[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