[Congressional Record Volume 155, Number 84 (Monday, June 8, 2009)]
[Senate]
[Pages S6257-S6260]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU:
  S. 1196. A bill to amend the Small Business Act to improve the Office 
of International Trade, and for other purposes; to the Committee on 
Small Business and Entrepreneurship.
  Ms. LANDRIEU. Mr. President, as I come to the floor today, America's 
Main Street businesses are suffering. With cash registers not ringing 
like they used to, exporting has become a practical solution for 
entrepreneurs looking to survive and grow.
  What helps our entrepreneurs helps our entire economy. Every $1 
billion of exports creates more than 14,000 high-paying American jobs. 
By creating jobs, as well as lessening the trade deficit, an increase 
in small business exporting will lead us out of this recession and make 
our Nation better able to compete in the global marketplace.
  Small businesses already play a vital role in America's trade and 
commerce,

[[Page S6258]]

representing 97 percent of all exporters. Yet, with only one percent of 
small firms exporting their goods--making up slightly more than a 
quarter of the country's export volume--trade remains dominated by 
larger businesses.
  A December 2008 report released by the U.S. Census Bureau and the 
Bureau of Economic Analysis noted that U.S. exports of goods and 
services grew by 12 percent in 2008 to $1.84 trillion. However, this 
same data showed that during the same time period imports increased 7.4 
percent to $2.52 trillion. More involvement of our small businesses in 
exporting would be an enormous catalyst in reducing the country's trade 
deficit.
  As Chair of the Committee on Small Business and Entrepreneurship, I 
have heard from small exporters across the country. They have told me 
that the programs and services we have now at the Small Business 
Administration, SBA, are just adequate, but improvements are needed. 
With a few key changes to some of the export assistance and trade 
programs offered by the SBA, as well as a higher level of advocacy, I 
believe we can dramatically improve the tools available to small 
exporters while simultaneously increasing exporting opportunities for 
all entrepreneurs.
  That is why today I am introducing the Small Business International 
Trade Enhancements Act of 2009. With this important legislation, small 
firms will have more opportunities to grow their businesses by 
expanding into international markets, creating jobs and strengthening 
our economy.
  Like many small businesses, one of the biggest hurdles faced by small 
exporters is access to capital. The current economic conditions 
exacerbate this problem for small firms. The SBA offers several loan 
programs to help small exporters, but years of neglect under the 
previous administration have sometimes rendered these valuable tools 
both unattractive and impractical for borrowers and lenders alike.
  One of the SBA's signature trade assistance products, the 
International Trade Loan, ITL, program, is a perfect example of this. 
This program allows exporters to borrow up to $2 million with 
$1,750,000 guaranteed by the SBA. Exporters can then use this money to 
help develop and expand overseas markets, upgrade equipment and 
facilities, or provide an infusion of capital if they are being hurt by 
import competition.
  While the original goal of this program is still very much on target 
with the needs of larger exporters, it has not evolved to meet the 
financing needs of small exporters in an ever-changing global economy. 
The volume of loans made through this program has dropped by more than 
63 percent since 2003. The SBA's other signature trade financing 
products--the Export Working Capital Program and the Export Express 
program--have also seen significant drop-offs in their loan volume, 26 
percent and 23 percent respectively.

  With a few small but significant changes to these programs, the SBA 
will be able to once again provide a user-friendly and attractive 
financing option that makes sense for both borrowers and lenders. One 
of the biggest problems with the ITL program, for example, is that a 
discrepancy between the loan cap and the guarantee often forces 
borrowers to take out a second loan to take full advantage of the 
guarantee. Additionally, ITL's can only be used to acquire fixed 
assets, rather than working capital, a common need for exporters. ITL's 
also do not have the same collateral or refinancing terms as SBA 7(a) 
loans.
  The provisions in this legislation create a more commonsense product 
by addressing these concerns. The bill raises the loan guarantee to 
$2,750,000 and the loan cap to $3,670,000, to make it consistent with 
the 7(a) loan program. Further, it makes the ITL program more flexible 
by allowing working capital to become an eligible use for loan proceeds 
and extends the same terms for collateral and refinancing as with the 
7(a) loan program. The end result is a relevant and more practical tool 
for small exporters.
  Making these simple changes to this program will go a long way 
towards helping small businesses find adequate export financing. The 
SBA International Trade Loan and other export financing programs, 
however, leave borrowers without any assistance in identifying which 
loans are right for them. Local lenders that specialize in export 
financing can help get these products into the hands of the small 
exporters that need them the most, but they are not always the most 
effective means of doing so.
  The SBA currently has 17 financial specialists posted throughout the 
country at one-stop assistance centers operated by the Department of 
Commerce. These specialists, at a minimal cost to the taxpayer, have 
facilitated well over $10 billion in exports in the last 10 years, 
helping to create 140,000 new and higher-paying jobs. Unfortunately, 
under the previous administration, this program suffered as well. My 
legislation would restore the staffing levels to what they were in 
2002, establishing a floor of 22 financial specialists with priority 
staffing going to those centers--including one in my home, New 
Orleans--who have been without a finance specialist since 2003.
  With more than 19 Federal agencies involved in export and trade 
promotion, small exporters often do not know where to turn for help. My 
legislation would help bring small business trade to the forefront in 
two ways.
  First, it gives the SBA's Office of International Trade, OIT, more 
resources and a higher profile within the Agency, making it directly 
accountable to the Administrator instead of part of the Office of 
Capital Access, OCA, where it is currently held. OIT is doing an 
adequate job now, but with my proposed changes, the office would have 
the potential to become a much more valuable partner and visible 
advocate for small exporters.
  In addition to raising the level of advocacy within the SBA, my 
legislation reasserts the call for a special small business advocate 
within the Office of the U.S. Trade Representative USTR. The USTR plays 
an important role in every aspect of trade in this country. While the 
Office claims to make small businesses a central focus, I believe more 
can be done to address the needs of our entrepreneurs during trade 
negotiations. I, along with my Ranking Member on the Small Business 
Committee, Senator Snowe, and Senator Schumer, reached out to 
Ambassador Kirk earlier this year asking him to create an Assistant 
Trade Representative focused on small exporters. Such a move would not 
be unprecedented. In fact, this very chamber called on the Office of 
the U.S. Trade Representative to create such a position more than 20 
years ago.

  The Small Business International Trade Enhancements Act of 2009 is an 
important first step towards ensuring that small firms will have more 
opportunities to grow. By increasing exporting opportunities for small 
businesses, we will help them expand into international markets, create 
new and higher-paying jobs and strengthen the economy. I have heard 
from some of the members of my Committee, and I know how important this 
issue is to many of them, including Ranking Member Snowe.
  The 111th Congress will be the third consecutive Congress that I have 
introduced this particular legislation. I introduced it in the 109th 
Congress as S. 3663 and in the 110th Congress as S. 738. In these 
previous Congresses we have had some success in moving the bill through 
committee--a similar version of this bill passed the Senate Small 
Business Committee twice in the last two Congresses. However, as with 
other SBA reauthorization legislation, it stalled in the full Senate. 
As the new Chair of the Small Business Committee this Congress, I have 
made increasing small business export opportunities one of my top 
priorities. With this in mind, I will work closely with Ranking Member 
Snowe and the other Committee members in the coming months to get this 
legislation to the President's desk.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1196

       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 International 
     Trade Enhancements Act of 2009''.

[[Page S6259]]

     SEC. 2. SMALL BUSINESS ADMINISTRATION ASSOCIATE ADMINISTRATOR 
                   FOR 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), 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. 3. OFFICE OF INTERNATIONAL TRADE.

       (a) Amendments to Section 22.--Section 22 of the Small 
     Business Act (15 U.S.C. 649) is amended--
       (1) in subsection (b)--
       (A) by striking ``(b) The Office'' and inserting the 
     following:
       ``(b) Trade Distribution Network.--The Associate 
     Administrator'';
       (B) in the matter preceding paragraph (1), by inserting 
     ``Export Assistance Centers,'' after ``export promotion 
     efforts,''; and
       (C) 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, networks of women's 
     business centers, 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) 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 (5)(A), as so redesignated, by striking 
     ``Gross State Produce'' and inserting ``Gross State 
     Product'';
       (F) in paragraph (6), as so redesignated, by striking the 
     period at the end and inserting a semicolon; and
       (G) 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 ``office. Such specialists'' and inserting 
     ``office and providing each Administration regional office 
     with a full-time export development specialist, who'';

       (ii) in subparagraph (D), by striking ``and'' at the end;
       (iii) in subparagraph (E), by striking the period at the 
     end and inserting a semicolon; and
       (iv) 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, and other relevant Federal agencies.'';
       (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'';
       (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) 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
       ``(3) 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 addded by section 2 
     of this Act, the following:
       ``(i) Export Assistance Centers.--
       ``(1) In general.--During the period beginning on October 
     1, 2009, and ending on September 30, 2012, the Administrator 
     shall ensure that the number of full-time equivalent 
     employees of the Office assigned to the Export Assistance 
     Centers is not less than the number of such employees so 
     assigned on January 1, 2003.
       ``(2) Priority of placement.--The Administrator shall give 
     priority, to the maximum extent practicable, to placing 
     employees of the Administration at any Export Assistance 
     Center that--
       ``(A) had an Administration employee assigned to the Export 
     Assistance Center before January 2003; and
       ``(B) 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.
       ``(3) 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.
       ``(4) Goals.--The Associate Administrator shall work with 
     the Department of Commerce and the Export-Import Bank to 
     establish shared annual goals for the Export Assistance 
     Centers.
       ``(5) Oversight.--The Associate Administrator shall 
     designate an individual within the Administration to oversee 
     all activities conducted by Administration employees assigned 
     to Export Assistance Centers.
       ``(j) 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

[[Page S6260]]

     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)); and
       ``(3) the term `Office' means the Office of International 
     Trade established under subsection (a)(1).''.
       (b) 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, including the destination of such travel and 
     the benefits to the Administration and to small business 
     concerns resulting from such travel.

     SEC. 4. INTERNATIONAL TRADE LOANS.

       (a) In General.--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 ``$2,750,000 (or if the gross loan amount would 
     exceed $3,670,000), of which not more than $2,000,000''.
       (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.''.

     SEC. 5. SENSE OF CONGRESS RELATING TO ASSISTANT UNITED STATES 
                   TRADE REPRESENTATIVE FOR SMALL BUSINESS.

       (a) Findings.--Congress finds the following:
       (1) According to the Office of Advocacy of the Small 
     Business Administration, small business concerns (as that 
     term is defined in section 3 of the Small Business Act (15 
     U.S.C. 632)) represent 97 percent of all exporters in the 
     United States and account for 29 percent of the total 
     exporting volume. Despite the overwhelming majority of 
     exporters that are small business concerns, fewer than 1 
     percent of all small business concerns in the United States 
     are engaged in trade-related business activities.
       (2) According to the Office of Advocacy of the Small 
     Business Administration, more than 72 percent of all 
     exporters in the United States employ fewer than 20 
     employees. Small business concerns often do not have the 
     sales volume or resources to overcome the costs of trade 
     barriers and overhead expenses in international transactions, 
     nor can small business concerns afford to maintain employees 
     with international trade expertise to resolve trade problems.
       (3) Small business advocacy groups often lack political 
     influence in foreign countries, which hinders efforts to 
     solve problems outside the legal process. Small business 
     advocates are not as visible or vocal on issues relating to 
     international trade as are the advocates for other issues, 
     due to a lack of resources for advocacy.
       (4) In 1988, Congress passed section 8012 of the Omnibus 
     Trade and Competitiveness Act of 1988 (15 U.S.C. 631 note), 
     which expressed the sense of Congress that the United States 
     Trade Representative should appoint a special trade assistant 
     for small business. As of June 2009, the position has not 
     been established by the United States Trade Representative.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States Trade Representative should establish the 
     position of Assistant United States Trade Representative for 
     Small Business, to--
       (1) promote the trade interests of small business concerns;
       (2) identify and address foreign trade barriers that impede 
     the exportation of goods by small business concerns;
       (3) ensure that small business concerns are adequately 
     represented during trade negotiations by the United States 
     Trade Representative; and
       (4) coordinate with other Federal agencies that are 
     responsible for providing information or assistance to small 
     business concerns.
                                 ______