[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4414 Reported in Senate (RS)]
<DOC>
Calendar No. 408
118th CONGRESS
2d Session
S. 4414
To improve the State Trade Expansion Program of the Small Business
Administration.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23, 2024
Mrs. Shaheen, from the Committee on Small Business and
Entrepreneurship, reported the following original bill; which was read
twice and placed on the calendar
_______________________________________________________________________
A BILL
To improve the State Trade Expansion Program of the Small Business
Administration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``State Trade Expansion Program
Modernization Act of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The State Trade Expansion Program established under
section 22(l) of the Small Business Act (15 U.S.C. 649(l)) (in
this section referred to as ``STEP'') was created by Congress
in 2010 to grow the number of small business concerns (as
defined under section 3 of such Act (15 U.S.C. 632) and in this
section referred to as a ``small business concern'') that
export, increase the value of goods exported by the small
business sector, and help businesses identify new markets.
(2) Helping small firms in the United States begin to
export or build upon their existing export capacity generates
investment in local economies and spurs employment.
(3) Despite 95 percent of global consumers living outside
of the United States, less than 4 percent of small business
concerns in the United States export their products or
services.
(4) Many small business concerns in the United States that
could grow by exporting lack the dedicated staff, required
technical skills, and necessary budgetary resources for
international expansion.
(5) STEP provides vital assistance to small business
concerns, particularly to those that have never had the
opportunity to sell their products or services abroad.
(6) According to data of the Bureau of the Census, there
were approximately 5,900,000 employer firms in the United
States as of 2021, of which more than 1,200,000, or
approximately 22 percent, were women-owned. However, according
to the data, of the 128,460 exporting small firms, only 21,626,
or 17 percent, were women-owned firms, meaning that, of small
firms, 5 times as many male-owned firms export as women-owned
firms. The data show that the overall disparity in business
ownership between men and women is even greater among exporting
businesses.
(7) According to research conducted by the Small Business
Administration, smaller firms tend to produce fewer outputs and
are less likely to export than larger firms. Data of the Bureau
of the Census show that women-owned firms employ 33 percent
fewer workers on average than male-owned firms and are less
likely to enjoy the benefits of international trade.
(8) Exporting is a highly effective way for businesses to
expand their markets and increase their productivity. As States
expand export-enhancing activities through STEP, additional
small firms will benefit from the higher demand for their goods
and services and increased profits associated with
international trade.
(9) During the first 10 years of operation, STEP enabled
more than 12,000 small business concerns to explore export
opportunities, helping them reach markets in 141 countries.
(10) Congress recognizes that STEP can be improved to
reduce the administrative burden for grantees, streamline
reporting and compliance requirements, give grantees more
flexibility, make grant awards more transparent and consistent,
and set more predictable application deadlines.
(11) Congress also recognizes that making awards under STEP
more consistent and transparent will simplify the program and
incentivize more States to participate so that small business
concerns are supported in all States.
SEC. 3. STREAMLINING APPLICATION, REPORTING, AND COMPLIANCE
REQUIREMENTS.
(a) Requirement for Funding Information To Be Kept Current.--
Section 22(l)(3) of the Small Business Act (15 U.S.C. 649(l)(3)) is
amended by adding at the end the following:
``(E) Requirement for funding information to be
kept current.--The Associate Administrator shall--
``(i) maintain on the website of the
Administration a publicly accessible list of
links to documents containing the most up-to-
date information about program requirements and
application procedures, including the latest
notice of funding opportunity, all active
Director's Memos, and any determination made
related to eligible expenditures or the
classification of expenditures as direct or
indirect; and
``(ii) update the list described in clause
(i) before any new clarification, instruction,
directive, requirement, determination, or
classification relating to the program takes
effect.''.
(b) Timing of Funding Information Release.--Section 22(l)(3)(D) of
the Small Business Act (15 U.S.C. 649(l)(3)(D)) is amended by adding at
the end the following:
``(iii) Timing.--The Associate
Administrator shall--
``(I) publish information on how to
apply for a grant under this
subsection, including specific
calculations and other determinations
used to award such a grant, not later
than March 31 of each year;
``(II) establish a deadline for the
submission of applications that is--
``(aa) not earlier than 60
days after the date on which
the information is published
under subclause (I); and
``(bb) not later than--
``(AA) May 31 of
each year; or
``(BB) in the event
that full-year
appropriations for the
program for a fiscal
year have not been
enacted as of February
1 of such fiscal year,
120 days after full-
year appropriations are
enacted; and
``(III) announce grant recipients
not later than--
``(aa) September 30 of each
year; or
``(bb) in the event that
full-year appropriations for
the program for a fiscal year
have not been enacted as of
February 1 of such fiscal year,
210 days after full-year
appropriations are enacted.''.
(c) Application Streamlining.--Section 22(l)(3)(D) of the Small
Business Act (15 U.S.C. 649(l)(3)(D)), as amended by subsection (b) of
this section, is amended by adding at the end the following:
``(iv) Application streamlining.--
``(I) In general.--The Associate
Administrator shall establish a concise
application for grants under the
program that shall encompass all
necessary information, including--
``(aa) the proposal of the
State, territory, or
commonwealth to manage the
program;
``(bb) an overview of the
trade office and staff of the
State, territory, or
commonwealth;
``(cc) a description of the
key mission and objective, key
activities planned, and
estimated key performance
indicators;
``(dd) a detailed budget,
which, for a State, shall
include a description of the
cash, indirect costs, and in-
kind contributions the State
has committed to provide for
the non-Federal share of the
cost of the trade expansion
program of the State to be
carried out using a grant under
the program; and
``(ee) for a State, whether
the State is requesting to
receive additional funds
allocated under paragraph
(5)(F), if applicable.
``(II) Scope.--The application
established under subclause (I) shall--
``(aa) include all the
information required for the
technical proposal;
``(bb) eliminate any
unnecessary or duplicative
materials, except to the extent
the duplication is due to the
use of standard forms or
documents that are not specific
to the Administration and are
used by other Federal grant
programs; and
``(cc) to the extent
feasible, use forms common to
other Federal trade and export
programs.''.
(d) Ability to Review Applications After Award.--Section 22(l)(3)
of the Small Business Act (15 U.S.C. 649(l)(3)), as amended by
subsection (a) of this section, is amended by adding at the end the
following:
``(F) Application information.--The Associate
Administrator shall clearly communicate to applicants
and grant recipients information about award decisions
under this subsection, including--
``(i) for each unsuccessful applicant for a
grant awarded under this subsection, providing
recommendations to improve a subsequent
application for such a grant;
``(ii) for each successful applicant for
such a grant, providing an explanation for the
amount awarded, if different from the amount
requested in the application; and
``(iii) upon request, offering to have the
program manager who reviewed the application
discuss with the applicant how to improve a
subsequent application for such a grant.''.
(e) Budget Plan Submission and Revisions.--Section 22(l)(3) of the
Small Business Act (15 U.S.C. 649(l)(3)), as amended by subsection (d)
of this section, is amended--
(1) in subparagraph (D)(i), by inserting ``, including a
budget plan for use of funds awarded under this subsection''
before the period at the end; and
(2) by adding at the end the following:
``(G) Budget plan revisions.--
``(i) In general.--A State, territory, or
commonwealth receiving a grant under this
subsection may revise the budget plan of the
State, territory, or commonwealth submitted
under subparagraph (D) after the disbursal of
grant funds if--
``(I) the revision complies with
allowable uses of grant funds under
this subsection; and
``(II) such State, territory, or
commonwealth submits notification of
the revision to the Associate
Administrator.
``(ii) Exception.--If a revision under
clause (i) reallocates 10 percent or more of
the amounts described in the budget plan of the
State, territory, or commonwealth submitted
under subparagraph (D), the State, territory,
or commonwealth may not implement the revised
budget plan without the approval of the
Associate Administrator, unless the Associate
Administrator fails to approve or deny the
revised plan within 20 days after receipt of
such revised plan.''.
(f) Reporting by Recipients; Processing of Reimbursements.--Section
22(l)(7) of the Small Business Act (15 U.S.C. 649(l)(7)) is amended by
adding at the end the following:
``(C) Reporting by recipients; processing of
reimbursements.--
``(i) In general.--The Associate
Administrator shall establish for recipients of
grants under the program a streamlined
reporting process, template, or spreadsheet
format to report information regarding the
program and key performance indicators required
by an Act of Congress that--
``(I) a State, territory, or
commonwealth may use to upload required
compliance reports relating to the
grants;
``(II) minimizes the manual entry
of specific data regarding eligible
small business concerns, including
performance data;
``(III) eliminates any duplicative
or unnecessary reporting requirements
that are not required for the Associate
Administrator to--
``(aa) report the
information specified in
subparagraph (B);
``(bb) make allocations
under paragraph (5)(B); or
``(cc) conduct necessary
oversight of the program;
``(IV) to the extent feasible,
accommodates the use and uploading of
spreadsheets or templates generated
from customer relationship management
or spreadsheet software; and
``(V) may not require a State,
territory, or commonwealth to submit
information more frequently than twice
per year.
``(ii) Processing of reimbursement
requests.--The Associate Administrator shall--
``(I) process information submitted
by a State, territory, or commonwealth
for purposes of obtaining reimbursement
for eligible activities in a timely
manner, without regard to whether the
information is submitted semiannually,
as described in clause (i)(V), or
quarterly, if the State, territory, or
commonwealth elects to submit
information quarterly;
``(II) notify a State, territory,
or commonwealth if such information is
not processed on or before the date
that is 21 days after the date such
information is submitted; and
``(III) provide an estimated
completion timeline with any
notif