[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2862 Reported in Senate (RS)]

                                                       Calendar No. 633
111th CONGRESS
  2d Session
                                S. 2862

                          [Report No. 111-341]

To amend the Small Business Act to improve the Office of International 
                     Trade, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 9, 2009

   Ms. Snowe (for herself, Ms. Landrieu, Mrs. Shaheen, Mr. Bayh, Mr. 
Cardin, Mr. Cochran, Ms. Klobuchar, Mr. Kerry, Mr. Burris, Mrs. Boxer, 
 Mr. Merkley, Mr. Specter, Mr. Udall of New Mexico, and Ms. Cantwell) 
introduced the following bill; which was read twice and referred to the 
            Committee on Small Business and Entrepreneurship

                           September 29, 2010

              Reported by Ms. Landrieu, without amendment

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to improve the Office of International 
                     Trade, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Export Enhancement 
and International Trade Act of 2009''.

SEC. 2. DEFINITIONS.

    (a) Definitions.--In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``Associate Administrator'' means the 
        Associate Administrator for International Trade appointed under 
        section 22(a)(2) of the Small Business Act, as amended by this 
        Act;
            (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 ``rural small business concern'' means a small 
        business concern located in a rural area, as that term is 
        defined in section 1393(a)(2) of the Internal Revenue Code of 
        1986; and
            (5) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).
    (b) Technical and Conforming Amendments.--
            (1) Definitions.--Section 3 of the Small Business Act (15 
        U.S.C. 632) is amended by adding at the end the following:
    ``(t) Small Business Development Center.--In this Act, the term 
`small business development center' means a small business development 
center described in section 21.
    ``(u) Region of the Administration.--In this Act, the term `region 
of the Administration' means the geographic area served by a regional 
office of the Administration established under section 4(a).''.
            (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
        Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
        striking ``Administration district and region'' and inserting 
        ``district and region of the Administration''.

SEC. 3. OFFICE OF INTERNATIONAL TRADE.

    (a) Establishment.--Section 22 of the Small Business Act (15 U.S.C. 
649) is amended--
            (1) by striking ``Sec. 22. (a) There'' and inserting the 
        following:

``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

    ``(a) Establishment.--
            ``(1) Office.--There''; and
            (2) in subsection (a)--
                    (A) in paragraph (1), as so designated, by striking 
                the period and inserting ``for the primary purposes of 
                increasing--
                    ``(A) the number of small business concerns that 
                export; and
                    ``(B) the volume of exports by small business 
                concerns.''; and
                    (B) by adding at the end the following:
            ``(2) Associate administrator.--The head of the Office 
        shall be the Associate Administrator for International Trade, 
        who shall be responsible to the Administrator.''.
    (b) Authority for Additional Associate Administrator.--Section 
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
            (1) in the fifth sentence, by striking ``five Associate 
        Administrators'' and inserting ``Associate Administrators''; 
        and
            (2) by adding at the end the following: ``One such 
        Associate Administrator shall be the Associate Administrator 
        for International Trade, who shall be the head of the Office of 
        International Trade established under section 22.''.
    (c) Discharge of International Trade Responsibilities of 
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649) 
is amended by adding at the end the following:
    ``(h) Discharge of International Trade Responsibilities of 
Administration.--The Administrator shall ensure that--
            ``(1) the responsibilities of the Administration regarding 
        international trade are carried out by 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--
                    ``(A) the staff of the Office; and
                    ``(B) any employee of the Administration whose 
                principal duty station is an Export Assistance Center, 
                or any successor entity.''.
    (d) Role of Associate Administrator in Carrying Out International 
Trade 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)--
            (1) by inserting ``the Administrator of'' before ``the 
        Small Business Administration''; and
            (2) by inserting ``through the Associate Administrator for 
        International Trade, and'' before ``in cooperation with''.
    (e) Implementation Date.--Not later than 90 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration shall appoint an Associate Administrator for 
International Trade under section 22(a) of the Small Business Act (15 
U.S.C. 649(a)), as added by this section.

SEC. 4. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

    (a) Amendments to Section 22.--Section 22 of the Small Business Act 
(15 U.S.C. 649) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Trade Distribution Network.--The Associate Administrator, 
working in close cooperation with the Secretary of Commerce, the United 
States Trade Representative, the Export-Import Bank of the United 
States, the Overseas Private Investment Corporation, and other relevant 
Federal agencies, small business development centers engaged in export 
promotion efforts, Export Assistance 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, using regional and 
        district offices of the Administration, the small business 
        development center network, networks of women's business 
        centers, the Service Corps of Retired Executives authorized by 
        section 8(b)(1), and Export Assistance Centers, for programs 
        relating to--
                    ``(A) trade promotion;
                    ``(B) trade finance;
                    ``(C) trade adjustment assistance;
                    ``(D) trade remedy assistance; and
                    ``(E) trade data collection;
            ``(2) aggressively market the programs described in 
        paragraph (1) and disseminate information, including 
        computerized marketing data, to small business concerns 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 partners in the private sector; and
            ``(4) give preference in hiring or approving the transfer 
        of any employee into the Office or to a position described in 
        subsection (c)(9) to otherwise qualified applicants who are 
        fluent in a language in addition to English, to--
                    ``(A) accompany small business concerns on foreign 
                trade missions; and
                    ``(B) translate documents, interpret conversations, 
                and facilitate multilingual transactions, including by 
                providing referral lists for translation services, if 
                required.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) The Office'' and inserting 
                the following:
    ``(c) Promotion of Sales Opportunities.--The Associate 
Administrator'';
                    (B) by redesignating paragraphs (1) through (8) as 
                paragraphs (2) through (9), respectively;
                    (C) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) establish annual goals for the Office relating to--
                    ``(A) enhancing the exporting capability of small 
                business concerns and small manufacturers;
                    ``(B) facilitating technology transfers;
                    ``(C) enhancing programs and services to assist 
                small business concerns and small manufacturers to 
                compete effectively and efficiently against foreign 
                entities;
                    ``(D) increasing the ability of small business 
                concerns to access capital;
                    ``(E) disseminating information concerning Federal, 
                State, and private programs and initiatives; and
                    ``(F) ensuring that the interests of small business 
                concerns are adequately represented in trade 
                negotiations;'';
                    (D) in paragraph (2), as so redesignated, by 
                striking ``mechanism for'' and all that follows through 
                ``(D) assisting'' and inserting the following: 
                ``mechanism for--
                    ``(A) identifying subsectors 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'';
                    (E) in paragraph (3), as so redesignated, by 
                striking ``assist small businesses in the formation and 
                utilization of'' and inserting ``assist small business 
                concerns in forming and using'';
                    (F) in paragraph (4), as so redesignated--
                            (i) by striking ``local'' and inserting 
                        ``district'';
                            (ii) by striking ``existing'';
                            (iii) by striking ``Small Business 
                        Development Center network'' and inserting 
                        ``small business development center network''; 
                        and
                            (iv) by striking ``Small Business 
                        Development Center Program'' and inserting 
                        ``small business development center program'';
                    (G) in paragraph (5), as so redesignated--
                            (i) in subparagraph (A), by striking 
                        ``Gross State Produce'' and inserting ``Gross 
                        State Product'';
                            (ii) in subparagraph (B), by striking 
                        ``SIC'' each place it appears and inserting 
                        ``North American Industry Classification 
                        System''; and
                            (iii) in subparagraph (C), by striking 
                        ``small businesses'' and inserting ``small 
                        business concerns'';
                    (H) in paragraph (6), as so redesignated, by 
                striking the period at the end and inserting a 
                semicolon;
                    (I) in paragraph (7), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by inserting ``concerns'' after 
                                ``small business''; and
                                    (II) by striking ``current'' and 
                                inserting ``up to date'';
                            (ii) in subparagraph (A), by striking 
                        ``Administration's regional offices'' and 
                        inserting ``regional and district offices of 
                        the Administration'';
                            (iii) in subparagraph (B) by striking 
                        ``current'';
                            (iv) in subparagraph (C), by striking 
                        ``current''; and
                            (v) by striking ``small businesses'' each 
                        place that term appears and inserting ``small 
                        business concerns'';
                    (J) in paragraph (8), as so redesignated, by 
                striking and at the end;
                    (K) in paragraph (9), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``full-time export 
                                development specialists to each 
                                Administration regional office and 
                                assigning''; and
                                    (II) by striking ``person in each 
                                district office. Such specialists'' and 
                                inserting ``individual in each district 
                                office and providing each 
                                Administration regional office with a 
                                full-time export development 
                                specialist, who'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``current''; and
                                    (II) by striking ``with'' and 
                                inserting ``in'';
                            (iii) in subparagraph (D)--
                                    (I) by striking ``Administration 
                                personnel involved in granting'' and 
                                inserting ``personnel of the 
                                Administration involved in making''; 
                                and
                                    (II) by striking ``and'' at the 
                                end;
                            (iv) in subparagraph (E)--
                                    (I) by striking ``small businesses' 
                                needs'' and inserting ``the needs of 
                                small business concerns''; and
                                    (II) by striking the period at the 
                                end and inserting a semicolon;
                            (v) by adding at the end the following:
                    ``(F) participate, jointly with employees of the 
                Office, in an annual training program that focuses on 
                current small business needs for exporting; and
                    ``(G) develop and conduct training programs for 
                exporters and lenders, in cooperation with the Export 
                Assistance Centers, the Department of Commerce, small 
                business development centers, women's business centers, 
                the Export-Import Bank of the United States, the 
                Overseas Private Investment Corporation, and other 
                relevant Federal agencies;''; and
                            (vi) by striking ``small businesses'' each 
                        place that term appears and inserting ``small 
                        business concerns''; and
                    (L) by adding at the end the following:
            ``(10) make available on the website of the Administration 
        the name and contact information of each individual described 
        in paragraph (9);
            ``(11) carry out a nationwide marketing effort using 
        technology, online resources, training, and other strategies to 
        promote exporting as a business development opportunity for 
        small business concerns;
            ``(12) disseminate 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 
        authorized by section 8(b)(1), 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
            ``(13) establish and carry out training programs for the 
        staff of the regional and district offices of the 
        Administration and resource partners of the Administration on 
        export promotion and providing assistance relating to 
        exports.'';
            (3) in subsection (d)--
                    (A) by redesignating paragraphs (1) through (5) as 
                clauses (i) through (v), respectively, and adjusting 
                the margins accordingly;
                    (B) by striking ``(d) The Office'' and inserting 
                the following:
    ``(d) Export Financing Programs.--
            ``(1) In general.--The Associate Administrator''; and
                    (C) by striking ``To accomplish this goal, the 
                Office shall work'' and inserting the following:
            ``(2) Trade finance specialist.--To accomplish the goal 
        established under paragraph (1), the Associate Administrator 
        shall--
                    ``(A) designate at least 1 individual within the 
                Administration as a trade finance specialist to oversee 
                international loan programs and assist Administration 
                employees with trade finance issues; and
                    ``(B) work'';
            (4) in subsection (e), by striking ``(e) The Office'' and 
        inserting the following:
    ``(e) Trade Remedies.--The Associate Administrator'';
            (5) by amending subsection (f) to read as follows:
    ``(f) Reporting Requirement.--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 contains--
            ``(1) a description of the progress of the Office in 
        implementing the requirements of this section;
            ``(2) a detailed account of the results of export growth 
        activities of the Administration, including the activities of 
        each district and regional office of the Administration, based 
        on the performance measures described in subsection (i);
            ``(3) an estimate of the total number of jobs created or 
        retained as a result of export assistance provided by the 
        Administration and resource partners of the Administration;
            ``(4) for any travel by the staff of the Office, the 
        destination of such travel and the benefits to the 
        Administration and to small business concerns resulting from 
        such travel; and
            ``(5) a description of the participation by the Office in 
        trade negotiations.'';
            (6) in subsection (g), by striking ``(g) The Office'' and 
        inserting the following:
    ``(g) Studies.--The Associate Administrator''; and
            (7) by adding after subsection (h), as added by section 3 
        of this Act, the following:
    ``(i) Export and Trade Counseling.--
            ``(1) Definition.--In this subsection--
                    ``(A) the term `lead small business development 
                center' means a small business development center that 
                has received a grant from the Administration; and
                    ``(B) the term `lead women's business center' means 
                a women's business center that has received a grant 
                from the Administration.
            ``(2) Certification program.--The Administrator shall 
        establish an export and trade counseling certification program 
        to certify employees of lead small business development centers 
        and lead women's business centers in providing export 
        assistance to small business concerns.
            ``(3) Number of certified employees.--The Administrator 
        shall ensure that the number of employees of each lead small 
        business development center who are certified in providing 
        export assistance is not less than the lesser of--
                    ``(A) 5; or
                    ``(B) 10 percent of the total number of employees 
                of the lead small business development center.
            ``(4) Reimbursement for certification.--
                    ``(A) In general.--Subject to the availability of 
                appropriations, the Administrator shall reimburse a 
                lead small business development center or a lead 
                women's business center for costs relating to the 
                certification of an employee of the lead small business 
                center or lead women's business center in providing 
                export assistance under the program established under 
                paragraph (2).
                    ``(B) Limitation.--The total amount reimbursed by 
                the Administrator under subparagraph (A) may not exceed 
                $350,000 in any fiscal year.
    ``(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;
                    ``(E) the number of small business concerns 
                referred to the Administration by an Export Assistance 
                Center or a small business development center; and
                    ``(F) the number of small business concerns 
                referred to the Export-Import Bank of the United States 
                or to the Overseas Private Investment Corporation by 
                the staff of the Office, an Export Assistance Center, 
                or a small business development center.
            ``(2) Joint performance measures.--The Associate 
        Administrator shall develop joint performance measures for the 
        district offices of the Administration and the Export 
        Assistance Centers that include the number of export loans made 
        under--
                    ``(A) section 7(a)(16);
                    ``(B) the Export Working Capital Program 
                established under section 7(a)(14);
                    ``(C) the Preferred Lenders Program, as defined in 
                section 7(a)(2)(C)(ii); and
                    ``(D) the export express program established under 
                section 7(a)(34).
            ``(3) 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 developed under paragraph 
        (1), that is consistent with systems used by the departments 
        and agencies and the network.''.
    (b) 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.
    (c) Report.--Not later than 60 days after the date of enactment of 
this Act, the Administrator shall submit a report to the Committee on 
Small Business and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives on any travel by the 
staff of the Office of International Trade of the Administration, 
during the period beginning on October 1, 2004, and ending on the date 
of enactment of the Act, including the destination of such travel and 
the benefits to the Administration and to small business concerns 
resulting from such travel.

SEC. 5. EXPORT ASSISTANCE CENTERS.

    (a) Export Assistance Centers.--Section 22 of the Small Business 
Act (15 U.S.C. 649), as amended by this Act, is amended by adding at 
the end the following:
    ``(k) Export Assistance Centers.--
            ``(1) Export finance specialists.--
                    ``(A) Minimum number of export finance 
                specialists.--On and after January 1, 2010, the 
                Administrator, in coordination with the Secretary of 
                Commerce, shall ensure that the number of export 
                finance specialists is not less than the number of such 
                employees so assigned on January 1, 2003.
                    ``(B) Export finance specialists assigned to each 
                region of the administration.--On and after the date 
                that is 2 years after the date of enactment of this 
                subsection, the Administrator, in coordination with the 
                Secretary of Commerce, shall ensure that there are not 
                fewer than 3 export finance specialists in each region 
                of the Administration.
            ``(2) Placement of export finance specialists.--
                    ``(A) Priority.--The Administrator shall give 
                priority, to the maximum extent practicable, to placing 
                employees of the Administration at any Export 
                Assistance Center that--
                            ``(i) had an Administration employee 
                        assigned to the Export Assistance Center before 
                        January 2003; and
                            ``(ii) has not had an Administration 
                        employee assigned to the Export Assistance 
                        Center during the period beginning January 
                        2003, and ending on the date of enactment of 
                        this subsection, either through retirement or 
                        reassignment.
                    ``(B) Needs of exporters.--The Administrator shall, 
                to the maximum extent practicable, strategically assign 
                Administration employees to Export Assistance Centers, 
                based on the needs of exporters.
                    ``(C) Rule of construction.--Nothing in this 
                subsection may be construed to require the 
                Administrator to reassign or remove an export finance 
                specialist who is assigned to an Export Assistance 
                Center on the date of enactment of this subsection.
            ``(3) Goals.--The Associate Administrator shall work with 
        the Department of Commerce, the Export-Import Bank of the 
        United States, and the Overseas Private Investment Corporation 
        to establish shared annual goals for the Export Assistance 
        Centers.
            ``(4) Oversight.--The Associate Administrator shall 
        designate an individual within the Administration to oversee 
        all activities conducted by Administration employees assigned 
        to Export Assistance Centers.
    ``(l) Definitions.--In this section--
            ``(1) the term `Associate Administrator' means the 
        Associate Administrator for International Trade described in 
        subsection (a)(2);
            ``(2) the term `Export Assistance Center' means a one-stop 
        shop for United States exporters established by the United 
        States and Foreign Commercial Service of the Department of 
        Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
        and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
            ``(3) the term `export finance specialist' means a full-
        time equivalent employee of the Office assigned to an Export 
        Assistance Center to carry out the duties described in 
        subsection (e); and
            ``(4) the term `Office' means the Office of International 
        Trade established under subsection (a)(1).''.
    (b) Study and Report on Filling Gaps in High-and-Low-Export Volume 
Areas.--
            (1) Study and report.--Not later than 6 months after the 
        date of enactment of this Act, and every 2 years thereafter, 
        the Administrator shall--
                    (A) conduct a study of--
                            (i) the volume of exports for each State;
                            (ii) the availability of export finance 
                        specialists in each State;
                            (iii) the number of exporters in each State 
                        that are small business concerns;
                            (iv) the percentage of exporters in each 
                        State that are small business concerns;
                            (v) the change, if any, in the number of 
                        exporters that are small business concerns in 
                        each State--
                                    (I) for the first study conducted 
                                under this subparagraph, during the 10-
                                year period ending on the date of 
                                enactment of this Act; and
                                    (II) for each subsequent study, 
                                during the 10-year period ending on the 
                                date the study is commenced;
                            (vi) the total value of the exports in each 
                        State by small business concerns;
                            (vii) the percentage of the total volume of 
                        exports in each State that is attributable to 
                        small business concerns; and
                            (viii) the change, if any, in the 
                        percentage of the total volume of exports in 
                        each State that is attributable to small 
                        business concerns--
                                    (I) for the first study conducted 
                                under this subparagraph, during the 10-
                                year period ending on the date of 
                                enactment of this Act; and
                                    (II) for each subsequent study, 
                                during the 10-year period ending on the 
                                date the study is commenced; and
                    (B) 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 
                containing--
                            (i) the results of the study under 
                        subparagraph (A);
                            (ii) to the extent practicable, a 
                        recommendation regarding how to eliminate gaps 
                        between the supply of and demand for export 
                        finance specialists in the 15 States that have 
                        the greatest volume of exports, based upon the 
                        most recent data available from the Department 
                        of Commerce;
                            (iii) to the extent practicable, a 
                        recommendation regarding how to eliminate gaps 
                        between the supply of and demand for export 
                        finance specialists in the 15 States that have 
                        the lowest volume of exports, based upon the 
                        most recent data available from the Department 
                        of Commerce; and
                            (iv) such additional information as the 
                        Administrator determines is appropriate.
            (2) Definition.--In this subsection, the term ``export 
        finance specialist'' has the meaning given that term in section 
        22(l) of the Small Business Act, as added by this Act.

SEC. 6. INTERNATIONAL TRADE FINANCE PROGRAMS.

    (a) Loan Limits.--
            (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
        Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
        striking ``$1,750,000, of which not more than $1,250,000'' and 
        inserting ``$4,500,000 (or if the gross loan amount would 
        exceed $5,000,000), of which not more than $4,000,000''.
            (2) Participation.--Section 7(a)(2) of the Small Business 
        Act (15 U.S.C. 636(a)(2)) is amended--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``subparagraph (B)'' and 
                inserting ``subparagraphs (B), (D), and (E)'';
                    (B) in subparagraph (D), by striking 
                ``Notwithstanding subparagraph (A), in'' and inserting 
                ``In''; and
                    (C) by adding at the end the following:
                    ``(E) Participation in international trade loan.--
                In an agreement to participate in a loan on a deferred 
                basis under paragraph (16), the participation by the 
                Administration may not exceed 90 percent.''.
    (b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act 
(15 U.S.C. 636(a)(16)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``in--
        '' and inserting ``--'';
            (2) in clause (i)--
                    (A) by inserting ``in'' after ``(i)''; and
                    (B) by striking ``or'' at the end;
            (3) in clause (ii)--
                    (A) by inserting ``in'' after ``(ii)''; and
                    (B) by striking the period at the end and inserting 
                ``, including any debt that qualifies for refinancing 
                under any other provision of this subsection; or''; and
            (4) by adding at the end the following:
                            ``(iii) by providing working capital.''.
    (c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15 
U.S.C. 636(a)(16)(B)) is amended--
            (1) by striking ``Each loan'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), each loan''; and
            (2) by adding at the end the following:
                            ``(ii) Exception.--A loan under this 
                        paragraph may be secured by a second lien 
                        position on the property or equipment financed 
                        by the loan or on other assets of the small 
                        business concern, if the Administrator 
                        determines the lien provides adequate assurance 
                        of the payment of the loan.''.
    (d) 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.''.
    (e) 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.''.
    (f) 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.''.
    (g) Annual Listing of Export Finance Lenders.--Section 7(a)(16) of 
the Small Business Act (15 U.S.C. 636(a)(16)) is amended by adding at 
the end the following:
                    ``(F) List of export finance lenders.--
                            ``(i) Publication of list required.--The 
                        Administrator shall publish an annual list of 
                        the banks and participating lending 
                        institutions that, during the 1-year period 
                        ending on the date of publication of the list, 
                        have made loans guaranteed by the 
                        Administration under--
                                    ``(I) this paragraph;
                                    ``(II) paragraph (14); or
                                    ``(III) paragraph (34).
                            ``(ii) Availability of list.--The 
                        Administrator shall--
                                    ``(I) post the list published under 
                                clause (i) on the website of the 
                                Administration; and
                                    ``(II) make the list published 
                                under clause (i) available, upon 
                                request, at each district office of the 
                                Administration.''.
    (h) Applicability.--The amendments made by subsections (a) through 
(f) shall apply with respect to any loan made after the date of 
enactment of this Act.

SEC. 7. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``eligible small business concern'' means a 
        small business concern that--
                    (A) has been in business for not less than the 1-
                year period ending on the date on which assistance is 
                provided using a grant under this section;
                    (B) is operating profitably, based on operations in 
                the United States;
                    (C) 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 Associate Administrator;
                    (D) has in effect a strategic plan for exporting; 
                and
                    (E) 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;
            (2) the term ``program'' means the State Trade and Export 
        Promotion Grant Program established under subsection (b);
            (3) the term ``small business concern owned and controlled 
        by women'' has the meaning given that term in section 3 of the 
        Small Business Act (15 U.S.C. 632);
            (4) the term ``socially and economically disadvantaged 
        small business concern'' has the meaning given that term in 
        section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
        6537(a)(4)(A)); and
            (5) the term ``State'' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, and American Samoa.
    (b) Establishment of Program.--The Associate Administrator shall 
establish a 3-year trade and export promotion pilot program to be known 
as the State Trade and Export Promotion Grant Program, to make grants 
to States to carry out export programs that assist eligible small 
business concerns in--
            (1) participation in a foreign trade mission;
            (2) a foreign market sales trip;
            (3) a subscription to services provided by the Department 
        of Commerce;
            (4) the payment of website translation fees;
            (5) the design of international marketing media;
            (6) a trade show exhibition;
            (7) participation in training workshops; or
            (8) any other export initiative determined appropriate by 
        the Associate Administrator.
    (c) Grants.--
            (1) Joint review.--In carrying out the program, the 
        Associate Administrator may make a grant to a State to increase 
        the number of eligible small business concerns in the State 
        that export or to increase the value of the exports by eligible 
        small business concerns in the State.
            (2) Considerations.--In making grants under this section, 
        the Associate Administrator may give priority to an application 
        by a State that proposes a program that--
                    (A) focuses on eligible small business concerns as 
                part of an export promotion program;
                    (B) demonstrates success in promoting exports by--
                            (i) socially and economically disadvantaged 
                        small business concerns;
                            (ii) small business concerns owned or 
                        controlled by women; and
                            (iii) rural small business concerns;
                    (C) promotes exports from a State that is not 1 of 
                the 10 States with the highest percentage of exporters 
                that are small business concerns, based upon the latest 
                data available from the Department of Commerce; and
                    (D) promotes new-to-market export opportunities to 
                the People's Republic of China for eligible small 
                business concerns in the United States.
            (3) Limitations.--
                    (A) Single application.--A State may not submit 
                more than 1 application for a grant under the program 
                in any 1 fiscal year.
                    (B) Proportion of amounts.--The total value of 
                grants under the program made during a fiscal year to 
                the 10 States with the highest percentage of exporters 
                that are small business concerns, based upon the latest 
                data available from the Department of Commerce, shall 
                be not more than 50 percent of the amounts appropriated 
                for the program for that fiscal year.
            (4) Application.--A State desiring a grant under the 
        program shall submit an application at such time, in such 
        manner, and accompanied by such information as the Associate 
        Administrator may establish.
    (d) Competitive Basis.--The Associate Administrator shall award 
grants under the program on a competitive basis.
    (e) Federal Share.--The Federal share of the cost of an export 
program carried out using a grant under the program shall be--
            (1) for a State that has a high export volume, as 
        determined by the Associate Administrator, not more than 65 
        percent; and
            (2) for a State that does not have a high export volume, as 
        determined by the Associate Administrator, not more than 75 
        percent.
    (f) Reports.--
            (1) Initial report.--Not later than 120 days after the date 
        of enactment of this Act, 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, which shall include--
                    (A) a description of the structure of and 
                procedures for the program;
                    (B) a management plan for the program; and
                    (C) a description of the merit-based review process 
                to be used in the program.
            (2) Annual 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 regarding the program, 
        which shall include--
                    (A) the number and amount of grants made under the 
                program during the preceding year;
                    (B) a list of the States receiving a grant under 
                the program during the preceding year, including the 
                activities being performed with grant; and
                    (C) the effect of each grant on exports by eligible 
                small business concerns in the State receiving the 
                grant.
    (g) Reviews by Inspector General.--
            (1) In general.--The Inspector General of the 
        Administration shall conduct a review of--
                    (A) the extent to which recipients of grants under 
                the program are measuring the performance of the 
                activities being conducted and the results of the 
                measurements; and
                    (B) the overall management and effectiveness of the 
                program.
            (2) Report.--Not later than September 30, 2012, the 
        Inspector General of the Administration 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 regarding the review conducted under 
        paragraph (1).
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the program $15,000,000 for each of fiscal 
years 2010, 2011, and 2012.
    (i) Termination.--The authority to carry out the program shall 
terminate 3 years after the date on which the Associate Administrator 
establishes the program.

SEC. 8. RURAL EXPORT PROMOTION.

    Not later than 6 months after the date of enactment of this Act, 
the Administrator, in consultation with the Secretary of Agriculture 
and the Secretary of Commerce, 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 contains--
            (1) a description of each program of the Administration 
        that promotes exports by rural small business concerns, 
        including--
                    (A) the number of rural small business concerns 
                served by the program;
                    (B) the change, if any, in the number of rural 
                small business concerns as a result of participation in 
                the program during the 10-year period ending on the 
                date of enactment of this Act;
                    (C) the volume of exports by rural small business 
                concerns that participate in the program; and
                    (D) the change, if any, in the volume of exports by 
                rural small businesses that participate in the program 
                during the 10-year period ending on the date of 
                enactment of this Act;
            (2) a description of the coordination between programs of 
        the Administration and other Federal programs that promote 
        exports by rural small business concerns;
            (3) recommendations, if any, for improving the coordination 
        described in paragraph (2);
            (4) a description of any plan by the Administration to 
        market the international trade financing programs of the 
        Administration through lenders that--
                    (A) serve rural small business concerns; and
                    (B) are associated with financing programs of the 
                Department of Agriculture;
            (5) recommendations, if any, for improving coordination 
        between the counseling programs and export financing programs 
        of the Administration, in order to increase the volume of 
        exports by rural small business concerns; and
            (6) any additional information the Administrator determines 
        is necessary.

SEC. 9. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS DEVELOPMENT 
              CENTERS.

    Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is 
amended--
            (1) by striking ``(2) The Small Business Development 
        Centers'' and inserting the following:
            ``(2) Cooperation to provide international trade 
        services.--
                    ``(A) Information and services.--The small business 
                development centers''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), as so designated, by 
                inserting ``(including State trade agencies),'' after 
                ``local agencies''; and
                    (B) by adding at the end the following:
                    ``(B) Cooperation with state trade agencies and 
                export assistance centers.--A small business 
                development center that counsels a small business 
                concern on issues relating to international trade 
                shall--
                            ``(i) consult with State trade agencies and 
                        Export Assistance Centers to provide 
                        appropriate services to the small business 
                        concern; and
                            ``(ii) as necessary, refer the small 
                        business concern to a State trade agency or an 
                        Export Assistance Center for further counseling 
                        or assistance.
                    ``(C) Definition.--In this paragraph, the term 
                `Export Assistance Center' has the same meaning as in 
                section 22.''.

SEC. 10. SMALL BUSINESS TRADE POLICY.

    (a) 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.
    (b) 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.
                                                       Calendar No. 633

111th CONGRESS

  2d Session

                                S. 2862

                          [Report No. 111-341]

_______________________________________________________________________

                                 A BILL

To amend the Small Business Act to improve the Office of International 
                     Trade, and for other purposes.

_______________________________________________________________________

                           September 29, 2010

                       Reported without amendment