[Congressional Record Volume 168, Number 188 (Monday, December 5, 2022)]
[House]
[Pages H8738-H8740]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      STEP IMPROVEMENT ACT OF 2022

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 8844) 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. 8844

       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 
     2022''.

     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) and 
     that is 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 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 20 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 and develop best practices for grantees.''.
       (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), including a determination of whether or not any 
     goals relating to such performance metrics were met, and an 
     analysis of 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 for 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, because of 
     participation in the program, have accessed a new market.
       ``(V) Number of such concerns that, because of 
     participation in the program, have created new jobs.
       ``(VI) 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) Expansion of Definition of Eligible Small Business 
     Concern.--Section 22(l)(1)(A) of the Small Business Act is 
     amended--
       (1) in clause (iii)(II), by adding ``and'' at the end;
       (2) by striking clause (iv); and
       (3) by redesignating clause (v) as clause (iv).
       (e) 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 2023 through 2026''.
       (f) 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 Missouri (Mr. 
Luetkemeyer) 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.

[[Page H8739]]

  


                              {time}  1445

  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 8844, the STEP 
Improvement Act of 2022.
  This bill reauthorizes the SBA's State Trade Expansion Program, or 
STEP, as we call it. This program is a proven and effective program 
that gives small businesses the tools they need to enter and thrive in 
the global marketplace.
  Since its inception in 2010, STEP has helped firms access new markets 
and support $832 million in export sales in fiscal year 2021 alone.
  The program offers grants to all 50 States, U.S. territories, and 
D.C. This financial assistance aids export-related activities such as 
developing e-commerce capabilities, participating in export trade shows 
and foreign trade missions, creating international marketing materials 
and website globalization.
  Our committee held two hearings on STEP this Congress where we heard 
that demand for the program continues to increase across the country, 
and improvements could be made to streamline the program.
  To that end, the STEP Improvement Act of 2022 authorizes $30 million 
per year through fiscal year 2026, and mandates a standardized 
application process, increases grant spending flexibility, improves 
communication between the SBA and States, and enhances reporting 
requirements.
  The legislation allows businesses less than 1 year old to participate 
in the program, which would allow STEP to provide services to the most 
innovative small businesses that are exporting faster than ever before.
  The legislation has the strong support of the State International 
Development Organizations. I thank the bill's sponsors, Mr. Evans, Mrs. 
Kim of California, Ms. Newman, and Mr. Flood for their continued 
bipartisan work to improve STEP.
  Mr. Speaker, I urge my colleagues to support H.R. 8844, and I reserve 
the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 8844, the STEP Improvement 
Act.
  Small businesses are the drivers of innovation, leaders in job 
creation, and beacons of American ingenuity across the globe.
  The State Trade Expansion Program, or STEP, is a valuable tool for 
small businesses looking to export and expand into global markets. This 
program has made a real impact on small business owners who have used 
the program to internationalize their websites and create relationships 
on foreign market sales trips.
  In my district, this program has helped a veteran-owned business 
expand into 10 countries in Southeast Asia and helped a consulting 
company transition from zero percent to 75 percent international sales.
  The legislation will ensure small businesses can continue to benefit 
from STEP by reauthorizing the program through 2026. Additionally, H.R. 
8844 will improve the program by creating a standardized application 
process.
  Further, the legislation requires the SBA to report best practices, 
lessons learned, and the program's performance metrics.
  I applaud Representatives Kim, Flood, Evans, and Newman for their 
bipartisan work on this legislation.
  I also thank the chair for holding multiple hearings on the topic and 
for moving this legislation forward.
  Mr. Speaker, I urge my colleagues to support this bipartisan 
legislation, and I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Pennsylvania (Mr. Evans), the author of the bill.
  Mr. EVANS. Mr. Speaker, I rise in support of my bill, the State Trade 
Expansion Program Improvement Act.
  This bill would reauthorize STEP for 4 more years and improve it in 
several ways, including creating a standardized application process and 
collecting performance metrics.
  As a member of both the Small Business Committee and the Ways and 
Means Committee, I see trade as a tool in the economic toolbox to help 
small businesses expand and grow.
  Since 2011, STEP has been assisting small businesses with export 
development through the use of grants and introduction into the 
international marketplace.
  Trade helps to create and support jobs, which is good for the 
economy, community, and families in Pennsylvania. Over 1.5 million jobs 
were supported by international trade in 2019, which accounted for 20 
percent of all jobs in the State.
  Further, in 2020, nearly 15,000 companies exported goods from 
Pennsylvania of which 88 percent were small-and medium-sized 
enterprises.
  Coming from the city of Philadelphia, where nearly half of the 
population is African American, I am especially interested in finding 
ways to improve minority entrepreneurship.
  Many minority businesses and small businesses have a competitive 
advantage in conducting international business due to their cultural 
connections. It is important, and I thank the chair for showing the 
leadership to at least have this discussion.
  STEP has helped minority entrepreneurs gain access to the 
international marketplace, which allows their businesses to grow and 
thrive.
  I was excited to see that STEP awarded my home State of Pennsylvania 
a $400,000 grant in 2022. This will go a long way to supporting small 
businesses across the State.
  STEP needs to be reauthorized and improved. I am asking my colleagues 
to support it. I thank the chairperson and my colleagues on the other 
side for making this a bipartisan effort and a collective interest.
  Mr. LUETKEMEYER. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Nebraska (Mr. Flood), one of our newest members on 
the committee, but he is a staunch supporter and has worked tirelessly 
for the small businesses in his community as well as those around the 
country.

  Mr. FLOOD. Mr. Speaker, I am proud to co-lead H.R. 8844 with my 
colleagues, Congressman Evans, Congresswoman Newman, and Congresswoman 
Kim.
  I also thank Chairwoman Velazquez and Ranking Member Luetkemeyer for 
their support on this bill.
  It is good to see Republicans and Democrats working in a bipartisan 
fashion on the Small Business Committee. When we can come to an 
agreement, the American people benefit.
  H.R. 8844 would reauthorize the State Trade Expansion Program for 4 
fiscal years. STEP provides financial awards to States to assist small 
businesses with export development.
  To demonstrate the importance of this program, I would like to 
highlight an example of a business that has benefited from the STEP 
program in my district.
  Paraclipse Systems, LLC, based in Columbus, Nebraska, manufacturers--
of all things--nonintrusive fly--as in the insect--control products 
that you can install in your home.
  With a $10,000 investment, Paraclipse was able to expand its sales 
and create 14 jobs.
  STEP leverages Federal resources to ensure small businesses across 
the country can compete in the global marketplace.
  Mr. Speaker, I am pleased to be a co-lead of this legislation, and I 
urge my colleagues to support the bill.
  Ms. VELAZQUEZ. Mr. Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, in a growing global economy, we must 
empower our small businesses to compete on the world stage.
  This legislation will ensure that entrepreneurs have ample 
opportunities to engage in international trade.
  H.R. 8844 also ensures accountability, which is very important, 
requiring an analysis of the performance metrics of the program to 
ensure that it is effectively and efficiently supporting small 
businesses.
  Mr. Speaker, I encourage my colleagues to support H.R. 8844, and I 
yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, small businesses are truly the bedrock of the American 
economy, and exporting is one sure way for them to expand their profits 
at home and their presence overseas.
  H.R. 8844 will go a long way in ensuring small employers and 
entrepreneurs

[[Page H8740]]

at any stage in their business journey can grow and open the doors to 
the global marketplace.
  By reauthorizing STEP, this legislation ensures that States and their 
small businesses will face fewer hurdles to participation and greater 
opportunities.
  Once again, I commend my colleagues, Representatives Evans, Kim, and 
Flood for their hard work on this legislation.
  Mr. Speaker, I urge my colleagues to vote ``yes,'' and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 8844.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. ROSENDALE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________