Details of Export Provisions in Senate-Passed Small Business Jobs Bill
On September 16, 2010, the Senate passed its own version of H.R. 5297, the Small Business Jobs and Credit Act of 2010.
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House Scheduled to Consider Bill This Week
The House passed its own version of H.R. 5297 on June 17, 2010; however, it does not appear to contain any export-related provisions. The House is scheduled to consider the Senate’s version of H.R. 5297 (subject to a rule) during the week of September 20, 2010.
(Although the Senate and House have each passed their own versions of H.R. 5297, it is not yet in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.)
Export Highlights of Senate Version of H.R. 5297
Highlights of the Senate’s version of H.R. 5297 include:
Authorization of appropriations for USTR market access, enforcement. Over $5 million in appropriations would be authorized1 for the U.S. Trade Representative (USTR) for (i) analyzing and developing opportunities for businesses in the U.S. to access the markets of foreign countries; and (ii) enforcing trade agreements to which the U.S. is a party. The bill would require the USTR to give preference to initiatives that create the greatest number of jobs/benefits in the U.S. and consider the needs of small- and medium-size businesses.
Certain SBA loan limits would be increased. Certain Small Business Administration loan programs would be amended and their limits significantly increased (in some cases by more than double). Changes would be made to provisions involving working capital, collateral, Export Working Capital Program, Preferred Lenders Program, Export Express Program, and export finance lenders.
Pilot trade and export promotion program. A 3-year trade and export promotion pilot program (to be known as the State Trade and Export Promotion (STEP) Grant Program) would be established to make grants to States to carry out export programs that assist eligible small businesses.
SBA Office of International Trade revisions. Revisions would be made to various aspects of the SBA’s Office of International Trade, including its stated purpose and structure, duties, performance measures, and the establishment of a minimum number of Export Finance Specialists for SBA Export Centers.
The bill would also establish an export and trade counseling certification program to certify employees of lead small business development centers and lead women’s business centers in providing export assistance to small business concerns.
Commerce export promotion staffing increase. The Commerce Department would be required, during the 24 month period following enactment, to increase the number of full-time employees whose primary responsibilities involve promoting or facilitating participation by U.S. businesses in the global marketplace. Fiscal years (FYs) 2011 and 2012 appropriations would also be authorized1 to carry out such activities.
Authorization of appropriations for rural businesses, Exportech, etc. Appropriations would be authorized1 for: (i) improved access to global markets for rural businesses; (ii) the Exportech program (a joint program of the Hollings Manufacturing Partnership Program and the Commerce Department’s Export assistance Centers); and (iii) the Commerce Department’s Market Development Cooperator Program.
Report on Colombia, Korea, and Panama trade barriers. The Commerce Secretary would be required, in consultation with the USTR and other appropriate entities, to report to Congress on the tariff and nontariff barriers imposed by Colombia, South Korea, and Panama with respect to exports of articles from the U.S., including articles exported or produced by small and medium sized businesses in the U.S.
(Note that the U.S. currently has free trade agreements pending with Colombia, Korea, and Panama.)
1Note that this provision authorizes the enactment of appropriations; however, separate appropriations legislation is needed to actually fund an agency and provide it with budget authority.
(See ITT’s Online Archives or 09/17/10 news, 10091709, for BP summary announcing Senate passage of H.R. 5297.)