[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4767-S4771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2452. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill S. 4638, to authorize appropriations for fiscal year 
2025 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:-

               DIVISION F--STATE TRADE EXPANSION PROGRAM

     SEC. 6001. SHORT TITLE.

       This division may be cited as the ``State Trade Expansion 
     Program Modernization Act of 2024''.

     SEC. 6002. FINDINGS.

       Congress finds the following:
       (1) The State Trade Expansion Program established under 
     section 22(l) of the Small Business Act (15 U.S.C. 649(l)) 
     (in this section referred to as ``STEP'') was created by 
     Congress in 2010 to grow the number of small business 
     concerns (as defined under section 3 of such Act (15 U.S.C. 
     632) and in this section referred to as a ``small business 
     concern'') that export, increase the value of goods exported 
     by the small business sector, and help businesses identify 
     new markets.
       (2) Helping small firms in the United States begin to 
     export or build upon their existing export capacity generates 
     investment in local economies and spurs employment.
       (3) Despite 95 percent of global consumers living outside 
     of the United States, less than 4 percent of small business 
     concerns in the United States export their products or 
     services.
       (4) Many small business concerns in the United States that 
     could grow by exporting lack the dedicated staff, required 
     technical skills, and necessary budgetary resources for 
     international expansion.
       (5) STEP provides vital assistance to small business 
     concerns, particularly to those that have never had the 
     opportunity to sell their products or services abroad.

[[Page S4768]]

       (6) According to data of the Bureau of the Census, there 
     were approximately 5,900,000 employer firms in the United 
     States as of 2021, of which more than 1,200,000, or 
     approximately 22 percent, were women-owned. However, 
     according to the data, of the 128,460 exporting small firms, 
     only 21,626, or 17 percent, were women-owned firms, meaning 
     that, of small firms, 5 times as many male-owned firms export 
     as women-owned firms. The data show that the overall 
     disparity in business ownership between men and women is even 
     greater among exporting businesses.
       (7) According to research conducted by the Small Business 
     Administration, smaller firms tend to produce fewer outputs 
     and are less likely to export than larger firms. Data of the 
     Bureau of the Census show that women-owned firms employ 33 
     percent fewer workers on average than male-owned firms and 
     are less likely to enjoy the benefits of international trade.
       (8) Exporting is a highly effective way for businesses to 
     expand their markets and increase their productivity. As 
     States expand export-enhancing activities through STEP, 
     additional small firms will benefit from the higher demand 
     for their goods and services and increased profits associated 
     with international trade.
       (9) During the first 10 years of operation, STEP enabled 
     more than 12,000 small business concerns to explore export 
     opportunities, helping them reach markets in 141 countries.
       (10) Congress recognizes that STEP can be improved to 
     reduce the administrative burden for grantees, streamline 
     reporting and compliance requirements, give grantees more 
     flexibility, make grant awards more transparent and 
     consistent, and set more predictable application deadlines.
       (11) Congress also recognizes that making awards under STEP 
     more consistent and transparent will simplify the program and 
     incentivize more States to participate so that small business 
     concerns are supported in all States.

     SEC. 6003. STREAMLINING APPLICATION, REPORTING, AND 
                   COMPLIANCE REQUIREMENTS.

       (a) Requirement for Funding Information To Be Kept 
     Current.--Section 22(l)(3) of the Small Business Act (15 
     U.S.C. 649(l)(3)) is amended by adding at the end the 
     following:
       ``(E) Requirement for funding information to be kept 
     current.--The Associate Administrator shall--
       ``(i) maintain on the website of the Administration a 
     publicly accessible list of links to documents containing the 
     most up-to-date information about program requirements and 
     application procedures, including the latest notice of 
     funding opportunity, all active Director's Memos, and any 
     determination made related to eligible expenditures or the 
     classification of expenditures as direct or indirect; and
       ``(ii) update the list described in clause (i) before any 
     new clarification, instruction, directive, requirement, 
     determination, or classification relating to the program 
     takes effect.''.
       (b) Timing of Funding Information Release.--Section 
     22(l)(3)(D) of the Small Business Act (15 U.S.C. 
     649(l)(3)(D)) is amended by adding at the end the following:
       ``(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--

       ``(aa) not earlier than 60 days after the date on which the 
     information is published under subclause (I); and
       ``(bb) not later than--
       ``(AA) May 31 of each year; or
       ``(BB) in the event that full-year appropriations for the 
     program for a fiscal year have not been enacted as of 
     February 1 of such fiscal year, 120 days after full-year 
     appropriations are enacted; and

       ``(III) announce grant recipients not later than--

       ``(aa) September 30 of each year; or
       ``(bb) in the event that full-year appropriations for the 
     program for a fiscal year have not been enacted as of 
     February 1 of such fiscal year, 210 days after full-year 
     appropriations are enacted.''.
       (c) Application Streamlining.--Section 22(l)(3)(D) of the 
     Small Business Act (15 U.S.C. 649(l)(3)(D)), as amended by 
     subsection (b) of this section, is amended by adding at the 
     end the following:
       ``(iv) Application streamlining.--

       ``(I) In general.--The Associate Administrator shall 
     establish a concise application for grants under the program 
     that shall encompass all necessary information, including--

       ``(aa) the proposal of the State, territory, or 
     commonwealth to manage the program;
       ``(bb) an overview of the trade office and staff of the 
     State, territory, or commonwealth;
       ``(cc) a description of the key mission and objective, key 
     activities planned, and estimated key performance indicators;
       ``(dd) a detailed budget, which, for a State, shall include 
     a description of the cash, indirect costs, and in-kind 
     contributions the State has committed to provide for the non-
     Federal share of the cost of the trade expansion program of 
     the State to be carried out using a grant under the program; 
     and
       ``(ee) for a State, whether the State is requesting to 
     receive additional funds allocated under paragraph (5)(F), if 
     applicable.

       ``(II) Scope.--The application established under subclause 
     (I) shall--

       ``(aa) include all the information required for the 
     technical proposal;
       ``(bb) eliminate any unnecessary or duplicative materials, 
     except to the extent the duplication is due to the use of 
     standard forms or documents that are not specific to the 
     Administration and are used by other Federal grant programs; 
     and
       ``(cc) to the extent feasible, use forms common to other 
     Federal trade and export programs.''.
       (d) Ability to Review Applications After Award.--Section 
     22(l)(3) of the Small Business Act (15 U.S.C. 649(l)(3)), as 
     amended by subsection (a) of this section, is amended by 
     adding at the end the following:
       ``(F) Application information.--The Associate Administrator 
     shall clearly communicate to applicants and grant recipients 
     information about award decisions under this subsection, 
     including--
       ``(i) for each unsuccessful applicant for a grant awarded 
     under this subsection, providing recommendations to improve a 
     subsequent application for such a grant;
       ``(ii) for each successful applicant for such a grant, 
     providing an explanation for the amount awarded, if different 
     from the amount requested in the application; and
       ``(iii) upon request, offering to have the program manager 
     who reviewed the application discuss with the applicant how 
     to improve a subsequent application for such a grant.''.
       (e) Budget Plan Submission and Revisions.--Section 22(l)(3) 
     of the Small Business Act (15 U.S.C. 649(l)(3)), as amended 
     by subsection (d) of this section, is amended--
       (1) in subparagraph (D)(i), by inserting ``, including a 
     budget plan for use of funds awarded under this subsection'' 
     before the period at the end; and
       (2) by adding at the end the following:
       ``(G) Budget plan revisions.--
       ``(i) In general.--A State, territory, or commonwealth 
     receiving a grant under this subsection may revise the budget 
     plan of the State, territory, or commonwealth 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, territory, or commonwealth 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, territory, or commonwealth 
     submitted under subparagraph (D), the State, territory, or 
     commonwealth 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.''.
       (f) Reporting by Recipients; Processing of 
     Reimbursements.--Section 22(l)(7) of the Small Business Act 
     (15 U.S.C. 649(l)(7)) is amended by adding at the end the 
     following:
       ``(C) Reporting by recipients; processing of 
     reimbursements.--
       ``(i) In general.--The Associate Administrator shall 
     establish for recipients of grants under the program a 
     streamlined reporting process, template, or spreadsheet 
     format to report information regarding the program and key 
     performance indicators required by an Act of Congress that--

       ``(I) a State, territory, or commonwealth may use to upload 
     required compliance reports relating to the grants;
       ``(II) minimizes the manual entry of specific data 
     regarding eligible small business concerns, including 
     performance data;
       ``(III) eliminates any duplicative or unnecessary reporting 
     requirements that are not required for the Associate 
     Administrator to--

       ``(aa) report the information specified in subparagraph 
     (B);
       ``(bb) make allocations under paragraph (5)(B); or
       ``(cc) conduct necessary oversight of the program;

       ``(IV) to the extent feasible, accommodates the use and 
     uploading of spreadsheets or templates generated from 
     customer relationship management or spreadsheet software; and
       ``(V) may not require a State, territory, or commonwealth 
     to submit information more frequently than twice per year.

       ``(ii) Processing of reimbursement requests.--The Associate 
     Administrator shall--

       ``(I) process information submitted by a State, territory, 
     or commonwealth for purposes of obtaining reimbursement for 
     eligible activities in a timely manner, without regard to 
     whether the information is submitted semiannually, as 
     described in clause (i)(V), or quarterly, if the State, 
     territory, or commonwealth elects to submit information 
     quarterly;
       ``(II) notify a State, territory, or commonwealth if such 
     information is not processed on or before the date that is 21 
     days after the date such information is submitted; and
       ``(III) provide an estimated completion timeline with any 
     notification under subclause (II).

       ``(iii) Rule of construction.--Nothing in clause (i) shall 
     be construed to prohibit a

[[Page S4769]]

     State, territory, or commonwealth from submitting information 
     for purposes of obtaining reimbursement for eligible 
     activities on a quarterly basis, at the election of the 
     State, territory, or commonwealth, respectively.''.
       (g) Requirements Related to State Employees.--Section 
     22(l)(3) of the Small Business Act (15 U.S.C. 649(l)(3)), as 
     amended by subsection (e) of this section, is amended by 
     adding at the end the following:
       ``(H) Limitation on collection of state official and 
     employee information.--
       ``(i) In general.--Subject to clause (ii), the Associate 
     Administrator--

       ``(I) may only require that a State, territory, or 
     commonwealth include with an application for a grant under 
     the program detailed information, such as a position 
     description and resume, for the State, territory, or 
     commonwealth official or employee that would manage the 
     grant;
       ``(II) may only require that a State, territory, or 
     commonwealth receiving a grant under the program report the 
     salary of a State, territory, or commonwealth official or 
     employee to the extent that the State, territory, or 
     commonwealth--

       ``(aa) includes such salary as part of the non-Federal 
     share of the cost of the trade expansion program; or
       ``(bb) uses amounts received under the grant for the cost 
     of such salary, in whole or in part; and

       ``(III) with respect to a State, territory, or commonwealth 
     official or employee who is not directly managing a grant 
     under the program, may only require the State, territory, or 
     commonwealth to report the name, position, and contact 
     information of the official or employee.

       ``(ii) Exceptions.--The Associate Administrator may require 
     a State, territory, or commonwealth to provide information 
     about a State, territory, or commonwealth official or 
     employee that is relevant to any investigation into suspected 
     mismanagement, fraud, or malfeasance or that is necessary to 
     comply with Federal grant requirements.''.
       (h) Limitation on Compliance Audits.--Section 22(l) of the 
     Small Business Act (15 U.S.C. 649(l)) is amended--
       (1) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (10), (11), and (12), respectively;
       (2) by redesignating paragraphs (5) and (6) as paragraphs 
     (6) and (7), respectively; and
       (3) by inserting after paragraph (7), as so redesignated, 
     the following:
       ``(8) Compliance audits.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Associate Administrator may not conduct an audit of a 
     State, territory, or commonwealth to evaluate compliance with 
     this subsection more than once every 3 years.
       ``(B) Exceptions.--The Associate Administrator may conduct 
     an audit of a State, territory, or commonwealth to evaluate 
     compliance with this subsection more than once every 3 years 
     if--
       ``(i) the amount allocated to the State, territory, or 
     commonwealth under a grant under this subsection for a fiscal 
     year is an increase of not less than 15 percent from the 
     allocation for the State, territory, or commonwealth for the 
     prior fiscal year;
       ``(ii) the Associate Administrator believes that amounts 
     received by the State, territory, or commonwealth under a 
     grant under this subsection are being used for ineligible 
     activities or as part of fraudulent activity; or
       ``(iii) the most recent audit report shows evidence of 
     material noncompliance with program requirements, in which 
     case the Associate Administrator may conduct an audit 
     annually until compliance is reestablished.''.

     SEC. 6004. FUNDING TRANSPARENCY AND PREDICTABILITY.

       (a) Cap on Reductions in Grants.--Section 22(l) of the 
     Small Business Act (15 U.S.C. 649(l)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Limitations.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `current fiscal year' means the fiscal year 
     for which the Administrator is determining the amount of a 
     grant to be awarded to a State, territory, or commonwealth 
     under the program; and
       ``(ii) the term `prior fiscal year' means the most recent 
     fiscal year before the current fiscal year for which a State, 
     territory, or commonwealth received a grant under the 
     program.
       ``(B) General limitation on reductions in grants.--Subject 
     to subparagraphs (C) and (D), the Administrator may not award 
     a grant to a State, territory, or commonwealth under the 
     program for the current fiscal year in an amount that is less 
     than 80 percent of the amount received by the State, 
     territory, or commonwealth under a grant under the program 
     for the prior fiscal year.
       ``(C) Potential additional adjustments.--
       ``(i) Exception for reduction in appropriations.--Subject 
     to subparagraph (D), if the total amount appropriated for the 
     program for the current fiscal year is less than the amount 
     appropriated for the program for the prior fiscal year, for 
     purposes of applying subparagraph (B), the Administrator 
     shall substitute for `the amount received by the State, 
     territory, or commonwealth under a grant under the program 
     for the prior fiscal year' the product obtained by 
     multiplying--

       ``(I) subject to clause (ii) of this subparagraph, the 
     amount received by the State, territory, or commonwealth 
     under a grant under the program for the prior fiscal year; by
       ``(II) the ratio of the appropriation for the current 
     fiscal year to the appropriation for the prior fiscal year.

       ``(ii) Exception for grantees that use less than 80 percent 
     of the amount of a grant.--Subject to subparagraph (D), if a 
     State, territory, or commonwealth expends less than 80 
     percent of the amount of a grant under the program for the 
     prior fiscal year before the end of the period of the grant 
     for the prior fiscal year established under paragraph 
     (3)(C)(iii)(I), for purposes of applying subparagraph (B) of 
     this paragraph, if appropriations are not reduced, or 
     applying clause (i) of this subparagraph, if appropriations 
     are reduced, the Administrator shall substitute for `the 
     amount received by the State, territory, or commonwealth 
     under a grant under the program for the prior fiscal year' 
     the difference obtained by subtracting--

       ``(I) the amount equal to 50 percent of the amount 
     remaining available under the grant under the program to the 
     State, territory, or commonwealth for the prior fiscal year, 
     as of the last day of such period; from
       ``(II) the amount of the grant under the program to the 
     State, territory, or commonwealth for the prior fiscal year.

       ``(iii) Exception for increase in grantees resulting in 
     insufficient funding.--If the number of States, territories, 
     or commonwealths participating in the program has increased 
     from the prior fiscal year to such an extent that funding is 
     not sufficient to provide each grantee the minimum amount 
     required under this paragraph (including any reductions under 
     clause (i) or (ii) of this subparagraph, if applicable) the 
     Administrator may make pro rata reductions to the minimum 
     grant amount otherwise required under this paragraph on a 
     one-time basis to ensure that all qualified applicants may 
     receive grants.
       ``(D) Violations.--The amount of a grant to a State, 
     territory, or commonwealth may be less than the minimum 
     amount determined under subparagraph (B) (including any 
     substitution of amounts under clauses (i) and (ii) of 
     subparagraph (C), as applicable), if the State, territory, or 
     commonwealth has been found to have committed a significant 
     violation of the rules or policies of the program.''.
       (b) Permitting Carryover of Unused Grant Funds.--Section 
     22(l)(3)(C) of the Small Business Act (15 U.S.C. 
     649(l)(3)(C)) is amended--
       (1) in clause (ii), by striking ``40 percent'' and 
     inserting ``30 percent''; and
       (2) in clause (iii)--
       (A) by striking ``The Associate Administrator'' and 
     inserting the following:

       ``(I) In general.--The Associate Administrator''; and

       (B) by adding at the end the following:

       ``(II) Grantees that use less than the full amount of a 
     grant.--

       ``(aa) In general.--Subject to item (bb), for a State, 
     territory, or commonwealth that does not expend the entire 
     amount of a grant under the program before the end of the 
     period of the grant established under subclause (I), the 
     State, territory, or commonwealth may expend amounts 
     remaining available under the grant as of the last day of 
     such period during the first fiscal year after such period, 
     in an amount not to exceed 20 percent of the amount 
     originally made available under such grant.
       ``(bb) Forfeited grants.--Item (aa) shall not apply to a 
     grant under the program to a State, territory, or 
     commonwealth that was forfeited due to a significant program 
     violation by the State, territory, or commonwealth.
       ``(cc) Return of grant funds.--A State, territory, or 
     commonwealth shall return to the Treasury--
       ``(AA) any amounts remaining available under a grant under 
     the program at the end of the period of the grant established 
     under subclause (I) that are not available for expenditure 
     under item (aa) of this subclause; and
       ``(BB) any amounts that are available for expenditure under 
     item (aa) and are not expended on or before the date that is 
     1 year after the last day of the original period of the grant 
     established under subclause (I).''.
       (c) Funding Formula.--Section 22(l) of the Small Business 
     Act (15 U.S.C. 649(l)) is amended by inserting after 
     paragraph (4), as amended by subsection (a) of this section, 
     the following:
       ``(5) Funding formula.--
       ``(A) Minimum allocation.--Subject to paragraph (4), and 
     except as provided otherwise in this paragraph, the minimum 
     amount of a grant under the program for a fiscal year--
       ``(i) for a territory or commonwealth, shall be the amount 
     equal to 0.5 percent of the total amount appropriated for the 
     program for the fiscal year; and
       ``(ii) for a State, shall be the amount equal to 0.75 
     percent of the total amount appropriated for the program for 
     the fiscal year.
       ``(B) Additional funds.--
       ``(i) In general.--Subject to clause (ii), amounts 
     remaining for grants under the program for a fiscal year 
     after the minimum allocation under subparagraph (A) shall be 
     allocated among States receiving a grant under the program in 
     accordance with the following metrics:

       ``(I) 20 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle for which complete reporting 
     data is available, of the dollar value of export sales 
     reported by a State that were initiated as a result of 
     program activities undertaken by

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     eligible small business concerns that are located in the 
     State to the amount of the grant received by the State.
       ``(II) 20 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle for which complete reporting 
     data is available, of the total number of activities 
     described in paragraph (2) undertaken by eligible small 
     business concerns participating in the program that are 
     located in the State to the amount of the grant received by 
     the State.
       ``(III) 15 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle for which complete reporting 
     data is available, of the number of eligible small business 
     concerns participating in the program for the first time that 
     are located in the State to the amount of the grant received 
     by the State.
       ``(IV) 15 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle for which complete reporting 
     data is available, of the number of eligible small business 
     concerns participating in the program that are located in the 
     State and that engaged in trade outside the United States for 
     the first time to the amount of the grant received by the 
     State.
       ``(V) 15 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle for which complete reporting 
     data is available, of the total number of new markets reached 
     by eligible small business concerns participating in the 
     program that are located in the State to the amount of the 
     grant received by the State.
       ``(VI) 15 percent of amounts remaining shall be 
     proportionally allocated based on the ratio, for the most 
     recently completed grant cycle, of the total number of 
     eligible small business concerns participating in the program 
     that are located in the State to the number of eligible small 
     business concerns participating in the program that are 
     located in the State and that meet 1 or more of the following 
     criteria:

       ``(aa) Located in a low-income or moderate-income area.
       ``(bb) Located in a rural area.
       ``(cc) Located in an HUBZone, as that term is defined in 
     section 31(b).
       ``(dd) Located in a community that has been designated as 
     an empowerment zone or enterprise community under section 
     1391 of the Internal Revenue Code of 1986.
       ``(ee) Located in a community that has been designated as a 
     promise zone by the Secretary of Housing and Urban 
     Development.
       ``(ff) Located in a community that has been designated as a 
     qualified opportunity zone under section 1400Z-1 of the 
     Internal Revenue Code of 1986.
       ``(gg) Being owned by women.
       ``(ii) Limitation.--In allocating funds under each of 
     subclauses (I) through (VI) of clause (i), the amount of 
     funds allocated under such subclause to the State with the 
     highest ratio for a metric may not be more than 10 times the 
     amount of funds allocated under such subclause to the State 
     with the lowest ratio that is greater than zero for that 
     metric.
       ``(C) Limit on reduction below grant before enactment.--In 
     addition to the limitations under paragraph (4), and except 
     to the extent a State elects to return funds under 
     subparagraph (E), the amount of a grant to the State under 
     the program for any fiscal year may not be less than the 
     amount of the grant to the State under the program for the 
     most recent full fiscal year before the date of enactment of 
     the State Trade Expansion Program Modernization Act of 2024 
     for which the State received such a grant.
       ``(D) Matching requirement for formula funds.--The 
     Associate Administrator shall provide to each State receiving 
     a grant under the program an award in the amount calculated 
     in accordance with the funding formula under subparagraphs 
     (A), (B), and (C) if the State has committed to provide the 
     necessary cash, indirect costs, and in-kind contributions for 
     the non-Federal share of the cost of the trade expansion 
     program of the State, as required under paragraph (6).
       ``(E) Return of grants.--Not later than 15 days after the 
     date on which the Associate Administrator notifies a State of 
     the amount to be awarded to the State under a grant under the 
     program for a fiscal year, the State may decline or return to 
     the Associate Administrator, in whole or in part, such 
     amounts.
       ``(F) Distribution of returned and remaining amounts.--
       ``(i) Remaining amounts.--In this subparagraph, the term 
     `remaining amounts' means--

       ``(I) amounts declined or returned under subparagraph (E) 
     for a fiscal year; or
       ``(II) amounts remaining for grants under the program for a 
     fiscal year after allocating funds in accordance with 
     subparagraphs (A), (B), and (C) due to reductions in the 
     amount of grants because of the amount committed by States 
     for the non-Federal share of the cost of the trade expansion 
     program of the States.

       ``(ii) Distribution.--The Associate Administrator shall 
     distribute any remaining amounts for a fiscal year among the 
     States receiving a grant under the program that requested to 
     receive such remaining amounts, in an amount that is 
     proportional to the allocations under subparagraphs (A), (B), 
     and (C).
       ``(G) Limitation on basis for reducing amounts.--The 
     Associate Administrator may not reduce the amount determined 
     to be allocated or distributed to a State under any 
     subparagraph of this paragraph based on the proposed use of 
     such amount by the State, except to the extent that such use 
     is not an eligible use of funds for a grant under the 
     program.
       ``(H) Rounding.--The total amount of a grant to a State, 
     territory, or commonwealth under the program, as determined 
     under this paragraph, shall be rounded to the nearest 
     increment of $1,000.
       ``(I) Application.--
       ``(i) In general.--The Associate Administrator shall award 
     grants under this subsection based on the formula described 
     in this paragraph, and without regard to paragraph (3)(B)--

       ``(I) for the second consecutive fiscal year for which the 
     amount made available for the program is not less than 
     $30,000,000; and
       ``(II) for each fiscal year after the fiscal year described 
     in subclause (I) for which the amount made available for the 
     program is not less than $30,000,000.

       ``(ii) Award when not based on formula.--For any fiscal 
     year for which grants are not awarded based on the formula 
     described in this paragraph, the Associate Administrator 
     shall award grants under this subsection on a competitive 
     basis, taking into account the considerations described in 
     paragraph (3)(B).
       ``(J) Transition plan.--
       ``(i) Initial plan.--

       ``(I) In general.--If the amount made available for the 
     program for a fiscal year is not less than $30,000,000, the 
     Associate Administrator shall develop a transition plan 
     describing how the Administration intends to begin awarding 
     grants based on the formula described in this paragraph, to 
     ensure the Administration is prepared to award grants based 
     on the formula described in this paragraph if the amount made 
     available for the program for the next fiscal year is not 
     less than $30,000,000.
       ``(II) One-time requirement.--Subclause (I) shall not apply 
     on and after the first day of the first fiscal year for which 
     the Associate Administrator awards grants based on the 
     formula described in this paragraph.
       ``(III) Requirement to use formula.--The Associate 
     Administrator shall award grants based on the formula 
     described in this paragraph in accordance with the 
     requirements under subparagraph (I), without regard to 
     whether the Associate Administrator develops the transition 
     plan required under subclause (I) of this clause.

       ``(ii) Updates.--If, for any fiscal year after the first 
     fiscal year for which the Associate Administrator awards 
     grants based on the formula described in this paragraph, the 
     amount made available for the program for the fiscal year is 
     less than $30,000,000, the Associate Administrator shall 
     update the plan to award grants based on the formula 
     described in this paragraph, to ensure the Administration is 
     prepared to award grants based on the formula described in 
     this paragraph if the amount made available for the program 
     for the next fiscal year is not less than $30,000,000.
       ``(K) Reporting.--Not later than 180 days after the end of 
     each fiscal year for which the amount of grants under this 
     subsection is determined under the formula described in this 
     paragraph, the Associate Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report that provides the information used 
     by the Associate Administrator to determine the amounts of 
     grants under the formula, which shall include for the 
     applicable fiscal year--
       ``(i) the number of States that applied for a grant under 
     the program;
       ``(ii) the number of States that received a grant under the 
     program;
       ``(iii) the raw data for each factor used to calculate 
     award amounts in accordance with subparagraph (B), broken out 
     by State;
       ``(iv) the utilization rates of each grantee, broken out by 
     grantee;
       ``(v) the amount carried over by a grantee under paragraph 
     (3)(C)(iii)(II)(aa), broken out by grantee;
       ``(vi) the amount returned to Treasury due to a failure to 
     use the amounts under paragraph (3)(C)(iii)(II)(cc), broken 
     out by grantee; and
       ``(vii) the amount returned to the Associate Administrator 
     during the period described in subparagraph (E).''.

     SEC. 6005. EXPANSION OF DEFINITION OF ELIGIBLE SMALL BUSINESS 
                   CONCERN; CHANGE TO SET ASIDE; CONFORMING 
                   CHANGES.

       (a) Expansion of Definition of Eligible Small Business 
     Concern.--
       (1) In general.--Section 22(l)(1)(A) of the Small Business 
     Act (15 U.S.C. 649(l)(1)(A)) is amended--
       (A) in clause (iii)(II), by adding ``and'' at the end;
       (B) by striking clause (iv); and
       (C) by redesignating clause (v) as clause (iv).
       (2) Limitation on use of funds for participation in foreign 
     trade missions.--Section 22(l)(2)(A) of the Small Business 
     Act (15 U.S.C. 649(l)(2)(A)) is amended by inserting ``by 
     eligible small business concerns that have been in operation 
     for not less than 1 year'' after ``trade missions''.
       (b) Change to Definitions and Federal Share Requirements.--
     Section 22(l) of the Small Business Act (15 U.S.C. 649(l)) is 
     amended--

[[Page S4771]]

       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (A) through (E) as 
     subparagraphs (B) through (F), respectively;
       (B) by inserting before subparagraph (B), as so 
     redesignated, the following:
       ``(A) the term `commonwealth' means the Commonwealth of 
     Puerto Rico and the Commonwealth of the Northern Mariana 
     Islands;'';
       (C) in subparagraph (E), as so redesignated, by striking 
     ``and'' at the end;
       (D) in subparagraph (F), as so redesignated, by striking 
     ``States, the District'' and all that follows and inserting 
     ``States and the District of Columbia; and''; and
       (E) by adding at the end the following:
       ``(G) the term `territory' means the United States Virgin 
     Islands, Guam, and American Samoa.'';
       (2) in paragraph (2), in the matter preceding subparagraph 
     (A), by inserting ``, territories, and commonwealths'' after 
     ``States'';
       (3) in paragraph (3)--
       (A) by inserting ``, territory, or commonwealth'' after 
     ``State'' each place it appears, except in--
       (i) subclause (II) of subparagraph (C)(iii), as added by 
     section 6004(b) of this division;
       (ii) clause (iv) of subparagraph (D), as added by section 
     6003(c) of this division;
       (iii) subparagraph (G), as added by section 6003(e) of this 
     division; and
       (iv) subparagraph (H), as added by section 6003(g) of this 
     division; and
       (B) by inserting ``, territories, or commonwealths'' after 
     ``States'' each place it appears;
       (4) in paragraph (6), as so redesignated by section 6003(h) 
     of this division--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) for a territory or commonwealth, 100 percent.''; and
       (5) in paragraph (10), as so redesignated by section 
     6003(h) of this division--
       (A) by inserting ``, territory, or commonwealth'' after 
     ``State'' each place it appears, except in subparagraph (C), 
     as added by section 6003(f) of this division; and
       (B) by inserting ``, territories, or commonwealths'' after 
     ``States'' each place it appears.

     SEC. 6006. SURVEY AND ANNUAL REPORT.

       (a) Survey.--Section 22(l) of the Small Business Act (15 
     U.S.C. 649(l)) is amended by inserting after paragraph (8), 
     as added by section 6003(h) of this division, the following:
       ``(9) Survey.--The Associate Administrator shall conduct an 
     annual survey of each State, territory, or commonwealth that 
     received a grant under this subsection during the preceding 
     year to solicit feedback on the program and develop best 
     practices for grantees.''.
       (b) Report.--Paragraph (10)(B) of section 22(l) of the 
     Small Business Act (15 U.S.C. 649(l)), as so redesignated by 
     section 6003(h) of this division, 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 small business concerns located 
     in a low-income or moderate-income community, 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:

       ``(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 (9); 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:
       ``(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 
     eligible small business concerns that meet 1 or more of the 
     following criteria:

       ``(aa) Located in a low-income or moderate-income area.
       ``(bb) Located in a rural area.
       ``(cc) Located in an HUBZone, as that term is defined in 
     section 31(b).
       ``(dd) Located in a community that has been designated as 
     an empowerment zone or enterprise community under section 
     1391 of the Internal Revenue Code of 1986.
       ``(ee) Located in a community that has been designated as a 
     promise zone by the Secretary of Housing and Urban 
     Development.
       ``(ff) Located in a community that has been designated as a 
     qualified opportunity zone under section 1400Z-1 of the 
     Internal Revenue Code of 1986.
       ``(gg) Being owned by women.

       ``(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 become a first-time 
     exporter.
       ``(V) Number of such concerns that, because of 
     participation in the program, have accessed a new market.
       ``(VI) Number of such concerns that have begun exporting to 
     each new market.''.

     SEC. 6007. AUTHORIZATION OF APPROPRIATIONS.

       Paragraph (12) of section 22(l) of the Small Business Act 
     (15 U.S.C. 649(l)), as so redesignated by section 6003(h) of 
     this division, is amended by striking ``fiscal years 2016 
     through 2020'' and inserting ``fiscal years 2025 through 
     2029''.

     SEC. 6008. REPORT TO CONGRESS.

       Not later than 1 year after the date of 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)), 
     as amended by this division, that includes a description of--
       (1) the process developed for review of revised budget 
     plans submitted under subparagraph (G) of section 22(l)(3) of 
     the Small Business Act (15 U.S.C. 649(l)(3)), as added by 
     section 6003(e) of this division;
       (2) any changes made to streamline the application process 
     under the State Trade Expansion Program to remove duplicative 
     requirements and create a more transparent process;
       (3) the process developed to share best practices by 
     States, territories, and commonwealths described in paragraph 
     (10)(B)(i)(V) of section 22(l) of the Small Business Act (15 
     U.S.C. 649(l)), as so redesignated by section 6003(h) of this 
     division, 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.

     SEC. 6009. SEVERABILITY.

       If any provision of this division, an amendment made by 
     this division, or the application of such provision or 
     amendment to any person or circumstance is held to be 
     unconstitutional, the remainder of this division and the 
     amendments made by this division, and the application of the 
     provision or amendment to any other person or circumstance, 
     shall not be affected.
                                 ______