S. 738

Small Business International Trade Enhancements Act of 2007

Latest

II

110th CONGRESS

1st Session

S. 738

IN THE SENATE OF THE UNITED STATES

March 1, 2007

Ms. Landrieu (for herself, Ms. Snowe, Mr. Kerry, and Mr. Coleman) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To amend the Small Business Act to improve the Office of International Trade, and for other purposes.

1.

Short title

This Act may be cited as the Small Business International Trade Enhancements Act of 2007.

2.

Small Business Administration Associate Administrator for International Trade

(a)

Establishment

Section 22(a) of the Small Business Act (15 U.S.C. 649(a)) is amended by adding at the end the following: The head of the Office shall be the Associate Administrator for International Trade, who shall be responsible to the Administrator..

(b)

Authority for Additional Associate Administrator

Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended—

(1)

in the fifth sentence, by striking five Associate Administrators and inserting Associate Administrators; and

(2)

by adding at the end the following: One of the Associate Administrators shall be the Associate Administrator for International Trade, who shall be the head of the Office of International Trade established under section 22..

(c)

Discharge of Administration International Trade Responsibilities

Section 22 of the Small Business Act (15 U.S.C. 649) is amended by adding at the end the following:

(h)

Discharge of Administration International Trade Responsibilities

The Administrator shall ensure that—

(1)

the responsibilities of the Administration regarding international trade are carried out through the Associate Administrator for International Trade;

(2)

the Associate Administrator for International Trade has sufficient resources to carry out such responsibilities; and

(3)

the Associate Administrator for International Trade has direct supervision and control over the staff of the Office of International Trade, and over any employee of the Administration whose principal duty station is a United States Export Assistance Center or any successor entity.

.

(d)

Role of Associate Administrator in carrying out international trade policy

Section 2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) is amended in the matter preceding subparagraph (A)—

(1)

by inserting the Administrator of before the Small Business Administration; and

(2)

by inserting through the Associate Administrator for International Trade, and before in cooperation with.

(e)

Technical amendment

Section 22(c)(5) of the Small Business Act (15 U.S.C. 649(c)(5)) is amended by striking the period at the end and inserting a semicolon.

(f)

Effective date

Not later than 90 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall appoint an Associate Administrator for International Trade under section 22 of the Small Business Act (15 U.S.C. 649), as amended by this section.

3.

Office of International Trade

Section 22 of the Small Business Act (15 U.S.C. 649) is amended—

(1)

by striking SEC. 22. (a) There and inserting the following:

22.

Office of International Trade

(a)

Establishment

There

;

(2)

in subsection (a), by inserting (referred to in this section as the Office), after Trade;

(3)

in subsection (b)—

(A)

by striking The Office and inserting the following:

(b)

Trade distribution network

The Office, including United States Export Assistance Centers (referred to as one-stop shops in section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)) and as export centers in this section)

; and

(B)

by amending paragraph (1) to read as follows:

(1)

assist in maintaining a distribution network using regional and local offices of the Administration, the small business development center network, the women's business center network, and export centers for—

(A)

trade promotion;

(B)

trade finance;

(C)

trade adjustment;

(D)

trade remedy assistance; and

(E)

trade data collection.

;

(4)

in subsection (c)—

(A)

by redesignating paragraphs (1) through (8) as paragraphs (2) through (9), respectively;

(B)

by inserting before paragraph (2), as so redesignated, the following:

(1)

establish annual goals for the Office relating to—

(A)

enhancing the exporting capability of small business concerns and small manufacturers;

(B)

facilitating technology transfers;

(C)

enhancing programs and services to assist small business concerns and small manufacturers to compete effectively and efficiently against foreign entities;

(D)

increasing the access to capital by small business concerns;

(E)

disseminating information concerning Federal, State, and private programs and initiatives; and

(F)

ensuring that the interests of small business concerns are adequately represented in trade negotiations;

;

(C)

in paragraph (2), as so redesignated, by striking mechanism for and all that follows through (D) and inserting the following:

mechanism for—

(A)

identifying subsectors of the small business community with strong export potential;

(B)

identifying areas of demand in foreign markets;

(C)

prescreening foreign buyers for commercial and credit purposes; and

(D)

; and

(D)

in paragraph (9), as so redesignated—

(i)

in the matter preceding subparagraph (A)—

(I)

by striking full-time export development specialists to each Administration regional office and assigning; and

(II)

by striking office. Such specialists and inserting office and providing each Administration regional office with a full-time export development specialist, who;

(ii)

in subparagraph (D), by striking and at the end;

(iii)

in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(iv)

by adding at the end the following:

(F)

participate jointly with employees of the Office in an annual training program that focuses on current small business needs for exporting; and

(G)

jointly develop and conduct training programs for exporters and lenders in cooperation with the United States Export Assistance Centers, the Department of Commerce, small business development centers, and other relevant Federal agencies.

;

(5)

in subsection (d)—

(A)

by inserting Export financing programs.— after (d);

(B)

by redesignating paragraphs (1) through (5) as clauses (i) through (v), respectively, and adjusting the margins accordingly;

(C)

by striking The Office shall work in cooperation and inserting the following:

(1)

In general

The Office shall work in cooperation

; and

(D)

by striking To accomplish this goal, the Office shall work and inserting the following:

(2)

Trade financial specialist

To accomplish the goal established under paragraph (1), the Office shall—

(A)

designate at least 1 individual within the Administration as a trade financial specialist to oversee international loan programs and assist Administration employees with trade finance issues; and

(B)

work

;

(6)

in subsection (e), by inserting Trade remedies.— after (e);

(7)

by amending subsection (f) to read as follows:

(f)

Reporting requirement

The Office shall submit an annual report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives that contains—

(1)

a description of the progress of the Office in implementing the requirements of this section;

(2)

the destinations of travel by Office staff and benefits to the Administration and to small business concerns therefrom; and

(3)

a description of the participation by the Office in trade negotiations.

;

(8)

in subsection (g), by inserting   Studies.— after (g); and

(9)

by adding at the end the following:

(i)

Export assistance centers

(1)

In general

During the period beginning on October 1, 2006, and ending on September 30, 2009, the Administrator shall ensure that the number of full-time equivalent employees of the Office assigned to the one-stop shops referred to in section 2301(b) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721 (b)) is not less than the number of such employees so assigned on January 1, 2003.

(2)

Priority of placement

Priority shall be given, to the maximum extent practicable, to placing employees of the Administration at any Export Assistance Center that—

(A)

had an Administration employee assigned to such Center before January 2003; and

(B)

has not had an Administration employee assigned to such Center during the period beginning January 2003, and ending on the date of enactment of this subsection, either through retirement or reassignment.

(3)

Needs of exporters

The Administrator shall, to the maximum extent practicable, strategically assign Administration employees to Export Assistance Centers, based on the needs of exporters.

(4)

Goals

The Office shall work with the Department of Commerce and the Export-Import Bank to establish shared annual goals for the Export Centers.

(5)

Oversight

The Office shall designate an individual within the Administration to oversee all activities conducted by Administration employees assigned to Export Centers.

.

4.

International trade loans

(a)

In general

Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by striking $1,750,000, of which not more than $1,250,000 and inserting $2,750,000 (or if the gross loan amount would exceed $3,670,000), of which not more than $2,000,000.

(b)

Working capital

Section 7(a)(16)(A) of the Small Business Act (15 U.S.C. 636(a)(16)(A)) is amended—

(1)

in the matter preceding clause (i), by striking in— and inserting —;

(2)

in clause (i)—

(A)

by inserting in after (i); and

(B)

by striking or at the end;

(3)

in clause (ii)—

(A)

by inserting in after (ii); and

(B)

by striking the period and inserting ; or; and

(4)

by adding at the end the following:

(iii)

by providing working capital.

.

(c)

Collateral

Section 7(a)(16)(B) of the Small Business Act (15 U.S.C. 636(a)(16)(B)) is amended—

(1)

by striking Each loan and inserting the following:

(i)

In general

Except as provided in clause (ii), each loan

; and

(2)

by adding at the end the following:

(ii)

Exception

A loan under this paragraph may be secured by a second lien position on the property or equipment financed by the loan or on other assets of the small business concern, if the Administrator determines such lien provides adequate assurance of the payment of such loan.

.

(d)

Refinancing

Section 7(a)(16)(A)(ii) of the Small Business Act (15 U.S.C. 636(a)(16)(A)(ii)), as amended by this section, is amended by inserting , including any debt that qualifies for refinancing under any other provision of this subsection before the semicolon.