[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.
____________________