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: Sen. Shaheen, Jeanne [D-NH]
Target Audience
Population: Small business owners in the United States engaged in foreign trade
Estimated Size: 4800000
- The bill targets small businesses that engage in or wish to engage in foreign trade.
- The program provides financial and informational assistance to help small businesses expand their trade internationally.
- This program is administered by the Small Business Administration, indicating that the focus is primarily on small businesses within the United States.
- International trade expansion could impact not only the businesses directly involved but also their employees, suppliers, and the regions they operate in by potentially creating more jobs and increasing economic activity.
Reasoning
- The STEP Improvement Act targets small business owners interested in expanding their international trade efforts. Of the estimated 4.8 million small businesses in the US focused on trade, not all may immediately receive assistance due to budget constraints.
- Given the budget of $12,500,000 for year 1, the impact will likely be concentrated on a subset of these businesses, possibly those with higher readiness or more strategic plans for expansion.
- Indirect impacts on employees, suppliers, and communities will vary based on how significant the participation of these businesses in community economies is.
- Businesses with clear, strategic expansion plans might show better outcomes on performance metrics like job creation and revenue growth.
- Diverse feedback from various geographical locations and industries will guide iterative improvements to the program.
Simulated Interviews
Small Business Owner (New York)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 16/20
Statement of Opinion:
- I think assistance with foreign trade could open new doors for us.
- These funds could definitely help us navigate foreign regulations and logistics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 8 |
Small Business Owner (California)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- We need guidance on international trade laws, so this program seems promising.
- Financially, this could boost our ability to maintain our eco-friendly standards abroad.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Small Business Owner (Texas)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This could be a pivotal moment to diversify our market presence.
- I hope that the application process isn't too complicated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Small Business Owner (Florida)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm optimistic about what this could mean for my business's growth.
- We have some internal budgeting issues that this program might help resolve.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Small Business Owner (Illinois)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- Extra funding could help us break into markets much quicker.
- I'm a bit concerned about how to properly allocate the funds.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Marketing Director (Ohio)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- Increased resources for marketing would definitely help our sales overseas.
- I hope the program helps with understanding market trends and consumer preferences.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Washington)
Age: 29 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- We're excited but nervous about going international, so support would be a game-changer.
- The budget plan requirement may be challenging given our small accounting team.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Supply Chain Manager (Georgia)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Understanding global logistics better would be beneficial.
- If managed well, these improvements could bring significant long-term gains.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Consultant (Massachusetts)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- This program is a step in the right direction but depends heavily on proper implementation.
- It would benefit consultants to have more structured collaboration with the SBA.
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 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Small Business Owner (Colorado)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- Navigating international trade policies can be daunting, hence SBA support is welcomed.
- Funds will help in marketing and outreach efforts to new customers abroad.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $12500000 (Low: $10000000, High: $15000000)
Year 2: $12800000 (Low: $10200000, High: $15400000)
Year 3: $13100000 (Low: $10400000, High: $15700000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Variation in small business adoption and success in exporting could lead to large swings in GDP impact.
- Administrative burden and resource allocation for the SBA could affect the efficiency and reach of the program.
- Global economic conditions and trade policies will influence the success of small businesses in foreign markets.