[Congressional Record Volume 149, Number 174 (Tuesday, November 25, 2003)]
[Senate]
[Pages S16024-S16030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Voinovich):
  S. 1977. A bill to promote the manufacturing industry in the United 
States by establishing an Assistant Secretary for Manufacturing within 
the Department of Commerce, an Interagency Manufacturing Task Force, 
and a Small Business Manufacturing Task Force, and for other purposes; 
to the Committee on Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, I rise today to introduce the ``Small 
Manufacturers Assistance, and Trade (SMART) Act,'' which responds to 
the needs of America's small manufacturers. This bill offers a new 
emphasis on programs and services within the Federal Government that 
will provide small companies a better opportunity to survive in these 
challenging times and compete in our global economy. The SMART Act 
introduces new resources, improves existing programs, and expands those 
programs that work to serve a larger constituency. It is critical that 
we revitalize our country's manufacturing base and establish an 
environment for economic growth and job creation.
  Small manufacturers constitute over 98 percent of our Nation's 
manufacturing enterprises, employ 12 million people, and supply more 
than 50 percent of the value-added U.S. production. It is a sector we 
cannot afford to ignore. In addition, no industry has witnessed a more 
profound erosion of jobs.
  The damage manufacturing has sustained is nothing short of alarming. 
Since July 2000, almost 2.8 million U.S. manufacturing jobs have been 
eliminated. New England alone lost more than 214,000 jobs between June 
1993 through June 2003, with 78 percent of those losses, 166,000 jobs, 
occurring since January of 2001.
  In my home State of Maine, we've been shedding jobs at a startling 
rate over the past decade--and even more so in the past 2 years. 
Between July 2000 and June 2003 an astounding 17,300 manufacturing jobs 
were lost.
  The bottom line is that we must bolster our manufacturing industry, 
especially with the current 6.0 percent unemployment rate in the United 
States. To ensure that the road to recovery is robust, we have a 
special obligation to provide the investment to allow small companies 
to grow. In fact, it has been reported that for every dollar of final 
manufacturing output, an additional $1.26 is created in other industry 
sectors such as suppliers of raw materials, marketing, and retail 
industries.
  Looking even more broadly, a healthy manufacturing base is essential 
to the preservation of our Nation's security and its status as a world 
power. We must end the trend of becoming increasingly dependent upon 
other countries for the products we use and rely upon. Now is the 
crucial time for everyone--industry representatives, Congress, the 
President, Republicans and Democrats alike--to work together toward the 
common goal of revitalizing this industry.
  As the Chair of the Committee on Small Business, I have been focusing 
considerable attention on the concerns of small business manufacturers 
and efforts to aid in their recovery. Last month, I held a field 
hearing on this critical subject in Lewiston, ME. I invited Grant 
Aldonas, Under Secretary for International Trade of the Commerce 
Department, and Pamela Olson, Assistant Secretary for Tax Policy of the 
Treasury Department, to participate and explored with them ways to 
strengthen and expand this vital industry. Their testimony and comments 
confirmed that we cannot delay and must act quickly to support our 
small manufacturing base.
  Additionally, I heard from a number of small businesses in the 
manufacturing industry. Their testimony confirmed the damage sustained 
by our country's manufacturing sector, and the sense of urgency that we 
need to act immediately to assist them. The SMART Act is a vital first 
step toward helping them do what they do best--create jobs.
  The bill I introduce today starts by establishing a strong and 
influential voice for manufacturers within the Federal Government 
through the creation of an Assistant Secretary for Manufacturing within 
the U.S. Department of Commerce. The new Assistant Secretary will be 
responsible for identifying and addressing the concerns of small 
manufacturers at the highest level of our Federal Government. Senator 
Voinovich has introduced S. 1326, which similarly creates an Assistant 
Secretary for Manufacturing. I support that bill and Senator 
Voinovich's efforts to assisting our country's manufacturers.

  To ensure that the government acts on the needs of manufacturers, the 
SMART Act creates an Interagency Manufacturing Task Force (IMTF). The 
mission of the IMTF will be to encourage the Federal departments and 
agencies to coordinate their efforts by identifying and addressing 
manufacturing concerns collectively. The IMTF will

[[Page S16026]]

be chaired by the Commerce Department's new Assistant Secretary for 
Manufacturing and will be comprised of representatives from the Federal 
departments and agencies that directly affect this sector of our 
economy. In addition, the IMTF will be tasked with the duty of 
submitting an annual report on their findings and recommendations to 
the President and the Senate and House Small Business Committees.
  In conjunction with this government-wide task force, the SMART Act 
also continues to improve the Federal infrastructure supporting the 
industry by establishing a Small Business Manufacturing Task Force 
(SBMTF) within the Small Business Administration (SBA). The SBA has a 
wide spectrum of programs and services available to small 
manufacturers. The mission of the new SBMTF will be to refocus the 
agency's programs and services to ensure that they respond to the 
particular needs of small manufacturers while still serving all aspects 
of the small business community.
  Adding to the information gained from the Committee's hearing, we 
have reviewed the SBA's programs and services that are geared 
specifically toward manufacturing and international trade. I was 
alarmed to learn, during this hearing, that small manufacturers were 
unfamiliar with the SBA programs that can assist them. These findings 
revealed that the SBA needs to realign its efforts specifically to 
include manufacturers in the delivery of the agency's program and 
services.
  In order to improve existing SBA small business development programs, 
the agency needs to take its services beyond the traditional small 
business enterprise. The SMART Act improves the SBA's entrepreneurial 
development programs and services so that small manufacturers can grow 
their business operation, expand their facilities, and purchase new 
equipment--all of which will result in creating jobs throughout the 
industry and its supply chain.
  Partnerships developed between SBA related organizations and non-SBA 
related entities will be an additional asset for these producers. The 
SMART Act directs the SBA to develop partnerships with the 
Manufacturing Extension Partnership (MEP), community economic 
development organizations, and the agency's resource partners--such as 
Small Business Development Centers and SCORE--to create new outreach 
and training programs for small manufacturers and small businesses in 
the manufacturing supply chain.
  The SMART Act requires SCORE, with its long established expertise in 
counseling, to extend its reach to small manufacturers and exporters 
through its online counseling services and its community based offices. 
The Act also directs SCORE to recruit more counselors with 
manufacturing and international trade expertise and increase its 
partnerships with manufacturing and exporting related organizations, 
which will help increase the marketing capabilities of these small 
producers and exporters.
  I have also learned that small and medium sized companies are often 
hesitant to engage in the export of their product as a way to grow 
their small business, because they are often fearful of the many 
unfamiliar intricacies involved in doing business in a foreign market. 
Small businesses currently account for almost $300 billion of yearly 
export sales--nearly one-third of total U.S. exports. However, 
according to an Administration survey through the SBA's Export Trade 
Assistance Partnership, approximately 30 percent of non-exporting small 
businesses are interested in exporting their products and services. 
These businesses hold the potential to be a major source for even more 
economic activity and job growth.
  The SBA is a pivotal resource in delivering financial and business 
development tools to businesses seeking to export. The SMART Act 
improves the SBA's international trade and exporting programs to assist 
small businesses and manufacturers expand into the export market and 
play an even greater role in the balance of U.S. trade.
  The SMART Act also requires the SBA to establish annual goals that 
are linked to its trade promotion activities, and to develop programs 
that will help small businesses compete against imports. This objective 
will be more easily obtained by incrementally increasing the number of 
SBA representatives at the U.S. Export Assistance Centers (USEACs) over 
the next 3 years. To ensure that all States have the same services 
available, the SBA Office of International Trade will have at least one 
financial specialist dedicated to the international loan programs and 
providing oversight of trade financing issues.
  The SBA's financing programs have helped American small businesses 
create and retain jobs, even as other sources of financing have become 
more scarce. This bill provides improvements to the SBA's 7(a), 504, 
and Surety Bond programs.
  From Fiscal Year 1999 through Fiscal Year 2002, the 7(a) loan program 
helped small businesses create more than 1.3 million new jobs by making 
$37.7 billion in financing available to more than 182,000 small 
businesses. This bill increases the maximum size of 7(a) loans for 
small exporters from $2 million to $2.6 million by increasing the 
maximum amount guaranteed by the SBA from $1 million to $1.3 million.
  During that same period, the 504 loan program provided more than 
20,000 new loans to small businesses, allowing those businesses to 
create or retain almost 450,000 jobs. The SMART Act increases 504 loan 
sizes in two ways. First, the bill increases the maximum loan size for 
manufacturing projects by increasing the SBA's maximum guarantee, which 
is 40 percent of the total loan size, from $1 million to $4 million. 
Second, for loans to exporters, the bill increases the maximum loan 
size from $3.25 million to $5 million by increasing the SBA's maximum 
guarantee from $1.3 million to $2 million.
  Finally, the bill clarifies that under the SBA's Surety Bond 
Guarantee Program, the SBA may guarantee bonds for specific contracts 
of $2 million or less, even if the total range of affiliated contracts 
may exceed $2 million.
  These SBA financing programs have helped to create millions of jobs 
in America, and manufacturers and exporters have been an important part 
of that success. This bill will increase small companies' and 
exporters' ability to obtain vital capital that will help them compete 
in a very difficult international environment and enable them to create 
more jobs for American workers.
  I am drawing these provisions from another bill I have authored, the 
Small Business Administration 50th Anniversary Reauthorization Act of 
203 (S. 1375), which the Committee and the Senate unanimously approved 
earlier this year. While we are waiting for the House of 
Representatives to pass an SBA reauthorization bill, I believe that 
given the importance of these financing provisions, they must be 
included in this bill as well to increase their chance of being signed 
into law.
  Because Federal assistance for small manufacturers should extend 
beyond the SBA, the SMART Act will also establish a new Assistant 
United States Trade Representatives for Small Business within the 
Office of the United States Trade Representatives (USTR). This office 
will be tasked with focusing on small businesses', including small 
manufacturers, concerns in trade negotiations and promoting their 
exports.
  There are currently 21 Assistant USTRs covering issues from services 
to telecommunications to labor. While small businesses face many of the 
same issues that serve as barriers to trade as many of the largest 
multinational corporations, they do not have the same resources to 
overcome these barriers, thus blocking them from reaping the benefits 
of international trade. In particular, small businesses do not have the 
resources necessary to settle private trade disputes in a timely and 
cost effective fashion, meet physical presence requirements in other 
countries, conform to complex customs procedures, or meet off-set 
exclusions in government procurement. By establishing a new Assistant 
U.S. Trade Representative, we will ensure that the views and concerns 
of small businesses will have an appropriate seat at the negotiating 
table and help secure the competitiveness of our small exporters 
abroad.
  The Small Manufacturers Assistance, Recovery, and Trade Act answers 
the call for help that I have heard too often of late from small 
manufacturers in this country. These improvements to existing resources 
within the Federal

[[Page S16027]]

government will give these companies a better opportunity to survive in 
these challenging times and compete in the global economy.
  This bill is a critical starting point to revitalize our country's 
manufacturing base and create an environment that allows them to grow 
and create jobs again. We must help these businesses access the global 
marketplace through expanded exporting opportunities and assistance. I 
intend to work with all groups and interested parties that are 
committed to improving and passing this bill. There are still many 
needs that face our Nation's manufacturers--and this is just the 
beginning.
  I look forward to working with my colleagues in the Senate to ensure 
that the provisions of this bill are enacted so that these companies 
can continue to grow and reach their full potential.
  Mr. President, I ask unanimous consent that the text of the bill and 
a section-by-section analysis be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1977

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Manufacturers Assistance, Recovery, and Trade Act'' or 
     ``SMART Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

    TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE

Sec. 101. Assistant Secretary of Commerce for Manufacturing.
Sec. 102. Interagency Manufacturing Task Force.
Sec. 103. Assistant United States Trade Representative for Small 
              Business.

                TITLE II--SMALL BUSINESS ADMINISTRATION

       Subtitle A--Manufacturing and Entrepreneurial Development

Sec. 201. Small Business Manufacturing Task Force.
Sec. 202. Entrepreneurial development programs and services.

                Subtitle B--Small Business Loan Programs

Sec. 211. Increased loan amounts for exporters.
Sec. 212. Debenture size.
Sec. 213. Job creation or retention standards.
Sec. 214. Clarification of maximum surety bond guarantee.

                    Subtitle C--International Trade

Sec. 221. Office of International Trade.

    TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE

     SEC. 101. ASSISTANT SECRETARY OF COMMERCE FOR MANUFACTURING.

       (a) Establishment.--There shall be in the Department of 
     Commerce, in addition to the Assistant Secretaries of 
     Commerce provided by law as of the date of enactment of this 
     Act, 1 additional Assistant Secretary of Commerce, to be 
     known as the Assistant Secretary of Commerce for 
     Manufacturing, who shall--
       (1) be appointed by the President, by and with the advice 
     and consent of the Senate; and
       (2) be compensated at the rate of pay provided for under 
     level IV of the Executive Schedule (5 U.S.C. 5315).
       (b) Duties.--The Assistant Secretary of Commerce for 
     Manufacturing shall--
       (1) identify and address the concerns of manufacturers;
       (2) represent and advocate for the interests of United 
     States manufacturers;
       (3) aid in the development of policies that promote the 
     vitality and expansion of United States manufacturing;
       (4) review policies that adversely impact manufacturers;
       (5) identify and address issues that are unique to small 
     manufacturers and those that are exacerbated by the size or 
     limited capital of small manufacturers; and
       (6) perform such other duties as the Secretary of Commerce 
     may prescribe.
       (c) Reporting Requirements.--The Assistant Secretary of 
     Commerce for Manufacturing shall submit to Congress an annual 
     report that contains--
       (1) an overview of the state of the manufacturing sector in 
     the United States;
       (2) a forecast of the future state of the manufacturing 
     sector in the United States; and
       (3) an analysis of current and significant laws, 
     regulations, and policies that adversely impact the 
     manufacturing sector in the United States.
       (d) Technical and Conforming Amendment.--Section 5315 of 
     title 5, United States Code, is amended by striking 
     ``Assistant Secretaries of Commerce (11)'' and inserting 
     ``Assistant Secretaries of Commerce (12)''.

     SEC. 102. INTERAGENCY MANUFACTURING TASK FORCE.

       (a) Establishment.--There is established an Interagency 
     Manufacturing Task Force (referred to in this section as the 
     ``IMTF'') for the purposes of--
       (1) maximizing the efforts and resources of Federal 
     agencies in assisting the manufacturing industry;
       (2) improving interagency cooperation in their efforts to 
     assist the manufacturing industry;
       (3) encouraging additional efforts to assist United States 
     manufacturers;
       (4) coordinating the agencies' efforts to assist the 
     manufacturing industry; and
       (5) identifying and addressing collective manufacturing 
     concerns.
       (b) Membership.--The IMTF shall be composed of 14 members, 
     including--
       (1) the Assistant Secretary of Commerce for Manufacturing, 
     who shall serve as chair of the IMTF;
       (2) a representative of the Department of the Treasury, to 
     be designated by the Secretary of the Treasury;
       (3) a representative of the Department of Defense, to be 
     designated by the Secretary of Defense;
       (4) a representative of the Department of Education, to be 
     designated by the Secretary of Education;
       (5) a representative of the Department of Energy, to be 
     designated by the Secretary of Energy;
       (6) a representative of the Department of Health and Human 
     Services, to be designated by the Secretary of Health and 
     Human Services;
       (7) a representative of the Department of Homeland 
     Security, to be designated by the Secretary of Homeland 
     Security;
       (8) a representative of the Department of Labor, to be 
     designated by the Secretary of Labor;
       (9) a representative of the Environmental Protection 
     Agency, to be designated by the Administrator of the 
     Environmental Protection Agency;
       (10) a representative of the Office of the United States 
     Trade Representative, to be designated by the United States 
     Trade Representative;
       (11) a representative of the Small Business Administration, 
     to be designated by the Administrator of the Small Business 
     Administration;
       (12) a representative of the Executive Office of the 
     President, to be designated by the President; and
       (13) 2 additional members, to be designated by the 
     President.
       (c) Duties.--Under the direction of the Assistant Secretary 
     of Commerce for Manufacturing, the IMTF shall--
       (1) provide advice and counsel to the President and 
     Congress on matters of importance to manufacturers;
       (2) monitor, coordinate, and promote the plans, programs, 
     and operations of the departments and agencies of the Federal 
     Government that may contribute to the growth of the United 
     States manufacturing industry;
       (3) develop and promote new public sector initiatives, 
     policies, programs, and plans designed to foster the 
     manufacturing industry;
       (4) review, monitor, and coordinate plans and programs 
     developed in the public sector, which affect the ability of 
     manufacturers to obtain capital, credit, and access to 
     technology;
       (5) identify and address regulations that are needlessly 
     burdensome on manufacturers; and
       (6) design a comprehensive plan for a joint public-private 
     sector effort to facilitate the growth and development of the 
     United States manufacturing industry.
       (d) Meetings.--
       (1) Frequency.--The IMTF shall meet not less than 4 times 
     per year to perform the duties under subsection (c).
       (2) Quorum.--A majority of the members of the IMTF shall 
     constitute a quorum to approve recommendations or reports.
       (e) Personnel Matters.--
       (1) Compensation of members.--
       (A) Federal employees.--Each member of the IMTF who is an 
     officer or employee of the Federal Government shall serve 
     without compensation in addition to that received for 
     services rendered as an officer or employee of the United 
     States.
       (B) Other members.--Each member of the IMTF who is not an 
     officer or employee of the Federal Government shall be 
     compensated at a rate equal to the daily equivalent for level 
     IV of the Executive Schedule (5 U.S.C. 5315) for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the IMTF.
       (2) Travel expenses.--The members of the IMTF shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of Federal 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from their homes or regular place of 
     business in the performance of services for the IMTF.
       (3) Detail of federal employees.--Any employee of the 
     Federal Government may be detailed to the IMTF without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (f) Reports.--
       (1) Findings and recommendations.--Not later than 1 year 
     after the date of enactment of this Act, and annually 
     thereafter, the IMTF shall submit a report containing the 
     findings and recommendations described in paragraphs (1) 
     through (5) of subsection (c) to--
       (A) the President;

[[Page S16028]]

       (B) the Committee on Small Business and Entrepreneurship of 
     the Senate; and
       (C) the Committee on Small Business of the House of 
     Representatives.
       (2) Growth plan.--Not later than 1 year after the date of 
     enactment of this Act, the Assistant Secretary of Commerce 
     for Manufacturing shall submit the plan prepared pursuant to 
     subsection (c)(6) to--
       (A) the President;
       (B) the Committee on Small Business and Entrepreneurship of 
     the Senate; and
       (C) the Committee on Small Business of the House of 
     Representatives.

     SEC. 103. 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 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, which 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 businesses, 
     including manufacturers;
       ``(ii) identify and address foreign trade barriers that 
     impede small business exporters;
       ``(iii) enforce existing trade agreements beneficial to 
     small businesses;
       ``(iv) maintain an open line of communication with the 
     Small Business Administration concerning small business trade 
     issues;
       ``(v) ensure that small business concerns are considered in 
     trade negotiations and agreements; and
       ``(vi) perform such other duties as the United States Trade 
     Representative may direct.
       ``(C) The Assistant United States Trade Representative for 
     Small Business shall be paid at the level of a member of the 
     Senior Executive Service with equivalent time and service.''.

                TITLE II--SMALL BUSINESS ADMINISTRATION

       Subtitle A--Manufacturing and Entrepreneurial Development

     SEC. 201. SMALL BUSINESS MANUFACTURING TASK FORCE.

       (a) Establishment.--The Administrator of the Small Business 
     Administration (referred to in this subtitle as the 
     ``Administrator'') shall establish a Small Business 
     Manufacturing Task Force (referred to in this section as the 
     ``Task Force'') to address the concerns of small 
     manufacturers.
       (b) Membership.--
       (1) In general.--The Task Force shall be composed of a 
     representative from--
       (A) the Office of Capital Access;
       (B) the Office of Entrepreneurial Development;
       (C) the Office of Administration and Management;
       (D) the Office of Government Contracting and Business 
     Development; and
       (E) any other employee of the Small Business 
     Administration, on a temporary basis, as determined necessary 
     by the Administrator to carry out the goals of the Task 
     Force.
       (2) Chair.--The Administrator shall assign a member of the 
     Task Force to serve as chair of the Task Force.
       (c) Duties.--The Task Force shall--
       (1) evaluate and identify whether programs and services are 
     sufficient to serve the needs of small manufacturers;
       (2) ensure that the Small Business Administration 
     implements the small business manufacturing training programs 
     established under section 202;
       (3) actively promote the programs and services of the Small 
     Business Administration that serve small manufacturers; and
       (4) identify and study the unique conditions facing small 
     manufacturers and develop and propose policy initiatives to 
     support and assist small manufacturers.
       (d) Meetings.--
       (1) Frequency.--The Task Force shall meet not less than 4 
     times per year, and more frequently if necessary to perform 
     its duties.
       (2) Quorum.--A majority of the members of the Task Force 
     shall constitute a quorum to approve recommendations or 
     reports.
       (e) Personnel Matters.--
       (1) Compensation of members.--Each member of the Task Force 
     shall serve without compensation in addition to that received 
     for services rendered as an officer or employee of the United 
     States.
       (2) Detail of sba employees.--Any employee of the Small 
     Business Administration may be detailed to the Task Force 
     without reimbursement, and such detail shall be without 
     interruption or loss of civil service status or privilege.
       (f) Report.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the Task 
     Force shall submit a report containing the findings and 
     recommendations of the task force to--
       (1) the President;
       (2) the Committee on Small Business and Entrepreneurship of 
     the Senate; and
       (3) the Committee on Small Business of the House of 
     Representatives.

     SEC. 202. ENTREPRENEURIAL DEVELOPMENT PROGRAMS AND SERVICES.

       (a) Manufacturing Outreach and Training Programs.--The 
     Office of Entrepreneurial Development of the Small Business 
     Administration shall develop new outreach and training 
     programs for small manufacturers and small businesses in the 
     manufacturing supply chain, in partnership with 1 or more of 
     the following:
       (1) The Manufacturing Extension Partnership.
       (2) Community economic development organizations.
       (3) Small Business Development Centers.
       (4) The Service Corps of Retired Executives.
       (5) Women's Business Centers.
       (b) Reporting Requirement.--The Small Business 
     Administration shall include ``manufacturing'' as a category 
     on the scorecard that tracks the goals of the Small Business 
     Administration on its annual performance report to Congress.
       (c) Manufacturing Workshops.--The Office of Entrepreneurial 
     Development of the Small Business Administration, in 
     consultation with manufacturing and economic development 
     organizations, shall develop workshops to be conducted by 
     district offices, in conjunction with the entities listed in 
     paragraphs (1) through (5) of subsection (a), addressing--
       (1) product design and testing;
       (2) the patent process;
       (3) prototype demonstrations;
       (4) product production;
       (5) market research; and
       (6) business financing.
       (d) SCORE.--The Service Corps of Retired Executives shall--
       (1) make their counseling services available to small 
     manufacturers and exporters through their on-line counseling 
     services and community-based offices;
       (2) recruit counselors with manufacturing and international 
     trade expertise; and
       (3) develop additional partnerships with manufacturing and 
     exporting organizations.
       (e) Entrepreneurial Development Program Improvements.--The 
     Office of Entrepreneurial Development of the Small Business 
     Administration shall develop programs and services to 
     strengthen small business vendors and suppliers that 
     participate in the manufacturing supply chain.
       (f) Simplified Reporting Requirements.--The Small Business 
     Administration shall review and simplify, as appropriate, its 
     reporting requirements for the Small Business Development 
     Centers, the Service Corps of Retired Executives, and Women's 
     Business Centers so that these organizations can maximize the 
     time spent assisting their clients.
       (g) District Offices.--The Small Business Administration 
     shall provide district offices with adequate resources, 
     including budget allocations for travel and materials used to 
     conduct outreach and training activities.

                Subtitle B--Small Business Loan Programs

     SEC. 211. INCREASED LOAN AMOUNTS FOR EXPORTERS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A), by inserting before the semicolon 
     at the end the following: ``and paragraph (14)''; and
       (B) in subparagraph (B), by striking ``$1,250,000'' and 
     inserting ``$1,300,000''; and
       (2) in paragraph (14), by adding at the end the following:
       ``(D) The total amount of financings under this paragraph 
     that are outstanding and committed (by participation or 
     otherwise) to the borrower from the business loan and 
     investment fund established under this Act may not exceed 
     $1,300,000 and the gross loan amount under this paragraph may 
     not exceed $2,600,000.''.

     SEC. 212. DEBENTURE SIZE.

       Section 502(2) of the Small Business Investment Act of 1958 
     (15 U.S.C. 696(2)) is amended--
       (1) by striking ``$1,300,000'' and inserting 
     ``$2,000,000''; and
       (2) by inserting before the period at the end the 
     following: ``, and loans for which the loan proceeds will be 
     directed toward manufacturing projects, which shall be 
     limited to $4,000,000 for each such identifiable small 
     business concern''.

     SEC. 213. JOB CREATION OR RETENTION STANDARDS.

       Section 501 of the Small Business Investment Act of 1958 
     (15 U.S.C. 695) is amended by adding at the end the 
     following:
       ``(e) Job Creation or Retention for Manufacturing 
     Projects.--A manufacturing project being funded by the 
     debenture is deemed to satisfy the job creation or retention 
     requirement under subsection (d)(1) if the project creates or 
     retains 1 job opportunity for every $100,000 guaranteed by 
     the Administration.''.

     SEC. 214. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.

       Section 411(a)(1) of the Small Business Investment Act of 
     1958 (15 U.S.C. 694b(a)(1)) is amended by striking ``contract 
     up to'' and inserting ``total work order or contract amount 
     at the time of bond execution that does not exceed''.

                    Subtitle C--International Trade

     SEC. 221. OFFICE OF INTERNATIONAL TRADE.

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

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.'';

       (2) in subsection (a)--
       (A) by inserting ``Establishment.--'' after ``(a)''; and
       (B) by inserting ``(referred to in this section as the 
     `Office'),'' after ``Trade'';
       (3) in subsection (b)--
       (A) by striking ``The Office'' and inserting the following:

[[Page S16029]]

       ``(b) Trade Distribution Network.--The Office, including 
     United States Export Assistance Centers (referred to as `one-
     stop shops' in section 2301(b)(8) of the Omnibus Trade and 
     Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)) and as 
     `Export Centers' in this section),''; and
       (B) by amending paragraph (1) to read as follows:
       ``(1) assist in maintaining a distribution network using 
     regional and local offices of the Administration, the Small 
     Business Development Center network, the Women's Business 
     Center network, and Export Centers for--
       ``(A) trade promotion;
       ``(B) trade finance;
       ``(C) trade adjustment;
       ``(D) trade remedy assistance; and
       ``(E) trade data collection.'';
       (4) in subsection (c)--
       (A) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9);
       (B) by inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) establish annual goals within the Office relating 
     to--
       ``(A) enhancing the exporting ability 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 access to capital by small business 
     concerns;
       ``(E) disseminating information concerning Federal, State, 
     and private programs and initiatives;
       ``(F) ensuring that the interests of small business 
     concerns are adequately represented in trade negotiations;'';
       (C) in paragraph (2), as redesignated, by striking 
     ``mechanism for'' and all that follows through ``(D)'' 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)''; and
       (D) in paragraph (9), as redesignated--
       (i) by striking ``full-time export development specialists 
     to each Administration regional office and assigning'';
       (ii) by striking ``office. Such specialists'' and inserting 
     ``office and providing each Administration regional office 
     with a full-time export development specialist, who'';
       (iii) in subparagraph (D), by striking ``and'' at the end;
       (iv) in subparagraph (E), by striking the period at the end 
     and inserting a semicolon; and
       (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) jointly develop and conduct training programs for 
     exporters and lenders in cooperation with the United States 
     Export Assistance Centers, the Department of Commerce, Small 
     Business Development Centers, and other relevant Federal 
     agencies.'';
       (5) in subsection (d)--
       (A) by inserting ``Export Financing Programs.--'' after 
     ``(d)'';
       (B) by redesignating paragraphs (1) through (5) as 
     subparagraphs (A) through (E); and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting ``To accomplish this goal, the Office 
     shall--
       ``(1) designate at least 1 individual within the 
     Administration as a trade financial specialist to oversee the 
     international loan programs and assist Administration 
     employees with trade finance issues; and
       ``(2) work'';
       (6) in subsection (e), by inserting ``Trade Remedies.--'' 
     after ``(e)'';
       (7) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Office 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 under this section;
       ``(2) the destinations and benefits to the Administration 
     and to small business concerns of travel by Office staff; and
       ``(3) a description of the participation by the Office in 
     trade negotiations.'';
       (8) in subsection (g), by inserting ``Studies.--'' after 
     ``(g)''; and
       (9) by adding at the end the following:
       ``(h) Export Assistance Centers.--
       ``(1) Additional centers.--The Administration, in 
     accordance with the March 29, 2002, agreement with the 
     Department of Commerce and the Export-Import Bank, shall 
     assign not less than 4 additional employees to Export Centers 
     during each of the fiscal years 2004 through 2006.
       ``(2) Placement.--The Administration shall use the resource 
     allocation methodology, used by the Department of Commerce as 
     of the date of enactment of this subsection, to strategically 
     assign Administration employees to all Export Centers based 
     on the needs of exporters.
       ``(3) Goals.--The Office shall work with the Department of 
     Commerce and the Export-Import Bank to establish shared 
     annual goals for the Export Centers.
       ``(4) Oversight.--The Office shall designate an individual 
     within the Administration to oversee all activities conducted 
     by Administration employees assigned to Export Centers.''.

    Title 1. Manufacturing and Trade Representatives and Task Force

     Section 101. Assistant Secretary of Commerce for 
         Manufacturing.
       This section establishes an Assistant Secretary of Commerce 
     for Manufacturing within the Department of Commerce. The 
     Assistant Secretary shall be responsible for identifying and 
     addressing manufacturers' concerns and representing and 
     advocating for their interests. A person shall be appointed 
     to this position by the President of the United States, in 
     accordance with the Constitution, and shall serve at the 
     discretion of the President of the United States.
     Section 102. The Interagency Manufacturing Task Force.
       This provision establishes an Interagency Manufacturing 
     Task Force (IMTF). The IMTF will be chaired by the new 
     Assistant Secretary of Commerce for Manufacturing and will be 
     comprised of representatives of the Departments of Treasury, 
     Defense, Education, Energy, Health and Human Services, 
     Homeland Security, and Labor, the Environmental Protection 
     Agency, the Small Business Administration, the United States 
     Trade Representative, a representative of the Executive staff 
     of the President and two additional members designated by the 
     President.
       Under the Chair's direction, the IMTF shall: (a) identify 
     and address regulations that are needlessly burdensome on 
     manufacturers; (b) provide advice and counsel to the 
     President and Congress on matters of importance to 
     manufacturers; (c) monitor, coordinate and promote the plans, 
     programs and operations of the departments and agencies of 
     the Federal Government that may contribute to the U.S. 
     manufacturing industry's growth; (d) develop and promote new 
     public-sector initiatives, policies, programs and plans 
     designed to foster the manufacturing industry; (e) review, 
     monitor and coordinate plans and programs developed in the 
     public sector that affect manufacturers' ability to obtain 
     capital, credit and access to technology; and (f) design a 
     comprehensive plan for a joint public-private sector effort 
     to facilitate the growth and development of the U.S. 
     manufacturing industry, which shall be submitted, not later 
     than 1 year after the effective date of the bill, to the 
     President and the Senate and House Small Business Committees. 
     This section also instructs the IMTF to submit a report of 
     its findings and recommendations to the President and the 
     Senate and House Small Business Committees not later than 1 
     year after the effective date of the bill and annually 
     thereafter.
     Section 103. Assistant United States Trade Representative for 
         Small Business.
       This section establishes a new Assistant United States 
     Trade Representative for Small Business, within the Office of 
     the United States Trade Representative (USTR). This new 
     position shall promote trade interest for small businesses 
     and ensure that their concerns are considered in trade 
     negotiations and agreements.

                Title II--Small Business Administration


       subtitle a--manufacturing and entrepreneurial development

     Section 201. The Small Business Manufacturing Task Force.
       This section establishes a Small Business Manufacturing 
     Task Force (SBMTF) within the Small Business Administration 
     (SBA), which will be comprised of the SBA personnel appointed 
     by the SBA Administrator. The SBMTF will: (a) evaluate and 
     identify whether existing programs and services are 
     sufficient to serve small manufacturers' needs, or whether 
     additional programs or services are necessary; (b) ensure 
     that the SBA implements the small business manufacturing 
     training initiatives referenced in this legislation; (c) 
     actively promote the SBA's programs and services that serve 
     small manufacturers; and (d) identify and study the unique 
     conditions of small manufacturers and develop and propose 
     policy initiatives to support and assist them. This section 
     also instructs the SBMTF to submit a report of its findings 
     and recommendations to the President and the Senate and House 
     Small Business Committees not later than 12 months after the 
     effective date of the bill and annually thereafter.
     Section 202. Entrepreneurial development programs and 
         services.
       This section: (a) directs the SBA to create new outreach 
     and training programs for small manufacturers and small 
     businesses in the manufacturing supply chain by developing 
     partnerships with other manufacturing and business-assistance 
     organizations and SBA's resource partners; (b) directs the 
     SBA to include ``manufacturing'' on their scorecard that 
     tracks the goals of the SBA and to report this information to 
     Congress; (c) directs the SBA to consult with manufacturing 
     and economic development organizations to develop and conduct 
     specialized workshops to address important aspects of the 
     manufacturing business; (d) requires SCORE to expand and 
     improve their present counseling services for small 
     manufacturers and exporters; (e) directs the SBA's Office of 
     Entrepreneurial Development to develop programs

[[Page S16030]]

     and services to strengthen small business vendors and 
     suppliers that participate in the manufacturing supply chain; 
     (f) directs the SBA to review and simplify its reporting 
     requirements for the Small Business Development Centers, 
     SCORE, and Women's Business Centers; and (g) directs the SBA 
     to provide adequate resources to the district offices for 
     outreach and training activities.


                subtitle b--small business loan programs

     Section 211. Increased loan amounts for exporters.
       This section increases the maximum size of a loan that an 
     exporter may receive under the SBA's 7(a) Export Working 
     Capital Program (EWCP) to $2.6 million (instead of the 
     current maximum loan size of $2 million) by increasing the 
     maximum SBA guarantee to $1.3 million (instead of the current 
     maximum SBA guarantee of $1 million). In order to conform the 
     size of the guaranteed portion of an EWCP loan to that of a 
     loan under the SBA's 7(a) International Trade Loan Program, 
     the section also increases the maximum SBA-guaranteed portion 
     of an ITL Program loan from $1.25 million to $1.3 million.
     Section 212. Debenture size.
       This section increases the maximum loan guarantee amount 
     from $1.3 million to $2 million for loans that support a 
     public policy goal, which includes loans to exporters. The 
     guaranteed amount of $2 million represents 40 percent of the 
     total loan size, so small businesses will be able to receive 
     loans of up to $5 million for these types of projects. This 
     section also increases the maximum size of the SBA's 
     guarantee from $1 million to $4 million for loans that will 
     be used for manufacturing projects (leading to a maximum loan 
     size of $10 million for small manufacturers, because the 
     guarantee represents 40 percent of the maximum loan size).
     Section 213. Job creation or retention standards.
       This section modifies the job retention or creation 
     standard for small manufacturers (currently one job per 
     $35,000 guaranteed by the SBA) so that the small 
     manufacturers must create or retain one job for each $100,000 
     guaranteed by the SBA.
     Section 214. Clarification of maximum surety bond guarantee.
       This section clarifies that the SBA may guarantee surety 
     bonds for specific contracts of $2 million or less when the 
     total range of affiliated contracts exceeds $2 million, or 
     has the potential to exceed $2 million. The surety's bond 
     liability, however, may not exceed $2 million.


                    subtitle c--international trade

     Section 221. Office of International Trade.
       This section: (a) establishes annual goals for the Office 
     of International Trade--specifically, to enhance the export 
     ability of small businesses and small manufacturers, to 
     facilitate technological transfers, to enhance the ability of 
     small business and small manufacturers to compete against 
     foreign corporations, to increase small businesses' access to 
     capital, to disseminate information on programs and 
     initiatives, and to ensure that small businesses are 
     represented in trade negotiations; (b) instructs the Office 
     of International Trade and district office export development 
     specialist to participate in an annual training program that 
     focuses on current small business needs for exporting; (c) 
     instructs the district offices to jointly develop and conduct 
     training programs for exporters and lenders in cooperation 
     with USEACs, the Department of Commerce, Small Business 
     Development Centers and other relevant Federal agencies; (d) 
     amends the Office of International Trade's reporting 
     requirements to include a description and justification for 
     the Office of International Trade's expenditures on travel 
     and participation in trade negotiations; and (e) requires 
     that the SBA increase the number of SBA representatives at 
     the United States Export Assistance Centers (USEACs) over the 
     next 3 years according to the Commerce Department's resource 
     allocation methodology and to designate an individual within 
     the SBA to oversee the agency's participation as well as to 
     work with the USEACs partners to establish annual goals for 
     the Export Centers.
                                 ______