[House Report 117-542]
[From the U.S. Government Publishing Office]


117th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      117-542

======================================================================



 
                      STEP IMPROVEMENT ACT OF 2022

                                _______
                                

October 14, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 8844]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 8844) to reauthorize the State Trade Expansion 
Program of the Small Business Administration, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Bill Summary.........................................  1
 II. Background and Need for Legislation..............................  2
III. Hearings.........................................................  3
 IV. Committee Consideration..........................................  4
  V. Committee Votes..................................................  4
 VI. Section-by-Section for H.R. 8844.................................  4
VII. Congressional Budget Cost Estimate...............................  6
VIII.New Budget Authority, Entitlement Authority, and Tax Expenditures  6

 IX. Committee Oversight Findings and Recommendations.................  6
  X. Statement of General Performance Goals and Objectives............  6
 XI. Duplication of Federal Programs..................................  6
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
     Benefits.........................................................  6
XIII.Federal Mandates Statement.......................................  7

XIV. Federal Advisory Committee Statement.............................  7
 XV. Applicability to Legislative Branch..............................  7
XVI. Changes in Existing Law Made by the Bill, as Reported............  7

                      I. Purpose and Bill Summary

    The purpose of H.R. 8844, the ``STEP Improvement Act of 
2022'', is to modernize and strengthen the Small Business 
Administration's (SBA) State Trade Expansion Program (STEP). 
Specifically, the legislation would create a standardized 
application process, increase flexibility, improve 
communications between the SBA and state awardees, collect 
performance metrics, improve reporting to Congress, and allow 
businesses less than one year old to participate in the 
program.

                II. Background and Need for Legislation

    H.R. 8844 was introduced by Representative Dwight Evans (D-
PA) and cosponsored by Representatives Young Kim (R-CA), Marie 
Newman (D-IL), and Mike Flood (R-NE) on September 15, 2022.
    Nearly 96 percent of consumers live outside the United 
States, and two-thirds of the world's purchasing power is in 
foreign countries.\1\ Exporting is an opportunity for small 
businesses to expand their customer base and increase sales. 
Approximately 166,384 small businesses in the United States 
currently export, accounting for about 26 percent of all U.S. 
exports.\2\ These small businesses account for roughly $341 
billion of $1.32 trillion in export sales and 96 percent of all 
exporters.\3\ With that said, these small businesses make up 
only 3 percent of total small businesses with employees that 
export in the United States.\4\
---------------------------------------------------------------------------
    \1\U.S. Small Bus. Admin. Benefits of Exporting, https://
www.sba.gov/business-guide/grow-your-business/export-products#section-
header-0 (last visited October 4, 2022).
    \2\Cong. Rsch. Serv., R43155, Small Business Administration Trade 
and Export Promotion Programs (2022) [hereinafter CRS].
    \3\Id.
    \4\Supra note 1.
---------------------------------------------------------------------------
    Small firms face a myriad of challenges, which include: 
difficulty obtaining the working capital to filling foreign 
purchase orders, not knowing how to connect with foreign 
buyers, and not having an understanding of other countries' 
rules and regulations. Since small firms are essential to our 
economy and the majority of consumers live outside the U.S., 
more emphasis must be placed on the potential to increase the 
number of small businesses that export. Doing so is critical 
for long-term growth of small businesses and the U.S. economy 
overall. The SBA is just one of several federal agencies that 
assist in the promotion of small business exports.
    To help ease the challenges faced by small business 
exporters, the Small Business Jobs Act of 2010 authorized the 
SBA to establish a three-year State Trade and Export Promotion 
pilot grant initiative. The program has two objectives: (1) 
increase the number of small businesses that export and (2) 
raise the value of existing small business exporters. The 
Associate Administer of the Office of International Trade (OIT) 
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 
(STEP)'' and provided a $30 million authorization through 
fiscal year 2020. The Act allowed the Associate Administrator 
of the OIT 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.
    Today, STEP offers opportunities for grants to all 50 
states, the District of Columbia, Puerto Rico, the Virgin 
Islands, Guam, American Samoa, and the Northern Mariana 
Islands. In most cases, the SBA provides 75 percent of total 
project costs and states provide 25 percent of the federal 
award. STEP funds are awarded for two years, a base year and an 
option year. The option year is at the SBA's discretion but is 
routinely awarded based on prior year performance and funding 
utilization. STEP grant amounts range from a minimum of 
$100,000 each in the base and option year to a maximum of 
$900,000 each in the base and option year. In FY 2021, SBA's 
STEP assisted over 3,400 small businesses and supported $832 
million in export sales.

                             III. Hearings

    In the 117th Congress, the Committee on Small Business held 
two hearings on STEP. The first hearing was held in the 
Subcommittee on Economic Growth, Tax, and Capital Access, on 
Tuesday July 19, 2022, and was titled, ``The SBA Office of 
International Trade and the STEP Program as Key Tools for 
Recovery and Expansion.'' The hearing reviewed STEP and heard 
from state grantees and small businesses that have participated 
in the program.
    At the hearing, Mrs. Mary Waters, Deputy Commissioner for 
International Trade, Georgia Department of Economic 
Development, testified that Georgia was an early STEP 
participant in 2011 and 2012 but stepped away after their later 
application was denied. Georgia reapplied in 2020 during the 
pandemic to expand Georgia's financial assistance awards to 
small businesses. Mrs. Waters stated that STEP is a valuable 
resource for Georgia small businesses and that program 
reauthorization is critical to supporting greater U.S. exports. 
In addition, Mrs. Waters testified that measuring return on 
investment by long-term outcomes, reducing administrative 
requirements, and increasing funding to $30 million are steps 
that can be taken to improve the program. Mr. William Spear, 
Manager, New Jersey Office of Export Promotion and Director, NJ 
STEP, testified about New Jersey's successful involvement in 
STEP, how New Jersey implements uncomplicated reporting 
requirements for participating small businesses, and how STEP 
is an administratively easier program than other federal 
grants. Mr. Spear stated that throughout the pandemic, New 
Jersey saw an increase in interest in the program, especially 
from newer companies, and that New Jersey plans to focus on new 
to export firms in the upcoming grant cycle. Finally, Mr. Spear 
stated that New Jersey has applied for the maximum grant amount 
for the 2022 cycle and looks forward to a continued partnership 
with the SBA. Mr. Luther Tooks, CEO, Pyramid Foods, LLC, 
testified that STEP helped him export his barbeque rubs and 
sauces to Canada and Mexico. STEP was particularly helpful with 
translating their marketing brochure and labels into Spanish 
and properly reformatting them to meet the requirements for 
sale in Mexico. Mr. Devan Walding, Vice President Sales, 
RADIUS, testified that STEP has enabled RADIUS to participate 
and compete in exporting channels that the company would 
otherwise struggle, or be unable, to afford. The availability 
of STEP grants allowed RADIUS to start a dialogue around what 
opportunities would provide the best return on investment for 
their brand and made in America products.
    On September 20, 2022, the Committee held a full Committee 
hearing titled, ``SBA Management Review: Office of 
International Trade'' where the Associate Administrator for the 
Office, Gabriel Esparza, testified on the impact of STEP and 
the importance of reauthorizing the program. Mr. Esparza 
testified that exporting is an engine for growth that allows 
small businesses to reach new customers in an increasingly 
interconnected global marketplace. Mr. Esparza further stated 
that raising awareness of SBA's trade assistance and shifting 
SBA's frame of reference for what exporting looks like today is 
important to small business export success. Increasing 
awareness for trade, particularly in historically underserved 
communities, by connecting to broader audiences of small 
businesses that are currently exporting, or could be 
potentially exporting, is a central focus for SBA. SBA will 
continue to stress turning ``accidental exporters'' into 
``intentional exporters''. In addition, he testified that 
because of digital tools and e-commerce, small businesses can 
export faster than ever, and that SBA has a specific focus on 
new-to-exporting firms as well as companies that come from 
historically underserved communities.
    Mr. Esparza stated that STEP is a generator for export 
sales, a sustainer of jobs, and allows companies to expand into 
new markets. He testified that over the last decade, STEP has 
awarded over $200 million to all 50 states and six territories. 
In addition, he testified that STEP has supported 12,000 small 
businesses and generated almost $5.5 billion in export sales. 
Mr. Esparza stated that demand for STEP is at its highest ever 
with the 2022 applications being the largest in both number of 
states/territories applying, and amount requested. In addition, 
Mr. Esparza stated that SBA is aware of the feedback from the 
July 19th hearing that some states are concerned with the 
administrative requirements of the STEP grant. Mr. Esparza has 
spent time with STEP grants managers and is seeking to strike 
the right balance between protecting taxpayer dollars and 
improving the efficiency of the program. Mr. Esparza stated 
that SBA supports the reauthorization of STEP, and the 
improvements H.R. 8844 makes to the program.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on September 21, 2022, and ordered H.R. 
8844 favorably reported to the House of Representatives. During 
the markup, no amendments were offered.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 8844 to the House at 11:47 A.M.

                  VI. Section-by-Section for H.R. 8844


Section 1. Short title

    This Act may be cited as the ``STEP Improvement Act of 
2022''.

Section 2. State Trade Expansion Program

    Subsection (a)--Application Requirements.
    This subsection requires STEP grant applicants to submit a 
budget plan in their application package.
    Subsection (a) establishes a timeframe to standardize the 
grant application process. The Associate Administrator must 
publish information on how to apply for a grant and how grants 
are awarded by March 31st each year. The deadline for 
applications will be no earlier than 60 days after the March 
31st announcement but no later than May 31st, and SBA will be 
required to announce the awards no later than August 31st of 
each year.
    To provide greater transparency, this subsection requires 
the Associate Administrator to clearly communicate how 
unsuccessful applicants can improve their applications and 
explain the amount awarded to successful applicants, if 
different from their request.
    Further, subsection (a) allows States to revise their 
budget plans, after the disbursement of funds, provided States 
notify the Associate Administrator and the change complies with 
allowable use of grant funds. However, if a revision is 10% or 
more of an amount described in the budget plan, the Associate 
Administrator must approve the change within 20 days of 
receiving the revised plan. If the Associate Administrator does 
not approve the plan within 20 days of submission, the State 
may reallocate the funds. These provisions will allow States 
greater flexibility in how they spend grant funds and ensure 
they fully utilize the funds awarded to them.
    Subsection (b)--Survey.
    This subsection requires the Associate Administration to 
conduct an annual survey of grant recipients to solicit 
feedback and develop best practices for the STEP program. The 
addition of an annual survey will enhance communication between 
SBA and grant recipients, as well as assess overall 
satisfaction and effectiveness of the program.
    Subsection (c)--Annual Report.
    This subsection enhances the annual reporting requirements. 
The Associate Administrator's annual report must now include 
demographic information on small businesses assisted by STEP, 
detailed information about best practices for States, lessons 
learned by grants recipients to assist low-performing states, 
an analysis of the annual survey, and an analysis of new 
performance metrics, which include demographic information on 
small businesses, the amount of export sales, new and returning 
participants in STEP, and how many small businesses have 
reached new markets or created new jobs because of STEP.
    Subsection (d)--Expansion of Definition of Eligible Small 
Business Concern.
    This subsection expands the definition of eligible small 
businesses to include new businesses that are less than one 
year old.
    Subsection (e)--Authorization of Appropriations.
    This subsection reauthorizes STEP for 4 fiscal years, FY 
2023 through FY 2026 at $30 million each year, the same 
authorization as FY 2016-FY 2020.
    Subsection (f)--Report to Congress.
    This subsection requires the Associate Administrator for 
OIT to submit a report to Congress no later than 1 year after 
the enactment of the Act. The report must include information 
on the process SBA established for: revising budget plans, 
streamlining the application process, sharing detailed best 
practices with States, and communicating program information to 
grant awardees.

                VII. Congressional Budget Cost Estimate

    The Committee has requested but not received a cost 
estimate from the Director of the Congressional Budget Office.

VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
the Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to Sec. 
402 of the Congressional Budget Act of 1974, the Committee does 
not believe that there will be any additional costs 
attributable to this legislation because all authorizations 
would be subject to future appropriation action.

          IX. Committee Oversight Findings and Recommendations

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings, and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
H.R. 8844 are incorporated into the descriptive portions of 
this report.

        X. Statement of General Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 8844 is to modernize 
and strengthen SBA's STEP program, by improving communication 
between the SBA and state grantees and increasing performance 
metrics and reporting requirements.

                  XI. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 8844 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairwoman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

       XVI. Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, as shown as follows: existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
SEC. 22. OFFICE OF INTERNATIONAL TRADE.

  (a) Establishment.--
          (1) Office.--There is established within the 
        Administration an Office of International Trade which 
        shall implement the programs pursuant to this section 
        for the primary purposes of increasing--
                  (A) the number of small business concerns 
                that export; and
                  (B) the volume of exports by small business 
                concerns.
          (2) Associate administrator.--The head of the Office 
        shall be the Associate Administrator for International 
        Trade, who shall be responsible to the Administrator.
  (b) Trade Distribution Network.--The Associate Administrator, 
working in close cooperation with the Secretary of Commerce, 
the United States Trade Representative, the Secretary of 
Agriculture, the Secretary of State, the President of the 
Export-Import Bank of the United States, the President of the 
Overseas Private Investment Corporation, Director of the United 
States Trade and Development Agency, and other relevant Federal 
agencies, small business development centers engaged in export 
promotion efforts, Export Assistance Centers, regional and 
district offices of the Administration, the small business 
community, and relevant State and local export promotion 
programs, shall--
          (1) maintain a distribution network, using regional 
        and district offices of the Administration, the small 
        business development center network, networks of 
        women's business centers, the Service Corps of Retired 
        Executives authorized by section 8(b)(1), and Export 
        Assistance Centers, for programs relating to--
                  (A) trade promotion;
                  (B) trade finance;
                  (C) trade adjustment assistance;
                  (D) trade remedy assistance; and
                  (E) trade data collection;
          (2) aggressively market the programs described in 
        paragraph (1) and disseminate information, including 
        computerized marketing data, to small business concerns 
        on exporting trends, market-specific growth, industry 
        trends, and international prospects for exports;
          (3) promote export assistance programs through the 
        district and regional offices of the Administration, 
        the small business development center network, Export 
        Assistance Centers, the network of women's business 
        centers, chapters of the Service Corps of Retired 
        Executives, State and local export promotion programs, 
        and partners in the private sector; and
          (4) give preference in hiring or approving the 
        transfer of any employee into the Office or to a 
        position described in subsection (c)(9) to otherwise 
        qualified applicants who are fluent in a language in 
        addition to English, to--
                  (A) accompany small business concerns on 
                foreign trade missions; and
                  (B) translate documents, interpret 
                conversations, and facilitate multilingual 
                transactions, including by providing referral 
                lists for translation services, if required.
  (c) Promotion of Sales Opportunities.--The Associate 
Administrator shall promote sales opportunities for small 
business goods and services abroad. To accomplish this 
objective the office shall--
          (1) establish annual goals for the Office relating 
        to--
                  (A) enhancing the exporting capability of 
                small business concerns and small 
                manufacturers;
                  (B) facilitating technology transfers;
                  (C) enhancing programs and services to assist 
                small business concerns and small manufacturers 
                to compete effectively and efficiently in 
                foreign markets;
                  (D) increasing the ability of small business 
                concerns to access capital; and
                  (E) disseminating information concerning 
                Federal, State, and private programs and 
                initiatives;
          (2) in cooperation with the Department of Commerce, 
        other relevant agencies, regional and local 
        Administration offices, the Small Business Development 
        Center network, and State programs, develop a mechanism 
        for--
                  (A) identifying subsectors of the small 
                business community with strong export 
                potential;
                  (B) identifying areas of demand in foreign 
                markets;
                  (C) prescreening foreign buyers for 
                commercial and credit purposes; and
                  (D) assisting in increasing international 
                marketing by disseminating relevant information 
                regarding market leads, linking potential 
                sellers and buyers, and catalyzing the 
                formation of joint ventures, where appropriate;
          (3) in cooperation with the Department of Commerce, 
        actively assist small business concerns in forming and 
        using export trading companies, export management 
        companies and research and development pools authorized 
        under section 9 of this Act;
          (4) work in conjunction with other Federal agencies, 
        regional and district offices of the Administration, 
        the small business development center network, and the 
        private sector to identify and publicize translation 
        services, including those available through colleges 
        and universities participating in the small business 
        development center program;
          (5) work closely with the Department of Commerce and 
        other relevant Federal agencies to--
                  (A) collect, analyze and periodically update 
                relevant data regarding the small business 
                share of United States exports and the nature 
                of State exports (including the production of 
                Gross State Product figures) and disseminate 
                that data to the public and to Congress;
                  (B) make recommendations to the Secretary of 
                Commerce and to Congress regarding revision of 
                the North American Industry Classification 
                System codes to encompass industries currently 
                overlooked and to create North American 
                Industry Classification System codes for export 
                trading companies and export management 
                companies;
                  (C) improve the utility and accessibility of 
                existing export promotion programs for small 
                business concerns; and
                  (D) increase the accessibility of the Export 
                Trading Company contact facilitation service;
          (6) make available to the small business community 
        information regarding conferences on exporting and 
        international trade sponsored by the public and private 
        sector;
          (7) provide small business concerns with access to up 
        to date and complete export information by--
                  (A) making available, at the regional and 
                district offices of the Administration through 
                cooperation with the Department of Commerce, 
                export information, including, but not limited 
                to, the worldwide information and trade system 
                and world trade data reports;
                  (B) maintaining a list of financial 
                institutions that finance export operations;
                  (C) maintaining a directory of all Federal, 
                regional, State and private sector programs 
                that provide export information and assistance 
                to small business concerns; and
                  (D) preparing and publishing such reports as 
                it determines to be necessary concerning market 
                conditions, sources of financing, export 
                promotion programs, and other information 
                pertaining to the needs of small business 
                export firms so as to insure that the maximum 
                information is made available to small business 
                concerns in a readily usable form;
          (8) encourage through cooperation with the Department 
        of Commerce, greater small business participation in 
        trade fairs, shows, missions, and other domestic and 
        overseas export development activities of the 
        Department of Commerce;
          (9) facilitate decentralized delivery of export 
        information and assistance to small business concerns 
        by assigning primary responsibility for export 
        development to one individual in each district office 
        and providing each Administration regional office with 
        a full-time export development specialist, who shall--
                  (A) assist small business concerns in 
                obtaining export information and assistance 
                from other Federal departments and agencies;
                  (B) maintain a directory of all programs 
                which provide export information and assistance 
                to small business concerns in the region;
                  (C) encourage financial institutions to 
                develop and expand programs for export 
                financing;
                  (D) provide advice to personnel of the 
                Administration involved in making loans, loan 
                guarantees, and extensions and revolving lines 
                of credit, and providing other forms of 
                assistance to small business concerns engaged 
                in exports;
                  (E) within one hundred and eighty days of 
                their appointment, participate in training 
                programs designed by the Administrator, in 
                conjunction with the Department of Commerce and 
                other Federal departments and agencies, to 
                study export programs and to examine the needs 
                of small business concerns for export 
                information and assistance;
                  (F) participate, jointly with employees of 
                the Office, in an annual training program that 
                focuses on current small business needs for 
                exporting; and
                  (G) develop and conduct training programs for 
                exporters and lenders, in cooperation with the 
                Export Assistance Centers, the Department of 
                Commerce, the Department of Agriculture, small 
                business development centers, women's business 
                centers, the Export-Import Bank of the United 
                States, the Overseas Private Investment 
                Corporation, and other relevant Federal 
                agencies;
          (10) make available on the website of the 
        Administration the name and contact information of each 
        individual described in paragraph (9);
          (11) carry out a nationwide marketing effort using 
        technology, online resources, training, and other 
        strategies to promote exporting as a business 
        development opportunity for small business concerns;
          (12) disseminate information to the small business 
        community through regional and district offices of the 
        Administration, the small business development center 
        network, Export Assistance Centers, the network of 
        women's business centers, chapters of the Service Corps 
        of Retired Executives authorized by section 8(b)(1), 
        State and local export promotion programs, and partners 
        in the private sector regarding exporting trends, 
        market-specific growth, industry trends, and prospects 
        for exporting; and
          (13) establish and carry out training programs for 
        the staff of the regional and district offices of the 
        Administration and resource partners of the 
        Administration on export promotion and providing 
        assistance relating to exports.
  (d) Export Financing Programs.--
          (1) In general.--The Associate Administrator shall 
        work in cooperation with the Export-Import Bank of the 
        United States, the Department of Commerce, other 
        relevant Federal agencies, and the States to develop a 
        program through which export specialists in the 
        regional offices of the Administration, regional and 
        local loan officers, and Small Business Development 
        Center personnel can facilitate the access of small 
        businesses to relevant export financing programs of the 
        Export-Import Bank of the United States and to export 
        and pre-export financing programs available from the 
        Administration and the private sector.
          (2) Trade finance specialist.--To accomplish the goal 
        established under paragraph (1), the Associate 
        Administrator shall--
                  (A) designate at least 1 individual within 
                the Administration as a trade finance 
                specialist to oversee international loan 
                programs and assist Administration employees 
                with trade finance issues; and
                  (B) work in cooperation with the Export-
                Import Bank and the small business community, 
                including small business trade associations, 
                to--
                          (i) aggressively market existing 
                        Administration export financing and 
                        pre-export financing programs;
                          (ii) identify financing available 
                        under various Export-Import Bank 
                        programs, and aggressively market those 
                        programs to small businesses;
                          (iii) assist in the development of 
                        financial intermediaries and facilitate 
                        the access of those intermediaries to 
                        existing financing programs;
                          (iv) promote greater participation by 
                        private financial institutions, 
                        particularly those institutions already 
                        participating in loan programs under 
                        this Act, in export finance; and
                          (v) provide for the participation of 
                        appropriate Administration personnel in 
                        training programs conducted by the 
                        Export-Import Bank.
  (e) Trade Remedies.--The Associate Administrator shall--
          (1) work in cooperation with other Federal agencies 
        and the private sector to counsel small businesses with 
        respect to initiating and participating in any 
        proceedings relating to the administration of the 
        United States trade laws; and
          (2) work with the Department of Commerce, the Office 
        of the United States Trade Representative, and the 
        International Trade Commission to increase access to 
        trade remedy proceedings for small businesses.
  (f) Reporting Requirement.--The Associate Administrator shall 
submit an annual report to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives that contains--
          (1) a description of the progress of the Office in 
        implementing the requirements of this section;
          (2) a detailed account of the results of export 
        growth activities of the Administration, including the 
        activities of each district and regional office of the 
        Administration, based on the performance measures 
        described in subsection (i);
          (3) an estimate of the total number of jobs created 
        or retained as a result of export assistance provided 
        by the Administration and resource partners of the 
        Administration;
          (4) for any travel by the staff of the Office, the 
        destination of such travel and the benefits to the 
        Administration and to small business concerns resulting 
        from such travel; and
          (5) a description of the participation by the Office 
        in trade negotiations.
  (g) Studies.--The Associate Administrator, in cooperation, 
where appropriate, with the Division of Economic Research of 
the Office of Advocacy, and with other Federal agencies, shall 
undertake studies regarding the following issues and shall 
report to the Committees on Small Business of the House of 
Representatives and the Senate, and to other relevant 
Committees of the House and Senate within 6 months after the 
date of enactment of the Small Business International Trade and 
Competitiveness Act with specific recommendations on--
          (1) the viability and cost of establishing an annual, 
        competitive small business export incentive program 
        similar to the Small Business Innovation Research 
        program and alternative methods of structuring such a 
        program;
          (2) methods of streamlining trade remedy proceedings 
        to increase access for, and reduce expenses incurred 
        by, smaller firms;
          (3) methods of improving the current small business 
        foreign sales corporation tax incentives and providing 
        small businesses with greater benefits from this 
        initiative;
          (4) methods of identifying potential export markets 
        for United States small businesses; maintaining and 
        disseminating current foreign market data; and devising 
        a comprehensive export marketing strategy for United 
        States small business goods and services, and shall 
        include data on the volume and dollar amount of goods 
        and services, identified by type, imported by United 
        States trading partners over the past 10 years; and
          (5) the results of a survey of major United States 
        trading partners to identify the domestic policies, 
        programs and incentives, and the private sector 
        initiatives, which exist to encourage the formation and 
        growth of small business.
  (h) Discharge of International Trade Responsibilities of 
Administration.--The Administrator shall ensure that--
          (1) the responsibilities of the Administration 
        regarding international trade are carried out by the 
        Associate Administrator;
          (2) the Associate Administrator has sufficient 
        resources to carry out such responsibilities; and
          (3) the Associate Administrator has direct 
        supervision and control over--
                  (A) the staff of the Office; and
                  (B) any employee of the Administration whose 
                principal duty station is an Export Assistance 
                Center, or any successor entity.
  (i) Export and Trade Counseling.--
          (1) Definition.--In this subsection--
                  (A) the term ``lead small business 
                development center'' means a small business 
                development center that has received a grant 
                from the Administration; and
                  (B) the term ``lead women's business center'' 
                means a women's business center that has 
                received a grant from the Administration.
          (2) Certification program.--The Administrator shall 
        establish an export and trade counseling certification 
        program to certify employees of lead small business 
        development centers and lead women's business centers 
        in providing export assistance to small business 
        concerns.
          (3) Number of certified employees.--The Administrator 
        shall ensure that the number of employees of each lead 
        small business development center who are certified in 
        providing export assistance is not less than the lesser 
        of--
                  (A) 5; or
                  (B) 10 percent of the total number of 
                employees of the lead small business 
                development center.
          (4) Reimbursement for certification.--
                  (A) In general.--Subject to the availability 
                of appropriations, the Administrator shall 
                reimburse a lead small business development 
                center or a lead women's business center for 
                costs relating to the certification of an 
                employee of the lead small business center or 
                lead women's business center in providing 
                export assistance under the program established 
                under paragraph (2).
                  (B) Limitation.--The total amount reimbursed 
                by the Administrator under subparagraph (A) may 
                not exceed $350,000 in any fiscal year.
  (j) Performance Measures.--
          (1) In general.--The Associate Administrator shall 
        develop performance measures for the Administration to 
        support export growth goals for the activities of the 
        Office under this section that include--
                  (A) the number of small business concerns 
                that--
                          (i) receive assistance from the 
                        Administration;
                          (ii) had not exported goods or 
                        services before receiving the 
                        assistance described in clause (i); and
                          (iii) export goods or services;
                  (B) the number of small business concerns 
                receiving assistance from the Administration 
                that export goods or services to a market 
                outside the United States into which the small 
                business concern did not export before 
                receiving the assistance;
                  (C) export revenues by small business 
                concerns assisted by programs of the 
                Administration;
                  (D) the number of small business concerns 
                referred to an Export Assistance Center or a 
                small business development center by the staff 
                of the Office;
                  (E) the number of small business concerns 
                referred to the Administration by an Export 
                Assistance Center or a small business 
                development center; and
                  (F) the number of small business concerns 
                referred to the Department of Commerce, the 
                Department of Agriculture, the Department of 
                State, the Export-Import Bank of the United 
                States, the Overseas Private Investment 
                Corporation, or the United States Trade and 
                Development Agency by the staff of the Office, 
                an Export Assistance Center, or a small 
                business development center.
          (2) Joint performance measures.--The Associate 
        Administrator shall develop joint performance measures 
        for the district offices of the Administration and the 
        Export Assistance Centers that include the number of 
        export loans made under--
                  (A) section 7(a)(16);
                  (B) the Export Working Capital Program 
                established under section 7(a)(14);
                  (C) the Preferred Lenders Program, as defined 
                in section 7(a)(2)(C)(ii); and
                  (D) the export express program established 
                under section 7(a)(34).
          (3) Consistency of tracking.--The Associate 
        Administrator, in coordination with the departments and 
        agencies that are represented on the Trade Promotion 
        Coordinating Committee established under section 2312 
        of the Export Enhancement Act of 1988 (15 U.S.C. 4727) 
        and the small business development center network, 
        shall develop a system to track exports by small 
        business concerns, including information relating to 
        the performance measures developed under paragraph (1), 
        that is consistent with systems used by the departments 
        and agencies and the network.
  (k) Export Assistance Centers.--
          (1) Export finance specialists.--
                  (A) Minimum number of export finance 
                specialists.--On and after the date that is 90 
                days after the date of enactment of this 
                subsection, the Administrator, in coordination 
                with the Secretary of Commerce, shall ensure 
                that the number of export finance specialists 
                is not less than the number of such employees 
                so assigned on January 1, 2003.
                  (B) Export finance specialists assigned to 
                each region of the administration.--On and 
                after the date that is 2 years after the date 
                of enactment of this subsection, the 
                Administrator, in coordination with the 
                Secretary of Commerce, shall ensure that there 
                are not fewer than 3 export finance specialists 
                in each region of the Administration.
          (2) Placement of export finance specialists.--
                  (A) Priority.--The Administrator shall give 
                priority, to the maximum extent practicable, to 
                placing employees of the Administration at any 
                Export Assistance Center that--
                          (i) had an Administration employee 
                        assigned to the Export Assistance 
                        Center before January 2003; and
                          (ii) has not had an Administration 
                        employee assigned to the Export 
                        Assistance Center during the period 
                        beginning January 2003, and ending on 
                        the date of enactment of this 
                        subsection, either through retirement 
                        or reassignment.
                  (B) Needs of exporters.--The Administrator 
                shall, to the maximum extent practicable, 
                strategically assign Administration employees 
                to Export Assistance Centers, based on the 
                needs of exporters.
                  (C) Rule of construction.--Nothing in this 
                subsection may be construed to require the 
                Administrator to reassign or remove an export 
                finance specialist who is assigned to an Export 
                Assistance Center on the date of enactment of 
                this subsection.
          (3) Goals.--The Associate Administrator shall work 
        with the Department of Commerce, the Export-Import Bank 
        of the United States, and the Overseas Private 
        Investment Corporation to establish shared annual goals 
        for the Export Assistance Centers.
          (4) Oversight.--The Associate Administrator shall 
        designate an individual within the Administration to 
        oversee all activities conducted by Administration 
        employees assigned to Export Assistance Centers.
  (l) State Trade Expansion Program.--
          (1) Definitions.--In this subsection--
                  (A) the term ``eligible small business 
                concern'' means a business concern that--
                          (i) is organized or incorporated in 
                        the United States;
                          (ii) is operating in the United 
                        States;
                          (iii) meets--
                                  (I) the applicable industry-
                                based small business size 
                                standard established under 
                                section 3; or
                                  (II) the alternate size 
                                standard applicable to the 
                                program under section 7(a) of 
                                this Act and the loan programs 
                                under title V of the Small 
                                Business Investment Act of 1958 
                                (15 U.S.C. 695 et seq.); and
                          [(iv) has been in business for not 
                        less than 1 year, as of the date on 
                        which assistance using a grant under 
                        this subsection commences; and]
                          [(v)] (iv) has access to sufficient 
                        resources to bear the costs associated 
                        with trade, including the costs of 
                        packing, shipping, freight forwarding, 
                        and customs brokers;
                  (B) the term ``program'' means the State 
                Trade Expansion Program established under 
                paragraph (2);
                  (C) the term ``rural small business concern'' 
                means an eligible small business concern 
                located in a rural area, as that term is 
                defined in section 1393(a)(2) of the Internal 
                Revenue Code of 1986;
                  (D) the term ``socially and economically 
                disadvantaged small business concern'' has the 
                meaning given that term in section 8(a)(4)(A) 
                of the Small Business Act (15 U.S.C. 
                637(a)(4)(A)); and
                  (E) the term ``State'' means each of the 
                several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, the Commonwealth of the Northern 
                Mariana Islands, and American Samoa.
          (2) Establishment of program.--The Associate 
        Administrator shall establish a trade expansion 
        program, to be known as the ``State Trade Expansion 
        Program'', to make grants to States to carry out 
        programs that assist eligible small business concerns 
        in--
                  (A) participation in foreign trade missions;
                  (B) a subscription to services provided by 
                the Department of Commerce;
                  (C) the payment of website fees;
                  (D) the design of marketing media;
                  (E) a trade show exhibition;
                  (F) participation in training workshops;
                  (G) a reverse trade mission;
                  (H) procurement of consultancy services 
                (after consultation with the Department of 
                Commerce to avoid duplication); or
                  (I) any other initiative determined 
                appropriate by the Associate Administrator.
          (3) Grants.--
                  (A) Joint review.--In carrying out the 
                program, the Associate Administrator may make a 
                grant to a State to increase the number of 
                eligible small business concerns in the State 
                exploring significant new trade opportunities.
                  (B) Considerations.--In making grants under 
                this subsection, the Associate Administrator 
                may give priority to an application by a State 
                that proposes a program that--
                          (i) focuses on eligible small 
                        business concerns as part of a trade 
                        expansion program;
                          (ii) demonstrates intent to promote 
                        trade expansion by--
                                  (I) socially and economically 
                                disadvantaged small business 
                                concerns;
                                  (II) small business concerns 
                                owned or controlled by women; 
                                and
                                  (III) rural small business 
                                concerns;
                          (iii) promotes trade facilitation 
                        from a State that is not 1 of the 10 
                        States with the highest percentage of 
                        eligible small business concerns that 
                        are engaged in international trade, 
                        based upon the most recent data from 
                        the Department of Commerce; and
                          (iv) includes--
                                  (I) activities which have 
                                resulted in the highest return 
                                on investment based on the most 
                                recent year; and
                                  (II) the adoption of shared 
                                best practices included in the 
                                annual report of the 
                                Administration.
                  (C) Limitations.--
                          (i) Single application.--A State may 
                        not submit more than 1 application for 
                        a grant under the program in any 1 
                        fiscal year.
                          (ii) Proportion of amounts.--The 
                        total value of grants made under the 
                        program during a fiscal year to the 10 
                        States with the highest percentage of 
                        eligible small business concerns, based 
                        upon the most recent data available 
                        from the Department of Commerce, shall 
                        be not more than 40 percent of the 
                        amounts appropriated for the program 
                        for that fiscal year.
                          (iii) Duration.--The Associate 
                        Administrator shall award a grant under 
                        this program for a period of not more 
                        than 2 years.
                  (D) Application.--
                          (i) In general.--A State desiring a 
                        grant under the program shall submit an 
                        application at such time, in such 
                        manner, and accompanied by such 
                        information as the Associate 
                        Administrator may establish, including 
                        a budget plan for use of funds awarded 
                        under this subsection.
                          (ii) Consultation to reduce 
                        duplication.--A State desiring a grant 
                        under the program shall--
                                  (I) before submitting an 
                                application under clause (i), 
                                consult with applicable trade 
                                agencies of the Federal 
                                Government on the scope and 
                                mission of the activities the 
                                State proposes to carry out 
                                using the grant, to ensure 
                                proper coordination and reduce 
                                duplication in services; and
                                  (II) document the 
                                consultation conducted under 
                                subclause (I) in the 
                                application submitted under 
                                clause (i).
                          (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.
                  (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.
          (4) Competitive basis.--The Associate Administrator 
        shall award grants under the program on a competitive 
        basis.
          (5) Federal share.--The Federal share of the cost of 
        a trade expansion program carried out using a grant 
        under the program shall be--
                  (A) for a State that has a high trade volume, 
                as determined by the Associate Administrator, 
                not more than 65 percent; and
                  (B) for a State that does not have a high 
                trade volume, as determined by the Associate 
                Administrator, not more than 75 percent.
          (6) Non-federal share.--The non-Federal share of the 
        cost of a trade expansion program carried out using a 
        grant under the program shall be comprised of not less 
        than 50 percent cash and not more than 50 percent of 
        indirect costs and in-kind contributions, except that 
        no such costs or contributions may be derived from 
        funds from any other Federal program.
          (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.
          [(7)] (8) Reports.--
                  (A) Initial report.--Not later than 120 days 
                after the date of enactment of this subsection, 
                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, which shall include--
                          (i) a description of the structure of 
                        and procedures for the program;
                          (ii) a management plan for the 
                        program; and
                          (iii) a description of the merit-
                        based review process to be used in the 
                        program.
                  (B) Annual reports.--
                          (i) In general.--The Associate 
                        Administrator shall publish on the 
                        website of the Administration an annual 
                        report regarding the program, which 
                        shall include--
                                  (I) the number and amount of 
                                grants made under the program 
                                during the preceding year;
                                  (II) a list of the States 
                                receiving a grant under the 
                                program during the preceding 
                                year, including the activities 
                                being performed with each 
                                grant;
                                  (III) the effect of each 
                                grant on the eligible small 
                                business concerns in the State 
                                receiving the grant, 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);
                                  (IV) the total return on 
                                investment for each State; 
                                [and]
                                  (V) a [description of best 
                                practices] detailed description 
                                of best practices by States 
                                that showed high returns on 
                                investment and significant 
                                progress in helping more 
                                eligible small business 
                                concerns[.];
                                  (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.
                          (ii) Notice to congress.--On the date 
                        on which the Associate Administrator 
                        publishes a report under clause (i), 
                        the Associate Administrator shall 
                        notify the Committee on Small Business 
                        and Entrepreneurship of the Senate and 
                        the Committee on Small Business of the 
                        House of Representatives that the 
                        report has been published.
                          (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.
          [(8)] (9) Reviews by inspector general.--
                  (A) In general.--The Inspector General of the 
                Administration shall conduct a review of--
                          (i) the extent to which recipients of 
                        grants under the program are measuring 
                        the performance of the activities being 
                        conducted and the results of the 
                        measurements; and
                          (ii) the overall management and 
                        effectiveness of the program.
                  (B) Reports.--
                          (i) Pilot program.--Not later than 6 
                        months after the date of enactment of 
                        this subsection, the Inspector General 
                        of the Administration 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 
                        regarding the use of amounts made 
                        available under the State Trade and 
                        Export Promotion Grant Program under 
                        section 1207 of the Small Business Jobs 
                        Act of 2010 (15 U.S.C. 649b note).
                          (ii) New step program.--Not later 
                        than 18 months after the date on which 
                        the first grant is awarded under this 
                        subsection, the Inspector General of 
                        the Administration 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 
                        regarding the review conducted under 
                        subparagraph (A).
          [(9)] (10) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out the program 
        $30,000,000 for each of [fiscal years 2016 through 
        2020] fiscal years 2023 through 2026.
  (m) Definitions.--In this section--
          (1) the term ``Associate Administrator'' means the 
        Associate Administrator for International Trade 
        described in subsection (a)(2);
          (2) the term ``Export Assistance Center'' means a 
        one-stop shop for United States exporters established 
        by the United States and Foreign Commercial Service of 
        the Department of Commerce pursuant to section 
        2301(b)(8) of the Omnibus Trade and Competitiveness Act 
        of 1988 (15 U.S.C. 4721(b)(8));
          (3) the term ``export finance specialist'' means a 
        full-time equivalent employee of the Office assigned to 
        an Export Assistance Center to carry out the duties 
        described in subsection (e); and
          (4) the term ``Office'' means the Office of 
        International Trade established under subsection 
        (a)(1).

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