Senator Olympia Snowe on Small Business Exporting

Snowe Introduces Critical Legislation To Increase Small Business Exporting

June 9, 2009 -- Washington, D.C. -- U.S. Senator Olympia J. Snowe (R-Maine), Ranking Member of the Committee on Small Business and Entrepreneurship, introduced legislation this week to help small businesses expand into foreign markets. The Small Business Export Opportunity Act of 2009 (S. 1208) would strengthen and improve export financing programs within the Small Business Administration (SBA) to better assist American entrepreneurs expand their businesses overseas, compete in international markets and create new, good-paying jobs.

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"Creating approximately 75 percent of net new jobs each year, small businesses are our nation’s true job generators, yet less than one percent of these firms sell their goods and services overseas," said Senator Snowe. "This legislation will help to level the playing field for American entrepreneurs and ensure they have access to the resources they need to take advantage of all potential opportunities, including those in foreign markets."

The bill ensures that small business interests are reflected in U.S. trade policy and trade agreement negotiations by establishing a United States Trade Representative for Small Businesses, a provision Senator Snowe first introduced in 2001. It also creates a new Office of Small Business Export Development and Promotion at the SBA and requires the agency immediately fill its trade specialist positions that have been vacant for years. Furthermore, the legislation includes an innovative grant program that matches up to $5,000 for expenses incurred by small businesses that are actively working to start or expand export activities. The grant could be used to support a wide variety of activities, including participation in a foreign trade mission, translation of a website, or training workshops.

The Small Business Export Opportunity Act of 2009, also:

· Improves the SBA’s Export Working Capital Program by increasing the maximum loan amount from $1.66 million to $5 million, while maintaining the 90 percent government guarantee level.

· Establishes a permanent Export Express program, which provides streamlined processing, allows lenders to use their own credit decisions and documentation, and provides expedited eligibility review.

· Promotes the use of the International Trade Loan program by firms adversely affected by international trade, and increases the maximum loan amount from $1.66 million to $5 million with a 90 percent government guarantee.

· Requires the SBA to partner with the Export-Import Bank to extend delegated authority to more lenders and expand the availability of small business export credit.

· Increases the number of counselors nationwide through the SBA and its resource partners, trained to provide support for small businesses that currently have an export business, or are working to expand their business into international markets.

Source: Senator Olympia J. Snowe