STEP Improvement Act of 2022
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- Crpt 117Hrpt542
Summary
House Report 117–542 is the report of the Committee on Small Business, submitted by Ms. Velázquez on October 14, 2022, to accompany H.R. 8844, the STEP Improvement Act of 2022. The committee reports the bill favorably without amendment; the bill reauthorizes the Small Business Administration's State Trade Expansion Program. The report gives program background, describes two committee hearings, and records that the committee ordered the bill reported by voice vote on September 21, 2022. Its section-by-section analysis covers a standardized application timeline, an annual survey of grant recipients, expanded annual reporting, eligibility for businesses less than one year old, and authorization of $30 million each year for FY 2023 through FY 2026. The report closes with the changes the bill makes to existing law.
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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. VELÁZQUEZ, 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 Ben-
efits .............................................................................................................. 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 Administra-
tion’s (SBA) State Trade Expansion Program (STEP). Specifically,
the legislation would create a standardized application process, in-
crease flexibility, improve communications between the SBA and
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state awardees, collect performance metrics, improve reporting to
Congress, and allow businesses less than one year old to partici-
pate 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 coun-
tries.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 ac-
count 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
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 un-
derstanding 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 poten-
tial 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 estab-
lish a three-year State Trade and Export Promotion pilot grant ini-
tiative. 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 participa-
tion in trade missions, international marketing efforts, workshops,
export trade show exhibits, and other promotional activities.
The Trade Facilitation and Trade Enforcement Act of 2015 re-
named 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 pri-
ority 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, Amer-
ican Samoa, and the Northern Mariana Islands. In most cases, the
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].
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3 Id.
4 Supra note 1.
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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 per-
formance and funding utilization. STEP grant amounts range from
a minimum of $100,000 each in the base and option year to a max-
imum 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 Sub-
committee on Economic Growth, Tax, and Capital Access, on Tues-
day July 19, 2022, and was titled, ‘‘The SBA Office of International
Trade and the STEP Program as Key Tools for Recovery and Ex-
pansion.’’ The hearing reviewed STEP and heard from state grant-
ees and small businesses that have participated in the program.
At the hearing, Mrs. Mary Waters, Deputy Commissioner for
International Trade, Georgia Department of Economic Develop-
ment, 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 stat-
ed 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 re-
turn 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, tes-
tified about New Jersey’s successful involvement in STEP, how
New Jersey implements uncomplicated reporting requirements for
participating small businesses, and how STEP is an administra-
tively easier program than other federal grants. Mr. Spear stated
that throughout the pandemic, New Jersey saw an increase in in-
terest 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 for-
ward 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 re-
quirements for sale in Mexico. Mr. Devan Walding, Vice President
Sales, RADIUS, testified that STEP has enabled RADIUS to par-
ticipate 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 opportuni-
ties 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
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Trade’’ where the Associate Administrator for the Office, Gabriel
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Esparza, testified on the impact of STEP and the importance of re-
authorizing the program. Mr. Esparza testified that exporting is an
engine for growth that allows small businesses to reach new cus-
tomers in an increasingly interconnected global marketplace. Mr.
Esparza further stated that raising awareness of SBA’s trade as-
sistance and shifting SBA’s frame of reference for what exporting
looks like today is important to small business export success. In-
creasing awareness for trade, particularly in historically under-
served communities, by connecting to broader audiences of small
businesses that are currently exporting, or could be potentially ex-
porting, is a central focus for SBA. SBA will continue to stress
turning ‘‘accidental exporters’’ into ‘‘intentional exporters’’. In addi-
tion, 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 mar-
kets. 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 applica-
tions being the largest in both number of states/territories apply-
ing, 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 man-
agers 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 Representa-
tives requires the Committee to list the recorded votes on the mo-
tion 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
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Subsection (a)—Application Requirements.
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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 in-
formation 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 As-
sociate Administrator to clearly communicate how unsuccessful ap-
plicants 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 Asso-
ciate 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 ap-
prove 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 pro-
visions 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 recipi-
ents, 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 de-
mographic information on small businesses assisted by STEP, de-
tailed 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 cre-
ated new jobs because of STEP.
Subsection (d)—Expansion of Definition of Eligible Small Busi-
ness Concern.
This subsection expands the definition of eligible small busi-
nesses 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 enact-
ment of the Act. The report must include information on the proc-
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ess SBA established for: revising budget plans, streamlining the
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6
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 esti-
mate with respect to new budget authority, entitlement authority,
and tax expenditures. While the Committee has not received an es-
timate of new budget authority contained in the cost estimate pre-
pared 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 fu-
ture 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 over-
sight 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 dupli-
cative 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 As-
sistance.
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 con-
tain 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
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the Rules of the House of Representatives.
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XIII. FEDERAL MANDATES STATEMENT
An estimate of Federal mandates prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the Un-
funded Mandates Reform Act was not made available to the Com-
mittee in time for the filing of this report. The Chairwoman of the
Committee shall cause such estimate to be printed in the Congres-
sional 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 Con-
gressional 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 omit-
ted 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 omit-
ted 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 Adminis-
trator, working in close cooperation with the Secretary of Com-
merce, the United States Trade Representative, the Secretary of
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Agriculture, the Secretary of State, the President of the Export-Im-
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8
port Bank of the United States, the President of the Overseas Pri-
vate 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 dis-
trict offices of the Administration, the small business develop-
ment 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 mar-
keting 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 sub-
section (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 fa-
cilitate multilingual transactions, including by providing
referral lists for translation services, if required.
(c) PROMOTION OF SALES OPPORTUNITIES.—The Associate Admin-
istrator 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 ef-
fectively 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
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relevant agencies, regional and local Administration offices, the
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Small Business Development Center network, and State pro-
grams, develop a mechanism for—
(A) identifying subsectors of the small business commu-
nity with strong export potential;
(B) identifying areas of demand in foreign markets;
(C) prescreening foreign buyers for commercial and cred-
it 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, ac-
tively assist small business concerns in forming and using ex-
port trading companies, export management companies and re-
search 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 ex-
ports and the nature of State exports (including the pro-
duction of Gross State Product figures) and disseminate
that data to the public and to Congress;
(B) make recommendations to the Secretary of Com-
merce and to Congress regarding revision of the North
American Industry Classification System codes to encom-
pass 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 ex-
port promotion programs for small business concerns; and
(D) increase the accessibility of the Export Trading Com-
pany contact facilitation service;
(6) make available to the small business community informa-
tion 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 De-
partment 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 fi-
nance export operations;
(C) maintaining a directory of all Federal, regional,
State and private sector programs that provide export in-
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formation and assistance to small business concerns; and
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10
(D) preparing and publishing such reports as it deter-
mines to be necessary concerning market conditions,
sources of financing, export promotion programs, and other
information pertaining to the needs of small business ex-
port 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 devel-
opment activities of the Department of Commerce;
(9) facilitate decentralized delivery of export information and
assistance to small business concerns by assigning primary re-
sponsibility 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 in-
formation and assistance from other Federal departments
and agencies;
(B) maintain a directory of all programs which provide
export information and assistance to small business con-
cerns in the region;
(C) encourage financial institutions to develop and ex-
pand programs for export financing;
(D) provide advice to personnel of the Administration in-
volved 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 appoint-
ment, participate in training programs designed by the Ad-
ministrator, in conjunction with the Department of Com-
merce 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 tech-
nology, online resources, training, and other strategies to pro-
mote exporting as a business development opportunity for
small business concerns;
(12) disseminate information to the small business commu-
nity through regional and district offices of the Administration,
the small business development center network, Export Assist-
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ance Centers, the network of women’s business centers, chap-
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11
ters 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, mar-
ket-specific growth, industry trends, and prospects for export-
ing; 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 spe-
cialists in the regional offices of the Administration, regional
and local loan officers, and Small Business Development Cen-
ter 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 es-
tablished under paragraph (1), the Associate Administrator
shall—
(A) designate at least 1 individual within the Adminis-
tration as a trade finance specialist to oversee inter-
national loan programs and assist Administration employ-
ees with trade finance issues; and
(B) work in cooperation with the Export-Import Bank
and the small business community, including small busi-
ness trade associations, to—
(i) aggressively market existing Administration ex-
port financing and pre-export financing programs;
(ii) identify financing available under various Ex-
port-Import Bank programs, and aggressively market
those programs to small businesses;
(iii) assist in the development of financial inter-
mediaries and facilitate the access of those inter-
mediaries to existing financing programs;
(iv) promote greater participation by private finan-
cial institutions, particularly those institutions already
participating in loan programs under this Act, in ex-
port finance; and
(v) provide for the participation of appropriate Ad-
ministration 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 initi-
ating and participating in any proceedings relating to the ad-
ministration 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 pro-
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ceedings for small businesses.
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(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 Busi-
ness of the House of Representatives that contains—
(1) a description of the progress of the Office in imple-
menting the requirements of this section;
(2) a detailed account of the results of export growth activi-
ties of the Administration, including the activities of each dis-
trict 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 re-
tained as a result of export assistance provided by the Admin-
istration 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 Com-
mittees 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 rec-
ommendations on—
(1) the viability and cost of establishing an annual, competi-
tive 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 in-
crease 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 dissemi-
nating current foreign market data; and devising a comprehen-
sive export marketing strategy for United States small busi-
ness goods and services, and shall include data on the volume
and dollar amount of goods and services, identified by type, im-
ported 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 incen-
tives, and the private sector initiatives, which exist to encour-
age 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 inter-
national trade are carried out by the Associate Administrator;
(2) the Associate Administrator has sufficient resources to
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carry out such responsibilities; and
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(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 suc-
cessor 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 re-
ceived 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 estab-
lish 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 assist-
ance 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 ex-
port 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 appro-
priations, 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 receiv-
ing the assistance described in clause (i); and
(iii) export goods or services;
(B) the number of small business concerns receiving as-
sistance 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
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by programs of the Administration;
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(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 Agri-
culture, 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 Adminis-
trator shall develop joint performance measures for the district
offices of the Administration and the Export Assistance Cen-
ters 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 sec-
tion 7(a)(34).
(3) CONSISTENCY OF TRACKING.—The Associate Adminis-
trator, in coordination with the departments and agencies that
are represented on the Trade Promotion Coordinating Com-
mittee established under section 2312 of the Export Enhance-
ment Act of 1988 (15 U.S.C. 4727) and the small business de-
velopment center network, shall develop a system to track ex-
ports by small business concerns, including information relat-
ing 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 SPECIAL-
ISTS.—On and after the date that is 90 days after the date
of enactment of this subsection, the Administrator, in co-
ordination 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 Janu-
ary 1, 2003.
(B) EXPORT FINANCE SPECIALISTS ASSIGNED TO EACH RE-
GION 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 Administra-
tion.
(2) PLACEMENT OF EXPORT FINANCE SPECIALISTS.—
(A) PRIORITY.—The Administrator shall give priority, to
the maximum extent practicable, to placing employees of
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the Administration at any Export Assistance Center that—
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15
(i) had an Administration employee assigned to the
Export Assistance Center before January 2003; and
(ii) has not had an Administration employee as-
signed to the Export Assistance Center during the pe-
riod beginning January 2003, and ending on the date
of enactment of this subsection, either through retire-
ment or reassignment.
(B) NEEDS OF EXPORTERS.—The Administrator shall, to
the maximum extent practicable, strategically assign Ad-
ministration 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 Corpora-
tion 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 activi-
ties 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
ø(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¿
ø(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 Expan-
sion Program established under paragraph (2);
(C) the term ‘‘rural small business concern’’ means an el-
igible 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
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small business concern’’ has the meaning given that term
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16
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 Adminis-
trator 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 Depart-
ment 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 consulta-
tion with the Department of Commerce to avoid duplica-
tion); or
(I) any other initiative determined appropriate by the
Associate Administrator.
(3) GRANTS.—
(A) JOINT REVIEW.—In carrying out the program, the As-
sociate Administrator may make a grant to a State to in-
crease the number of eligible small business concerns in
the State exploring significant new trade opportunities.
(B) CONSIDERATIONS.—In making grants under this sub-
section, 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 in-
cluded in the annual report of the Administration.
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(C) LIMITATIONS.—
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17
(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 ap-
propriated 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 sub-
section.
(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 mis-
sion 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 cal-
culations 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 Adminis-
trator 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.
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(F) BUDGET PLAN REVISIONS.—
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(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 revi-
sion to the Associate Administrator.
(ii) EXCEPTION.—If a revision under clause (i) reallo-
cates 10 percent or more of the amounts described in
the budget plan of the State submitted under subpara-
graph (D), the State may not implement the revised
budget plan without the approval of the Associate Ad-
ministrator, 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 pro-
gram shall be—
(A) for a State that has a high trade volume, as deter-
mined 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.
ø(7)¿ (8) REPORTS.—
(A) INITIAL REPORT.—Not later than 120 days after the
date of enactment of this subsection, the Associate Admin-
istrator 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 an-
nual report regarding the program, which shall in-
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clude—
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(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 dis-
advantaged small business concerns, small busi-
ness concerns owned and controlled by women,
and rural small business concerns);
(IV) the total return on investment for each
State; øand¿
(V) a ødescription of best practices¿ detailed de-
scription of best practices by States that showed
high returns on investment and significant
progress in helping more eligible small business
concernsø.¿;
(VI) an analysis of the performance metrics de-
scribed in clause (iii), including a determination of
whether or not any goals relating to such perform-
ance metrics were met, and an analysis of the sur-
vey described in paragraph (7); and
(VII) a description of lessons learned by grant re-
cipients 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 Asso-
ciate Administrator shall collect data on eligible small
business concerns assisted by the program for the fol-
lowing 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 busi-
ness concerns.
(II) Total dollar amount of export sales by eligi-
ble small business concerns assisted by the pro-
gram.
(III) Number of such concerns that have not pre-
viously participated in an activity described in
paragraph (2).
(IV) Number of such concerns that, because of
participation in the program, have accessed a new
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market.
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(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 dis-
advantaged small business concerns, small busi-
ness concerns owned and controlled by women,
and rural small business concerns.
ø(8)¿ (9) REVIEWS BY INSPECTOR GENERAL.—
(A) IN GENERAL.—The Inspector General of the Adminis-
tration shall conduct a review of—
(i) the extent to which recipients of grants under the
program are measuring the performance of the activi-
ties being conducted and the results of the measure-
ments; 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 Ad-
ministration shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Rep-
resentatives a report regarding the review conducted
under subparagraph (A).
ø(9)¿ (10) AUTHORIZATION OF APPROPRIATIONS.—There is au-
thorized to be appropriated to carry out the program
$30,000,000 for each of øfiscal 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 Assist-
ance Center to carry out the duties described in subsection (e);
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and
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21
(4) the term ‘‘Office’’ means the Office of International Trade
established under subsection (a)(1).
* * * * * * *
Æ
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