[Congressional Record Volume 166, Number 158 (Monday, September 14, 2020)]
[House]
[Pages H4341-H4344]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      STEP IMPROVEMENT ACT OF 2020

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6133) to reauthorize the State Trade Expansion Program of 
the Small Business Administration, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6133

       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 ``STEP Improvement Act of 
     2020''.

     SEC. 2. STATE TRADE EXPANSION PROGRAM.

       (a) Application Requirements.--Section 22(l)(3) of the 
     Small Business Act (15 U.S.C. 649(l)(3)) is amended--
       (1) in subparagraph (D)--
       (A) in clause (i), by inserting ``, including a budget plan 
     for use of funds awarded under this subsection'' before the 
     period at the end; and
       (B) by adding at the end the following new clause:
       ``(iii) Timing.--The Associate Administrator shall--

       ``(I) publish information on how to apply for a grant under 
     this subsection, including specific calculations and other 
     determinations used to award such a grant, not later than 
     March 31 of each year;
       ``(II) establish a deadline for the submission of 
     applications that is not earlier than 60 days after the date 
     on which the information is published under subclause (I), 
     but in any case not later than May 31; and
       ``(III) announce grant recipients not later than August 31 
     of each year.''; and

       (2) by adding at the end the following new subparagraphs:
       ``(E) Application information.--The Associate Administrator 
     shall clearly communicate to applicants and grant recipients 
     any information about State Trade Expansion Program, 
     including--
       ``(i) for each unsuccessful applicant for a grant awarded 
     under this subsection, recommendations to improve a 
     subsequent application for such a grant; and
       ``(ii) for each successful applicant for such a grant, an 
     explanation for the amount awarded, if different from the 
     amount requested in the application.
       ``(F) Budget plan revisions.--
       ``(i) In general.--A State receiving a grant under this 
     subsection may revise the budget

[[Page H4342]]

     plan of the State submitted under subparagraph (D) after the 
     disbursal of grant funds if--

       ``(I) the revision complies with allowable uses of grant 
     funds under this subsection; and
       ``(II) such State submits notification of the revision to 
     the Associate Administrator.

       ``(ii) Exception.--If a revision under clause (i) 
     reallocates 10 percent or more of the amounts described in 
     the budget plan of the State submitted under subparagraph 
     (D), the State may not implement the revised budget plan 
     without the approval of the Associate Administrator, unless 
     the Associate Administrator fails to approve or deny the 
     revised plan within 10 days after receipt of such revised 
     plan.''.
       (b) Survey.--Section 22(l) of the Small Business Act (15 
     U.S.C. 649(l)) is amended--
       (1) by redesignating paragraphs (7) through (9) as 
     paragraphs (8) through (10), respectively; and
       (2) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) Survey.--The Associate Administrator shall conduct an 
     annual survey of each State that received a grant under this 
     subsection during the preceding year to solicit feedback on 
     the program.''.
       (c) Annual Report.--Section 22(l)(8)(B) of the Small 
     Business Act, as redesignated by subsection (b), is amended--
       (1) in clause (i)--
       (A) in subclause (III), by inserting ``, including the 
     total number of eligible small business concerns assisted by 
     the program (disaggregated by socially and economically 
     disadvantaged small business concerns, small business 
     concerns owned and controlled by women, and rural small 
     business concerns)'' before the semicolon at the end;
       (B) in subclause (IV), by striking ``and'' at the end;
       (C) in subclause (V)--
       (i) by striking ``description of best practices'' and 
     inserting ``detailed description of best practices''; and
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (D) by adding at the end the following new subclauses:

       ``(VI) an analysis of the performance metrics described in 
     clause (iii) and the survey described in paragraph (7); and
       ``(VII) a description of lessons learned by grant 
     recipients under this subsection that may apply to other 
     assistance provided by the Administration.''; and

       (2) by adding at the end the following new clause:
       ``(iii) Performance metrics.--Annually, the Associate 
     Administrator shall collect data on eligible small business 
     concerns assisted by the program on the following performance 
     metrics:

       ``(I) Total number of such concerns, disaggregated by 
     socially and economically disadvantaged small business 
     concerns, small business concerns owned and controlled by 
     women, and rural small business concerns.
       ``(II) Total dollar amount of export sales by eligible 
     small business concerns assisted by the program.
       ``(III) Number of such concerns that have not previously 
     participated in an activity described in paragraph (2).
       ``(IV) Number of such concerns that have previously 
     participated in the program.
       ``(V) Number of such concerns that, because of 
     participation in the program, have accessed a new market.
       ``(VI) Number of such concerns that, because of 
     participation in the program, have created new jobs.
       ``(VII) Number of such concerns participating in foreign 
     trade missions or trade show exhibitions, disaggregated by 
     socially and economically disadvantaged small business 
     concerns, small business concerns owned and controlled by 
     women, and rural small business concerns.''.

       (d) Authorization of Appropriations.--Section 22(l)(10) of 
     the Small Business Act, as redesignated by subsection (b), is 
     amended by striking ``fiscal years 2016 through 2020'' and 
     inserting ``fiscal years 2021 through 2024''.
       (e) Report to Congress.--Not later than 1 year after the 
     date of the enactment of this Act, the Associate 
     Administrator for International Trade of the Small Business 
     Administration shall submit to Congress a report on the State 
     Trade Expansion Program established under section 22(l) of 
     the Small Business Act (15 U.S.C. 649(l)) that includes a 
     description of--
       (1) the process developed for review of revised budget 
     plans submitted under section 22(l)(3)(F) of the Small 
     Business Act, as added by this Act;
       (2) any changes made to streamline the application process 
     to remove duplicative requirements and create a more 
     transparent process;
       (3) the process developed to share best practices by States 
     described in section 22(l)(8)(B)(i)(V) (as redesignated by 
     this Act), particularly for first-time grant recipients under 
     the State Trade Expansion Program or grant recipients that 
     are facing problems using grant funds; and
       (4) the process developed to communicate, both verbally and 
     in writing, relevant information about the State Trade 
     Expansion Program to all grant recipients in a timely manner.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the measure under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 6133, the STEP 
Improvement Act of 2020.
  Before I begin, I thank Ranking Member Chabot for his dedication to 
small businesses and for his continued effort to ensure the Committee 
on Small Business works in a bipartisan manner. Staying true to the 
tradition of our committee, the bills we are debating today are all 
bipartisan and passed through committee by unanimous consent, thanks to 
the cooperation of Members on both sides of the aisle. I commend and 
thank all of the committee members for their work on those bills and 
their passion to put forth policies that make a difference in the lives 
of entrepreneurs.
  Mr. Speaker, today's bill is one of those passion projects. After 
many hearings about the challenges and benefits of exporting and trade 
for America's business owners, this bill addresses many of the concerns 
raised. It reauthorizes the SBA State Trade Expansion Program--
otherwise known as STEP--a proven and effective program that gives 
small businesses the tools they need to enter and thrive in the global 
marketplace.
  STEP has helped small firms export and access new markets, supporting 
$974 million in export sales in fiscal year 2019 alone. With the COVID-
19 pandemic continuing to decimate local economies and disrupting 
supply chains, the STEP program will be needed now more than ever. It 
will help small businesses navigate the complexities of an 
international marketplace, particularly as the country and world reopen 
for business. The STEP Improvement Act of 2020 funds STEP through 
fiscal year 2024 while making important improvements to modernize the 
program.
  Mr. Speaker, I am pleased to report that this legislation has the 
support of the State International Development Organizations. I thank 
its cosponsors, Representative Finkenauer, who is also the chair of the 
Subcommittee on Rural Development, Agriculture, Trade, and 
Entrepreneurship; and Representative Spano, the ranking member of the 
Subcommittee on Investigations, Oversight, and Regulations, for their 
continued bipartisan work to improve STEP.
  Mr. Speaker, I urge my colleagues to join me in voting to support 
H.R. 6133 today, and I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 6133, the STEP Improvement Act 
of 2020. This legislation will authorize the SBA State Trade Expansion 
Program--or STEP--for the next 4 years. This important program 
facilitates small business participation in trade missions and shows, 
international marketing efforts, workshops, and other promotional 
activities.
  The Small Business Act of 2010 authorized the SBA to establish a 3-
year STEP pilot grant initiative. The program has two objectives: One, 
increase the number of small businesses that export; and, two, raise 
the value of existing small business exporters.
  The Associate Administrator of the Office of International Trade is 
responsible for overseeing the program and awards, matching funds to 
States and territories for participation in trade missions, 
international marketing efforts, workshops, export trade show exhibits, 
and other promotional activities.
  The Trade Facilitation and Trade Enforcement Act of 2015 renamed the 
program the State Trade Expansion Program and provided a $30 million 
authorization through fiscal year 2020. The act allowed the Associate 
Administrator of the Office of International

[[Page H4343]]

Trade to give priority to STEP proposals from States that have a small 
number of small businesses that export or proposals that would assist 
rural, women-owned, and socially or economically disadvantaged small 
businesses.
  This legislation will improve the implementation of the program by 
creating a standardized application process, increasing grant spending 
flexibility, improving communication between the SBA and States, and 
collecting performance metrics and reporting to Congress.
  H.R. 6133 reinforces our commitment to seeing that the SBA fulfills 
its goals relating to the STEP program and maximizes every dollar to 
help small businesses reach their potential in the international 
market. The bill provides greater flexibility to State trade agencies 
and enhances accountability at the SBA--a balance that will greatly 
improve program functions.
  Mr. Speaker, I thank the gentlewoman from Iowa (Ms. Finkenauer), and 
the gentleman from Florida (Mr. Spano), for their leadership on this 
bill. And I especially thank the chair of the Committee on Small 
Business for her great leadership on the committee and the bipartisan 
work that we have done on this for such a long time.
  Ms. Velazquez and I have had the opportunity to work on the committee 
for many years now, and it is truly one of the committees in this 
Congress that works because it is bipartisan, and that is why we have 
been able to pass such important legislation and work so hard on the 
PPP and other programs over the years.
  Mr. Speaker, I thank the chairwoman, and I reserve the balance of my 
time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield as much time as she may consume 
to the gentlewoman from Iowa (Ms. Finkenauer), the sponsor of the bill 
and chair of the Subcommittee on Rural Development, Agriculture, Trade, 
and Entrepreneurship.
  Ms. FINKENAUER. Mr. Speaker, I thank Chairwoman Velazquez for 
yielding. It is an honor to get to serve on the Committee on Small 
Business with her, and I appreciate her support as we dive into these 
issues that are obviously of big importance to me and to my State of 
Iowa.

  Mr. Speaker, that is why, today, I rise in support of the bipartisan 
State Trade Expansion Program Improvement Act.
  As the Congresswoman from Iowa's First Congressional District, I know 
firsthand that for our small businesses, the ability to access new 
markets and export goods promotes economic success at home and in our 
communities.
  Given the importance of trade in my home State--especially for our 
farmers, small businesses, and manufacturers--I have made it a priority 
to improve and strengthen the State Trade Expansion Program. The State 
Trade Expansion Program gives small businesses the tools they need to 
start exporting and expanding into new markets. Many small businesses 
operate within razor-thin margins and have only a few employees.
  They don't always have the resources to attend a trade show, design 
an international marketing campaign, or navigate foreign countries' 
complex rules and regulations. That is where the State Trade Expansion 
Program comes in.
  It is important that we reauthorize this program before it expires at 
the end of the month. At the same time, we also need to fix some of the 
program's administrative challenges, which we have heard about from 
folks in Iowa and other stakeholders who have come before my 
subcommittee.

                              {time}  1415

  In the Rural Development, Agriculture, Trade, and Entrepreneurship 
Subcommittee that I chair with Ranking Member Joyce from Pennsylvania, 
we held two hearings dedicated to better understanding and addressing 
challenges with the State Trade Expansion Program. I also held a 
roundtable in my district to hear from the Iowa Economic Development 
Authority, and small businesses have actually used this program.
  What we heard was that the State Trade Expansion Program is a great 
resource for our State, but we also heard about confusing application 
processes, tight timelines, and poor communication from staff at the 
Small Business Administration.
  That is why today, taking all of that feedback I have heard here in 
D.C. and back at home, I am proud we are here to pass the bipartisan 
STEP Improvement Act of 2020.
  This bill would reauthorize the State Trade Expansion Program for 4 
more years and make improvements; like creating a standard timeframe 
for applications; opening up more channels for input and communication 
between the Small Business Administration and the States; and 
collecting better data on how the program helps small businesses, which 
is the ultimate goal here.
  I want to thank Congressman Ross Spano from Florida, whom I worked 
with on introducing this bipartisan legislation, as well as Congressman 
  Jim Hagedorn from Minnesota for cosponsoring this bill.
  I will also note that this legislation passed through the House Small 
Business Committee unanimously. I want to thank my Republican and 
Democratic colleagues for working together to move this forward.
  I urge all Members of this body to join Congressmen Spano, Hagedorn, 
and me in supporting this bill.
  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Florida (Mr. Spano), who is the ranking member of the 
Investigations, Oversight, and Regulations Subcommittee.
  Mr. SPANO. Mr. Speaker, I always appreciate coming to the floor to 
talk about the good bipartisan work that we do in the Small Business 
Committee. It truly has been an honor serving on that committee this 
term.
  I rise today in support of H.R. 6133, the STEP Improvement Act of 
2020, which reauthorizes the SBA's State Trade Expansion Program, or 
STEP, for the next 4 years.
  The program helps small exporters expand their markets, grow their 
businesses, and create new American jobs.
  In fiscal year 2019, STEP helped small businesses export over $974 
million in goods and services, which yielded a 54-to-1 return on 
investment.
  The program enhances State and Federal export efforts, facilitates 
coordination of services, and expands the resources available to our 
Nation's small businesses.
  Last year, the committee held a series of hearings to evaluate the 
STEP program.
  In March 2019, representatives from the U.S. Government 
Accountability Office and the SBA's Office of Inspector General 
identified program management weaknesses and recommended reforms.
  In June 2019, we received testimony from State administrators and 
small businesses that have successfully utilized STEP funds.
  Our committee has carefully reviewed oversight reports and 
stakeholder feedback to determine the appropriate path in this 
reauthorization.
  With these recommendations in mind, H.R. 6133 streamlines the 
program's administration from the application process to the reporting 
requirements.
  Thousands of our small businesses are competing in the global economy 
through the STEP program. Now more than ever, we need to support small 
businesses as our economy is recovering.
  In my home State of Florida, more than 55,000 small businesses export 
their goods and services, and this program will help them and their 
employees.
  In passing H.R. 6133, we maximize the potential of our small 
exporters.
  Thank you to the gentlewoman from Iowa (Ms. Finkenauer) for working 
with me on this piece of legislation and her commitment to bipartisan 
cooperation.
  I urge my colleagues to support this bill.
  Mr. CHABOT. Mr. Speaker, I yield myself the balance of my time for 
the purpose of closing.
  Mr. Speaker, the SBA's STEP program provides financial awards to 
State and territory governments to assist small businesses with export 
development.
  The financial support that STEP provides helps small businesses to 
learn how to export, participate in foreign trade missions and trade 
shows, and design international marketing products or campaigns.
  It is a commonsense, bipartisan piece of legislation. I urge my 
colleagues to

[[Page H4344]]

support it, and I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, small businesses are truly the bedrock of the American 
economy. Unsurprisingly, foreign markets are essential to their growth. 
While more and more of our local businesses are making inroads abroad, 
they are not without challenges.
  International trade has always been a complex undertaking, dependent 
on global macroeconomic trends as well as country-specific trade 
policies and resources.
  Regardless, it is critical entrepreneurs can compete in this 
marketplace. Doing so gives them access to more customers, which in 
turn fuels growth and generates jobs here at home.
  H.R. 6133, the STEP Improvement Act of 2020, will go a long way to 
ensuring the recovery and success of our Nation's small businesses. By 
reauthorizing and modernizing STEP, this legislation guarantees that 
States and their entrepreneurs will face fewer obstacles to 
participation and greater opportunities to expand their businesses 
through exporting.
  This bill is needed now more than ever as the world seeks to recover 
from the COVID-19 pandemic and subsequent economic fallout.
  Once again, I applaud my esteemed colleagues, Representative 
Finkenauer and Representative Spano, for their hard work on this 
legislation.
  I commend the ranking member and his staff for their commitment to 
advancing this legislation in a bipartisan manner through our 
committee.
  I urge my colleagues to support this legislation, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 6133.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________