Bill Overview
Title: STEP Improvement Act of 2022
Description: 2 This bill reauthorizes through FY2026 the Small Business Administration's (SBA) State Trade Expansion Program, which provides foreign trade assistance to small businesses, and it revises provisions related to the administration of the program. Specifically, the SBA must establish a time frame for, and provide certain information related to, the application process, and it must conduct an annual survey to solicit feedback on the program. The SBA must collect data on certain performance metrics such as the (1) total number of small businesses assisted by the program, (2) total dollar amount of export sales by participating small businesses, and (3) number of small businesses that have created new jobs through their participation in the program. The bill also requires applicants for participation to include a budget plan that outlines their intended use of funds awarded under the program.
Sponsors: Rep. Evans, Dwight [D-PA-3]
Target Audience
Population: Small businesses involved in or entering into exporting activities
Estimated Size: 2500000
- The STEP Improvement Act of 2022 focuses on supporting small businesses engaged in exporting activities.
- The State Trade Expansion Program is specifically designed to aid small businesses in their efforts to engage in foreign trade.
- Small businesses that are interested or involved in exporting will be directly impacted by changes and improvements to the program.
- Through improved access to the program, small businesses can increase their sales in foreign markets.
- The performance metrics collected will provide quantifiable impacts, such as job creation, export sales, and business growth.
Reasoning
- The policy targets small businesses involved in exporting, who will benefit from increased financial and informational support.
- As only a small fraction of small businesses are currently exporting, direct impact will be somewhat limited, affecting primarily those who are already or planning to engage in foreign trade.
- The program's impact on these businesses includes potential growth in export sales, job creation, and improved resource allocation, which can enhance their wellbeing scores over time.
- Budget constraints suggest that not all eligible businesses will receive support, especially in the early years of the program.
Simulated Interviews
Small Business Owner (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The STEP program has the potential to help us expand into new markets abroad, which we couldn't afford to do on our own.
- Having structured processes for application and feedback is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Small Business Consultant (New York)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The STEP program enhancements add necessary transparency and accountability.
- Better data on outcomes will help refine and advocate for more targeted policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Manufacturing Plant Manager (Texas)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- More support to navigate export logistics would be helpful.
- Budget limitations may restrict the full effectiveness of the program.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Tech Entrepreneur (Illinois)
Age: 32 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 1/20
Statement of Opinion:
- The program can catalyze our entry into new regions but clarity on potential market expansion is needed.
- More education on managing export processes is desirable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 7 |
| Year 20 | 9 | 7 |
Retail Store Owner (Ohio)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Our business is currently focused domestically, so the STEP program doesn't directly impact us.
- It's important for specific industries, but doesn't address local retail concerns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Export Manager (Florida)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 12.0 years
Commonness: 2/20
Statement of Opinion:
- This program could provide the push we need to break into Asian markets.
- The focus on feedback and metrics is reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
CEO of a Sustainable Fashion Brand (Michigan)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- The increased support could allow us to showcase our products in European trade fairs.
- Flexibility in budget use would be advantageous.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Retired Business Professor (New Jersey)
Age: 63 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This program seems sensible for businesses on the verge of international expansion.
- SBA's focus on metrics aligns well with academic research needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Craft Brewery Owner (Georgia)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Given our current export constraints, more funding from STEP would be significant.
- However, competition for these funds might be tough.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Environmental Tech Manufacturer (Washington)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 2/20
Statement of Opinion:
- Change in the STEP program is welcomed but requires more structural support.
- There's potential for significant expansion if funds are properly allocated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $18000000 (Low: $17000000, High: $19000000)
Year 2: $18000000 (Low: $17000000, High: $19000000)
Year 3: $18000000 (Low: $17000000, High: $19000000)
Year 5: $18000000 (Low: $17000000, High: $19000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The continuity of the STEP program ensures ongoing support for small businesses aiming to expand export activities.
- Data collection and performance metrics introduced by this bill could improve program efficiency and effectiveness.
- Indirect economic benefits, such as job creation through increased exports, could boost local and national economies over time.
- The real impacts of enhanced administration through this bill are more related to qualitative metrics of success rather than direct financial savings.