[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
notification under subclause (II).
``(iii) Rule of construction.--Nothing in
clause (i) shall be construed to prohibit a
State, territory, or commonwealth from
submitting information for purposes of
obtaining reimbursement for eligible activities
on a quarterly basis, at the election of the
State, territory, or commonwealth,
respectively.''.
(g) Requirements Related to State Employees.--Section 22(l)(3) of
the Small Business Act (15 U.S.C. 649(l)(3)), as amended by subsection
(e) of this section, is amended by adding at the end the following:
``(H) Limitation on collection of state official
and employee information.--
``(i) In general.--Subject to clause (ii),
the Associate Administrator--
``(I) may only require that a
State, territory, or commonwealth
include with an application for a grant
under the program detailed information,
such as a position description and
resume, for the State, territory, or
commonwealth official or employee that
would manage the grant;
``(II) may only require that a
State, territory, or commonwealth
receiving a grant under the program
report the salary of a State,
territory, or commonwealth official or
employee to the extent that the State,
territory, or commonwealth--
``(aa) includes such salary
as part of the non-Federal
share of the cost of the trade
expansion program; or
``(bb) uses amounts
received under the grant for
the cost of such salary, in
whole or in part; and
``(III) with respect to a State,
territory, or commonwealth official or
employee who is not directly managing a
grant under the program, may only
require the State, territory, or
commonwealth to report the name,
position, and contact information of
the official or employee.
``(ii) Exceptions.--The Associate
Administrator may require a State, territory,
or commonwealth to provide information about a
State, territory, or commonwealth official or
employee that is relevant to any investigation
into suspected mismanagement, fraud, or
malfeasance or that is necessary to comply with
Federal grant requirements.''.
(h) Limitation on Compliance Audits.--Section 22(l) of the Small
Business Act (15 U.S.C. 649(l)) is amended--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (10), (11), and (12), respectively;
(2) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7), respectively; and
(3) by inserting after paragraph (7), as so redesignated,
the following:
``(8) Compliance audits.--
``(A) In general.--Except as provided in
subparagraph (B), the Associate Administrator may not
conduct an audit of a State, territory, or commonwealth
to evaluate compliance with this subsection more than
once every 3 years.
``(B) Exceptions.--The Associate Administrator may
conduct an audit of a State, territory, or commonwealth
to evaluate compliance with this subsection more than
once every 3 years if--
``(i) the amount allocated to the State,
territory, or commonwealth under a grant under
this subsection for a fiscal year is an
increase of not less than 15 percent from the
allocation for the State, territory, or
commonwealth for the prior fiscal year;
``(ii) the Associate Administrator believes
that amounts received by the State, territory,
or commonwealth under a grant under this
subsection are being used for ineligible
activities or as part of fraudulent activity;
or
``(iii) the most recent audit report shows
evidence of material noncompliance with program
requirements, in which case the Associate
Administrator may conduct an audit annually
until compliance is reestablished.''.
SEC. 4. FUNDING TRANSPARENCY AND PREDICTABILITY.
(a) Cap on Reductions in Grants.--Section 22(l) of the Small
Business Act (15 U.S.C. 649(l)) is amended by striking paragraph (4)
and inserting the following:
``(4) Limitations.--
``(A) Definitions.--In this paragraph--
``(i) the term `current fiscal year' means
the fiscal year for which the Administrator is
determining the amount of a grant to be awarded
to a State, territory, or commonwealth under
the program; and
``(ii) the term `prior fiscal year' means
the most recent fiscal year before the current
fiscal year for which a State, territory, or
commonwealth received a grant under the
program.
``(B) General limitation on reductions in grants.--
Subject to subparagraphs (C) and (D), the Administrator
may not award a grant to a State, territory, or
commonwealth under the program for the current fiscal
year in an amount that is less than 80 percent of the
amount received by the State, territory, or
commonwealth under a grant under the program for the
prior fiscal year.
``(C) Potential additional adjustments.--
``(i) Exception for reduction in
appropriations.--Subject to subparagraph (D),
if the total amount appropriated for the
program for the current fiscal year is less
than the amount appropriated for the program
for the prior fiscal year, for purposes of
applying subparagraph (B), the Administrator
shall substitute for `the amount received by
the State, territory, or commonwealth under a
grant under the program for the prior fiscal
year' the product obtained by multiplying--
``(I) subject to clause (ii) of
this subparagraph, the amount received
by the State, territory, or
commonwealth under a grant under the
program for the prior fiscal year; by
``(II) the ratio of the
appropriation for the current fiscal
year to the appropriation for the prior
fiscal year.
``(ii) Exception for grantees that use less
than 80 percent of the amount of a grant.--
Subject to subparagraph (D), if a State,
territory, or commonwealth expends less than 80
percent of the amount of a grant under the
program for the prior fiscal year before the
end of the period of the grant for the prior
fiscal year established under paragraph
(3)(C)(iii)(I), for purposes of applying
subparagraph (B) of this paragraph, if
appropriations are not reduced, or applying
clause (i) of this subparagraph, if
appropriations are reduced, the Administrator
shall substitute for `the amount received by
the State, territory, or commonwealth under a
grant under the program for the prior fiscal
year' the difference obtained by subtracting--
``(I) the amount equal to 50
percent of the amount remaining
available under the grant under the
program to the State, territory, or
commonwealth for the prior fiscal year,
as of the last day of such period; from
``(II) the amount of the grant
under the program to the State,
territory, or commonwealth for the
prior fiscal year.
``(iii) Exception for increase in grantees
resulting in insufficient funding.--If the
number of States, territories, or commonwealths
participating in the program has increased from
the prior fiscal year to such an extent that
funding is not sufficient to provide each
grantee the minimum amount required under this
paragraph (including any reductions under
clause (i) or (ii) of this subparagraph, if
applicable) the Administrator may make pro rata
reductions to the minimum grant amount
otherwise required under this paragraph on a
one-time basis to ensure that all qualified
applicants may receive grants.
``(D) Violations.--The amount of a grant to a
State, territory, or commonwealth may be less than the
minimum amount determined under subparagraph (B)
(including any substitution of amounts under clauses
(i) and (ii) of subparagraph (C), as applicable), if
the State, territory, or commonwealth has been found to
have committed a significant violation of the rules or
policies of the program.''.
(b) Permitting Carryover of Unused Grant Funds.--Section
22(l)(3)(C) of the Small Business Act (15 U.S.C. 649(l)(3)(C)) is
amended--
(1) in clause (ii), by striking ``40 percent'' and
inserting ``30 percent''; and
(2) in clause (iii)--
(A) by striking ``The Associate Administrator'' and
inserting the following:
``(I) In general.--The Associate
Administrator''; and
(B) by adding at the end the following:
``(II) Grantees that use less than
the full amount of a grant.--
``(aa) In general.--Subject
to item (bb), for a State,
territory, or commonwealth that
does not expend the entire
amount of a grant under the
program before the end of the
period of the grant established
under subclause (I), the State,
territory, or commonwealth may
expend amounts remaining
available under the grant as of
the last day of such period
during the first fiscal year
after such period, in an amount
not to exceed 20 percent of the
amount originally made
available under such grant.
``(bb) Forfeited grants.--
Item (aa) shall not apply to a
grant under the program to a
State, territory, or
commonwealth that was forfeited
due to a significant program
violation by the State,
territory, or commonwealth.
``(cc) Return of grant
funds.--A State, territory, or
commonwealth shall return to
the Treasury--
``(AA) any amounts
remaining available
under a grant under the
program at the end of
the period of the grant
established under
subclause (I) that are
not available for
expenditure under item
(aa) of this subclause;
and
``(BB) any amounts
that are available for
expenditure under item
(aa) and are not
expended on or before
the date that is 1 year
after the last day of
the original period of
the grant established
under subclause (I).''.
(c) Funding Formula.--Section 22(l) of the Small Business Act (15
U.S.C. 649(l)) is amended by inserting after paragraph (4), as amended
by subsection (a) of this section, the following:
``(5) Funding formula.--
``(A) Minimum allocation.--Subject to paragraph
(4), and except as provided otherwise in this
paragraph, the minimum amount of a grant under the
program for a fiscal year--
``(i) for a territory or commonwealth,
shall be the amount equal to 0.5 percent of the
total amount appropriated for the program for
the fiscal year; and
``(ii) for a State, shall be the amount
equal to 0.75 percent of the total amount
appropriated for the program for the fiscal
year.
``(B) Additional funds.--
``(i) In general.--Subject to clause (ii),
amounts remaining for grants under the program
for a fiscal year after the minimum allocation
under subparagraph (A) shall be allocated among
States receiving a grant under the program in
accordance with the following metrics:
``(I) 20 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle for
which complete reporting data is
available, of the dollar value of
export sales reported by a State that
were initiated as a result of program
activities undertaken by eligible small
business concerns that are located in
the State to the amount of the grant
received by the State.
``(II) 20 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle for
which complete reporting data is
available, of the total number of
activities described in paragraph (2)
undertaken by eligible small business
concerns participating in the program
that are located in the State to the
amount of the grant received by the
State.
``(III) 15 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle for
which complete reporting data is
available, of the number of eligible
small business concerns participating
in the program for the first time that
are located in the State to the amount
of the grant received by the State.
``(IV) 15 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle for
which complete reporting data is
available, of the number of eligible
small business concerns participating
in the program that are located in the
State and that engaged in trade outside
the United States for the first time to
the amount of the grant received by the
State.
``(V) 15 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle for
which complete reporting data is
available, of the total number of new
markets reached by eligible small
business concerns participating in the
program that are located in the State
to the amount of the grant received by
the State.
``(VI) 15 percent of amounts
remaining shall be proportionally
allocated based on the ratio, for the
most recently completed grant cycle, of
the total number of eligible small
business concerns participating in the
program that are located in the State
to the number of eligible small
business concerns participating in the
program that are located in the State
and that meet 1 or more of the
following criteria:
``(aa) Located in a low-
income or moderate-income area.
``(bb) Located in a rural
area.
``(cc) Located in an
HUBZone, as that term is
defined in section 31(b).
``(dd) Located in a
community that has been
designated as an empowerment
zone or enterprise community
under section 1391 of the
Internal Revenue Code of 1986.
``(ee) Located in a
community that has been
designated as a promise zone by
the Secretary of Housing and
Urban Development.
``(ff) Located in a
community that has been
designated as a qualified
opportunity zone under section
1400Z-1 of the Internal Revenue
Code of 1986.
``(gg) Being owned by
women.
``(ii) Limitation.--In allocating funds
under each of subclauses (I) through (VI) of
clause (i), the amount of funds allocated under
such subclause to the State with the highest
ratio for a metric may not be more than 10
times the amount of funds allocated under such
subclause to the State with the lowest ratio
that is greater than zero for that metric.
``(C) Limit on reduction below grant before
enactment.--In addition to the limitations under
paragraph (4), and except to the extent a State elects
to return funds under subparagraph (E), the amount of a
grant to the State under the program for any fiscal
year may not be less than the amount of the grant to
the State under the program for the most recent full
fiscal year before the date of enactment of the State
Trade Expansion Program Modernization Act of 2024 for
which the State received such a grant.
``(D) Matching requirement for formula funds.--The
Associate Administrator shall provide to each State
receiving a grant under the program an award in the
amount calculated in accordance with the funding
formula under subparagraphs (A), (B), and (C) if the
State has committed to provide the necessary cash,
indirect costs, and in-kind contributions for the non-
Federal share of the cost of the trade expansion
program of the State, as required under paragraph (6).
``(E) Return of grants.--Not later than 15 days
after the date on which the Associate Administrator
notifies a State of the amount to be awarded to the
State under a grant under the program for a fiscal
year, the State may decline or return to the Associate
Administrator, in whole or in part, such amounts.
``(F) Distribution of returned and remaining
amounts.--
``(i) Remaining amounts.--In this
subparagraph, the term `remaining amounts'
means--
``(I) amounts declined or returned
under subparagraph (E) for a fiscal
year; or
``(II) amounts remaining for grants
under the program for a fiscal year
after allocating funds in accordance
with subparagraphs (A), (B), and (C)
due to reductions in the amount of
grants because of the amount committed
by States for the non-Federal share of
the cost of the trade expansion program
of the States.
``(ii) Distribution.--The Associate
Administrator shall distribute any remaining
amounts for a fiscal year among the States
receiving a grant under the program that
requested to receive such remaining amounts, in
an amount that is proportional to the
allocations under subparagraphs (A), (B), and
(C).
``(G) Limitation on basis for reducing amounts.--
The Associate Administrator may not reduce the amount
determined to be allocated or distributed to a State
under any subparagraph of this paragraph based on the
proposed use of such amount by the State, except to the
extent that such use is not an eligible use of funds
for a grant under the program.
``(H) Rounding.--The total amount of a grant to a
State, territory, or commonwealth under the program, as
determined under this paragraph, shall be rounded to
the nearest increment of $1,000.
``(I) Application.--
``(i) In general.--The Associate
Administrator shall award grants under this
subsection based on the formula described in
this paragraph, and without regard to paragraph
(3)(B)--
``(I) for the second consecutive
fiscal year for which the amount made
available for the program is not less
than $30,000,000; and
``(II) for each fiscal year after
the fiscal year described in subclause
(I) for which the amount made available
for the program is not less than
$30,000,000.
``(ii) Award when not based on formula.--
For any fiscal year for which grants are not
awarded based on the formula described in this
paragraph, the Associate Administrator shall
award grants under this subsection on a
competitive basis, taking into account the
considerations described in paragraph (3)(B).
``(J) Transition plan.--
``(i) Initial plan.--
``(I) In general.--If the amount
made available for the program for a
fiscal year is not less than
$30,000,000, the Associate
Administrator shall develop a
transition plan describing how the
Administration intends to begin
awarding grants based on the formula
described in this paragraph, to ensure
the Administration is prepared to award
grants based on the formula described
in this paragraph if the amount made
available for the program for the next
fiscal year is not less than
$30,000,000.
``(II) One-time requirement.--
Subclause (I) shall not apply on and
after the first day of the first fiscal
year for which the Associate
Administrator awards grants based on
the formula described in this
paragraph.
``(III) Requirement to use
formula.--The Associate Administrator
shall award grants based on the formula
described in this paragraph in
accordance with the requirements under
subparagraph (I), without regard to
whether the Associate Administrator
develops the transition plan required
under subclause (I) of this clause.
``(ii) Updates.--If, for any fiscal year
after the first fiscal year for which the
Associate Administrator awards grants based on
the formula described in this paragraph, the
amount made available for the program for the
fiscal year is less than $30,000,000, the
Associate Administrator shall update the plan
to award grants based on the formula described
in this paragraph, to ensure the Administration
is prepared to award grants based on the
formula described in this paragraph if the
amount made available for the program for the
next fiscal year is not less than $30,000,000.
``(K) Reporting.--Not later than 180 days after the
end of each fiscal year for which the amount of grants
under this subsection is determined under the formula
described in this paragraph, 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 that provides the information
used by the Associate Administrator to determine the
amounts of grants under the formula, which shall
include for the applicable fiscal year--
``(i) the number of States that applied for
a grant under the program;
``(ii) the number of States that received a
grant under the program;
``(iii) the raw data for each factor used
to calculate award amounts in accordance with
subparagraph (B), broken out by State;
``(iv) the utilization rates of each
grantee, broken out by grantee;
``(v) the amount carried over by a grantee
under paragraph (3)(C)(iii)(II)(aa), broken out
by grantee;
``(vi) the amount returned to Treasury due
to a failure to use the amounts under paragraph
(3)(C)(iii)(II)(cc), broken out by grantee; and
``(vii) the amount returned to the
Associate Administrator during the period
described in subparagraph (E).''.
SEC. 5. EXPANSION OF DEFINITION OF ELIGIBLE SMALL BUSINESS CONCERN;
CHANGE TO SET ASIDE; CONFORMING CHANGES.
(a) Expansion of Definition of Eligible Small Business Concern.--
(1) In general.--Section 22(l)(1)(A) of the Small Business
Act (15 U.S.C. 649(l)(1)(A)) is amended--
(A) in clause (iii)(II), by adding ``and'' at the
end;
(B) by striking clause (iv); and
(C) by redesignating clause (v) as clause (iv).
(2) Limitation on use of funds for participation in foreign
trade missions.--Section 22(l)(2)(A) of the Small Business Act
(15 U.S.C. 649(l)(2)(A)) is amended by inserting ``by eligible
small business concerns that have been in operation for not
less than 1 year'' after ``trade missions''.
(b) Change to Definitions and Federal Share Requirements.--Section
22(l) of the Small Business Act (15 U.S.C. 649(l)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (A) through (E)
as subparagraphs (B) through (F), respectively;
(B) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) the term `commonwealth' means the
Commonwealth of Puerto Rico and the Commonwealth of the
Northern Mariana Islands;'';
(C) in subparagraph (E), as so redesignated, by
striking ``and'' at the end;
(D) in subparagraph (F), as so redesignated, by
striking ``States, the District'' and all that follows
and inserting ``States and the District of Columbia;
and''; and
(E) by adding at the end the following:
``(G) the term `territory' means the United States
Virgin Islands, Guam, and American Samoa.'';
(2) in paragraph (2), in the matter preceding subparagraph
(A), by inserting ``, territories, and commonwealths'' after
``States'';
(3) in paragraph (3)--
(A) by inserting ``, territory, or commonwealth''
after ``State'' each place it appears, except in--
(i) subclause (II) of subparagraph
(C)(iii), as added by section 4(b) of this Act;
(ii) clause (iv) of subparagraph (D), as
added by section 3(c) of this Act;
(iii) subparagraph (G), as added by section
3(e) of this Act; and
(iv) subparagraph (H), as added by section
3(g) of this Act; and
(B) by inserting ``, territories, or
commonwealths'' after ``States'' each place it appears;
(4) in paragraph (6), as so redesignated by section 3(h) of
this Act--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) for a territory or commonwealth, 100
percent.''; and
(5) in paragraph (10), as so redesignated by section 3(h)
of this Act--
(A) by inserting ``, territory, or commonwealth''
after ``State'' each place it appears, except in
subparagraph (C), as added by section 3(f) of this Act;
and
(B) by inserting ``, territories, or
commonwealths'' after ``States'' each place it appears.
SEC. 6. SURVEY AND ANNUAL REPORT.
(a) Survey.--Section 22(l) of the Small Business Act (15 U.S.C.
649(l)) is amended by inserting after paragraph (8), as added by
section 3(h) of this Act, the following:
``(9) Survey.--The Associate Administrator shall conduct an
annual survey of each State, territory, or commonwealth that
received a grant under this subsection during the preceding
year to solicit feedback on the program and develop best
practices for grantees.''.
(b) Report.--Paragraph (10)(B) of section 22(l) of the Small
Business Act (15 U.S.C. 649(l)), as so redesignated by section 3(h) of
this Act, is amended--
(1) in clause (i)--
(A) in subclause (III), by inserting ``, including
the total number of eligible small business concerns
assisted by the program (disaggregated by small
business concerns located in a low-income or moderate-
income community, small business concerns owned and
controlled by women, and rural small business
concerns)'' before the semicolon at the end;
(B) in subclause (IV), by striking ``and'' at the
end;
(C) in subclause (V)--
(i) by striking ``description of best
practices'' and inserting ``detailed
description of best practices''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(D) by adding at the end the following:
``(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 (9); and
``(VII) a description of lessons
learned by grant recipients under this
subsection that may apply to other
assistance provided by the
Administration.''; and
(2) by adding at the end the following:
``(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 eligible
small business concerns that meet 1 or
more of the following criteria:
``(aa) Located in a low-
income or moderate-income area.
``(bb) Located in a rural
area.
``(cc) Located in an
HUBZone, as that term is
defined in section 31(b).
``(dd) Located in a
community that has been
designated as an empowerment
zone or enterprise community
under section 1391 of the
Internal Revenue Code of 1986.
``(ee) Located in a
community that has been
designated as a promise zone by
the Secretary of Housing and
Urban Development.
``(ff) Located in a
community that has been
designated as a qualified
opportunity zone under section
1400Z-1 of the Internal Revenue
Code of 1986.
``(gg) Being owned by
women.
``(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 become a first-time
exporter.
``(V) Number of such concerns that,
because of participation in the
program, have accessed a new market.
``(VI) Number of such concerns that
have begun exporting to each new
market.''.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
Paragraph (12) of section 22(l) of the Small Business Act (15
U.S.C. 649(l)), as so redesignated by section 3(h) of this Act, is
amended by striking ``fiscal years 2016 through 2020'' and inserting
``fiscal years 2025 through 2029''.
SEC. 8. REPORT TO CONGRESS.
Not later than 1 year after the date of enactment of this Act, the
Associate Administrator for International Trade of the Small Business
Administration shall submit to Congress a report on the State Trade
Expansion Program established under section 22(l) of the Small Business
Act (15 U.S.C. 649(l)), as amended by this Act, that includes a
description of--
(1) the process developed for review of revised budget
plans submitted under subparagraph (G) of section 22(l)(3) of
the Small Business Act (15 U.S.C. 649(l)(3)), as added by
section 3(e) of this Act;
(2) any changes made to streamline the application process
under the State Trade Expansion Program to remove duplicative
requirements and create a more transparent process;
(3) the process developed to share best practices by
States, territories, and commonwealths described in paragraph
(10)(B)(i)(V) of section 22(l) of the Small Business Act (15
U.S.C. 649(l)), as so redesignated by section 3(h) of this Act,
particularly for first-time grant recipients under the State
Trade Expansion Program or grant recipients that are facing
problems using grant funds; and
(4) the process developed to communicate, both verbally and
in writing, relevant information about the State Trade
Expansion Program to all grant recipients in a timely manner.
SEC. 9. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and the amendments made by this Act, and the application of the
provision or amendment to any other person or circumstance, shall not
be affected.
Calendar No. 408
118th CONGRESS
2d Session
S. 4414
_______________________________________________________________________
A BILL
To improve the State Trade Expansion Program of the Small Business
Administration.
_______________________________________________________________________
May 23, 2024
Read twice and placed on the calendar