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[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
```