,,ii #aaith ,,congress #b;d ,session ,s4 #efcc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #cj1 #bjbf,mrs4 ,shaheen introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to amend the ,small ,business ,act to reauthorize the ,state ,trade ,expansion ,program of the ,small ,business ,administration1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,step ,improvement ,act of #bjbf4 #b4 ,state ,trade ,expansion ,program 7a7 ,application requirements ,section #bb7l77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77#c77 is amended-- 7#a7 in subparagraph 7,d7-- 7,a7 in clause 7i71 by inserting 1 including a budget plan for use of funds awarded under this subsection before the period at the end2 and 7,b7 by adding at the end the following3 7iii7 ,timing ,the ,associate ,administrator shall-- 7,i7 publish information on how to apply for a grant under this subsection1 including specific calculations and other determinations used to award such a grant1 not later than ,march #ca of each year2 7,,ii7 establish a deadline for the submission of applications that is-- 7aa7 not earlier than #fj days after the date on which the information is published under subclause 7,i72 and 7bb7 not later than-- 7,,aa7 ,may #ca of each year2 or 7,,bb7 in the event that full-year appropriations for the program for a fiscal year have not been enacted as of ,february #a of such fiscal year1 #abj days after full-year appropriations are enacted2 and 7,,iii7 announce grant recipients not later than-- 7aa7 ,september #cj of each year2 or 7bb7 in the event that full-year appropriations for the program for a fiscal year have not been enacted as of ,february #a of such fiscal year1 #baj days after full-year appropriations are enacted4 7iv7 ,application streamlining ,the ,associate ,administrator shall establish a concise application for grants under the program that shall-- 7,i7 encompass all necessary information2 and 7,,ii7 to the extent feasible1 use forms common to other ,federal trade programs and reduce unnecessary or duplicative materials4 2 and 7#b7 by adding at the end the following3 7,e7 ,application information ,the ,associate ,administrator shall clearly communicate to applicants and grant recipients any information about the ,state ,trade ,expansion ,program1 including-- 7i7 for each unsuccessful applicant for a grant awarded under this subsection1 recommendations to improve a subsequent application for such a grant2 7ii7 for each successful applicant for such a grant1 an explanation for the amount awarded1 if significantly different from the amount requested in the application2 and 7iii7 a website1 which shall be maintained and linked to from the primary website for the program1 that includes the most up-to-date information about program requirements1 eligible expenditures1 and procedures1 including any changes to such information due to decisions by staff or program managers of the ,administration4 7,f7 ,budget plan revisions 7i7 ,in general ,a ,state receiving a grant under this subsection may revise the budget plan of the ,state submitted under subparagraph 7,d7 after the disbursal of grant funds if-- 7,i7 the revision complies with allowable uses of grant funds under this subsection2 and 7,,ii7 such ,state submits notification of the revision to the ,associate ,administrator4 7ii7 ,exception ,if a revision under clause 7i7 reallocates #aj percent or more of the amounts described in the budget plan of the ,state submitted under subparagraph 7,d71 the ,state may not implement the revised budget plan without the approval of the ,associate ,administrator1 unless the ,associate ,administrator fails to approve or deny the revised plan within #cj calendar days after receipt of such revised plan4 4 7b7 ,cap on reductions in grants ,section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77 is amended by striking paragraph 7#d7 and inserting the following3 7#d7 ,limitations 7,a7 ,definitions ,in this paragraph-- 7i7 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 ,state1 territory1 or commonwealth under the program2 and 7ii7 the term prior fiscal year means the most recent fiscal year before the current fiscal year for which a ,state1 territory1 or commonwealth received a grant under the program4 7,b7 ,general limitation on reductions in grants ,subject to subparagraphs 7,c7 and 7,d71 the ,administrator may not award a grant to a ,state1 territory1 or commonwealth under the program for the current fiscal year in an amount that is less than #hj percent of the amount received by the ,state1 territory1 or commonwealth under a grant under the program for the prior fiscal year4 7,c7 ,potential additional adjustments 7i7 ,exception for reduction in appropriations ,subject to subparagraph 7,d71 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 year1 for purposes of applying subparagraph 7,b71 the ,administrator shall substitute for the amount received by the ,state1 territory1 or commonwealth under a grant under the program for the prior fiscal year the product obtained by multiplying-- 7,i7 subject to clause 7ii7 of this subparagraph1 the amount received by the ,state1 territory1 or commonwealth under a grant under the program for the prior fiscal year2 by 7,,ii7 the ratio of the appropriation for the current fiscal year to the appropriation for the prior fiscal year4 7ii7 ,exception for grantees that use less than #hj percent of the amount of a grant ,subject to subparagraph 7,d71 if a ,state1 territory1 or commonwealth expends less than #hj 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 7#c77;,c77iii77,i71 for purposes of applying subparagraph 7,b7 of this paragraph1 if appropriations are not reduced1 or applying clause 7i7 of this subparagraph1 if appropriations are reduced1 the ,administrator shall substitute for the amount received by the ,state1 territory1 or commonwealth under a grant under the program for the prior fiscal year the difference obtained by subtracting-- 7,i7 the amount equal to #ej percent of the amount remaining available under the grant under the program to the ,state1 territory1 or commonwealth for the prior fiscal year1 as of the last day of such period2 from 7,,ii7 the amount of the grant under the program to the ,state1 territory1 or commonwealth for the prior fiscal year4 7iii7 ,exception for increase in grantees resulting in insufficient funding ,if the number of ,states1 territories1 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 7including any reductions under clause 7i7 or 7ii7 of this subparagraph1 if applicable7 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 grants4 7,d7 ,violations ,the amount of a grant to a ,state1 territory1 or commonwealth may be less than the minimum amount determined under subparagraph 7,b7 7including any substitution of amounts under clauses 7i7 and 7ii7 of subparagraph 7,c71 as applicable71 if the ,state1 territory1 or commonwealth has been found to have committed a significant violation of the rules or policies of the program4 4 7c7 ,survey ,section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77 is amended-- 7#a7 by redesignating 7#g7 through 7#i7 as paragraphs 7#i7 through 7#aa71 respectively2 7#b7 by redesignating paragraphs 7#e7 and 7#f7 as paragraphs 7#f7 and 7#g71 respectively2 and 7#c7 by inserting after paragraph 7#g7 the following3 7#h7 ,survey ,the ,associate ,administrator shall conduct an annual survey of each ,state that received a grant under this subsection during the preceding year to solicit feedback on the program and develop best practices for grantees4 4 7d7 ,funding formula ,section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77 is amended by inserting after paragraph 7#d71 as amended by subsection 7b7 of this section1 the following3 7#e7 ,funding formula 7,a7 ,minimum allocation ,subject to paragraph 7#d71 and except as provided otherwise in this paragraph1 the minimum amount of a grant under the program for a fiscal year-- 7i7 for a territory or commonwealth1 shall be the amount equal to #j4e percent of the total amount appropriated for the program for the fiscal year2 and 7ii7 for a ,state1 shall be the amount equal to #j4ge percent of the total amount appropriated for the program for the fiscal year4 7,b7 ,additional funds 7i7 ,in general ,subject to clause 7ii71 amounts remaining for grants under the program for a fiscal year after the minimum allocation under subparagraph 7,a7 shall be allocated among ,states receiving a grant under the program in accordance with the following metrics3 7,i7 #bj percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle for which complete reporting data is available1 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 ,state4 7,,ii7 #bj percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle for which complete reporting data is available1 of the total number of activities described in paragraph 7#b7 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 ,state4 7,,iii7 #ae percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle for which complete reporting data is available1 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 ,state4 7,,iv7 #ae percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle for which complete reporting data is available1 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 ,state4 7,v7 #ae percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle for which complete reporting data is available1 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 ,state4 7,,vi7 #ae percent of amounts remaining shall be proportionally allocated based on the ratio1 for the most recently completed grant cycle1 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 #a or more of the following criteria3 7aa7 ,located in a low-income or moderate-income area4 7bb7 ,located in a rural area4 7cc7 ,located in an ,h,u,b,zone1 as that term is defined in section #ca7;b74 7dd7 ,located in a community that has been designated as an empowerment zone or enterprise community under section #acia of the ,internal ,revenue ,code of #aihf4 7ee7 ,located in a community that has been designated as a promise zone by the ,secretary of ,housing and ,urban ,development4 7ff7 ,located in a community that has been designated as a qualified opportunity zone under section #adjj,z-#a of the ,internal ,revenue ,code of #aihf4 7gg7 ,being owned by women4 7ii7 ,limitation ,in allocating funds under each of subclauses 7,i7 through 7,,vi7 of clause 7i71 the amount of funds allocated under such subclause to the ,state with the highest ratio for a metric may not be more than #aj times the amount of funds allocated under such subclause to the ,state with the lowest ratio that is greater than zero for that metric4 7,c7 ,limit on reduction below grant before enactment ,in addition to the limitations under paragraph 7#d71 and except to the extent a ,state elects to return funds under subparagraph 7,e71 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 #bjbd for which the ,state received such a grant4 7,d7 ,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 7,a71 7,b71 and 7,c7 if the ,state has committed to provide the necessary cash1 indirect costs1 and in-kind contributions for the non-,federal share of the cost of the trade expansion program of the ,state1 as required under paragraph 7#g74 7,e7 ,return of grants ,not later than #ae 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 year1 the ,state may decline or return to the ,associate ,administrator1 in whole or in part1 such amounts4 7,f7 ,distribution of returned and remaining amounts 7i7 ,remaining amounts ,in this subparagraph1 the term remaining amounts means-- 7,i7 amounts declined or returned under subparagraph 7,e7 for a fiscal year2 or 7,,ii7 amounts remaining for grants under the program for a fiscal year after allocating funds in accordance with subparagraphs 7,a71 7,b71 and 7,c7 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 ,states4 7ii7 ,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 amounts1 in an amount that is proportional to the allocations under subparagraphs 7,a71 7,b71 and 7,c74 7,g7 ,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 ,state1 except to the extent that such use is not an eligible use of funds for a grant under the program4 7,h7 ,rounding ,the total amount of a grant to a ,state1 territory1 or commonwealth under the program1 as determined under this paragraph1 shall be rounded to the nearest increment of #a1jjj4 7,i7 ,application 7i7 ,in general ,the ,associate ,administrator shall award grants under this subsection based on the formula described in this paragraph1 and without regard to paragraph 7#c77;,b7-- 7,i7 for the second consecutive fiscal year for which the amount made available for the program is not less than #cj1jjj1jjj2 and 7,,ii7 for each fiscal year after the fiscal year described in subclause 7,i7 for which the amount made available for the program is not less than #cj1jjj1jjj4 7ii7 ,award when not based on formula ,for any fiscal year for which grants are not awarded based on the formula described in this paragraph1 the ,associate ,administrator shall award grants under this subsection on a competitive basis1 taking into account the considerations described in paragraph 7#c77;,b74 7,j7 ,transition plan 7i7 ,initial plan 7,i7 ,in general ,if the amount made available for the program for a fiscal year is not less than #cj1jjj1jjj1 the ,associate ,administrator shall develop a transition plan describing how the ,administration intends to begin awarding grants based on the formula described in this paragraph1 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 #cj1jjj1jjj4 7,,ii7 ,one-time requirement ,subclause 7,i7 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 paragraph4 7,,iii7 ,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 7,i71 without regard to whether the ,associate ,administrator develops the transition plan required under subclause 7,i7 of this clause4 7ii7 ,updates ,if1 for any fiscal year after the first fiscal year for which the ,associate ,administrator awards grants based on the formula described in this paragraph1 the amount made available for the program for the fiscal year is less than #cj1jjj1jjj1 the ,associate ,administrator shall update the plan to award grants based on the formula described in this paragraph1 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 #cj1jjj1jjj4 7,k7 ,reporting ,not later than #ahj 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 paragraph1 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 formula1 which shall include for the applicable fiscal year-- 7i7 the number of ,states that applied for a grant under the program2 7ii7 the number of ,states that received a grant under the program2 7iii7 the raw data for each factor used to calculate award amounts in accordance with subparagraph 7,b71 broken out by ,state2 7iv7 the utilization rates of each grantee1 broken out by grantee2 7v7 the amount carried over by a grantee under paragraph 7#c77;,c77iii77,,ii77aa71 broken out by grantee2 7vi7 the amount returned to ,treasury due to a failure to use the amounts under paragraph 7#c77;,c77iii77,,ii77cc71 broken out by grantee2 and 7vii7 the amount returned to the ,associate ,administrator during the period described in subparagraph 7,e74 4 7e7 ,reports ,paragraph 7#i7 of section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l771 as so redesignated by subsection 7c71 is amended-- 7#a7 in subparagraph 7,b7-- 7,a7 in clause 7i7-- 7i7 in subclause 7,i71 by inserting 1 as well as the timing of applications and award announcements before the semicolon at the end2 7ii7 in subclause 7,,iii71 by inserting 1 including the total number of eligible small business concerns assisted by the program 7disaggregated by economically distressed small business concerns1 small business concerns owned and controlled by women1 and rural small business concerns7 before the semicolon at the end2 7iii7 in subclause 7,,iv71 by striking and at the end2 7iv7 in subclause 7,v7-- 7,i7 by striking description of best practices and inserting detailed description of best practices2 and 7,,ii7 by striking the period at the end and inserting a semicolon2 and 7v7 by adding at the end the following3 7,,vi7 an analysis of the performance metrics described in clause 7iii71 including a determination of whether or not any goals relating to such performance metrics were met1 and an analysis of the survey described in paragraph 7#h72 and 7,,vii7 a description of lessons learned by grant recipients under this subsection that may apply to other assistance provided by the ,administration4 2 and 7,b7 by adding at the end the following3 7iii7 ,performance metrics ,annually1 the ,associate ,administrator shall collect data on eligible small business concerns assisted by the program for the following performance metrics3 7,i7 ,total number of such concerns1 disaggregated by economically distressed small business concerns1 small business concerns owned and controlled by women1 and rural small business concerns4 7,,ii7 ,total dollar amount of export sales by eligible small business concerns assisted by the program4 7,,iii7 ,number of such concerns that have not previously participated in an activity described in paragraph 7#b74 7,,iv7 ,number of such concerns that1 because of participation in the program1 have accessed a new market4 7,v7 ,number of such concerns that1 because of participation in the program1 have created new jobs4 7,,vi7 ,number of such concerns participating in foreign trade missions or trade show exhibitions1 disaggregated by economically distressed small business concerns1 small business concerns owned and controlled by women1 and rural small business concerns4 2 and 7#b7 by adding at the end the following3 7,c7 ,reporting by recipients2 processing of reimbursements 7i7 ,in general ,the ,associate ,administrator shall-- 7,i7 establish for recipients of grants under the program a reporting process1 template1 or spreadsheet format to report information regarding the program that minimizes manual data entry1 including performance data1 for participating grant recipients and reduces duplicative or unnecessary reporting requirements1 except as needed to report congressionally required key performance indicators1 make funding decisions1 or conduct necessary oversight of the program2 and 7,,ii7 to the maximum extent feasible1 and working in conjunction with the ,chief ,technology ,officer or any successor official within the ,administration1 accommodate the uploading of the data1 templates1 or spreadsheets generated by customer relationship management or spreadsheet software4 7ii7 ,processing of reimbursement requests ,the ,associate ,administrator shall-- 7,i7 process information submitted by a ,state1 territory1 or commonwealth for purposes of obtaining reimbursement for eligible activities in a timely manner2 7,,ii7 notify a ,state1 territory1 or commonwealth if such information is not processed on or before the date that is #ba days after the date such information is submitted2 and 7,,iii7 provide an estimated completion timeline with any notification under subclause 7,,ii74 7,d7 ,monthly obligations ,not later than #cj days after the date of enactment of this subparagraph1 and every month thereafter1 the ,administration shall submit to the ,committee on ,small ,business and ,entrepreneurship and the ,committee on ,appropriations of the ,senate and the ,committee on ,small ,business and the ,committee on ,appropriations of the ,house of ,representatives a monthly obligations report that includes information on obligations of funding under the program1 which shall include-- 7i7 the ,treasury ,account ,symbols2 7ii7 the period of availability2 7iii7 the unobligated balance for the program at the beginning of the month2 7iv7 monthly realized recoveries or recaptures2 7v7 monthly obligations2 7vi7 a comparison of the obligations incurred in the period covered by the report to the obligations incurred in the same period in the #b prior fiscal years2 and 7vii7 the resulting unobligated balances at the end of the month4 4 7f7 ,expansion of definition of eligible small business concern2 economically distressed small business concern 7#a7 ,in general ,section #bb7l77#a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77#a77 is amended-- 7,a7 be redesignating subparagraphs 7,a7 through 7,e7 as subparagraphs 7,b7 through 7,f71 respectively2 7,b7 by inserting before subparagraph 7,b71 as so redesignated1 the following3 7,a7 the term economically distressed small business concern means a small business concern that is-- 7i7 located in a low-income or moderate-income area2 7ii7 located in an ,h,u,b,zone1 as defined in section #ca7;b72 7iii7 located in a community that has been designated as an empowerment zone or enterprise community under section #acia of the ,internal ,revenue ,code of #aihf2 7iv7 located in a community that has been designated as a promise zone by the ,secretary of ,housing and ,urban ,development2 or 7v7 located in a community that has been designated as a qualified opportunity zone under section #adjj,z-#a of the ,internal ,revenue ,code of #aihf2 2 and 7,c7 in subparagraph 7,b71 as so redesignated-- 7i7 in clause 7iii77,,ii71 by adding and at the end2 7ii7 by striking clause 7iv72 and 7iii7 by redesignating clause 7v7 as clause 7iv74 7#b7 ,limitation on use of funds for participation in foreign trade missions ,section #bb7l77#b77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77#b77;,a77 is amended by inserting by eligible small business concerns that have been in operation for not less than #a year after trade missions4 7g7 ,requirements related to ,state employees ,section #bb7l77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77#c771 as amended by subsection 7a71 is amended by adding at the end the following3 7,g7 ,limitation on collection of state official and employee information 7i7 ,in general ,subject to clause 7ii71 the ,associate ,administrator-- 7,i7 may only collect name1 position1 and contact information for any ,state1 territory1 or commonwealth official or employee unless that official or employee is the designated staffer managing a grant under this subsection2 and 7,,ii7 may only require that a ,state1 territory1 or commonwealth receiving a grant under this subsection report the salary of a ,state1 territory1 or commonwealth official or employee to the extent that the ,state1 territory1 or commonwealth-- 7aa7 includes such salary as part of the non-,federal share of the cost of the trade expansion program2 or 7bb7 uses amounts received under the grant for the cost of such salary1 in whole or in part4 7ii7 ,exceptions ,notwithstanding clause 7i71 the ,associate ,administrator may require a ,state1 territory1 or commonwealth to provide information about a ,state1 territory1 or commonwealth official or employee that is relevant to any investigation into suspected mismanagement1 fraud1 or malfeasance or that is necessary to comply with ,federal grant requirements4 4 7h7 ,authorization of appropriations ,paragraph 7#aa7 of section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l771 as so redesignated by subsection 7b71 is amended by striking fiscal years #bjaf through #bjbj and inserting fiscal years #bjbg through #bjca4 7i7 ,report to ,congress ,not later than #a year after the date of enactment of this ,act1 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 #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l771 as amended by this section1 that includes a description of-- 7#a7 the process developed for review of revised budget plans submitted under subparagraph 7,f7 of section #bb7l77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l77#c771 as added by this ,act2 7#b7 the process through which the ,small ,business ,administration selects and funds grantees and the criteria used by the ,administration in making such decisions2 7#c7 any changes made to streamline the application and reporting processes to remove duplicative requirements and create a more transparent process2 7#d7 the process developed to share best practices by ,states described in paragraph 7#i77;,b77i77,v7 of section #bb7l7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdi7l771 as so redesignated by this ,act1 particularly for first-time grant recipients under the ,state ,trade ,expansion ,program or grant recipients that are facing problems using grant funds2 and 7#e7 the process developed to communicate1 both verbally and in writing1 relevant information about the ,state ,trade ,expansion ,program to all grant recipients in a timely manner4