II 

Calendar No. 633 

111TH CONGRESS 

2D SESSION S. 2862 

[Report No. 111–341] 

To amend the Small Business Act to improve the Office of International 

Trade, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 9, 2009 

Ms. SNOWE (for herself, Ms. LANDRIEU, Mrs. SHAHEEN, Mr. BAYH, Mr. 

CARDIN, Mr. COCHRAN, Ms. KLOBUCHAR, Mr. KERRY, Mr. BURRIS, Mrs. 

BOXER, Mr. MERKLEY, Mr. SPECTER, Mr. UDALL of New Mexico, and 

Ms. CANTWELL) introduced the following bill; which was read twice and 

referred to the Committee on Small Business and Entrepreneurship 

SEPTEMBER 29, 2010 

Reported by Ms. LANDRIEU, without amendment 

A BILL 

To amend the Small Business Act to improve the Office 

of International Trade, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Export 

5 Enhancement and International Trade Act of 2009’’. 

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1 SEC. 2. DEFINITIONS. 

2 (a) DEFINITIONS.—In this Act— 

3 (1) the terms ‘‘Administration’’ and ‘‘Adminis4 trator’’ mean the Small Business Administration 

5 and the Administrator thereof, respectively; 

6 (2) the term ‘‘Associate Administrator’’ means 

7 the Associate Administrator for International Trade 

8 appointed under section 22(a)(2) of the Small Busi9 ness Act, as amended by this Act; 

10 (3) the term ‘‘Export Assistance Center’’ means 

11 a one-stop shop referred to in section 2301(b)(8) of 

12 the Omnibus Trade and Competitiveness Act of 

13 1988 (15 U.S.C. 4721(b)(8)); 

14 (4) the term ‘‘rural small business concern’’ 

15 means a small business concern located in a rural 

16 area, as that term is defined in section 1393(a)(2) 

17 of the Internal Revenue Code of 1986; and 

18 (5) the term ‘‘small business concern’’ has the 

19 meaning given that term under section 3 of the 

20 Small Business Act (15 U.S.C. 632). 

21 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

22 (1) DEFINITIONS.—Section 3 of the Small 

23 Business Act (15 U.S.C. 632) is amended by adding 

24 at the end the following: 

25 ‘‘(t) SMALL BUSINESS DEVELOPMENT CENTER.—In 

26 this Act, the term ‘small business development center’ 

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1 means a small business development center described in 

2 section 21. 

3 ‘‘(u) REGION OF THE ADMINISTRATION.—In this 

4 Act, the term ‘region of the Administration’ means the 

5 geographic area served by a regional office of the Adminis6 tration established under section 4(a).’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 4(b)(3)(B)(x) of the Small Business Act (15 U.S.C. 

9 633(b)(3)(B)(x)) is amended by striking ‘‘Adminis10 tration district and region’’ and inserting ‘‘district 

11 and region of the Administration’’. 

12 SEC. 3. OFFICE OF INTERNATIONAL TRADE. 

13 (a) ESTABLISHMENT.—Section 22 of the Small Busi14 ness Act (15 U.S.C. 649) is amended— 

15 (1) by striking ‘‘SEC. 22. (a) There’’ and in16 serting the following: 

17 ‘‘SEC. 22. OFFICE OF INTERNATIONAL TRADE. 

18 ‘‘(a) ESTABLISHMENT.— 

19 ‘‘(1) OFFICE.—There’’; and 

20 (2) in subsection (a)— 

21 (A) in paragraph (1), as so designated, by 

22 striking the period and inserting ‘‘for the pri23 mary purposes of increasing— 

24 ‘‘(A) the number of small business con25 cerns that export; and 

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1 ‘‘(B) the volume of exports by small busi2 ness concerns.’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(2) ASSOCIATE ADMINISTRATOR.—The head of 

5 the Office shall be the Associate Administrator for 

6 International Trade, who shall be responsible to the 

7 Administrator.’’. 

8 (b) AUTHORITY FOR ADDITIONAL ASSOCIATE AD9 MINISTRATOR.—Section 4(b)(1) of the Small Business Act 

10 (15 U.S.C. 633(b)(1)) is amended— 

11 (1) in the fifth sentence, by striking ‘‘five Asso12 ciate Administrators’’ and inserting ‘‘Associate Ad13 ministrators’’; and 

14 (2) by adding at the end the following: ‘‘One 

15 such Associate Administrator shall be the Associate 

16 Administrator for International Trade, who shall be 

17 the head of the Office of International Trade estab18 lished under section 22.’’. 

19 (c) DISCHARGE OF INTERNATIONAL TRADE RESPON20 SIBILITIES OF ADMINISTRATION.—Section 22 of the Small 

21 Business Act (15 U.S.C. 649) is amended by adding at 

22 the end the following: 

23 ‘‘(h) DISCHARGE OF INTERNATIONAL TRADE RE24 SPONSIBILITIES OF ADMINISTRATION.—The Adminis25 trator shall ensure that— 

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1 ‘‘(1) the responsibilities of the Administration 

2 regarding international trade are carried out by the 

3 Associate Administrator; 

4 ‘‘(2) the Associate Administrator has sufficient 

5 resources to carry out such responsibilities; and 

6 ‘‘(3) the Associate Administrator has direct su7 pervision and control over— 

8 ‘‘(A) the staff of the Office; and 

9 ‘‘(B) any employee of the Administration 

10 whose principal duty station is an Export As11 sistance Center, or any successor entity.’’. 

12 (d) ROLE OF ASSOCIATE ADMINISTRATOR IN CAR13 RYING OUT INTERNATIONAL TRADE POLICY.—Section 

14 2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) 

15 is amended in the matter preceding subparagraph (A)— 

16 (1) by inserting ‘‘the Administrator of’’ before 

17 ‘‘the Small Business Administration’’; and 

18 (2) by inserting ‘‘through the Associate Admin19 istrator for International Trade, and’’ before ‘‘in co20 operation with’’. 

21 (e) IMPLEMENTATION DATE.—Not later than 90 

22 days after the date of enactment of this Act, the Adminis23 trator of the Small Business Administration shall appoint 

24 an Associate Administrator for International Trade under 

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1 section 22(a) of the Small Business Act (15 U.S.C. 

2 649(a)), as added by this section. 

3 SEC. 4. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE. 

4 (a) AMENDMENTS TO SECTION 22.—Section 22 of 

5 the Small Business Act (15 U.S.C. 649) is amended— 

6 (1) by striking subsection (b) and inserting the 

7 following: 

8 ‘‘(b) TRADE DISTRIBUTION NETWORK.—The Asso9 ciate Administrator, working in close cooperation with the 

10 Secretary of Commerce, the United States Trade Rep11 resentative, the Export-Import Bank of the United States, 

12 the Overseas Private Investment Corporation, and other 

13 relevant Federal agencies, small business development 

14 centers engaged in export promotion efforts, Export As15 sistance Centers, regional and district offices of the Ad16 ministration, the small business community, and relevant 

17 State and local export promotion programs, shall— 

18 ‘‘(1) maintain a distribution network, using re19 gional and district offices of the Administration, the 

20 small business development center network, net21 works of women’s business centers, the Service 

22 Corps of Retired Executives authorized by section 

23 8(b)(1), and Export Assistance Centers, for pro24 grams relating to— 

25 ‘‘(A) trade promotion; 

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1 ‘‘(B) trade finance; 

2 ‘‘(C) trade adjustment assistance; 

3 ‘‘(D) trade remedy assistance; and 

4 ‘‘(E) trade data collection; 

5 ‘‘(2) aggressively market the programs de6 scribed in paragraph (1) and disseminate informa7 tion, including computerized marketing data, to 

8 small business concerns on exporting trends, market9 specific growth, industry trends, and international 

10 prospects for exports; 

11 ‘‘(3) promote export assistance programs 

12 through the district and regional offices of the Ad13 ministration, the small business development center 

14 network, Export Assistance Centers, the network of 

15 women’s business centers, chapters of the Service 

16 Corps of Retired Executives, State and local export 

17 promotion programs, and partners in the private 

18 sector; and 

19 ‘‘(4) give preference in hiring or approving the 

20 transfer of any employee into the Office or to a posi21 tion described in subsection (c)(9) to otherwise 

22 qualified applicants who are fluent in a language in 

23 addition to English, to— 

24 ‘‘(A) accompany small business concerns 

25 on foreign trade missions; and 

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1 ‘‘(B) translate documents, interpret con2 versations, and facilitate multilingual trans3 actions, including by providing referral lists for 

4 translation services, if required.’’; 

5 (2) in subsection (c)— 

6 (A) by striking ‘‘(c) The Office’’ and in7 serting the following: 

8 ‘‘(c) PROMOTION OF SALES OPPORTUNITIES.—The 

9 Associate Administrator’’; 

10 (B) by redesignating paragraphs (1) 

11 through (8) as paragraphs (2) through (9), re12 spectively; 

13 (C) by inserting before paragraph (2), as 

14 so redesignated, the following: 

15 ‘‘(1) establish annual goals for the Office relat16 ing to— 

17 ‘‘(A) enhancing the exporting capability of 

18 small business concerns and small manufactur19 ers; 

20 ‘‘(B) facilitating technology transfers; 

21 ‘‘(C) enhancing programs and services to 

22 assist small business concerns and small manu23 facturers to compete effectively and efficiently 

24 against foreign entities; 

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1 ‘‘(D) increasing the ability of small busi2 ness concerns to access capital; 

3 ‘‘(E) disseminating information concerning 

4 Federal, State, and private programs and initia5 tives; and 

6 ‘‘(F) ensuring that the interests of small 

7 business concerns are adequately represented in 

8 trade negotiations;’’; 

9 (D) in paragraph (2), as so redesignated, 

10 by striking ‘‘mechanism for’’ and all that fol11 lows through ‘‘(D) assisting’’ and inserting the 

12 following: ‘‘mechanism for— 

13 ‘‘(A) identifying subsectors of the small 

14 business community with strong export poten15 tial; 

16 ‘‘(B) identifying areas of demand in for17 eign markets; 

18 ‘‘(C) prescreening foreign buyers for com19 mercial and credit purposes; and 

20 ‘‘(D) assisting’’; 

21 (E) in paragraph (3), as so redesignated, 

22 by striking ‘‘assist small businesses in the for23 mation and utilization of’’ and inserting ‘‘assist 

24 small business concerns in forming and using’’; 

25 (F) in paragraph (4), as so redesignated— 

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1 (i) by striking ‘‘local’’ and inserting 

2 ‘‘district’’; 

3 (ii) by striking ‘‘existing’’; 

4 (iii) by striking ‘‘Small Business De5 velopment Center network’’ and inserting 

6 ‘‘small business development center net7 work’’; and 

8 (iv) by striking ‘‘Small Business De9 velopment Center Program’’ and inserting 

10 ‘‘small business development center pro11 gram’’; 

12 (G) in paragraph (5), as so redesignated— 

13 (i) in subparagraph (A), by striking 

14 ‘‘Gross State Produce’’ and inserting 

15 ‘‘Gross State Product’’; 

16 (ii) in subparagraph (B), by striking 

17 ‘‘SIC’’ each place it appears and inserting 

18 ‘‘North American Industry Classification 

19 System’’; and 

20 (iii) in subparagraph (C), by striking 

21 ‘‘small businesses’’ and inserting ‘‘small 

22 business concerns’’; 

23 (H) in paragraph (6), as so redesignated, 

24 by striking the period at the end and inserting 

25 a semicolon; 

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1 (I) in paragraph (7), as so redesignated— 

2 (i) in the matter preceding subpara3 graph (A)— 

4 (I) by inserting ‘‘concerns’’ after 

5 ‘‘small business’’; and 

6 (II) by striking ‘‘current’’ and in7 serting ‘‘up to date’’; 

8 (ii) in subparagraph (A), by striking 

9 ‘‘Administration’s regional offices’’ and in10 serting ‘‘regional and district offices of the 

11 Administration’’; 

12 (iii) in subparagraph (B) by striking 

13 ‘‘current’’; 

14 (iv) in subparagraph (C), by striking 

15 ‘‘current’’; and 

16 (v) by striking ‘‘small businesses’’ 

17 each place that term appears and inserting 

18 ‘‘small business concerns’’; 

19 (J) in paragraph (8), as so redesignated, 

20 by striking and at the end; 

21 (K) in paragraph (9), as so redesignated— 

22 (i) in the matter preceding subpara23 graph (A)— 

24 (I) by striking ‘‘full-time export 

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1 ministration regional office and as2 signing’’; and 

3 (II) by striking ‘‘person in each 

4 district office. Such specialists’’ and 

5 inserting ‘‘individual in each district 

6 office and providing each Administra7 tion regional office with a full-time ex8 port development specialist, who’’; 

9 (ii) in subparagraph (B)— 

10 (I) by striking ‘‘current’’; and 

11 (II) by striking ‘‘with’’ and in12 serting ‘‘in’’; 

13 (iii) in subparagraph (D)— 

14 (I) by striking ‘‘Administration 

15 personnel involved in granting’’ and 

16 inserting ‘‘personnel of the Adminis17 tration involved in making’’; and 

18 (II) by striking ‘‘and’’ at the end; 

19 (iv) in subparagraph (E)— 

20 (I) by striking ‘‘small businesses’ 

21 needs’’ and inserting ‘‘the needs of 

22 small business concerns’’; and 

23 (II) by striking the period at the 

24 end and inserting a semicolon; 

25 (v) by adding at the end the following: 

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1 ‘‘(F) participate, jointly with employees of 

2 the Office, in an annual training program that 

3 focuses on current small business needs for ex4 porting; and 

5 ‘‘(G) develop and conduct training pro6 grams for exporters and lenders, in cooperation 

7 with the Export Assistance Centers, the De8 partment of Commerce, small business develop9 ment centers, women’s business centers, the 

10 Export-Import Bank of the United States, the 

11 Overseas Private Investment Corporation, and 

12 other relevant Federal agencies;’’; and 

13 (vi) by striking ‘‘small businesses’’ 

14 each place that term appears and inserting 

15 ‘‘small business concerns’’; and 

16 (L) by adding at the end the following: 

17 ‘‘(10) make available on the website of the Ad18 ministration the name and contact information of 

19 each individual described in paragraph (9); 

20 ‘‘(11) carry out a nationwide marketing effort 

21 using technology, online resources, training, and 

22 other strategies to promote exporting as a business 

23 development opportunity for small business con24 cerns; 

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1 ‘‘(12) disseminate information to the small 

2 business community through regional and district of3 fices of the Administration, the small business devel4 opment center network, Export Assistance Centers, 

5 the network of women’s business centers, chapters of 

6 the Service Corps of Retired Executives authorized 

7 by section 8(b)(1), State and local export promotion 

8 programs, and partners in the private sector regard9 ing exporting trends, market-specific growth, indus10 try trends, and prospects for exporting; and 

11 ‘‘(13) establish and carry out training programs 

12 for the staff of the regional and district offices of 

13 the Administration and resource partners of the Ad14 ministration on export promotion and providing as15 sistance relating to exports.’’; 

16 (3) in subsection (d)— 

17 (A) by redesignating paragraphs (1) 

18 through (5) as clauses (i) through (v), respec19 tively, and adjusting the margins accordingly; 

20 (B) by striking ‘‘(d) The Office’’ and in21 serting the following: 

22 ‘‘(d) EXPORT FINANCING PROGRAMS.— 

23 ‘‘(1) IN GENERAL.—The Associate Adminis24 trator’’; and 

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1 (C) by striking ‘‘To accomplish this goal, 

2 the Office shall work’’ and inserting the fol3 lowing: 

4 ‘‘(2) TRADE FINANCE SPECIALIST.—To accom5 plish the goal established under paragraph (1), the 

6 Associate Administrator shall— 

7 ‘‘(A) designate at least 1 individual within 

8 the Administration as a trade finance specialist 

9 to oversee international loan programs and as10 sist Administration employees with trade fi11 nance issues; and 

12 ‘‘(B) work’’; 

13 (4) in subsection (e), by striking ‘‘(e) The Of14 fice’’ and inserting the following: 

15 ‘‘(e) TRADE REMEDIES.—The Associate Adminis16 trator’’; 

17 (5) by amending subsection (f) to read as fol18 lows: 

19 ‘‘(f) REPORTING REQUIREMENT.—The Associate Ad20 ministrator shall submit an annual report to the Com21 mittee on Small Business and Entrepreneurship of the 

22 Senate and the Committee on Small Business of the 

23 House of Representatives that contains— 

24 ‘‘(1) a description of the progress of the Office 

25 in implementing the requirements of this section; 

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1 ‘‘(2) a detailed account of the results of export 

2 growth activities of the Administration, including the 

3 activities of each district and regional office of the 

4 Administration, based on the performance measures 

5 described in subsection (i); 

6 ‘‘(3) an estimate of the total number of jobs 

7 created or retained as a result of export assistance 

8 provided by the Administration and resource part9 ners of the Administration; 

10 ‘‘(4) for any travel by the staff of the Office, 

11 the destination of such travel and the benefits to the 

12 Administration and to small business concerns re13 sulting from such travel; and 

14 ‘‘(5) a description of the participation by the 

15 Office in trade negotiations.’’; 

16 (6) in subsection (g), by striking ‘‘(g) The Of17 fice’’ and inserting the following: 

18 ‘‘(g) STUDIES.—The Associate Administrator’’; and 

19 (7) by adding after subsection (h), as added by 

20 section 3 of this Act, the following: 

21 ‘‘(i) EXPORT AND TRADE COUNSELING.— 

22 ‘‘(1) DEFINITION.—In this subsection— 

23 ‘‘(A) the term ‘lead small business develop24 ment center’ means a small business developmstockstill on DSKH9S0YB1PROD with BILLS

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1 ment center that has received a grant from the 

2 Administration; and 

3 ‘‘(B) the term ‘lead women’s business cen4 ter’ means a women’s business center that has 

5 received a grant from the Administration. 

6 ‘‘(2) CERTIFICATION PROGRAM.—The Adminis7 trator shall establish an export and trade counseling 

8 certification program to certify employees of lead 

9 small business development centers and lead wom10 en’s business centers in providing export assistance 

11 to small business concerns. 

12 ‘‘(3) NUMBER OF CERTIFIED EMPLOYEES.— 

13 The Administrator shall ensure that the number of 

14 employees of each lead small business development 

15 center who are certified in providing export assist16 ance is not less than the lesser of— 

17 ‘‘(A) 5; or 

18 ‘‘(B) 10 percent of the total number of em19 ployees of the lead small business development 

20 center. 

21 ‘‘(4) REIMBURSEMENT FOR CERTIFICATION.— 

22 ‘‘(A) IN GENERAL.—Subject to the avail23 ability of appropriations, the Administrator 

24 shall reimburse a lead small business develop25 ment center or a lead women’s business center 

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1 for costs relating to the certification of an em2 ployee of the lead small business center or lead 

3 women’s business center in providing export as4 sistance under the program established under 

5 paragraph (2). 

6 ‘‘(B) LIMITATION.—The total amount re7 imbursed by the Administrator under subpara8 graph (A) may not exceed $350,000 in any fis9 cal year. 

10 ‘‘(j) PERFORMANCE MEASURES.— 

11 ‘‘(1) IN GENERAL.—The Associate Adminis12 trator shall develop performance measures for the 

13 Administration to support export growth goals for 

14 the activities of the Office under this section that in15 clude— 

16 ‘‘(A) the number of small business con17 cerns that— 

18 ‘‘(i) receive assistance from the Ad19 ministration; 

20 ‘‘(ii) had not exported goods or serv21 ices before receiving the assistance de22 scribed in clause (i); and 

23 ‘‘(iii) export goods or services; 

24 ‘‘(B) the number of small business con25 cerns receiving assistance from the Administramstockstill on DSKH9S0YB1PROD with BILLS

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1 tion that export goods or services to a market 

2 outside the United States into which the small 

3 business concern did not export before receiving 

4 the assistance; 

5 ‘‘(C) export revenues by small business 

6 concerns assisted by programs of the Adminis7 tration; 

8 ‘‘(D) the number of small business con9 cerns referred to an Export Assistance Center 

10 or a small business development center by the 

11 staff of the Office; 

12 ‘‘(E) the number of small business con13 cerns referred to the Administration by an Ex14 port Assistance Center or a small business de15 velopment center; and 

16 ‘‘(F) the number of small business con17 cerns referred to the Export-Import Bank of 

18 the United States or to the Overseas Private 

19 Investment Corporation by the staff of the Of20 fice, an Export Assistance Center, or a small 

21 business development center. 

22 ‘‘(2) JOINT PERFORMANCE MEASURES.—The 

23 Associate Administrator shall develop joint perform24 ance measures for the district offices of the Adminismstockstill on DSKH9S0YB1PROD with BILLS

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1 tration and the Export Assistance Centers that in2 clude the number of export loans made under— 

3 ‘‘(A) section 7(a)(16); 

4 ‘‘(B) the Export Working Capital Program 

5 established under section 7(a)(14); 

6 ‘‘(C) the Preferred Lenders Program, as 

7 defined in section 7(a)(2)(C)(ii); and 

8 ‘‘(D) the export express program estab9 lished under section 7(a)(34). 

10 ‘‘(3) CONSISTENCY OF TRACKING.—The Asso11 ciate Administrator, in coordination with the depart12 ments and agencies that are represented on the 

13 Trade Promotion Coordinating Committee estab14 lished under section 2312 of the Export Enhance15 ment Act of 1988 (15 U.S.C. 4727) and the small 

16 business development center network, shall develop a 

17 system to track exports by small business concerns, 

18 including information relating to the performance 

19 measures developed under paragraph (1), that is 

20 consistent with systems used by the departments 

21 and agencies and the network.’’. 

22 (b) TRADE DISPUTES.—The Administrator shall 

23 carry out a comprehensive program to provide technical 

24 assistance, counseling, and reference materials to small 

25 business concerns relating to resources, procedures, and 

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1 requirements for mechanisms to resolve international 

2 trade disputes or address unfair international trade prac3 tices under international trade agreements or Federal law, 

4 including— 

5 (1) directing the district offices of the Adminis6 tration to provide referrals, information, and other 

7 services to small business concerns relating to the 

8 mechanisms; 

9 (2) entering agreements and partnerships with 

10 providers of legal services relating to the mecha11 nisms, to ensure small business concerns may 

12 affordably use the mechanisms; and 

13 (3) in consultation with the Director of the 

14 United States Patent and Trademark Office and the 

15 Register of Copyrights, designing counseling services 

16 and materials for small business concerns regarding 

17 intellectual property protection in other countries. 

18 (c) REPORT.—Not later than 60 days after the date 

19 of enactment of this Act, the Administrator shall submit 

20 a report to the Committee on Small Business and Entre21 preneurship of the Senate and the Committee on Small 

22 Business of the House of Representatives on any travel 

23 by the staff of the Office of International Trade of the 

24 Administration, during the period beginning on October 

25 1, 2004, and ending on the date of enactment of the Act, 

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1 including the destination of such travel and the benefits 

2 to the Administration and to small business concerns re3 sulting from such travel. 

4 SEC. 5. EXPORT ASSISTANCE CENTERS. 

5 (a) EXPORT ASSISTANCE CENTERS.—Section 22 of 

6 the Small Business Act (15 U.S.C. 649), as amended by 

7 this Act, is amended by adding at the end the following: 

8 ‘‘(k) EXPORT ASSISTANCE CENTERS.— 

9 ‘‘(1) EXPORT FINANCE SPECIALISTS.— 

10 ‘‘(A) MINIMUM NUMBER OF EXPORT FI11 NANCE SPECIALISTS.—On and after January 1, 

12 2010, the Administrator, in coordination with 

13 the Secretary of Commerce, shall ensure that 

14 the number of export finance specialists is not 

15 less than the number of such employees so as16 signed on January 1, 2003. 

17 ‘‘(B) EXPORT FINANCE SPECIALISTS AS18 SIGNED TO EACH REGION OF THE ADMINISTRA19 TION.—On and after the date that is 2 years 

20 after the date of enactment of this subsection, 

21 the Administrator, in coordination with the Sec22 retary of Commerce, shall ensure that there are 

23 not fewer than 3 export finance specialists in 

24 each region of the Administration. 

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1 ‘‘(2) PLACEMENT OF EXPORT FINANCE SPE2 CIALISTS.— 

3 ‘‘(A) PRIORITY.—The Administrator shall 

4 give priority, to the maximum extent prac5 ticable, to placing employees of the Administra6 tion at any Export Assistance Center that— 

7 ‘‘(i) had an Administration employee 

8 assigned to the Export Assistance Center 

9 before January 2003; and 

10 ‘‘(ii) has not had an Administration 

11 employee assigned to the Export Assist12 ance Center during the period beginning 

13 January 2003, and ending on the date of 

14 enactment of this subsection, either 

15 through retirement or reassignment. 

16 ‘‘(B) NEEDS OF EXPORTERS.—The Ad17 ministrator shall, to the maximum extent prac18 ticable, strategically assign Administration em19 ployees to Export Assistance Centers, based on 

20 the needs of exporters. 

21 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

22 in this subsection may be construed to require 

23 the Administrator to reassign or remove an ex24 port finance specialist who is assigned to an 

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1 Export Assistance Center on the date of enact2 ment of this subsection. 

3 ‘‘(3) GOALS.—The Associate Administrator 

4 shall work with the Department of Commerce, the 

5 Export-Import Bank of the United States, and the 

6 Overseas Private Investment Corporation to estab7 lish shared annual goals for the Export Assistance 

8 Centers. 

9 ‘‘(4) OVERSIGHT.—The Associate Adminis10 trator shall designate an individual within the Ad11 ministration to oversee all activities conducted by 

12 Administration employees assigned to Export Assist13 ance Centers. 

14 ‘‘(l) DEFINITIONS.—In this section— 

15 ‘‘(1) the term ‘Associate Administrator’ means 

16 the Associate Administrator for International Trade 

17 described in subsection (a)(2); 

18 ‘‘(2) the term ‘Export Assistance Center’ means 

19 a one-stop shop for United States exporters estab20 lished by the United States and Foreign Commercial 

21 Service of the Department of Commerce pursuant to 

22 section 2301(b)(8) of the Omnibus Trade and Com23 petitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); 

24 ‘‘(3) the term ‘export finance specialist’ means 

25 a full-time equivalent employee of the Office asmstockstill on DSKH9S0YB1PROD with BILLS

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1 signed to an Export Assistance Center to carry out 

2 the duties described in subsection (e); and 

3 ‘‘(4) the term ‘Office’ means the Office of 

4 International Trade established under subsection 

5 (a)(1).’’. 

6 (b) STUDY AND REPORT ON FILLING GAPS IN HIGH7 AND-LOW-EXPORT VOLUME AREAS.— 

8 (1) STUDY AND REPORT.—Not later than 6 

9 months after the date of enactment of this Act, and 

10 every 2 years thereafter, the Administrator shall— 

11 (A) conduct a study of— 

12 (i) the volume of exports for each 

13 State; 

14 (ii) the availability of export finance 

15 specialists in each State; 

16 (iii) the number of exporters in each 

17 State that are small business concerns; 

18 (iv) the percentage of exporters in 

19 each State that are small business con20 cerns; 

21 (v) the change, if any, in the number 

22 of exporters that are small business con23 cerns in each State— 

24 (I) for the first study conducted 

25 under this subparagraph, during the 

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1 10-year period ending on the date of 

2 enactment of this Act; and 

3 (II) for each subsequent study, 

4 during the 10-year period ending on 

5 the date the study is commenced; 

6 (vi) the total value of the exports in 

7 each State by small business concerns; 

8 (vii) the percentage of the total vol9 ume of exports in each State that is attrib10 utable to small business concerns; and 

11 (viii) the change, if any, in the per12 centage of the total volume of exports in 

13 each State that is attributable to small 

14 business concerns— 

15 (I) for the first study conducted 

16 under this subparagraph, during the 

17 10-year period ending on the date of 

18 enactment of this Act; and 

19 (II) for each subsequent study, 

20 during the 10-year period ending on 

21 the date the study is commenced; and 

22 (B) submit to the Committee on Small 

23 Business and Entrepreneurship of the Senate 

24 and the Committee on Small Business of the 

25 House of Representatives a report containing— 

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1 (i) the results of the study under sub2 paragraph (A); 

3 (ii) to the extent practicable, a rec4 ommendation regarding how to eliminate 

5 gaps between the supply of and demand 

6 for export finance specialists in the 15 

7 States that have the greatest volume of ex8 ports, based upon the most recent data 

9 available from the Department of Com10 merce; 

11 (iii) to the extent practicable, a rec12 ommendation regarding how to eliminate 

13 gaps between the supply of and demand 

14 for export finance specialists in the 15 

15 States that have the lowest volume of ex16 ports, based upon the most recent data 

17 available from the Department of Com18 merce; and 

19 (iv) such additional information as the 

20 Administrator determines is appropriate. 

21 (2) DEFINITION.—In this subsection, the term 

22 ‘‘export finance specialist’’ has the meaning given 

23 that term in section 22(l) of the Small Business Act, 

24 as added by this Act. 

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1 SEC. 6. INTERNATIONAL TRADE FINANCE PROGRAMS. 

2 (a) LOAN LIMITS.— 

3 (1) TOTAL AMOUNT OUTSTANDING.—Section 

4 7(a)(3)(B) of the Small Business Act (15 U.S.C. 

5 636(a)(3)(B)) is amended by striking ‘‘$1,750,000, 

6 of which not more than $1,250,000’’ and inserting 

7 ‘‘$4,500,000 (or if the gross loan amount would ex8 ceed $5,000,000), of which not more than 

9 $4,000,000’’. 

10 (2) PARTICIPATION.—Section 7(a)(2) of the 

11 Small Business Act (15 U.S.C. 636(a)(2)) is amend12 ed— 

13 (A) in subparagraph (A), in the matter 

14 preceding clause (i), by striking ‘‘subparagraph 

15 (B)’’ and inserting ‘‘subparagraphs (B), (D), 

16 and (E)’’; 

17 (B) in subparagraph (D), by striking 

18 ‘‘Notwithstanding subparagraph (A), in’’ and 

19 inserting ‘‘In’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(E) PARTICIPATION IN INTERNATIONAL

22 TRADE LOAN.—In an agreement to participate 

23 in a loan on a deferred basis under paragraph 

24 (16), the participation by the Administration 

25 may not exceed 90 percent.’’. 

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1 (b) WORKING CAPITAL.—Section 7(a)(16)(A) of the 

2 Small Business Act (15 U.S.C. 636(a)(16)(A)) is amend3 ed— 

4 (1) in the matter preceding clause (i), by strik5 ing ‘‘in—’’ and inserting ‘‘—’’; 

6 (2) in clause (i)— 

7 (A) by inserting ‘‘in’’ after ‘‘(i)’’; and 

8 (B) by striking ‘‘or’’ at the end; 

9 (3) in clause (ii)— 

10 (A) by inserting ‘‘in’’ after ‘‘(ii)’’; and 

11 (B) by striking the period at the end and 

12 inserting ‘‘, including any debt that qualifies for 

13 refinancing under any other provision of this 

14 subsection; or’’; and 

15 (4) by adding at the end the following: 

16 ‘‘(iii) by providing working capital.’’. 

17 (c) COLLATERAL.—Section 7(a)(16)(B) of the Small 

18 Business Act (15 U.S.C. 636(a)(16)(B)) is amended— 

19 (1) by striking ‘‘Each loan’’ and inserting the 

20 following: 

21 ‘‘(i) IN GENERAL.—Except as pro22 vided in clause (ii), each loan’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(ii) EXCEPTION.—A loan under this 

25 paragraph may be secured by a second lien 

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1 position on the property or equipment fi2 nanced by the loan or on other assets of 

3 the small business concern, if the Adminis4 trator determines the lien provides ade5 quate assurance of the payment of the 

6 loan.’’. 

7 (d) EXPORT WORKING CAPITAL PROGRAM.—Section 

8 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 

9 amended— 

10 (1) in paragraph (2)(D), by striking ‘‘not ex11 ceed’’ and inserting ‘‘be’’; and 

12 (2) in paragraph (14)— 

13 (A) by striking ‘‘(A) The Administration’’ 

14 and inserting the following: ‘‘EXPORT WORKING

15 CAPITAL PROGRAM.— 

16 ‘‘(A) IN GENERAL.—The Administrator’’; 

17 (B) by striking ‘‘(B) When considering’’ 

18 and inserting the following: 

19 ‘‘(C) CONSIDERATIONS.—When consid20 ering’’; 

21 (C) by striking ‘‘(C) The Administration’’ 

22 and inserting the following: 

23 ‘‘(D) MARKETING.—The Administrator’’; 

24 and 

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1 (D) by inserting after subparagraph (A) 

2 the following: 

3 ‘‘(B) TERMS.— 

4 ‘‘(i) LOAN AMOUNT.—The Adminis5 trator may not guarantee a loan under this 

6 paragraph of more than $5,000,000. 

7 ‘‘(ii) FEES.— 

8 ‘‘(I) IN GENERAL.—For a loan 

9 under this paragraph, the Adminis10 trator shall collect the fee assessed 

11 under paragraph (23) not more fre12 quently than once each year. 

13 ‘‘(II) UNTAPPED CREDIT.—The 

14 Administrator may not assess a fee on 

15 capital that is not accessed by the 

16 small business concern.’’. 

17 (e) PARTICIPATION IN PREFERRED LENDERS PRO18 GRAM.—Section 7(a)(2)(C) of the Small Business Act (15 

19 U.S.C. 636(a)(2)(C)) is amended— 

20 (1) by redesignating clause (ii) as clause (iii); 

21 and 

22 (2) by inserting after clause (i) the following: 

23 ‘‘(ii) EXPORT-IMPORT BANK LEND24 ERS.—Any lender that is participating in 

25 the Delegated Authority Lender Program 

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1 of the Export-Import Bank of the United 

2 States (or any successor to the Program) 

3 shall be eligible to participate in the Pre4 ferred Lenders Program.’’. 

5 (f) EXPORT EXPRESS PROGRAM.—Section 7(a) of the 

6 Small Business Act (15 U.S.C. 636(a)) is amended— 

7 (1) by striking ‘‘(32) INCREASED VETERAN’’ 

8 and inserting ‘‘(33) INCREASED VETERAN’’; and 

9 (2) by adding at the end the following: 

10 ‘‘(34) EXPORT EXPRESS PROGRAM.— 

11 ‘‘(A) DEFINITIONS.—In this paragraph— 

12 ‘‘(i) the term ‘export development ac13 tivity’ includes— 

14 ‘‘(I) obtaining a standby letter of 

15 credit when required as a bid bond, 

16 performance bond, or advance pay17 ment guarantee; 

18 ‘‘(II) participation in a trade 

19 show that takes place outside the 

20 United States; 

21 ‘‘(III) translation of product bro22 chures or catalogues for use in mar23 kets outside the United States; 

24 ‘‘(IV) obtaining a general line of 

25 credit for export purposes; 

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1 ‘‘(V) performing a service con2 tract from buyers located outside the 

3 United States; 

4 ‘‘(VI) obtaining transaction-spe5 cific financing associated with com6 pleting export orders; 

7 ‘‘(VII) purchasing real estate or 

8 equipment to be used in the produc9 tion of goods or services for export; 

10 ‘‘(VIII) providing term loans or 

11 other financing to enable a small busi12 ness concern, including an export 

13 trading company and an export man14 agement company, to develop a mar15 ket outside the United States; and 

16 ‘‘(IX) acquiring, constructing, 

17 renovating, modernizing, improving, 

18 or expanding a production facility or 

19 equipment to be used in the United 

20 States in the production of goods or 

21 services for export; and 

22 ‘‘(ii) the term ‘express loan’ means a 

23 loan in which a lender uses to the max24 imum extent practicable the loan analyses, 

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1 er to provide expedited processing of the 

2 loan application. 

3 ‘‘(B) AUTHORITY.—The Administrator 

4 may guarantee the timely payment of an ex5 press loan to a small business concern made for 

6 an export development activity. 

7 ‘‘(C) LEVEL OF PARTICIPATION.— 

8 ‘‘(i) MAXIMUM AMOUNT.—The max9 imum amount of an express loan guaran10 teed under this paragraph shall be 

11 $500,000. 

12 ‘‘(ii) PERCENTAGE.—For an express 

13 loan guaranteed under this paragraph, the 

14 Administrator shall guarantee— 

15 ‘‘(I) 90 percent of a loan that is 

16 not more than $350,000; and 

17 ‘‘(II) 75 percent of a loan that is 

18 more than $350,000 and not more 

19 than $500,000.’’. 

20 (g) ANNUAL LISTING OF EXPORT FINANCE LEND21 ERS.—Section 7(a)(16) of the Small Business Act (15 

22 U.S.C. 636(a)(16)) is amended by adding at the end the 

23 following: 

24 ‘‘(F) LIST OF EXPORT FINANCE LEND25 ERS.— 

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1 ‘‘(i) PUBLICATION OF LIST RE2 QUIRED.—The Administrator shall publish 

3 an annual list of the banks and partici4 pating lending institutions that, during the 

5 1-year period ending on the date of publi6 cation of the list, have made loans guaran7 teed by the Administration under— 

8 ‘‘(I) this paragraph; 

9 ‘‘(II) paragraph (14); or 

10 ‘‘(III) paragraph (34). 

11 ‘‘(ii) AVAILABILITY OF LIST.—The 

12 Administrator shall— 

13 ‘‘(I) post the list published under 

14 clause (i) on the website of the Ad15 ministration; and 

16 ‘‘(II) make the list published 

17 under clause (i) available, upon re18 quest, at each district office of the 

19 Administration.’’. 

20 (h) APPLICABILITY.—The amendments made by sub21 sections (a) through (f) shall apply with respect to any 

22 loan made after the date of enactment of this Act. 

23 SEC. 7. STATE TRADE AND EXPORT PROMOTION GRANT 

24 PROGRAM. 

25 (a) DEFINITIONS.—In this section— 

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1 (1) the term ‘‘eligible small business concern’’ 

2 means a small business concern that— 

3 (A) has been in business for not less than 

4 the 1-year period ending on the date on which 

5 assistance is provided using a grant under this 

6 section; 

7 (B) is operating profitably, based on oper8 ations in the United States; 

9 (C) has demonstrated understanding of the 

10 costs associated with exporting and doing busi11 ness with foreign purchasers, including the 

12 costs of freight forwarding, customs brokers, 

13 packing and shipping, as determined by the As14 sociate Administrator; 

15 (D) has in effect a strategic plan for ex16 porting; and 

17 (E) agrees to provide to the Associate Ad18 ministrator such information and documenta19 tion as is necessary for the Associate Adminis20 trator to determine that the small business con21 cern is in compliance with the internal revenue 

22 laws of the United States; 

23 (2) the term ‘‘program’’ means the State Trade 

24 and Export Promotion Grant Program established 

25 under subsection (b); 

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1 (3) the term ‘‘small business concern owned 

2 and controlled by women’’ has the meaning given 

3 that term in section 3 of the Small Business Act (15 

4 U.S.C. 632); 

5 (4) the term ‘‘socially and economically dis6 advantaged small business concern’’ has the mean7 ing given that term in section 8(a)(4)(A) of the 

8 Small Business Act (15 U.S.C. 6537(a)(4)(A)); and 

9 (5) the term ‘‘State’’ means each of the several 

10 States, the District of Columbia, the Commonwealth 

11 of Puerto Rico, the Virgin Islands, Guam, and 

12 American Samoa. 

13 (b) ESTABLISHMENT OF PROGRAM.—The Associate 

14 Administrator shall establish a 3-year trade and export 

15 promotion pilot program to be known as the State Trade 

16 and Export Promotion Grant Program, to make grants 

17 to States to carry out export programs that assist eligible 

18 small business concerns in— 

19 (1) participation in a foreign trade mission; 

20 (2) a foreign market sales trip; 

21 (3) a subscription to services provided by the 

22 Department of Commerce; 

23 (4) the payment of website translation fees; 

24 (5) the design of international marketing 

25 media; 

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1 (6) a trade show exhibition; 

2 (7) participation in training workshops; or 

3 (8) any other export initiative determined ap4 propriate by the Associate Administrator. 

5 (c) GRANTS.— 

6 (1) JOINT REVIEW.—In carrying out the pro7 gram, the Associate Administrator may make a 

8 grant to a State to increase the number of eligible 

9 small business concerns in the State that export or 

10 to increase the value of the exports by eligible small 

11 business concerns in the State. 

12 (2) CONSIDERATIONS.—In making grants 

13 under this section, the Associate Administrator may 

14 give priority to an application by a State that pro15 poses a program that— 

16 (A) focuses on eligible small business con17 cerns as part of an export promotion program; 

18 (B) demonstrates success in promoting ex19 ports by— 

20 (i) socially and economically disadvan21 taged small business concerns; 

22 (ii) small business concerns owned or 

23 controlled by women; and 

24 (iii) rural small business concerns; 

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1 (C) promotes exports from a State that is 

2 not 1 of the 10 States with the highest percent3 age of exporters that are small business con4 cerns, based upon the latest data available from 

5 the Department of Commerce; and 

6 (D) promotes new-to-market export oppor7 tunities to the People’s Republic of China for 

8 eligible small business concerns in the United 

9 States. 

10 (3) LIMITATIONS.— 

11 (A) SINGLE APPLICATION.—A State may 

12 not submit more than 1 application for a grant 

13 under the program in any 1 fiscal year. 

14 (B) PROPORTION OF AMOUNTS.—The total 

15 value of grants under the program made during 

16 a fiscal year to the 10 States with the highest 

17 percentage of exporters that are small business 

18 concerns, based upon the latest data available 

19 from the Department of Commerce, shall be not 

20 more than 50 percent of the amounts appro21 priated for the program for that fiscal year. 

22 (4) APPLICATION.—A State desiring a grant 

23 under the program shall submit an application at 

24 such time, in such manner, and accompanied by 

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1 such information as the Associate Administrator 

2 may establish. 

3 (d) COMPETITIVE BASIS.—The Associate Adminis4 trator shall award grants under the program on a competi5 tive basis. 

6 (e) FEDERAL SHARE.—The Federal share of the cost 

7 of an export program carried out using a grant under the 

8 program shall be— 

9 (1) for a State that has a high export volume, 

10 as determined by the Associate Administrator, not 

11 more than 65 percent; and 

12 (2) for a State that does not have a high export 

13 volume, as determined by the Associate Adminis14 trator, not more than 75 percent. 

15 (f) REPORTS.— 

16 (1) INITIAL REPORT.—Not later than 120 days 

17 after the date of enactment of this Act, the Asso18 ciate Administrator shall submit to the Committee 

19 on Small Business and Entrepreneurship of the Sen20 ate and the Committee on Small Business of the 

21 House of Representatives a report, which shall in22 clude— 

23 (A) a description of the structure of and 

24 procedures for the program; 

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1 (B) a management plan for the program; 

2 and 

3 (C) a description of the merit-based review 

4 process to be used in the program. 

5 (2) ANNUAL REPORTS.—The Associate Admin6 istrator shall submit an annual report to the Com7 mittee on Small Business and Entrepreneurship of 

8 the Senate and the Committee on Small Business of 

9 the House of Representatives regarding the pro10 gram, which shall include— 

11 (A) the number and amount of grants 

12 made under the program during the preceding 

13 year; 

14 (B) a list of the States receiving a grant 

15 under the program during the preceding year, 

16 including the activities being performed with 

17 grant; and 

18 (C) the effect of each grant on exports by 

19 eligible small business concerns in the State re20 ceiving the grant. 

21 (g) REVIEWS BY INSPECTOR GENERAL.— 

22 (1) IN GENERAL.—The Inspector General of 

23 the Administration shall conduct a review of— 

24 (A) the extent to which recipients of grants 

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1 ance of the activities being conducted and the 

2 results of the measurements; and 

3 (B) the overall management and effective4 ness of the program. 

5 (2) REPORT.—Not later than September 30, 

6 2012, the Inspector General of the Administration 

7 shall submit to the Committee on Small Business 

8 and Entrepreneurship of the Senate and the Com9 mittee on Small Business of the House of Rep10 resentatives a report regarding the review conducted 

11 under paragraph (1). 

12 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out the program 

14 $15,000,000 for each of fiscal years 2010, 2011, and 

15 2012. 

16 (i) TERMINATION.—The authority to carry out the 

17 program shall terminate 3 years after the date on which 

18 the Associate Administrator establishes the program. 

19 SEC. 8. RURAL EXPORT PROMOTION. 

20 Not later than 6 months after the date of enactment 

21 of this Act, the Administrator, in consultation with the 

22 Secretary of Agriculture and the Secretary of Commerce, 

23 shall submit to the Committee on Small Business and En24 trepreneurship of the Senate and the Committee on Small 

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1 Business of the House of Representatives a report that 

2 contains— 

3 (1) a description of each program of the Ad4 ministration that promotes exports by rural small 

5 business concerns, including— 

6 (A) the number of rural small business 

7 concerns served by the program; 

8 (B) the change, if any, in the number of 

9 rural small business concerns as a result of par10 ticipation in the program during the 10-year 

11 period ending on the date of enactment of this 

12 Act; 

13 (C) the volume of exports by rural small 

14 business concerns that participate in the pro15 gram; and 

16 (D) the change, if any, in the volume of 

17 exports by rural small businesses that partici18 pate in the program during the 10-year period 

19 ending on the date of enactment of this Act; 

20 (2) a description of the coordination between 

21 programs of the Administration and other Federal 

22 programs that promote exports by rural small busi23 ness concerns; 

24 (3) recommendations, if any, for improving the 

25 coordination described in paragraph (2); 

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1 (4) a description of any plan by the Administra2 tion to market the international trade financing pro3 grams of the Administration through lenders that— 

4 (A) serve rural small business concerns; 

5 and 

6 (B) are associated with financing programs 

7 of the Department of Agriculture; 

8 (5) recommendations, if any, for improving co9 ordination between the counseling programs and ex10 port financing programs of the Administration, in 

11 order to increase the volume of exports by rural 

12 small business concerns; and 

13 (6) any additional information the Adminis14 trator determines is necessary. 

15 SEC. 9. INTERNATIONAL TRADE COOPERATION BY SMALL 

16 BUSINESS DEVELOPMENT CENTERS. 

17 Section 21(a) of the Small Business Act (15 U.S.C. 

18 648(a)) is amended— 

19 (1) by striking ‘‘(2) The Small Business Devel20 opment Centers’’ and inserting the following: 

21 ‘‘(2) COOPERATION TO PROVIDE INTER22 NATIONAL TRADE SERVICES.— 

23 ‘‘(A) INFORMATION AND SERVICES.—The 

24 small business development centers’’; and 

25 (2) in paragraph (2)— 

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1 (A) in subparagraph (A), as so designated, 

2 by inserting ‘‘(including State trade agencies),’’ 

3 after ‘‘local agencies’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(B) COOPERATION WITH STATE TRADE

6 AGENCIES AND EXPORT ASSISTANCE CEN7 TERS.—A small business development center 

8 that counsels a small business concern on issues 

9 relating to international trade shall— 

10 ‘‘(i) consult with State trade agencies 

11 and Export Assistance Centers to provide 

12 appropriate services to the small business 

13 concern; and 

14 ‘‘(ii) as necessary, refer the small 

15 business concern to a State trade agency 

16 or an Export Assistance Center for further 

17 counseling or assistance. 

18 ‘‘(C) DEFINITION.—In this paragraph, the 

19 term ‘Export Assistance Center’ has the same 

20 meaning as in section 22.’’. 

21 SEC. 10. SMALL BUSINESS TRADE POLICY. 

22 (a) NOTIFICATION BY USTR.—Not later than 90 

23 days before the United States Trade Representative be24 gins a negotiation with regard to any trade agreement, 

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1 the United States Trade Representative shall notify the 

2 Administrator of the date the negotiation will begin. 

3 (b) RECOMMENDATIONS.—Not later than 30 days be4 fore the United States Trade Representative begins a ne5 gotiation with regard to any trade agreement, the Admin6 istrator shall present to the United States Trade Rep7 resentative recommendations relating to the needs and 

8 concerns of small business concerns that are exporters. 

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Calendar No. 633 

111TH CONGRESS 

2D SESSION S. 2862 

[Report No. 111–341] 

A BILL 

To amend the Small Business Act to improve the 

poses. Office of International Trade, and for other purSEPTEMBER 29, 2010 

Reported without amendment 

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