Summary
# STEP Improvement Act of 2023: Plain English Summary
## WHAT THIS BILL DOES
This bill updates rules for the State Trade Expansion Program, a Small Business Administration program that helps states support small businesses selling products internationally. The bill changes how states apply for grants, requires better tracking of program results and sets new timelines for the application process.
## WHO IT AFFECTS
- States that run the State Trade Expansion Program
- Small business owners looking to export products
- The Small Business Administration (the federal agency that manages the program)
- Congress (who will receive reports on the program)
## KEY PROVISIONS
- States applying for grants must now include a budget plan showing how they will use the money, and the Small Business Administration must publish application information by March 31 each year with a deadline between 60 and 151 days later (Sec. 2(a))
- States can change their approved budget plans after receiving grant money if the changes follow allowed uses, but any change moving 10 percent or more of money requires approval from the Small Business Administration within 20 days or the change goes into effect automatically (Sec. 2(a))
- The Small Business Administration must conduct yearly surveys of states that received grants to gather feedback and find best practices (Sec. 2(b))
- The Small Business Administration must collect and report specific data annually including how many small businesses were helped, how much those businesses exported, and how many accessed new markets or created jobs because of the program (Sec. 2(c))
- The Small Business Administration must clearly tell unsuccessful applicants how to improve future applications and tell successful applicants why their grant amount differs from what they requested (Sec. 2(a))
## WHAT CHANGES
If this law passes, states will have clearer deadlines and instructions for applying for State Trade Expansion Program grants. The Small Business Administration will need to publish application materials by March 31 each year with a structured timeline for decisions. States will gain flexibility to adjust their spending plans after receiving money without getting advance permission, as long as changes do not move 10 percent or more of funds. The program will be funded through fiscal year 2028 instead of ending in 2020. The Small Business Administration will gather much more detailed information about program results, including numbers broken down by business type (small businesses owned by women, socially and economically disadvantaged businesses, rural businesses).
## IMPORTANT DEFINITIONS
The bill does not explicitly define key terms. It refers to "socially and economically disadvantaged small business concerns" and "small business concerns owned and controlled by women" but provides no definitions for these terms.
## EFFECTIVE DATE
Not specified in bill text.
II
118TH CONGRESS
1ST SESSION
S. 77
To reauthorize the State Trade Expansion Program of the Small Business
Administration, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY 25, 2023
Mrs. SHAHEEN introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
A BILL
To reauthorize the State Trade Expansion Program of the
Small Business Administration, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘STEP Improvement
4
Act of 2023’’.
5
SEC. 2. STATE TRADE EXPANSION PROGRAM.
6
(a) APPLICATION REQUIREMENTS.—Section 22(l)(3)
7
of the Small Business Act (15 U.S.C. 649(l)(3)) is amend-
8
ed—
9
(1) in subparagraph (D)—
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(A) in clause (i), by inserting ‘‘, including
1
a budget plan for use of funds awarded under
2
this subsection’’ before the period at the end;
3
and
4
(B) by adding at the end the following:
5
‘‘(iii) TIMING.—The Associate Admin-
6
istrator shall—
7
‘‘(I) publish information on how
8
to apply for a grant under this sub-
9
section, including specific calculations
10
and other determinations used to
11
award such a grant, not later than
12
March 31 of each year;
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‘‘(II) establish a deadline for the
14
submission of applications that is not
15
earlier than 60 days after the date on
16
which the information is published
17
under subclause (I) and that is not
18
later than May 31; and
19
‘‘(III) announce grant recipients
20
not later than August 31 of each
21
year.’’; and
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(2) by adding at the end the following:
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‘‘(E) APPLICATION
INFORMATION.—The
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Associate Administrator shall clearly commu-
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nicate to applicants and grant recipients any in-
1
formation about the State Trade Expansion
2
Program, including—
3
‘‘(i) for each unsuccessful applicant
4
for a grant awarded under this subsection,
5
recommendations to improve a subsequent
6
application for such a grant; and
7
‘‘(ii) for each successful applicant for
8
such a grant, an explanation for the
9
amount awarded, if different from the
10
amount requested in the application.
11
‘‘(F) BUDGET PLAN REVISIONS.—
12
‘‘(i) IN GENERAL.—A State receiving
13
a grant under this subsection may revise
14
the budget plan of the State submitted
15
under subparagraph (D) after the dis-
16
bursal of grant funds if—
17
‘‘(I) the revision complies with al-
18
lowable uses of grant funds under this
19
subsection; and
20
‘‘(II) such State submits notifica-
21
tion of the revision to the Associate
22
Administrator.
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‘‘(ii) EXCEPTION.—If a revision under
24
clause (i) reallocates 10 percent or more of
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the amounts described in the budget plan
1
of the State submitted under subparagraph
2
(D), the State may not implement the re-
3
vised budget plan without the approval of
4
the Associate Administrator, unless the As-
5
sociate Administrator fails to approve or
6
deny the revised plan within 20 days after
7
receipt of such revised plan.’’.
8
(b) SURVEY.—Section 22(l) of the Small Business
9
Act (15 U.S.C. 649(l)) is amended—
10
(1) by redesignating paragraphs (7) through
11
(9) as paragraphs (8) through (10), respectively;
12
and
13
(2) by inserting after paragraph (6) the fol-
14
lowing:
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‘‘(7) SURVEY.—The Associate Administrator
16
shall conduct an annual survey of each State that
17
received a grant under this subsection during the
18
preceding year to solicit feedback on the program
19
and develop best practices for grantees.’’.
20
(c) ANNUAL REPORT.—Paragraph (8)(B) of section
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22(l) of the Small Business Act (15 U.S.C. 649(l)), as
22
so redesignated by subsection (b), is amended—
23
(1) in clause (i)—
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(A) in subclause (III), by inserting ‘‘, in-
1
cluding the total number of eligible small busi-
2
ness
concerns
assisted
by
the
program
3
(disaggregated by socially and economically dis-
4
advantaged small business concerns, small busi-
5
ness concerns owned and controlled by women,
6
and rural small business concerns)’’ before the
7
semicolon at the end;
8
(B) in subclause (IV), by striking ‘‘and’’ at
9
the end;
10
(C) in subclause (V)—
11
(i) by striking ‘‘description of best
12
practices’’ and inserting ‘‘detailed descrip-
13
tion of best practices’’; and
14
(ii) by striking the period at the end
15
and inserting a semicolon; and
16
(D) by adding at the end the following:
17
‘‘(VI) an analysis of the perform-
18
ance metrics described in clause (iii),
19
including a determination of whether
20
or not any goals relating to such per-
21
formance metrics were met, and an
22
analysis of the survey described in
23
paragraph (7); and
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‘‘(VII) a description of lessons
1
learned by grant recipients under this
2
subsection that may apply to other as-
3
sistance provided by the Administra-
4
tion.’’; and
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(2) by adding at the end the following:
6
‘‘(iii) PERFORMANCE
METRICS.—An-
7
nually, the Associate Administrator shall
8
collect data on eligible small business con-
9
cerns assisted by the program for the fol-
10
lowing performance metrics:
11
‘‘(I) Total number of such con-
12
cerns, disaggregated by socially and
13
economically
disadvantaged
small
14
business concerns, small business con-
15
cerns owned and controlled by women,
16
and rural small business concerns.
17
‘‘(II) Total dollar amount of ex-
18
port sales by eligible small business
19
concerns assisted by the program.
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‘‘(III) Number of such concerns
21
that have not previously participated
22
in an activity described in paragraph
23
(2).
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‘‘(IV) Number of such concerns
1
that, because of participation in the
2
program, have accessed a new market.
3
‘‘(V) Number of such concerns
4
that, because of participation in the
5
program, have created new jobs.
6
‘‘(VI) Number of such concerns
7
participating in foreign trade missions
8
or
trade
show
exhibitions,
9
disaggregated by socially and eco-
10
nomically disadvantaged small busi-
11
ness concerns, small business concerns
12
owned and controlled by women, and
13
rural small business concerns.’’.
14
(d) EXPANSION OF DEFINITION OF ELIGIBLE SMALL
15
BUSINESS CONCERN.—Section 22(l)(1)(A) of the Small
16
Business Act (15 U.S.C. 649(l)(1)(A)) is amended—
17
(1) in clause (iii)(II), by adding ‘‘and’’ at the
18
end;
19
(2) by striking clause (iv); and
20
(3) by redesignating clause (v) as clause (iv).
21
(e) AUTHORIZATION
OF APPROPRIATIONS.—Para-
22
graph (10) of section 22(l) of the Small Business Act (15
23
U.S.C. 649(l)), as so redesignated by subsection (b), is
24
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amended by striking ‘‘fiscal years 2016 through 2020’’
1
and inserting ‘‘fiscal years 2024 through 2028’’.
2
(f) REPORT TO CONGRESS.—Not later than 1 year
3
after the date of enactment of this Act, the Associate Ad-
4
ministrator for International Trade of the Small Business
5
Administration shall submit to Congress a report on the
6
State Trade Expansion Program established under section
7
22(l) of the Small Business Act (15 U.S.C. 649(l)), as
8
amended by this section, that includes a description of—
9
(1) the process developed for review of revised
10
budget plans submitted under subparagraph (F) of
11
section 22(l)(3) of the Small Business Act (15
12
U.S.C. 649(l)(3)), as added by this Act;
13
(2) any changes made to streamline the applica-
14
tion process to remove duplicative requirements and
15
create a more transparent process;
16
(3) the process developed to share best prac-
17
tices by States described in paragraph (8)(B)(i)(V)
18
of section 22(l) of the Small Business Act (15
19
U.S.C. 649(l)), as so redesignated by this Act, par-
20
ticularly for first-time grant recipients under the
21
State Trade Expansion Program or grant recipients
22
that are facing problems using grant funds; and
23
(4) the process developed to communicate, both
24
verbally and in writing, relevant information about
25
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the State Trade Expansion Program to all grant re-
1
cipients in a timely manner.
2
Æ
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