than 80 percent of the amount of a grant under the program for the prior fiscal year before the end of the period of the grant for the prior fiscal year established under paragraph (3)(C)(iii)(I), for purposes of applying subparagraph (B) of this paragraph, if appropriations are not reduced, or applying clause (i) of this subparagraph, if appropriations are reduced, the Administrator shall substitute for <quote>the amount received by the State, territory, or commonwealth under a grant under the program for the prior fiscal year</quote> the difference obtained by subtracting—</text><subclause commented="no" id="id5A015C0867B1494181F28CE5475FB2B0"><enum>(I)</enum><text>the amount equal to 50 percent of the amount remaining available under the grant under the program to the State, territory, or commonwealth for the prior fiscal year, as of the last day of such period; from</text></subclause><subclause commented="no" id="id9D72D0BD0E9849CCAB7A17299804A614"><enum>(II)</enum><text>the amount of the grant under the program to the State, territory, or commonwealth for the prior fiscal year.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id3c3122471f13452a91fb57f0b9fa7073"><enum>(iii)</enum><header>Exception for increase in grantees resulting in insufficient funding</header><text>If the number of States, territories, or commonwealths participating in the program has increased from the prior fiscal year to such an extent that funding is not sufficient to provide each grantee the minimum amount required under this paragraph (including any reductions under clause (i) or (ii) of this subparagraph, if applicable) the Administrator may make pro rata reductions to the minimum grant amount otherwise required under this paragraph on a one-time basis to ensure that all qualified applicants may receive grants.</text></clause></subparagraph><subparagraph commented="no" id="id290893C1314B40A8962611FB5ABA1EC7"><enum>(D)</enum><header>Violations</header><text>The amount of a grant to a State, territory, or commonwealth may be less than the minimum amount determined under subparagraph (B) (including any substitution of amounts under clauses (i) and (ii) of subparagraph (C), as applicable), if the State, territory, or commonwealth has been found to have committed a significant violation of the rules or policies of the program.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id307EA1E05CF74DD38C75F7D6811A2B6C"><enum>(b)</enum><header display-inline="yes-display-inline">Permitting carryover of unused grant funds</header><text display-inline="yes-display-inline">Section 22(l)(3)(C) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)(C)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id02CDC3E05047489393B2A5EAC40C210C"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>40 percent</quote> and inserting <quote>30 percent</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC3B66249CD543A1A12F6736DB93BE4C"><enum>(2)</enum><text>in clause (iii)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idFC7BEDB34D474AF3881DD998CED7D4E9"><enum>(A)</enum><text>by striking <quote>The Associate Administrator</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id54ABA9B0D03A49CD96777659D9FBAC5F"><subclause commented="no" display-inline="no-display-inline" id="id72C0F966D0D146AA925742F8E677D542"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">The Associate Administrator</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id138DFC341BED42A584D245314051A81F"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE018DBABB91E4BEFBA15B07C136A6D74"><subclause commented="no" display-inline="no-display-inline" id="id25A5AC6343BD445BBC85C5BF4BF45F23"><enum>(II)</enum><header display-inline="yes-display-inline">Grantees that use less than the full amount of a grant</header><item commented="no" display-inline="no-display-inline" id="id3D4AADA7E1D244DDA3C391714932A03A"><enum>(aa)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to item (bb), for a State, territory, or commonwealth that does not expend the entire amount of a grant under the program before the end of the period of the grant established under subclause (I), the State, territory, or commonwealth may expend amounts remaining available under the grant as of the last day of such period during the first fiscal year after such period, in an amount not to exceed 20 percent of the amount originally made available under such grant.</text></item><item commented="no" display-inline="no-display-inline" id="idE7ABB175DCCF44E68F2E01955254443B"><enum>(bb)</enum><header>Forfeited grants</header><text display-inline="yes-display-inline">Item (aa) shall not apply to a grant under the program to a State, territory, or commonwealth that was forfeited due to a significant program violation by the State, territory, or commonwealth.</text></item><item commented="no" display-inline="no-display-inline" id="idE2D19879D549471CBA7F16BBD680F8DF"><enum>(cc)</enum><header>Return of grant funds</header><text display-inline="yes-display-inline">A State, territory, or commonwealth shall return to the Treasury— </text><subitem commented="no" display-inline="no-display-inline" id="id19A7E2EF28124AF1BF44A2EB43A45762"><enum>(AA)</enum><text display-inline="yes-display-inline">any amounts remaining available under a grant under the program at the end of the period of the grant established under subclause (I) that are not available for expenditure under item (aa) of this subclause; and </text></subitem><subitem commented="no" display-inline="no-display-inline" id="idBBCBC224B4A04D2E9870FCDFE4F13E6C"><enum>(BB)</enum><text display-inline="yes-display-inline">any amounts that are available for expenditure under item (aa) and are not expended on or before the date that is 1 year after the last day of the original period of the grant established under subclause (I).</text></subitem></item></subclause><after-quoted-block>. </after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id883162CCB073409FA1B36E0AE11F7B79"><enum>(c)</enum><header display-inline="yes-display-inline">Funding formula</header><text>Section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) is amended by inserting after paragraph (4), as amended by subsection (a) of this section, the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2EFC4BEDFB21406E94CF4D6122D97DC5"><paragraph commented="no" id="idc1c6a01d345c4e90bb9b47ed379615b6"><enum>(5)</enum><header>Funding formula</header><subparagraph id="id8d9f59b3a57047e491af7a21f767ef8c"><enum>(A)</enum><header>Minimum allocation</header><text>Subject to paragraph (4), and except as provided otherwise in this paragraph, the minimum amount of a grant under the program for a fiscal year—</text><clause id="idaa9c8dedf57b4130bd95775991433e72"><enum>(i)</enum><text>for a territory or commonwealth, shall be the amount equal to 0.5 percent of the total amount appropriated for the program for the fiscal year; and</text></clause><clause id="id9f6b80f8f41a43c196759315ed6cf78a"><enum>(ii)</enum><text>for a State, shall be the amount equal to 0.75 percent of the total amount appropriated for the program for the fiscal year.</text></clause></subparagraph><subparagraph commented="no" id="id06a9477c3f684ea48678b5a368cbb2cf"><enum>(B)</enum><header>Additional funds</header><clause commented="no" display-inline="no-display-inline" id="id7513a4fe25b841ec81c2e037bcbd6d21"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to clause (ii), amounts remaining for grants under the program for a fiscal year after the minimum allocation under subparagraph (A) shall be allocated among States receiving a grant under the program in accordance with the following metrics:</text><subclause id="iddb99ff0fca3a4c2bbb7d8c507d23ab97"><enum>(I)</enum><text>20 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle for which complete reporting data is available, of the dollar value of export sales reported by a State that were initiated as a result of program activities undertaken by eligible small business concerns that are located in the State to the amount of the grant received by the State.</text></subclause><subclause id="idcafbd199403b4b54bfc5fe05e2642a50"><enum>(II)</enum><text>20 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle for which complete reporting data is available, of the total number of activities described in paragraph (2) undertaken by eligible small business concerns participating in the program that are located in the State to the amount of the grant received by the State.</text></subclause><subclause id="ideedcbdea3d444cb09244afc056949273"><enum>(III)</enum><text>15 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle for which complete reporting data is available, of the number of eligible small business concerns participating in the program for the first time that are located in the State to the amount of the grant received by the State.</text></subclause><subclause id="id63ecc002e7db439db8330a2ffe6ee50d"><enum>(IV)</enum><text>15 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle for which complete reporting data is available, of the number of eligible small business concerns participating in the program that are located in the State and that engaged in trade outside the United States for the first time to the amount of the grant received by the State.</text></subclause><subclause id="id796A915A96874AE4BECCFAC9CB669297"><enum>(V)</enum><text>15 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle for which complete reporting data is available, of the total number of new markets reached by eligible small business concerns participating in the program that are located in the State to the amount of the grant received by the State. </text></subclause><subclause commented="no" id="ide5b6b1940744470cb9e5f9bfba6a9759"><enum>(VI)</enum><text>15 percent of amounts remaining shall be proportionally allocated based on the ratio, for the most recently completed grant cycle, of the total number of eligible small business concerns participating in the program that are located in the State to the number of eligible small business concerns participating in the program that are located in the State and that meet 1 or more of the following criteria:</text><item commented="no" id="idde6d5cc6e1cd4f6b8f3ca385831b3c12"><enum>(aa)</enum><text>Located in a low-income or moderate-income area.</text></item><item commented="no" id="id956a01f333024596bbb5012c103b6928"><enum>(bb)</enum><text>Located in a rural area.</text></item><item commented="no" id="id82b45a105197421a80621018e7a7a540"><enum>(cc)</enum><text>Located in an HUBZone, as that term is defined in section 31(b).</text></item><item commented="no" id="id10ebdfcc2419409ab165f3959509c668"><enum>(dd)</enum><text>Located in a community that has been designated as an empowerment zone or enterprise community under <external-xref legal-doc="usc" parsable-cite="usc/26/1391">section 1391</external-xref> of the Internal Revenue Code of 1986.</text></item><item commented="no" id="id2fc3bc1ee91a4c2c94dc418b39efae12"><enum>(ee)</enum><text>Located in a community that has been designated as a promise zone by the Secretary of Housing and Urban Development.</text></item><item commented="no" id="id5fec8a0f5756445b9dd17610d753196d"><enum>(ff)</enum><text>Located in a community that has been designated as a qualified opportunity zone under <external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">section 1400Z–1</external-xref> of the Internal Revenue Code of 1986.</text></item><item commented="no" id="id4f1cdc1a8ac24df48becaa62b4aad2bd"><enum>(gg)</enum><text>Being owned by women.</text></item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id467bad0581f3494c8ef56ddf316080fe"><enum>(ii)</enum><header>Limitation</header><text display-inline="yes-display-inline">In allocating funds under each of subclauses (I) through (VI) of clause (i), the amount of funds allocated under such subclause to the State with the highest ratio for a metric may not be more than 10 times the amount of funds allocated under such subclause to the State with the lowest ratio that is greater than zero for that metric.</text></clause></subparagraph><subparagraph id="id0bcbfbcae897440cb348414f12e21338"><enum>(C)</enum><header>Limit on reduction below grant before enactment</header><text>In addition to the limitations under paragraph (4), and except to the extent a State elects to return funds under subparagraph (E), the amount of a grant to the State under the program for any fiscal year may not be less than the amount of the grant to the State under the program for the most recent full fiscal year before the date of enactment of the State Trade Expansion Program Modernization Act of 2024 for which the State received such a grant. </text></subparagraph><subparagraph id="idfac6b5e14deb4cc79100b82540a92a94"><enum>(D)</enum><header>Matching requirement for formula funds</header><text>The Associate Administrator shall provide to each State receiving a grant under the program an award in the amount calculated in accordance with the funding formula under subparagraphs (A), (B), and (C) if the State has committed to provide the necessary cash, indirect costs, and in-kind contributions for the non-Federal share of the cost of the trade expansion program of the State, as required under paragraph (6). </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide0ace17003d04908b43ef469f1d40886"><enum>(E)</enum><header>Return of grants</header><text>Not later than 15 days after the date on which the Associate Administrator notifies a State of the amount to be awarded to the State under a grant under the program for a fiscal year, the State may decline or return to the Associate Administrator, in whole or in part, such amounts.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id85189af13d6641b7a29bf9da0ab333d6"><enum>(F)</enum><header>Distribution of returned and remaining amounts</header><clause commented="no" display-inline="no-display-inline" id="id9b6bd4ab1aab4e97970d6973bfdc3820"><enum>(i)</enum><header display-inline="yes-display-inline">Remaining amounts</header><text>In this subparagraph, the term <term>remaining amounts</term> means—</text><subclause commented="no" display-inline="no-display-inline" id="id292e1b79fbff44e8b69d189103e29bd4"><enum>(I)</enum><text display-inline="yes-display-inline">amounts declined or returned under subparagraph (E) for a fiscal year; or</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id179a16c290214fcfb137af75865c2aa3"><enum>(II)</enum><text display-inline="yes-display-inline">amounts remaining for grants under the program for a fiscal year after allocating funds in accordance with subparagraphs (A), (B), and (C) due to reductions in the amount of grants because of the amount committed by States for the non-Federal share of the cost of the trade expansion program of the States. </text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="idfdd500563771425fbb05a14428f7ed76"><enum>(ii)</enum><header>Distribution</header><text display-inline="yes-display-inline">The Associate Administrator shall distribute any remaining amounts for a fiscal year among the States receiving a grant under the program that requested to receive such remaining amounts, in an amount that is proportional to the allocations under subparagraphs (A), (B), and (C).</text></clause></subparagraph><subparagraph commented="no" id="idea422838f1f84d85bae8d57c77381de7"><enum>(G)</enum><header>Limitation on basis for reducing amounts</header><text>The Associate Administrator may not reduce the amount determined to be allocated or distributed to a State under any subparagraph of this paragraph based on the proposed use of such amount by the State, except to the extent that such use is not an eligible use of funds for a grant under the program. </text></subparagraph><subparagraph commented="no" id="idece5478c58a247e89d6e55ccb27e9621"><enum>(H)</enum><header>Rounding</header><text>The total amount of a grant to a State, territory, or commonwealth under the program, as determined under this paragraph, shall be rounded to the nearest increment of $1,000.</text></subparagraph><subparagraph commented="no" id="id59BB5087804C4EAB85CB4D196D1E8F2D"><enum>(I)</enum><header>Application</header><clause commented="no" id="id243F6A56A2D94C2398D9A8D21847A644"><enum>(i)</enum><header>In general</header><text>The Associate Administrator shall award grants under this subsection based on the formula described in this paragraph, and without regard to paragraph (3)(B)— </text><subclause commented="no" display-inline="no-display-inline" id="id451ea0123a3647a58e7a52cd297b55fc"><enum>(I)</enum><text display-inline="yes-display-inline">for the second consecutive fiscal year for which the amount made available for the program is not less than $30,000,000; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id94b0c68b17c04e3698afea845f2005a2"><enum>(II)</enum><text>for each fiscal year after the fiscal year described in subclause (I) for which the amount made available for the program is not less than $30,000,000.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id63162B9CA8304E77A8476FE7083D49B1"><enum>(ii)</enum><header>Award when not based on formula</header><text>For any fiscal year for which grants are not awarded based on the formula described in this paragraph, the Associate Administrator shall award grants under this subsection on a competitive basis, taking into account the considerations described in paragraph (3)(B).</text></clause></subparagraph><subparagraph commented="no" id="id874a4cb80b554493a3701e5c7d1d78a1"><enum>(J)</enum><header>Transition plan</header><clause id="id00eb19dd4462499889e2ae49cb847fe2"><enum>(i)</enum><header>Initial plan</header><subclause id="ide4f7fffe9da8431c8ebb064456ff723b"><enum>(I)</enum><header>In general</header><text>If the amount made available for the program for a fiscal year is not less than $30,000,000, the Associate Administrator shall develop a transition plan describing how the Administration intends to begin awarding grants based on the formula described in this paragraph, to ensure the Administration is prepared to award grants based on the formula described in this paragraph if the amount made available for the program for the next fiscal year is not less than $30,000,000.</text></subclause><subclause id="id687f6746e19447869bed4bcad4ad65d8"><enum>(II)</enum><header>One-time requirement</header><text>Subclause (I) shall not apply on and after the first day of the first fiscal year for which the Associate Administrator awards grants based on the formula described in this paragraph.</text></subclause><subclause id="id6b7c9a6b669349868a06314460c1b5b6"><enum>(III)</enum><header>Requirement to use formula</header><text>The Associate Administrator shall award grants based on the formula described in this paragraph in accordance with the requirements under subparagraph (I), without regard to whether the Associate Administrator develops the transition plan required under subclause (I) of this clause.</text></subclause></clause><clause id="idb1d182da6e0d4aeb9ab678e233bdb8e6"><enum>(ii)</enum><header>Updates</header><text>If, for any fiscal year after the first fiscal year for which the Associate Administrator awards grants based on the formula described in this paragraph, the amount made available for the program for the fiscal year is less than $30,000,000, the Associate Administrator shall update the plan to award grants based on the formula described in this paragraph, to ensure the Administration is prepared to award grants based on the formula described in this paragraph if the amount made available for the program for the next fiscal year is not less than $30,000,000. </text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id58778af8d154493692cd3c1798b5004f"><enum>(K)</enum><header>Reporting</header><text display-inline="yes-display-inline">Not later than 180 days after the end of each fiscal year for which the amount of grants under this subsection is determined under the formula described in this paragraph, the Associate Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that provides the information used by the Associate Administrator to determine the amounts of grants under the formula, which shall include for the applicable fiscal year—</text><clause commented="no" display-inline="no-display-inline" id="idbe5f7da610334fb29ea2a333d95f0ea8"><enum>(i)</enum><text display-inline="yes-display-inline">the number of States that applied for a grant under the program; </text></clause><clause commented="no" display-inline="no-display-inline" id="ida6c5a59b6759427c9cd013028a287c42"><enum>(ii)</enum><text display-inline="yes-display-inline">the number of States that received a grant under the program; </text></clause><clause commented="no" id="ida03ba9e2d5984850b9cd677c77862171"><enum>(iii)</enum><text>the raw data for each factor used to calculate award amounts in accordance with subparagraph (B), broken out by State; </text></clause><clause commented="no" id="id4a7c8e32bc2948f78f7c64085cb31b8f"><enum>(iv)</enum><text>the utilization rates of each grantee, broken out by grantee;</text></clause><clause id="id27e1f2725a3a4531a2c1059524e57a66"><enum>(v)</enum><text>the amount carried over by a grantee under paragraph (3)(C)(iii)(II)(aa), broken out by grantee; </text></clause><clause id="id659cdf11908c48719d8eb86e2b3a45ab"><enum>(vi)</enum><text>the amount returned to Treasury due to a failure to use the amounts under paragraph (3)(C)(iii)(II)(cc), broken out by grantee; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id5a13d8ac28294bd79a81b568c638937b"><enum>(vii)</enum><text>the amount returned to the Associate Administrator during the period described in subparagraph (E).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id518beb0027d14832920f4993bea91909"><enum>5.</enum><header>Expansion of definition of eligible small business concern; change to set aside; conforming changes</header><subsection commented="no" id="id380545de856c4da593cb2dcdf471105b"><enum>(a)</enum><header>Expansion of definition of eligible small business concern</header><paragraph commented="no" display-inline="no-display-inline" id="idd4340f6221a24ab0af847d56d0f483fc"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 22(l)(1)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(1)(A)</external-xref>) is amended—</text><subparagraph commented="no" id="id2b5ce08ea0e14a578812895cf3d3b35e"><enum>(A)</enum><text>in clause (iii)(II), by adding <quote>and</quote> at the end;</text></subparagraph><subparagraph commented="no" id="ide3c4a96f0afa4bfc899a9b086efbca33"><enum>(B)</enum><text>by striking clause (iv); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5cea30220922403ea7ee31d1ac0754b0"><enum>(C)</enum><text>by redesignating clause (v) as clause (iv).</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6f6f935d0be04ca0bb198512da8d0060"><enum>(2)</enum><header>Limitation on use of funds for participation in foreign trade missions</header><text>Section 22(l)(2)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(2)(A)</external-xref>) is amended by inserting <quote>by eligible small business concerns that have been in operation for not less than 1 year</quote> after <quote>trade missions</quote>. </text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8ea5daa6967547fabc296b8cd694f368"><enum>(b)</enum><header>Change to definitions and Federal share requirements</header><text>Section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) is amended— </text><paragraph id="id309a2912a10743f2b1b5bef347e8fd3f"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id44e81210e09a4c69831f42126e9b20a1"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id24c026fe7eab4639b7dbd8349a0e3b4c"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before subparagraph (B), as so redesignated, the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idAE404CA388584943B6A9B8667D3EF4AA"><subparagraph id="id12eb95f287d64d76aca53485c40cc5e3"><enum>(A)</enum><text>the term <term>commonwealth</term> means the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands;</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idff22c6d5ca554005959f4d246116c015"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (E), as so redesignated, by striking <quote>and</quote> at the end; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1922b1b0101443d08a98c4cc17c360fa"><enum>(D)</enum><text>in subparagraph (F), as so redesignated, by striking <quote>States, the District</quote> and all that follows and inserting <quote>States and the District of Columbia; and</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc018502bf82044d6b905454bee2e00a7"><enum>(E)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id297B14D0505B4376B910FDB83DC50E96"><subparagraph commented="no" display-inline="no-display-inline" id="id4abac33a24654c0983d725fb44300c3c"><enum>(G)</enum><text display-inline="yes-display-inline">the term <term>territory</term> means the United States Virgin Islands, Guam, and American Samoa.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idadaf516881164d459e895453ccae576e"><enum>(2)</enum><text>in paragraph (2), in the matter preceding subparagraph (A), by inserting <quote>, territories, and commonwealths</quote> after <quote>States</quote>; </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idfd33483c3edd4e56a267705327326635"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id2a86d9ae3e0b4aa49bbacf2972d6ebfa"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, territory, or commonwealth</quote> after <quote>State</quote> each place it appears, except in— </text><clause commented="no" display-inline="no-display-inline" id="idab5f453d969d4b98ac670a124556385d"><enum>(i)</enum><text display-inline="yes-display-inline">subclause (II) of subparagraph (C)(iii), as added by section 4(b) of this Act; </text></clause><clause commented="no" display-inline="no-display-inline" id="idebbc92b8354a4db4b2b7c73366391455"><enum>(ii)</enum><text display-inline="yes-display-inline">clause (iv) of subparagraph (D), as added by section 3(c) of this Act; </text></clause><clause commented="no" display-inline="no-display-inline" id="id56a6306e83494ac98ffb38089772453f"><enum>(iii)</enum><text display-inline="yes-display-inline">subparagraph (G), as added by section 3(e) of this Act; and </text></clause><clause commented="no" display-inline="no-display-inline" id="id5434b0d2954747d1bb1818fb53b14503"><enum>(iv)</enum><text display-inline="yes-display-inline">subparagraph (H), as added by section 3(g) of this Act; and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide9664f4e80ad49d59bb63d5263d284c2"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>, territories, or commonwealths</quote> after <quote>States</quote> each place it appears; </text></subparagraph></paragraph><paragraph id="id8646f397704a4cd781cb80a12d37f22a"><enum>(4)</enum><text>in paragraph (6), as so redesignated by section 3(h) of this Act—</text><subparagraph commented="no" display-inline="no-display-inline" id="id0301c05d760d4ebe8e0bd69b4a86aebe"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end; </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id879F7F6D4C7B49B0901A88C87C595BD6"><enum>(B)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb17ad0b8934e49e1bd2ca68d5903b348"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6EF5407679AB44EAB8ADE998EF1D9EBF"><subparagraph id="id55bd1856e0924a51ad1efe71e5bbc4b3"><enum>(C)</enum><text>for a territory or commonwealth, 100 percent.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9b397a6a6ecb41fe963da415968fc2e5"><enum>(5)</enum><text>in paragraph (10), as so redesignated by section 3(h) of this Act—</text><subparagraph commented="no" display-inline="no-display-inline" id="id5880B5FC41A84CBEA7F8C84A7C2E3C7B"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, territory, or commonwealth</quote> after <quote>State</quote> each place it appears, except in subparagraph (C), as added by section 3(f) of this Act; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id34F23B11A04A4F16A5848E2BBFE13F0D"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>, territories, or commonwealths</quote> after <quote>States</quote> each place it appears.</text></subparagraph></paragraph></subsection></section><section id="id922d9c7c781d40d2beb48885d412e7eb"><enum>6.</enum><header>Survey and annual report</header><subsection id="id6c1ed3b4643141739e51ac94748de8b6"><enum>(a)</enum><header>Survey</header><text>Section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>) is amended by inserting after paragraph (8), as added by section 3(h) of this Act, the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida9ecece935394eee97a1e1bd740d69cd"><paragraph id="ideab15e5a048e430c92775c1604749f9b"><enum>(9)</enum><header>Survey</header><text>The Associate Administrator shall conduct an annual survey of each State, territory, or commonwealth that received a grant under this subsection during the preceding year to solicit feedback on the program and develop best practices for grantees.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idbeaf003071f241629257f5662d34bd6f"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Paragraph (10)(B) of section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>), as so redesignated by section 3(h) of this Act, is amended—</text><paragraph commented="no" id="idc78f97c92ce749aeadd234544fe52a36"><enum>(1)</enum><text>in clause (i)—</text><subparagraph commented="no" id="id12fa49051dd14a60b04a542843ceccbf"><enum>(A)</enum><text>in subclause (III), by inserting <quote>, including the total number of eligible small business concerns assisted by the program (disaggregated by small business concerns located in a low-income or moderate-income community, small business concerns owned and controlled by women, and rural small business concerns)</quote> before the semicolon at the end;</text></subparagraph><subparagraph commented="no" id="id08b2f5cf71e24558805bb20c6333cb87"><enum>(B)</enum><text>in subclause (IV), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph commented="no" id="iddde2e178704e44659867091eb705fa09"><enum>(C)</enum><text>in subclause (V)—</text><clause commented="no" id="id6e14ede34a474e98a2632e1810b1df34"><enum>(i)</enum><text>by striking <quote>description of best practices</quote> and inserting <quote>detailed description of best practices</quote>; and</text></clause><clause commented="no" id="idcd5c1e043ae64be595b0ed45a5dc47d7"><enum>(ii)</enum><text>by striking the period at the end and inserting a semicolon; and</text></clause></subparagraph><subparagraph commented="no" id="idceb82fccfba54af7bcf7fae08bb7f402"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8e6c495acd424935a41c74ee12a0cf1d"><subclause commented="no" id="idb5010eba5860474a9f55781b1f4e40f4"><enum>(VI)</enum><text>an analysis of the performance metrics described in clause (iii), including a determination of whether or not any goals relating to such performance metrics were met, and an analysis of the survey described in paragraph (9); and</text></subclause><subclause commented="no" id="idd1043f38ca3648bfbb4cb99f45094140"><enum>(VII)</enum><text>a description of lessons learned by grant recipients under this subsection that may apply to other assistance provided by the Administration.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id3338060794e34df9b3ddf08c7aeb2621"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3ebc7681483b4367b13dc94723c11998"><clause commented="no" id="id9a626e5c63774d8dbbab1597a042b240"><enum>(iii)</enum><header>Performance metrics</header><text>Annually, the Associate Administrator shall collect data on eligible small business concerns assisted by the program for the following performance metrics:</text><subclause commented="no" id="id59e2a6e0cc47455586b745abd127888b"><enum>(I)</enum><text>Total number of such concerns, disaggregated by eligible small business concerns that meet 1 or more of the following criteria:</text><item commented="no" id="id1F96E2B842D4457B9B5D7198EBDBB1F7"><enum>(aa)</enum><text>Located in a low-income or moderate-income area.</text></item><item commented="no" id="id89C409D2DF164C51AF11D7E2FB1BDD93"><enum>(bb)</enum><text>Located in a rural area.</text></item><item commented="no" id="id560CA942F40741B58F342F8CDF48FB4F"><enum>(cc)</enum><text>Located in an HUBZone, as that term is defined in section 31(b).</text></item><item commented="no" id="idACEF757A20F14BACB8034280D22D84CB"><enum>(dd)</enum><text>Located in a community that has been designated as an empowerment zone or enterprise community under <external-xref legal-doc="usc" parsable-cite="usc/26/1391">section 1391</external-xref> of the Internal Revenue Code of 1986.</text></item><item commented="no" id="id4528DFD3EB71432FB46D2B13FEB8ADDD"><enum>(ee)</enum><text>Located in a community that has been designated as a promise zone by the Secretary of Housing and Urban Development.</text></item><item commented="no" id="idB38B90BD6D0A49D2A0D717D64AFD977B"><enum>(ff)</enum><text>Located in a community that has been designated as a qualified opportunity zone under <external-xref legal-doc="usc" parsable-cite="usc/26/1400Z">section 1400Z–1</external-xref> of the Internal Revenue Code of 1986.</text></item><item commented="no" id="idC36B760883294A2895952FFA47472DB1"><enum>(gg)</enum><text>Being owned by women. </text></item></subclause><subclause commented="no" id="idf1b09c833dd84a3dadc0904efbf76db5"><enum>(II)</enum><text>Total dollar amount of export sales by eligible small business concerns assisted by the program.</text></subclause><subclause commented="no" id="idda267bf487f24f48a5fa1a47db9d8f14"><enum>(III)</enum><text>Number of such concerns that have not previously participated in an activity described in paragraph (2).</text></subclause><subclause commented="no" id="id3029f058d40642e19d2077e5922e88ce"><enum>(IV)</enum><text>Number of such concerns that, because of participation in the program, have become a first-time exporter.</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id88a9bbf01b6742d49c56e5af0520d0e2"><enum>(V)</enum><text>Number of such concerns that, because of participation in the program, have accessed a new market.</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idf92980a738254da99fe7ae361b72dc37"><enum>(VI)</enum><text display-inline="yes-display-inline">Number of such concerns that have begun exporting to each new market.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section id="idb8bdea0f9ccd4201937c49d58b23c39d"><enum>7.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Paragraph (12) of section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>), as so redesignated by section 3(h) of this Act, is amended by striking <quote>fiscal years 2016 through 2020</quote> and inserting <quote>fiscal years 2025 through 2029</quote>. </text></section><section id="idd877b15606ca401ab0a05c690ffb044f"><enum>8.</enum><header>Report to Congress</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, the Associate Administrator for International Trade of the Small Business Administration shall submit to Congress a report on the State Trade Expansion Program established under section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>), as amended by this Act, that includes a description of—</text><paragraph id="id7e9d36a208bb4a35a4289c5beb0a9aca"><enum>(1)</enum><text>the process developed for review of revised budget plans submitted under subparagraph (G) of section 22(l)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)(3)</external-xref>), as added by section 3(e) of this Act;</text></paragraph><paragraph id="id2ca2745096fa4d30bca6357e76b50621"><enum>(2)</enum><text>any changes made to streamline the application process under the State Trade Expansion Program to remove duplicative requirements and create a more transparent process;</text></paragraph><paragraph id="id12ae7de1a2ff4a02b7b0430324595645"><enum>(3)</enum><text>the process developed to share best practices by States, territories, and commonwealths described in paragraph (10)(B)(i)(V) of section 22(l) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/649">15 U.S.C. 649(l)</external-xref>), as so redesignated by section 3(h) of this Act, particularly for first-time grant recipients under the State Trade Expansion Program or grant recipients that are facing problems using grant funds; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb4169e963e0a494194903baf35d2bf30"><enum>(4)</enum><text>the process developed to communicate, both verbally and in writing, relevant information about the State Trade Expansion Program to all grant recipients in a timely manner.</text></paragraph></section><section id="idd5b9e602d0fc49b4a757d475e6a94ffa"><enum>9.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act and the amendments made by this Act, and the application of the provision or amendment to any other person or circumstance, shall not be affected.</text></section></legis-body><endorsement><action-date date="20240523">May 23, 2024</action-date><action-desc> Read twice and placed on the calendar</action-desc></endorsement></bill> 

