STEP UP for American Small Businesses Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Trade and Export Promotion 
Utilization Program for American Small Businesses Act'' or the ``STEP 
UP for American Small Businesses Act''.

SEC. 2. STATE TRADE AND EXPORT PROMOTION.

    (a) In General.--Section 22 of the Small Business Act (15 U.S.C. 
652) is amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) State Trade and Export Promotion Grant Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `eligible small business concern' 
                means a business concern that--
                            ``(i) is organized or incorporated in the 
                        United States;
                            ``(ii) is operating in the United States;
                            ``(iii) meets--
                                    ``(I) the applicable industry-based 
                                small business size standard 
                                established under section 3; or
                                    ``(II) the alternate size standard 
                                applicable to the program under section 
                                7(a) of this Act and the loan programs 
                                under title V of the Small Business 
                                Investment Act of 1958 (15 U.S.C. 695 
                                et seq.);
                            ``(iv) has been in business for not less 
                        than 1 year, as of the date on which assistance 
                        using a grant under this subsection commences;
                            ``(v) is export ready, as determined by the 
                        Associate Administrator; and
                            ``(vi) has access to sufficient resources 
                        to bear the costs associated with exporting and 
                        doing business with foreign purchasers, 
                        including the costs of packing, shipping, 
                        freight forwarding, and customs brokers;
                    ``(B) the term `program' means the State Trade and 
                Export Promotion Grant Program established under 
                paragraph (2);
                    ``(C) the term `rural small business concern' means 
                an eligible small business concern located in a rural 
                area, as that term is defined in section 1393(a)(2) of 
                the Internal Revenue Code of 1986;
                    ``(D) the term `socially and economically 
                disadvantaged small business concern' has the meaning 
                given that term in section 8(a)(4)(A) of the Small 
                Business Act (15 U.S.C. 637(a)(4)(A)); and
                    ``(E) the term `State' means each of the several 
                States, the District of Columbia, the Commonwealth of 
                Puerto Rico, the Virgin Islands, Guam, the Commonwealth 
                of the Northern Mariana Islands, and American Samoa.
            ``(2) Establishment of program.--The Associate 
        Administrator shall establish a trade and export promotion 
        grant program, to be known as the `State Trade and Export 
        Promotion Grant Program', to make grants to States to carry out 
        export programs that assist eligible small business concerns 
        in--
                    ``(A) participation in a foreign trade mission;
                    ``(B) a foreign market sales trip;
                    ``(C) a subscription to services provided by the 
                Department of Commerce;
                    ``(D) the payment of website translation fees;
                    ``(E) the design of international marketing media;
                    ``(F) a trade show exhibition;
                    ``(G) participation in training workshops;
                    ``(H) a reverse trade mission;
                    ``(I) procurement of foreign consultancy services 
                (after consultation with the Department of Commerce to 
                avoid duplication); or
                    ``(J) any other export initiative determined 
                appropriate by the Associate Administrator.
            ``(3) Grants.--
                    ``(A) Joint review.--In carrying out the program, 
                the Associate Administrator may make a grant to a State 
                to increase the number of eligible small business 
                concerns in the State that export and to increase the 
                value of the exports by eligible small business 
                concerns in the State.
                    ``(B) Considerations.--In making grants under this 
                subsection, the Associate Administrator may give 
                priority to an application by a State that proposes an 
                export program that--
                            ``(i) focuses on eligible small business 
                        concerns as part of an export promotion 
                        program;
                            ``(ii) demonstrates intent to promote 
                        exports by--
                                    ``(I) socially and economically 
                                disadvantaged small business concerns;
                                    ``(II) small business concerns 
                                owned or controlled by women; and
                                    ``(III) rural small business 
                                concerns;
                            ``(iii) promotes exports from a State that 
                        is not 1 of the 10 States with the highest 
                        percentage of exporters that are eligible small 
                        business concerns, based upon the most recent 
                        data available from the Department of Commerce; 
                        and
                            ``(iv) includes--
                                    ``(I) activities which have 
                                resulted in the highest return on 
                                investment based on the most recent 
                                year; and
                                    ``(II) the adoption of shared best 
                                practices included in the annual report 
                                of the Administration.
                    ``(C) Limitations.--
                            ``(i) Single application.--A State may not 
                        submit more than 1 application for a grant 
                        under the program in any 1 fiscal year.
                            ``(ii) Proportion of amounts.--The total 
                        value of grants made under the program during a 
                        fiscal year to the 10 States with the highest 
                        percentage of exporters that are eligible small 
                        business concerns, based upon the most recent 
                        data available from the Department of Commerce, 
                        shall be not more than 40 percent of the 
                        amounts appropriated for the program for that 
                        fiscal year.
                            ``(iii) Duration.--The Associate 
                        Administrator shall award a grant under this 
                        program for a period of not more than 2 years.
                    ``(D) Application.--
                            ``(i) In general.--A State desiring a grant 
                        under the program shall submit an application 
                        at such time, in such manner, and accompanied 
                        by such information as the Associate 
                        Administrator may establish.
                            ``(ii) Consultation to reduce 
                        duplication.--A State desiring a grant under 
                        the program shall--
                                    ``(I) before submitting an 
                                application under clause (i), consult 
                                with applicable trade agencies of the 
                                Federal Government on the scope and 
                                mission of the activities the State 
                                proposes to carry out using the grant, 
                                to ensure proper coordination and 
                                reduce duplication in services; and
                                    ``(II) document the consultation 
                                conducted under subclause (I) in the 
                                application submitted under clause (i).
            ``(4) Competitive basis.--The Associate Administrator shall 
        award grants under the program on a competitive basis.
            ``(5) Federal share.--The Federal share of the cost of an 
        export program carried out using a grant under the program 
        shall be--
                    ``(A) for a State that has a high export volume, as 
                determined by the Associate Administrator, not more 
                than 65 percent; and
                    ``(B) for a State that does not have a high export 
                volume, as determined by the Associate Administrator, 
                not more than 75 percent.
            ``(6) Non-federal share.--The non-Federal share of the cost 
        of an export program carried out using a grant under the 
        program shall be comprised of not less than 50 percent cash and 
        not more than 50 percent of indirect costs and in-kind 
        contributions, except that no such costs or contributions may 
        be derived from funds from any other Federal program.
            ``(7) Reports.--
                    ``(A) Initial report.--Not later than 120 days 
                after the date of enactment of this Act, 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, which shall include--
                            ``(i) a description of the structure of and 
                        procedures for the program;
                            ``(ii) a management plan for the program; 
                        and
                            ``(iii) a description of the merit-based 
                        review process to be used in the program.
                    ``(B) Annual reports.--
                            ``(i) In general.--The Associate 
                        Administrator shall publish on the website of 
                        the Administration an annual report regarding 
                        the program, which shall include--
                                    ``(I) the number and amount of 
                                grants made under the program during 
                                the preceding year;
                                    ``(II) a list of the States 
                                receiving a grant under the program 
                                during the preceding year, including 
                                the activities being performed with 
                                each grant;
                                    ``(III) the effect of each grant on 
                                exports by eligible small business 
                                concerns in the State receiving the 
                                grant;
                                    ``(IV) the total return on 
                                investment for each State; and
                                    ``(V) a description of best 
                                practices by States that showed high 
                                returns on investment and significant 
                                progress in helping more eligible small 
                                business concerns to export.
                            ``(ii) Notice to congress.--On the date on 
                        which the Associate Administrator publishes a 
                        report under clause (i), the Associate 
                        Administrator shall notify the Committee on 
                        Small Business and Entrepreneurship of the 
                        Senate and the Committee on Small Business of 
                        the House of Representatives that the report 
                        has been published.
            ``(8) Reviews by inspector general.--
                    ``(A) In general.--The Inspector General of the 
                Administration shall conduct a review of--
                            ``(i) the extent to which recipients of 
                        grants under the program are measuring the 
                        performance of the activities being conducted 
                        and the results of the measurements; and
                            ``(ii) the overall management and 
                        effectiveness of the program.
                    ``(B) Reports.--
                            ``(i) Pilot program.--Not later than 6 
                        months after the date of enactment of the STEP 
                        UP for American Small Businesses Act, the 
                        Inspector General of the Administration 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 regarding the use of 
                        amounts made available under the State Trade 
                        and Export Promotion Grant Program under 
                        section 1207 of the Small Business Jobs Act of 
                        2010 (15 U.S.C. 649b note).
                            ``(ii) New step program.--Not later than 18 
                        months after the date on which the first grant 
                        is awarded under this subsection, the Inspector 
                        General of the Administration 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 regarding the review 
                        conducted under subparagraph (A).
            ``(9) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out the program $30,000,000 for 
        each of fiscal years 2016 through 2020.''.
    (b) Membership of Representatives of State Trade Promotion Agencies 
on Trade Promotion Coordinating Committee.--Section 2312 of the Export 
Enhancement Act of 1988 (15 U.S.C. 4727) is amended--
            (1) in subsection (d)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Representatives from state trade promotion 
        agencies.--
                    ``(A) In general.--The TPCC shall also include 1 or 
                more members appointed by the President, after 
                consultation with associations representing State trade 
                promotion agencies, who are representatives of State 
                trade promotion agencies.
                    ``(B) Term.--A member appointed under subparagraph 
                (A) shall be appointed for a term of 2 years.
                    ``(C) Personnel matters.--
                            ``(i) No compensation.--A member of the 
                        TPCC appointed under subparagraph (A) shall 
                        serve without compensation.
                            ``(ii) Travel expenses.--A member of the 
                        TPCC appointed under subparagraph (A) shall be 
                        allowed travel expenses, including per diem in 
                        lieu of subsistence, at rates authorized for 
                        employees of agencies under subchapter I of 
                        chapter 57 of title 5, United States Code, 
                        while away from the homes or regular place of 
                        business of the member in the performance of 
                        services for the TPCC.
                            ``(iii) Administrative assistance.--The 
                        Secretary of Commerce, or the head of another 
                        agency, as appropriate, shall make available to 
                        a member of the TPCC appointed under 
                        subparagraph (A) administrative services and 
                        assistance, including a security clearance, as 
                        the member may reasonably require to carry out 
                        services for the TPCC.''; and
            (2) in subsection (e), in the first sentence, by inserting 
        ``(other than members described in subsection (d)(2))'' after 
        ``Members of the TPCC''.

Summary: State Trade and Export Promotion Utilization Program for American Small Businesses Act or the STEP UP for American Small Businesses Act  Amends the Small Business Act to direct the Associate Administrator for International Trade within the Small Business Administration to establish a State Trade and Export Promotion Grant Program. Authorizes the Associate Administrator to make competitive grants to states to carry out export promotion programs to increase: (1) the number of eligible small businesses that export (including rural small businesses and small businesses owned and controlled by women and socially and economically disadvantaged individuals), as well as (2) the value of their exports. Amends the Export Enhancement Act of 1988 to require the Trade Promotion Coordinating Committee to include one or more members appointed by the President who are representatives of state trade promotion agencies.