Letter to the Honorable Kelly Loeffler, Administrator, U.S. Small Business Administration (January 29, 2026)
Summary
A letter dated January 29, 2026 from members of Congress to SBA Administrator Kelly Loeffler urging the agency to reimburse states and territories in the State Trade Expansion Program (STEP) for services completed in Fiscal Years 2023 and 2024 and to award FY 2025 grants. The letter states that 23 recipients are waiting for STEP 11 reimbursements totaling $2.3 million and that Thirty-two grantees are waiting for STEP 12 reimbursements totaling $5.8 million. It states that Congress approved $20 million for STEP in FY 2025, that the SBA posted a Notice of Funding Opportunity on June 13, 2025 with applications due July 31, 2025, and that the STEP 13 awards have not been announced.
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Cite this document
“Letter to the Honorable Kelly Loeffler, Administrator, U.S. Small Business Administration (January 29, 2026).”
Original at democrats-smallbusiness.house.gov. Archived at Pandemic Darlings on 2026-09-30, https://pandemicdarlings.com/source-documents/5157-26-1-29-letter-to-sba-step-4441f463747e1902-0fa5b35c0a/
, SHA-256 a657799e2b34e769445465bcf3078f7610b6057f448695838c626b773d308f21.Full text
January 29, 2026
The Honorable Kelly Loeffler
Administrator
U.S. Small Business Administration
409 3rd St. SW
Washington, DC 20416
Dear Administrator Loeffler:
We write to urge you to immediately provide reimbursements to states and territories
participating in the Small Business Administration’s (SBA) State Trade Expansion Program
(STEP) for services completed in Fiscal Year (FY) 2023 and FY 2024, as well as follow though
in the awarding of FY 2025 grants and release the FY 2026 funds in a timely way.
It has come to our attention that reimbursements to STEP grantees have been delayed. Based on
feedback from grantees, 23 recipients are waiting for reimbursements from STEP 11, totaling
$2.3 million in FY 2023. Thirty-two grantees are waiting for reimbursements from STEP 12,
totaling $5.8 million in FY 2024. It is imperative that the SBA honor its commitments and
disburse funds for services already rendered by the states. Withholding millions of dollars in
reimbursements from SBA’s partners is causing financial constraints on an otherwise effective
program.
Further, SBA has not followed through in awarding grants to states and territories for STEP 13.
In FY 2025, Congress approved $20 million in funding for the STEP program. On June 13, 2025,
the SBA posted a Notice of Funding Opportunity (NOFO) seeking proposals for STEP 13 grants.
The closing date for states to submit applications was July 31, 2025. However, the awards have
not been announced, nor have the funds been disbursed. When Congress appropriates funds for
entrepreneurial development programs, including STEP, SBA has a legal obligation to
implement those programs and provide full funding, consistent with Congressional intent.
STEP has been incredibly successful over the years. In FY 2024, SBA reported making several
program improvements including additional steps to monitor STEP reimbursement requests and
digital tools to better track and report on the STEP process. That year, STEP conducted twice as
many outreach events as originally planned, assisted at least 3,400 small businesses, and
supported more than 14,800 jobs.
Since its inception, STEP has helped to level the playing field for small businesses and enter new
markets, in turn creating jobs and expanding our economy. Small businesses currently account
1
for about 35 percent of all U.S. exports, with $542 billion of the $1.5 trillion in total export sales
coming from small businesses.1 To achieve our shared goals of expanding the base of small
business exporters and increasing export sales it is crucial that you reimburse grantees and award
FY 25 grants to promote export development, unlocking opportunities to participate in trade
missions, foreign market sales trips, export trade shows, international marketing efforts, and
export training. In conclusion, STEP is a proven, time-tested program that spurs job creation and
boosts our economy, and congressionally appropriated funds should be released without further
delay.
Thank you for your attention to this request, and we look forward to your prompt reply.
Sincerely,
Nydia M. Velázquez Morgan McGarvey
Ranking Member Member of Congress
Committee on Small Business
Hillary J. Scholten LaMonica McIver
Member of Congress Member of Congress
Gilbert Ray Cisneros, Jr. Kelly Morrison
Member of Congress Member of Congress
George Latimer Derek T. Tran
Member of Congress Member of Congress
1
Amanda Radwanski, What Do We Know About Small Businesses that Export? SMALL BUSINESS ADMIN. OFFICE
OF ADVOCACY (Mar. 5, 2024).
2
Lateefah Simon Johnny Olszewski, Jr.
Member of Congress Member of Congress
Herbert C. Conaway, Jr. Maggie Goodlander
Member of Congress Member of Congress
3
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