II 111th CONGRESS 1st Session S. 1208 IN THE SENATE OF THE UNITED STATES June 8, 2009 Ms. Snowe introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To amend the Small Business Act to improve export growth opportunities for small businesses, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Export Opportunity Development Act of 2009.

2.

Definitions

In this Act— (1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2)the term Export Assistance Center means a one-stop shop referred to in section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); (3)the term export loan programs means the programs of the Administration under paragraphs (14) and (16) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and section 22 of that Act (15 U.S.C. 649), as amended by this Act; and (4)the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

3.

Office of Small Business Export Development and Promotion

(a)

Office of Small Business Export Development and Promotion

Section 22 of the Small Business Act (15 U.S.C. 649) is amended to read as follows:

22.

Office of Small Business Export Development and Promotion

(a)

Definitions

In this section— (1)the term accredited export assistance program means a program— (A)that provides counseling and assistance relating to exporting to small business concerns; and (B)in which not less than 20 percent of the technical assistance staff members are certified in providing export assistance under subsection (g)(2); (2)the term Associate Administrator means the Associate Administrator for Export Development and Promotion; (3)the term Export Assistance Center means a one-stop shop referred to in section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); (4)the term export development officer means an individual described in subsection (d)(8); (5)the term Office means the Office of Export Promotion and Development established under subsection (b)(1); and (6)the term Service Corps of Retired Executives means the Service Corps of Retired Executives authorized by section 8(b)(1). (b)

Office Established

(1)

Establishment

There is established within the Administration an Office of Export Promotion and Development, which shall carry out the programs under this section. (2)

Associate Administrator

The head of the Office shall be the Associate Administrator for Export Development and Promotion, who shall report directly to the Administrator. (c)

Duties of office

The Associate Administrator, working in close cooperation with the Department of Commerce, the United States Trade Representative, the Export-Import Bank, other relevant Federal agencies, small business development centers, regional and district offices of the Administration, the small business community, and relevant State and local export promotion programs, shall— (1)maintain a distribution network for export promotion, export finance, trade adjustment, trade remedy assistance, and export data collection programs through use of the regional and district offices of the Administration, the small business development center network, the network of women's business centers, chapters of the Service Corps of Retired Executives, and Export Assistance Centers; (2)aggressively market the programs described in paragraph (1) and disseminate information, including computerized marketing data, to the small business community on exporting trends, market-specific growth, industry trends, and international prospects for exports; (3)promote export assistance programs through the district and regional offices of the Administration, the small business development center network, Export Assistance Centers, the network of women's business centers, chapters of the Service Corps of Retired Executives, State and local export promotion programs, and partnerships with people in the private sector; and (4)give preference in hiring or approving the transfer of any employee into the Office or to an export development officer position to otherwise qualified applicants who are fluent in a language in addition to English, who shall— (A)accompany foreign trade missions, if designated by the Associate Administrator; and (B)be available as needed to translate documents, interpret conversations, and facilitate multilingual transactions, including providing referral lists for translation services, if required. (d)

Promotion of sales opportunities

The Associate Administrator shall promote sales opportunities for small business goods and services abroad by— (1)in cooperation with the Department of Commerce, other relevant agencies, regional and district offices of the Administration, the small business development center network, and State programs, developing a mechanism for— (A)identifying sub-sectors of the small business community with strong export potential; (B)identifying areas of demand in foreign markets; (C)prescreening foreign buyers for commercial and credit purposes; and (D)assisting in increasing international marketing by disseminating relevant information regarding market leads, linking potential sellers and buyers, and catalyzing the formation of joint ventures, where appropriate; (2)in cooperation with the Department of Commerce, actively assisting small business concerns in forming and using export trading companies, export management companies and research and development pools authorized under section 9 of this Act; (3)working in conjunction with other Federal agencies, regional and district offices of the Administration, the small business development center network, and the private sector to identify and publicize translation services, including those available through colleges and universities participating in the small business development center program; (4)working closely with the Department of Commerce and other relevant Federal agencies to— (A)collect, analyze, and periodically update relevant data regarding the small business share of United States exports and the nature of State exports (including the production of Gross State Product figures) and disseminate that data to the public and to Congress; (B)make recommendations to the Secretary of Commerce and to Congress regarding revision of the North American Industry Classification System codes to encompass industries currently overlooked and to create North American Industry Classification System codes for export trading companies and export management companies; (C)improve the utility and accessibility of export promotion programs for small business concerns; and (D)increase the accessibility of the Export Trading Company contact facilitation service; (5)making available to the small business community information regarding conferences on exporting and international trade sponsored by the public and private sector; (6)providing small business concerns with access to up-to-date and complete export information by— (A)making available at the district offices of the Administration, through cooperation with the Department of Commerce, export information, including the worldwide information and trade system and world trade data reports; (B)maintaining a list of financial institutions that finance export operations; (C)maintaining a directory of all Federal, regional, State and private sector programs that provide export information and assistance to small business concerns; and (D)preparing and publishing such reports as it determines to be necessary concerning market conditions, sources of financing, export promotion programs, and other information pertaining to the needs of small business export firms so as to insure that the maximum information is made available to small business concerns in a readily usable form; (7)encouraging, in cooperation with the Department of Commerce, greater small business participation in trade fairs, shows, missions, and other domestic and overseas export development activities of the Department of Commerce; (8)facilitating decentralized delivery of export information and assistance to small businesses by assigning primary responsibility for export development to one individual in each district office, who shall— (A)assist small business concerns in obtaining export information and assistance from other Federal departments and agencies; (B)maintain a directory of all programs which provide export information and assistance to small business concerns in the region; (C)encourage financial institutions to develop and expand programs for export financing; (D)provide advice to personnel of the Administration involved in making loans, loan guarantees, and extensions and revolving lines of credit, and providing other forms of assistance to small business concerns engaged in exports; and (E)not later than 120 days after the date on which the person is appointed as an export development officer, and not less frequently than once each year thereafter, participate in training programs designed by the Administrator, in conjunction with the Department of Commerce and other Federal departments and agencies, to study export programs and to examine the needs of small business concerns for export information and assistance; (9)carrying out a nationwide marketing effort to promote exporting as a business development opportunity for small business concerns that uses technology, online resources, training, and other strategies; (10)disseminating information to the small business community through regional and district offices of the Administration, the small business development center network, Export Assistance Centers, the network of women's business centers, chapters of the Service Corps of Retired Executives, State and local export promotion programs, and partners in the private sector regarding exporting trends, market-specific growth, industry trends, and prospects for exporting; and (11)establishing and carrying out training programs for the staff of the district offices of the Administration and resource partners of the Administration on export promotion and providing assistance relating to exports. (e)

Export finance specialist program

(1)

Export finance specialist program

The Associate Administrator shall work in cooperation with the Export-Import Bank of the United States, the Department of Commerce, other relevant Federal agencies, and the States to develop a program through which export finance specialists in the district offices of the Administration, regional and local loan officers, and small business development center personnel can facilitate the access of small business concerns to relevant export financing programs of the Export-Import Bank of the United States and to export and pre-export financing programs available from the Administration and the private sector. (2)

Program activities

To carry out paragraph (1), the Associate Administrator shall work in cooperation with the Export-Import Bank of the United States and the small business community, including small business trade associations, to— (A)aggressively market Administration export financing and pre-export financing programs; (B)identify financing available under various programs of the Export-Import Bank of the United States, and aggressively market those programs to small business concerns; (C)assist in the development of financial intermediaries and facilitate the access of those intermediaries to financing programs; (D)promote greater participation by private financial institutions, particularly those institutions already participating in loan programs under this Act, in export finance; and (E)provide for the participation of appropriate Administration personnel in training programs conducted by the Export-Import Bank of the United States. (f)

Counseling for small business concerns

The Associate Administrator shall— (1)work in cooperation with other Federal agencies and the private sector to counsel small business concerns with respect to initiating and participating in any proceedings relating to the administration of the United States trade laws; and (2)work with the Department of Commerce, the Office of the United States Trade Representative, and the International Trade Commission to increase access to trade remedy proceedings for small business concerns. (g)

Export assistance programs

(1)

In general

The Associate Administrator shall require, as part of the agreement under section 21, that each small business development center has an accredited export assistance program. (2)

Certification

The Associate Administrator shall certify technical assistance staff members of small business development centers in providing export assistance, in accordance with such criteria as the Associate Administrator may establish. (3)

Training

The Associate Administrator shall provide training relating to export assistance programs at the annual conference of small business development centers. (4)

Report

The Associate Administrator shall submit an annual report to Congress that includes— (A)the number of small business concerns assisted by accredited export assistance programs; (B)the export revenue generated by small business concerns assisted by accredited export assistance programs; and (C)an estimate of the number of jobs created or retained because of assistance provided by accredited export assistance programs. (h)

Export Assistance Officer

The Associate Administrator shall— (1)assign an export assistance officer with training in export assistance and marketing to each district office of the Administration, who shall— (A)conduct training and information sessions for small business concerns interested in exporting; and (B)conduct outreach to small business concerns with the potential to export; and (2)provide annual training for export assistance officers. (i)

Export Development Grant Program

(1)

Definitions

In this subsection— (A)the term eligible small-business concern means a small-business concern— (i)that— (I)has been in business for not less than 1 year; (II)has profitable domestic sales; (III)has demonstrated understanding of the costs associated with exporting and doing business with foreign purchasers, including the costs of freight forwarding, customs brokers, packing and shipping, as determined by the Administrator; and (IV)has in place a strategic plan for exporting; (ii)an employee of which has completed an accredited export assistance program; and (iii)that agrees to provide to the Associate Administrator such information and documentation as is necessary for the Associate Administrator to determine that the small-business concern is in compliance with the internal revenue laws of the United States; (B)the term export initiative includes— (i)participation in a trade mission; (ii)a foreign market sales trip; (iii)a subscription to services provided by the Department of Commerce; (iv)the payment of website translation fees; (v)the design of international marketing media; (vi)a trade show exhibition; and (vii)participation in training workshops; and (C)the term small-business concern has the same meaning as in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662). (2)

Grant program

The Associate Administrator shall establish an export development grant program, under which the Associate Administrator may make grants to eligible small-business concerns to enhance the capability of the eligible small-business concerns to be globally competitive, increase business internationally, and increase export sales. (3)

Application

An eligible small-business concern that desires a grant under this subsection shall submit to the Associate Administrator at such time and in such manner as the Associate Administrator shall prescribe an application that identifies not less than 1 specific, achievable export initiative that the eligible small-business concern will carry out using a grant under this subsection. (4)

Amount

A grant under this subsection may not exceed $5,000. (5)

Matching funds

The Federal share of the cost of an export initiative carried out with a grant under this subsection shall be not more than 50 percent. The non-Federal share of the cost of an activity carried out with a grant under this subsection may be in kind or in cash. (6)

Information and documentation

An eligible small-business concern that receives a grant under this subsection shall provide to the Associate Administrator— (A)receipts for all expenditures made with the grant; and (B)information relating to any export sales resulting from the grant. (7)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $25,000,000 for fiscal year 2010 and each fiscal year thereafter. (j)

Performance measures

(1)

In general

The Associate Administrator shall develop performance measures for the Administration to support export growth goals for the activities of the Office under this section that include— (A)the number of small business concerns that— (i)receive assistance from the Administration; (ii)had not exported goods or services before receiving the assistance described in clause (i); and (iii)export goods or services; (B)the number of small business concerns receiving assistance from the Administration that export goods or services to a market outside the United States into which the small business concern did not export before receiving the assistance; (C)export revenues by small business concerns assisted by programs of the Administration; (D)the number of small business concerns referred to an Export Assistance Center or a small business development center by the staff of the Office; and (E)the number of small business concerns referred to the Administration by an Export Assistance Center or a small business development center. (2)

Consistency of tracking

The Associate Administrator, in coordination with the departments and agencies that are represented on the Trade Promotion Coordinating Committee established under section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small business development center network, shall develop a system to track exports by small business concerns, including information relating to the performance measures described in paragraph (1), that is consistent with systems used by the departments and agencies and the network. (3)

Reports

The Associate Administrator shall submit an annual report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives that includes— (A)a detailed account of the information relating to the performance measures described in paragraph (1); and (B)a description of the export assistance and services provided to small business concerns by the Administration. (k)

Report

The Associate Administrator shall submit an annual report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on the progress of the Administration in implementing the requirements under this section. (l)

Discharge of Administration Export Promotion Responsibilities

The Administrator shall ensure that— (1)the responsibilities of the Administration regarding international trade and exporting are carried out through the Associate Administrator; (2)the Associate Administrator has sufficient resources to carry out such responsibilities; and (3)the Associate Administrator has direct supervision and control over the staff of the Office, and over any employee of the Administration whose principal duty station is an Export Assistance Center or any successor entity.

. (b)

Export development officers

(1)

Appointment

Not later than 90 days after the date of enactment of this Act, the Administrator shall ensure that export development officers are assigned to each district office of the Administration, in accordance with section 22(d)(8) of the Small Business Act, as amended by this section. (2)

Definition

In this subsection, the term export development officer has the meaning given that term in section 22 of the Small Business Act (15 U.S.C. 649), as amended by this Act. (c)

Export Assistance Centers

(1)

Vacant positions

Not later than 90 days after the date of enactment of this Act, the Administrator shall ensure that the number of full-time equivalent employees of the Office of Export Development and Promotion assigned to the Export Assistance Centers is not less than the number of such employees so assigned on January 1, 2003. (2)

Export development officers

Not later than 2 years after the date of enactment of this Act, the Administrator, in coordination with the Secretary of Commerce, shall ensure that export finance specialists are assigned to not fewer than 40 Export Assistance Centers. (3)

Study

Not later than 6 months after the date of enactment of this Act, the Associate Administrator for Export Development and Promotion shall carry out a nationwide study to evaluate where additional export finance specialists are needed. (4)

Definition

In this subsection, the term export finance specialist means an export finance specialist described in section 22(e)(1) of the Small Business Act (15 U.S.C. 649(e)(1)), as amended by this section. (d)

Appointment of Associate Administrator

Not later than 90 days after the date of enactment of this Act, the Administrator shall appoint an Associate Administrator for Export Development and Promotion under section 22 of the Small Business Act (15 U.S.C. 649), as amended by this section. (e)

Technical and conforming amendments

(1)

Number of associate administrators

Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended— (A)in the fifth sentence, by striking five; and (B)by adding at the end the following: One of the Associate Administrators shall be the Associate Administrator for Export Development and Promotion, who shall be the head of the Office of Export Development and Promotion established under section 22.. (2)

Role of Associate Administrator in Carrying out International Trade and Export Policy

Section 2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) is amended in the matter preceding subparagraph (A) by inserting through the Associate Administrator for Export Development and Promotion of before the Small Business Administration.

4.

Export finance programs

(a)

Export working capital program

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (1)in paragraph (2)(D), by striking not exceed and inserting be; and (2)in paragraph (14)— (A)by striking (A) The Administration and inserting the following: “Export working capital program.— (A)

In general

The Administrator ; (B)by striking (B) When considering and inserting the following: (C)

Considerations

When considering ; (C)by striking (C) The Administration and inserting the following: (D)

Marketing

The Administrator ; and (D)by inserting after subparagraph (A) the following: (B)

Terms

(i)

Loan amount

The Administrator may not guarantee a loan under this paragraph of more than $5,000,000. (ii)

Fees

(I)

In general

For a loan under this paragraph, the Administrator shall collect the fee assessed under paragraph (23) not more frequently than once each year. (II)

Untapped credit

The Administrator may not assess a fee on capital that is not accessed by the small business concern. . (b)

Participation in Preferred Lenders Program

Section 7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) is amended— (1)by redesignating clause (ii) as clause (iii); and (2)by inserting after clause (i) the following: (ii)

Export-Import Bank lenders

Any lender that is participating in the Delegated Authority Lender Program of the Export-Import Bank of the United States (or any successor to the Program) shall be eligible to participate in the Preferred Lenders Program. . (c)

Export Express Program

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (1)by striking (32) Increased veteran and inserting (33) Increased veteran; and (2)by adding at the end the following: (34)

Export Express Program

(A)

Definitions

In this paragraph— (i)the term export development activity includes— (I)obtaining a standby letter of credit when required as a bid bond, performance bond, or advance payment guarantee; (II)participation in a trade show that takes place outside the United States; (III)translation of product brochures or catalogues for use in markets outside the United States; (IV)obtaining a general line of credit for export purposes; (V)performing a service contract from buyers located outside the United States; (VI)obtaining transaction-specific financing associated with completing export orders; (VII)purchasing real estate or equipment to be used in the production of goods or services for export; (VIII)providing term loans or other financing to enable a small business concern, including an export trading company and an export management company, to develop a market outside the United States; and (IX)acquiring, constructing, renovating, modernizing, improving, or expanding a production facility or equipment to be used in the United States in the production of goods or services for export; and (ii)the term express loan means a loan in which a lender uses to the maximum extent practicable the loan analyses, procedures, and documentation of the lender to provide expedited processing of the loan application. (B)

Authority

The Administrator may guarantee the timely payment of an express loan to a small business concern made for an export development activity. (C)

Level of participation

(i)

Maximum amount

The maximum amount of an express loan guaranteed under this paragraph shall be $500,000. (ii)

Percentage

For an express loan guaranteed under this paragraph, the Administrator shall guarantee— (I)90 percent of a loan that is not more than $350,000; and (II)75 percent of a loan that is more than $350,000 and not more than $500,000. . (d)

International trade loans

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (1)in paragraph (3)(B), by striking $1,750,000, of which not more than $1,250,000 and inserting $5,000,000, of which not more than $4,000,000; and (2)in paragraph (16)— (A)in subparagraph (B), by striking a first lien position and all that follows and inserting such collateral as is determined adequate by the Administrator.; (B)in subparagraph (D), by striking clauses (i) and (ii) and inserting the following: (i)is confronting— (I)increased competition with foreign firms in the relevant market; or (II)an unfair trade practice by a foreign firm, particularly intellectual property violations; and (ii)is injured by the competition or unfair trade practice. ; and (C)by adding at the end the following: (F)

Guarantee

For a loan guaranteed under this paragraph, the Administrator shall guarantee 90 percent of the loan. (G)

Definition

In this paragraph, the term small business concern has the meaning given the term small-business concern in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662). . (e)

Technical and conforming amendments

Section 7 of the Small Business Act (15 U.S.C. 636) is amended— (1)in subsection (a)— (A)in paragraph (2)(A), in the matter preceding clause (i), by inserting or (D) of this paragraph or in paragraph (16) or (34) after in subparagraph (B); and (B)in paragraph (3), in the matter preceding subparagraph (A), by striking No and inserting Except as provided in paragraph (14)(B), no; and (2)in subsection (c)— (A)in paragraph (1)— (i)in subparagraph (D), by striking Lender and inserting Lenders; (ii)in subparagraph (E)— (I)by striking Lender and inserting Lenders; and (II)by striking subsection (a)(2)(C)(ii) and inserting subsection (a)(2)(C)(iii); and (B)in paragraph (7)(B)(ii), by striking Lender and inserting Lenders.

5.

Marketing of export loans

The Administrator shall make efforts to expand the network of lenders participating in the export loan programs, including by— (1)conducting outreach to regional and community lenders through the staff of the Administration assigned to Export Assistance Centers or to district offices of the Administration; (2)developing a lender training program regarding the export loan programs for employees of lenders; (3)simplifying and streamlining the application, processing, and reporting processes for the export loan programs; and (4)establishing online, paperless processing and application submission for the export loan programs.

6.

Small Business Trade Policy

(a)

Assistant United States Trade Representative for Small Business

Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended— (1)by adding at the end the following: (6)(A)There is established within the Office the position of Assistant United States Trade Representative for Small Business, who shall be appointed by the United States Trade Representative. (B)The Assistant United States Trade Representative for Small Business shall— (i)promote the trade interests of small-business concerns (as that term is defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)); (ii)advocate for the reduction of foreign trade barriers with regard to the trade issues of small-business concerns that are exporters; (iii)collaborate with the Administrator of the Small Business Administration with regard to the trade issues of small-business concern trade issues; (iv)assist the United States Trade Representative in developing trade policies that increase opportunities for small-business concerns in foreign and domestic markets, including polices that reduce trade barriers for small-business concerns; and (v)perform such other duties as the United States Trade Representative may direct. ; and (2)by moving paragraph (5) 2 ems to the left. (b)

Trade Promotion Coordinating Committee

(1)

Detailee

Section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) is amended by adding at the end the following: (g)

Small Business Administration

The Administrator of the Small Business Administration shall detail an employee of the Small Business Administration having expertise in export promotion to the TPCC to encourage the TPCC to— (1)collaborate with the Small Business Administration with regard to trade promotion efforts; and (2)consider the interests of small-business concerns (as that term is defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)) in the development of trade promotion policies and programs. . (2)

National export strategy

Section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) is amended— (A)in subsection (c)— (i)in paragraph (5), by striking and at the end; (ii)in paragraph (6), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following: (7)include an export strategy for small-business concerns (as that term is defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)), which shall— (A)be developed by the Administrator of the Small Business Administration; and (B)include strategies to— (i)increase export opportunities for small-business concerns; (ii)protect small-business concerns from unfair trade practices, including intellectual property violations; (iii)assist small-business concerns with international regulatory compliance requirements; and (iv)coordinate policy and program efforts throughout the United States with the TPCC, the Department of Commerce, and the Export Import Bank of the United States. ; and (B)in subsection (f), in paragraph (1), by inserting (including implementation of the export strategy for small business concerns described in paragraph (7) of that subsection) after the implementation of such plan. (c)

Recommendations on trade agreements

(1)

Notification by USTR

Not later than 90 days before the United States Trade Representative begins a negotiation with regard to any trade agreement, the United States Trade Representative shall notify the Administrator of the date the negotiation will begin. (2)

Recommendations

Not later than 30 days before the United States Trade Representative begins a negotiation with regard to any trade agreement, the Administrator shall present to the United States Trade Representative recommendations relating to the needs and concerns of small business concerns that are exporters. (d)

Trade disputes

The Administrator shall carry out a comprehensive program to provide technical assistance, counseling, and reference materials to small business concerns relating to resources, procedures, and requirements for mechanisms to resolve international trade disputes or address unfair international trade practices under international trade agreements or Federal law, including— (1)directing the district offices of the Administration to provide referrals, information, and other services to small business concerns relating to the mechanisms; (2)entering agreements and partnerships with providers of legal services relating to the mechanisms, to ensure small business concerns may affordably use the mechanisms; and (3)in consultation with the Director of the United States Patent and Trademark Office and the Register of Copyrights, designing counseling services and materials for small business concerns regarding intellectual property protection in other countries.