SBA Trade Programs Act of 2007

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2992) to amend the Small Business Act to improve trade programs, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

International trade is a key part of our economic future, and competition in the global marketplace will only increase in the years to come. Consequently, our country is facing many decisions concerning how we will engage in transnational commerce. To utilize resources effectively and secure our industry's leadership, it is critical that the Nation's trade strategy incorporates a key source of innovation in world markets, small businesses.

I want to thank Representative Hall for introducing this legislation. He has been a strong supporter of trade policies that will benefit all Americans.

Small businesses that generate and develop new products have shown that they can lead the way in building entire industries. They represent virtually all of the country's exporting firms, improving our trade balance and introducing U.S. products to consumers across the world. With all of their success, these firms still face barriers to maintaining domestic and international markets. As a result, although the entrepreneurs are nearly 100 percent of export firms, they generate less than one-third of revenues from these activities.

Given their contributions, it is critical that entrepreneurs are considered in the Nation's trade strategy and that obstacles to their competitiveness are removed. By enhancing the Small Business Administration's focus to reflect the international-oriented demands of small businesses, H.R. 2992 will ensure that entrepreneurs are able to effectively incorporate trade into their business strategy.

The SBA Trade Programs Act of 2007 will provide small firms with a comprehensive set of tools to thrive in a marketplace without borders. It will assist them to overcome trade barriers by enhancing their access to export financing, counseling and technical assistance programs. The SBA's mandate is also expanded to ensure entrepreneurs participate on a level playing field as they face global competition.

To make certain that small businesses have access to newly opened world markets, H.R. 2992 requires the agencies to incorporate entrepreneurs' interests into trade policies and plans. The bill increases trade finance resources and the size of international trade loans which will facilitate small exporters' overseas transactions. These improvements will help to ensure that the Nation's trade promotion strategy supports, and benefits from, U.S. small businesses.

Small firms play a crucial role in promoting the global competitiveness of our country's industries. Including them in the development of the U.S. trade policy will support the growth of the Nation's economy, as well as to reduce the trade deficit. Effective trade strategies, enforcement assistance, and export promotion resources will ensure small businesses contribute to maintaining the Nation's global leadership. Doing so will guarantee that benefits of free trade are more widely distributed to not only businesses but also more of our Nation's communities.

I strongly urge support of this legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield to one of the bill's original cosponsors, the gentleman from Pennsylvania (Mr. Sestak), who is also the vice-Chair of the Small Business Committee, as much time as he may consume.

(Mr. SESTAK asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I yield to the gentlewoman from Ohio (Ms. Sutton) as much time as she may consume.

(Ms. SUTTON asked and was given permission to revise and extend her remarks.)

Mr. Speaker, I have no additional speakers.

Mr. Speaker, I yield myself the balance of my time.

I just would like to say that Representative Hall's legislation, the SBA Trade Programs Act of 2007, promotes the competitiveness of small businesses in the global economy, assists them in adjusting to economic dislocations, and makes certain their needs are represented in U.S. trade policies.

Due to the increasing global pressures upon small businesses, this modernization initiative has been widely supported. The legislation has been endorsed by the U.S. Hispanic Chamber of Commerce, the National Black Chamber of Commerce, the Small Business Exporter Association, the National Small Business Association, and the Precision Metalforming Association.

I would like to conclude by thanking the staff that worked on this legislation, from the Small Business Committee, Nicole Witenstein, Michael Day, and Adam Minehardt; and from Mr. Sestak's staff, Clarence Tong.

In conclusion, I would like to thank Congressman Hall and the cosponsors for this timely bill. I strongly urge my colleagues to vote for the SBA Trade Programs Act of 2007.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I would like to thank Chairwoman Velazquez for doing such a wonderful job ushering this bill through her committee and onto the House floor today. America's small business community could not ask for a better ally and friend

in this body than the chairwoman of the Small Business Committee.

I am pleased today that H.R. 2992, the SBA Trade Programs Act of 2007, is being considered on the House Floor. As in many parts of the country, the small businesses in New York's Hudson Valley are the engine that drives our economy, and their success is vital to the prosperity of our communities. In our increasingly shrinking world, being successful throughout the global economy has taken on a vitally important role. As a result, it is crucial that all businesses, including small businesses, have a level playing field in international trade.

Unfortunately, by their very nature small businesses do not have the same opportunities to take part in international trade that their larger competitors do. They are smaller and less able to take advantage of the economy of scale. Many simply do not have the capital or the logistical capability to devote to the cause. Most of the small businesses in my district are located only a few miles from New York City, the world's greatest international hub, and yet they often do not have the capacity to take advantage of that location. Today, with this bill, we hope to change that.

The SBA Trade Programs Act we have considered directs the Small Business Administration's Office of International Trade to take a number of steps specifically designed to help small businesses have a greater opportunity to take part in international trade. It instructs the OIT to capitalize on its relationship with the US Trade Representative and international organizations to develop and implement trade policies to support small businesses. This will enable small businesses to take advantage of the system we have created for bigger companies and has proven so helpful to American businesses.

It orders the OIT to establish an annual trade strategy for small businesses, which includes specific ideas on ways to increase competitiveness, better protect small businesses from unfair trade practices, increase small business' exports, and expand the representation of small businesses in creating and defining trade policy.

It provides small businesses with technical assistance in trade remedy investigations and dispute cases, two places where small businesses have long been at a disadvantage as they often do not have the financial capacity or manpower to deal with multiple jurisdictional issues.

The bill calls on the OIT to design comprehensive services to assist small businesses adjust to global climate conditions and increase loans and loan guarantees to small business exporters. By increasing loan availability small businesses will have greater access to the capital required for successful international business opportunities. And the assistive services will better enable small businesses to adapt to the differing tastes and desires of foreign markets.

This bill will provide assistance for businesses that require legal resources to help secure intellectual property protection. It will also expand eligibility requirements for international trade loans to include intellectual property violations as well as other trade practices with negative financial repercussions. These provisions are especially relevant because intellectual property remains one of our country's most important exports. Yet the extent and scope of their protection varies significantly from country to country. Any company looking to protect their intellectual property must be aware of the protections offered, and not offered; in each jurisdiction in which they have a presence. This bill will provide the appropriate resources so that America's small businesses can protect, and if need be, defend their intellectual property rights.

Mr. Speaker. This is an important bill. It is a bill that will provide a significant benefit to America's small businesses and open doors to them have been shut for far too long. I urge every member of the House to support it. Once again, I thank Chairwoman Velazquez and the rest of the small business committee for such great work in bringing this bill to the floor.

Mr. Speaker, I thank the chairwoman and ranking member. I very much appreciate your support on this bill, and I rise to speak highly on it and thank, in particular, my colleague Mr. John Hall who is also an original cosponsor.

I believe this bill has a lot to do with enhancing global competitiveness of American small businesses. In fact, in May I held an economic summit in my district in partnership with the U.S. Export Assistance Center in Philadelphia. The day's program aimed to provide business owners with information about the resources and services provided by the local, State and Federal governments. The panel that day particularly focused on how to help local small businesses export their products to foreign markets, as well as on how firms interested in expanding their businesses overseas could obtain trade financing.

I was extremely encouraged by the number of small business owners interested in expanding their business into overseas markets during this summit. However, this should come as no surprise since small businesses make up 97 percent of all exporters and have contributed greatly to the growth of exports overseas.

There is promise in the economic impact of trade among small businesses. For example, with assistance from the Philadelphia Export Assistance Center, Nielsen-Kellerman, a small business in my district that designs and manufactures waterproof electronics for use in the rowing industry, worked with trade specialists to expand globally and since 2001 has signed nine dealer agreements in Germany and has successfully sold products in Southeast Asia, Europe, Central America and the Middle East. The firm continues to utilize the Export Assistance Center for business counseling and guidance to further expand their business overseas.

However, I also saw during my district's economic summit that small exporters also face numerous challenges, such as higher transaction costs, than do big business. They assume greater risk than larger exporters, and they experience burdensome customs requirements which limit their access to foreign markets, impeding small firms from maximizing their full potential to expand their enterprises.

This legislation not only addresses the need for a focus on assisting in overseas trading by calling for an annual trade strategy to increase exports but also, Mr. Speaker, enhancing the level of export assistance by increasing access to capital and establishing programs for trade adjustment assistance to help small firms adjust to ever-changing global economic conditions and demands.

I believe the SBA Trade Act is comprehensive legislation that is critical to the economic security of our Nation and urge my colleagues to support this legislation.

Mr. Speaker, I rise in strong support of H.R. 2992, the SBA Trade Programs Act.

I want to thank Congressman Hall for introducing this important bill and for his continued efforts to ensure our trade policies work for American businesses and workers.

I also want to applaud the distinguished chairwoman, Chairwoman Velazquez, for her leadership on this issue and dedication to helping our small businesses.

This bill could not be more relevant because small businesses in Ohio and across the Nation are struggling to compete because of sometimes misguided U.S. trade policies and unfair and often illegal foreign trade practices.

Small businesses and their workers are the backbone of communities in Ohio and across this Nation. Just listen to the statistics:

Small businesses comprise 97 percent of all export enterprises but only generate 30 percent of domestic export revenues, and that number is shrinking. This is happening because our trade policies often benefit large corporate interests and leave small businesses behind.

The trends also show that it is becoming more and more difficult for American small businesses to compete against the unfair trade practices of foreign nations, often propped up by governmental subsidies, weak intellectual property laws, and currency manipulation.

H.R. 2992 will help small businesses become more competitive in the international trade market. This bill will provide a comprehensive set of resources to help small businesses by increasing export assistance, strengthening small business trade policies, and providing adjustment assistance.

These are very important steps we can take at the Small Business Administration to help our local firms stay competitive; and while this will help small business compete both domestically and globally, there is clearly much more that needs to be done, including an overhaul of U.S. trade policy to ensure that the needs of American businesses and workers and communities are being met.

Unfortunately, our current trade policies put American businesses and workers often at a disadvantage and reward companies who move overseas or outsource jobs, and for communities like mine, Mr. Speaker, in northeast Ohio where the creation and retention of jobs is the number one issue, supporting our local industries and small businesses will be critical to our ability to revitalize our economy and succeed in the future.

Today, we move in the right direction by passing the SBA Trade Programs Act; and, once again, I applaud Congressman Hall and Chairwoman Velazquez for their leadership on this important issue and for the hard work that they are doing.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 2992, the SBA Trade Programs Act of 2007. The committee worked in a cooperative and bipartisan basis to bring these changes in the SBA's operation of its programs to enhance small business participation in the global economy. H.R. 2992 represents the Small Business Committee's continued commitment to promotion of international trade by America's small businesses.

The Small Business Administration has a number of general entrepreneurial assistance programs that provide technical advice to small business owners. However, international trade is an area that is fraught with regulatory issues requiring specialized knowledge that may not be available from the SBA's entrepreneurial partners.

It is not surprising to find that the SBA created other programs to meet the needs of small business exporters that rely on personnel with specialized knowledge about the international trade regulatory regime. These programs, as well as the SBA efforts to coordinate with other agencies such as the Department of Commerce, have resulted in remarkable gains in exports.

There are about a quarter of a million small businesses that export. Revenue increased from $102.8 billion to $203 billion in 2004. There's no doubt that small businesses are playing a vital role in reducing America's trade deficit. Continuation of this success and even greater impetus on small business exporting will benefit the American economy.

H.R. 2992 requires the Small Business Administration to expand its trade

outreach initiatives and improve coordination of its trade promotion activities with those of other Federal agencies such as United States Trade Representative, the Department of Commerce, and the Export-Import Bank.

The bill will increase the capacity of America's small businesses to export. This will reduce our trade deficit and increase our national and economic security.

Mr. Speaker, I reserve the balance of my time.

I will continue to reserve, Mr. Speaker.

Mr. Speaker, I have no additional speakers.

I would urge my colleagues to support H.R. 2992, and I yield back the balance of my time.