[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
SBA'S STATE TRADE EXPANSION PROGRAM: THE STATES' PERSPECTIVE
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HEARING
BEFORE THE
SUBCOMMITTEE ON RURAL DEVELOPMENT, AGRICULTURE, TRADE, AND
ENTREPRENEURSHIP
OF THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
JUNE 11, 2019
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-026
Available via the GPO Website: www.govinfo.gov
__________
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HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
JARED GOLDEN, Maine
ANDY KIM, New Jersey
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Abby Finkenauer............................................. 1
Hon. John Joyce.................................................. 3
WITNESSES
Mr. Wade Merritt, President and State Director of International
Trade, Maine International Trade Center, Portland, ME.......... 5
Ms. Jennifer Bacon, Co-Founder, FlapJacked, Westminster, CO...... 7
Mr. Clifton Broumand, Founder and CEO, Man & Machine, Inc.,
Landover, MD................................................... 8
Ms. Jennifer Black, Executive Director, Export Development, PA
Department of Community & Economic Development, Office of
International Business Development, Harrisburg, PA............. 9
APPENDIX
Prepared Statements:
Mr. Wade Merritt, President and State Director of
International Trade, Maine International Trade Center,
Portland, ME............................................... 21
Ms. Jennifer Bacon, Co-Founder, FlapJacked, Westminster, CO.. 24
Mr. Clifton Broumand, Founder and CEO, Man & Machine, Inc.,
Landover, MD............................................... 27
Ms. Jennifer Black, Executive Director, Export Development,
PA Department of Community & Economic Development, Office
of International Business Development, Harrisburg, PA...... 31
Questions for the Record:
Questions from Hon. Abby Finkenauer to Mr. Wade Merritt and
Ms. Jennifer Black and Answers from Mr. Wade Merritt and
Ms. Jennifer Black......................................... 35
Additional Material for the Record:
Statement from Iowa Economic Development Authority........... 43
SBA'S STATE TRADE EXPANSION PROGRAM: THE STATES' PERSPECTIVE
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TUESDAY, JUNE 11, 2019
House of Representatives,
Committee on Small Business,
Subcommittee on Rural Development, Agriculture,
Trade and Entrepreneurship,
Washington, DC.
The Subcommittee met, pursuant to call, at 10:02 a.m., in
Room 2360, Rayburn House Office Building. Hon. Abby Finkenauer
[chairwoman of the Subcommittee] presiding.
Present: Representatives Finkenauer, Golden, Crow, Craig,
Chabot, and Joyce.
Chairwoman FINKENAUER. Good morning. The Subcommittee will
come to order.
I would first like to just say thank you to our witnesses
who came from all over the country to be here today. It means a
lot that you guys took time out of your busy schedules to be
here and testify in front of the Subcommittee. It means a
great, great deal.
I would also like to thank Ranking Member, Dr. Joyce of
Pennsylvania for his work on these issues that I know are very
important to his district, mine, and those of the folks who sit
on this Committee. Together, we have held a couple of meetings
now on trade and I am glad that we share this priority. I look
forward to continuing our bipartisan work on the Subcommittee.
As a congresswoman from Iowa's 1st Congressional District,
I know firsthand that for our small businesses and our farmers,
the ability to access new markets and export goods promotes
economic success at home and in our communities.
Today's hearings will focus on how Congress can improve the
State Trade Expansion Program, or STEP as we call it, which
offers competitive grants to states and territories to help
small businesses, agriculture, entrepreneurs, and small
business manufacturers export their products overseas.
Given the importance of trade in my home state, especially
for our farmers and small businesses and manufacturers, I am
disappointed that no one from the Iowa Economic Development
Authority was able to join us here today. But to make sure that
my friends from the Iowa Economic Development Authority, along
with other hardworking entrepreneurs in northeastern Iowa, have
the chance to share their experiences with the State Trade
Expansion Program and provide feedback on how we can make this
program work better as we look toward our reauthorization, I
plan to host a roundtable in my district on this same issue on
July 1st.
For that reason, I am especially excited to hear from each
of you today. I hope to share your insights with my
constituents at home and see how your experiences compare to
those of Iowa business owners. So, thank you again for taking
the time.
Like in Iowa, exporting unlocks opportunities for small
businesses and entrepreneurs all throughout the country. You
guys see this every single day. By selling their goods and
services abroad, small businesses can drive economic growth in
their communities and in turn create jobs, boost wages, and
spur innovation.
Despite the many opportunities, only 1 percent of our
nation's 30 million small firms sell their products overseas.
Recognizing both the challenges and benefits of exporting,
Congress created a three-year pilot program to help small
businesses export. Five years later, Congress made STEP
permanent and authorized $30 million in funding through the
upcoming fiscal year.
STEP gives small businesses the tools they need to start
exporting and expanding into new markets and helps connect
small businesses with international consumers. STEP provides
grants to states to host trade shows here and abroad and
organize trade missions for small businesses.
Many small businesses operate with razor-thin margins, and
only a few employees. They do not always have the resources to
attend a trade show, design an international marketing
campaign, or navigate a foreign country's complex rules and
regulations. With STEP, small businesses and entrepreneurs can
focus on building relationships with consumers abroad and not
worry about the red tape.
As we prepare to reauthorize the program, it is very
important to hear from the stakeholders--the folks who are
doing this day to day--and learn what needs to be done to
improve the program and make sure that it works as it is
supposed to.
Earlier this year, Dr. Joyce and I held a hearing on the
reports and audits conducted by our nation's watchdogs, which
raised concerns with SBA's implementation of the program. The
issues range from short timelines to burdensome reporting
requirements to a lack of timely and consistent communication
from SBA. I have also heard similar concerns from the Iowa
Economic Development Authority about the tight turnaround times
with the applications. I have testimony from them that I would
like to enter into the record.
Today's hearing gives us the chance to hear from
stakeholders and our states that are working hard to ensure
small businesses can take advantage of this program, and again,
make it work how it is supposed to. In order to strengthen the
program and make it a wise investment of taxpayer dollars, we
need your input. I have heard just how much the Iowa Economic
Development Authority (IEDA) appreciates this program, and they
are proud to offer a cost-effective and efficient way for small
businesses in the Hawkeye state to explore export opportunities
around the globe. The IEDA was able to make 37 grants to small
businesses, and nearly 40 percent of those grants went to rural
businesses.
I hope this hearing underscores the importance of STEP all
across the country and provides us with a roadmap for
reauthorization.
I look forward to hearing from the witnesses on the panel
today and the ideas they have to strengthen STEP. I also look
forward to hosting a roundtable on this important program in my
district in the coming weeks.
I want to thank the witnesses again for being here today,
and I would now like to yield to Ranking Member Dr. Joyce for
his opening statement.
Mr. JOYCE. Thank you, Madam Chairwoman.
Three months ago, we held an Oversight hearing on the SBA's
State Trade Expansion Program, what we call STEP.
Representatives from the U.S. Government Accountability Office
(GAO) and SBA's Office of the Inspector General (SBA OIG)
identified to us program management weaknesses and recommended
reforms. Today, we reinforce our commitment to seeing that SBA
fulfills its goals relating to this program and maximizes every
dollar to help small businesses reach their significant
potential on the international market.
Two of our witnesses will explain the role of state trade
agencies as administrators of STEP programs. The other two
represent countless small businesses that have utilized STEP
funds to enter into that vast foreign market that our
Chairwoman just referenced. Each witness will demonstrate the
innovative ways that STEP funds can be used to alleviate the
burdens faced by small exporters.
We know that small exporters have a large impact on the
American economy. I visited those within my district. I visited
J&J's Truck Bodies in Somerset County, Pennsylvania. I have
seen the importance of STEP grants.
State export agencies use STEP funds for a diverse array of
services. Each service has its own set of metrics and expected
outcomes. The program's flexibility benefits participants but
hinders SBA's ability to measure impact and define the success
for STEP grants.
In the small business world, and I come from that small
business world, one size does clearly not fit all. When Federal
dollars are involved, there needs to be a happy medium which
accommodates program flexibility and accountability. Small
businesses and state officials here today value the STEP
program and want to see it reach its highest potential. We, in
Congress, we here today on the Small Business Committee, share
that sentiment. As we collect feedback from program
participants today, I hope SBA is listening.
Thank you for our witnesses for traveling here, for
providing your valuable insight into the STEP program.
I yield back, Madam Chairwoman.
Chairwoman FINKENAUER. Thank you, Dr. Joyce. The gentleman
yields back.
If Subcommittee members have an opening statement prepared,
we would ask that they would be submitted for the record.
I would now like to take a minute to explain the timing
rules. Each witness gets 5 minutes to testify and each member
then gets 5 minutes for questioning. There is a lighting system
in front of you to assist you. The green light will be on when
you begin, and the yellow light comes on when you have 1 minute
remaining. The red light comes on when you are out of time, and
we ask you to stay in that timeframe that we have set to the
best of your ability.
I now would like to introduce our witnesses.
Our first witness is Wade Merritt, president of Maine
International Trade Center and state director of international
trade within the Maine Department of Economic and Community
Development. In this role, he is responsible for directing the
trade and investment policy for the state. Mr. Merritt has
worked his way up from frontline staff, to regional office
director, to ultimately leading the organization. He has also
served as past president of SIDO, the national association of
state trade offices, and currently serves on its board of
directors. Mr. Merritt has been involved with the State Trade
Expansion Program since its inception and has a wealth of
experience. I look forward to hearing about the evolution of
growth in the program. Thank you for being here.
Our second witness is Ms. Jennifer Bacon, the co-founder of
FlapJacked, a small business in Westminster, Colorado, that
makes high-protein pancakes, muffins, and cookies that are not
only healthy but tasty. Jennifer and her husband initially
developed FlapJacked's first product, the protein pancakes and
baking mix, to encourage her children to eat healthfully and
ensure their son Jace was receiving proper nutrition. Her
company has utilized the STEP program to travel to Mexico and
open new international markets. I am excited to hear about
FlapJacked and how the STEP program has helped you tap into
those new markets, and I am very grateful for your time here
today. Welcome, Ms. Bacon.
Our third witness is Mr. Clifton Broumand, the founder and
CEO of Man and Machine, located in Landover, Maryland. Good to
see you again. Man and Machine is a global leader in community
peripherals and custom hardware engineering solutions. The
company develops medical grade keyboards and mice, which allow
work stations to be easily cleaned and disinfected between
patients. Under Mr. Broumand's leadership, the company has
grown from three employees in a small office building to a
19,000 square office complex and state-of-the-art production
line. I believe when I first met you, you were introduced as
``The Big Cheese.'' We are very excited to have you here today.
I would now like to yield to our Ranking Member, Dr. Joyce,
to introduce our final witness.
Mr. JOYCE. Again, thank you, Madam Chairwoman.
Our fourth and final witness is Jennifer Black, who is the
executive director of Export Development for Pennsylvania's
Office for International Business Development. Ms. Black plans
and directs Pennsylvania's export promotion and international
trade initiatives, including the Global Access Program, which
is partially funded by STEP grants. She also manages
Pennsylvania's authorized trade representatives in Central and
Eastern Europe, Germany, The Netherlands, India, and assists
companies in growing sales to these specific markets. Ms. Black
is a NASBITE Certified Global Business Professional and holds a
master degree in public and international affairs from the
University at Pittsburgh.
Thank you for your hard work on behalf of Pennsylvania
exporters.
Madam Chairwoman, I yield back.
Chairwoman FINKENAUER. Thank you.
Mr. Merritt, you are now recognized for 5 minutes.
STATEMENTS OF WADE MERRITT, PRESIDENT AND STATE DIRECTOR OF
INTERNATIONAL TRADE, MAINE INTERNATIONAL TRADE CENTER; JENNIFER
BACON, CO-FOUNDER, FLAPJACKED; CLIFTON BROUMAND, FOUNDER AND
CEO, MAN & MACHINE, INC.; JENNIFER BLACK, EXECUTIVE DIRECTOR,
EXPORT DEVELOPMENT, PA DEPARTMENT OF COMMUNITY & ECONOMIC
DEVELOPMENT OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT
STATEMENT OF WADE MERRITT
Mr. MERRITT. Thank you, Madam Chairwoman, Chair Finkenauer,
Ranking Member Joyce, and of course, Congressman Golden.
Let us try that again.
Chair Finkenauer, Ranking Member Joyce, and of course,
Congressman Golden, members of the Subcommittee, thanks for
having me. My name is Wade Merritt. I am the president of the
Maine International Trade Center, and as mentioned, a board
member and past president of SIDO. It is my pleasure to be here
with you today.
The State Trade Expansion Program, or STEP, is a
cooperative program of the Small Business Administration and
State Offices of International Trade. We are generally
divisions of state government, but some, like me, are public-
private partnerships.
For those of you not familiar with what the state are doing
on international trade, we are generally tasked with promoting
our individual states to a global audience. I introduce our
program as ``connecting Maine's businesses and communities to
international opportunities.'' This has traditionally been
export promotion and the attraction of foreign investment, but
also in our case it has included diversification of the defense
supply chain, promotion of our educational institutions,
facilitation of research and development connections between
our state and the Nordic and Arctic regions.
So the question was asked of us in the summer of 2009, how
best can SBA best support growth in exporting and convince more
SMEs to export? Our response was driven from our experience in
the field: find a way to provide direct support and allow
states to design and implement programs that best fit the needs
of their individual business communities.
That is where STEP is vital to our mission as states,
providing the resources and necessary motivation to get those
SMEs to take the leap.
Maine is not Pennsylvania; and Pennsylvania is not Maine. A
one-size-fits-all program will not achieve maximum impact and
efficiency.
But one that allows for thoughtful and creative methods and
is able to support states' own plans will. The flexibility of
the program can be its greatest strength and it can allow for
the highest possible return on investment.
As I mentioned, we are a public-private partnership.
Eighty-one percent of our clients have fewer than 100
employees; 68 percent of our employees have fewer than 25. Last
year we worked with over 320 businesses in Maine and completed
over 1,100 trade assistance consulting and research projects.
Anybody who has ever visited our state knows that it is very
rural, with just eight municipalities exceeding SBA's
definition of urban, and with that type of population mix there
are always challenges with resource deployment and service
delivery.
The STEP program directly supports two of our core
functions and allows us to extend our resources and be more
inclusive and expansive in our product offering. These
programmatic areas are driven by responsiveness to our business
community, and asking the questions: What do they need? And
what do they want?
In 2018, utilizing STEP funds, we launched a refreshed
trade education series, which reflected a multi-tiered approach
from basic information to highly advanced topics offered
through multiple channels to extend our reach into rural
communities. We have just completed Maine International Trade
Day with over 400 attendees and a focus on opportunities for
the state's forest and marine industries and how greater
engagement with the Nordic region could help drive positive
economic change. These efforts not only provide much needed
education but also engagement, bringing small businesses from
all over the state into our STEP pipeline.
It is our goal to engage the small business community in
exporting and to do that through collaboration with our Federal
and state colleagues and counterparts, and encouraging them to
use all of the resources available to them.
Like many states, we organize trade events at international
trade shows, offering cost-effective opportunities for
businesses to meet international buyers and distributors.
During 2018, MITC coordinated a presence at nine trade shows
supporting Maine's food, seafood, composites, and life sciences
industries. All of these efforts had some measure of STEP
support, and the variety of shows and destinations allowed for
exporters at all levels of sophistication to have a chance to
participate.
The results have been inspiring. For the past 2 grant
years, our small businesses have reported almost $29 million in
actual sales, from an investment of just $300,000 of Federal
funds. I will do the math for you. That is roughly a 100:1
return on investment.
I want to thank the Committee for taking an interest in
this program. We look forward to working with you and the
agency to ensure STEP reaches its full potential. Although
there are issues with the management of the program that I and
my peers feel can be worked on and improved, and I am sure that
we will take questions on, there can be no doubt that the
outcomes of the program are significant and they are important.
It is critical that international markets be an integral
part of small businesses' growth strategy, and it is critical
that those small businesses have the support, whether
financial, technical, or even emotional, that they need to play
offense and to be successful. For many states and the
businesses we serve, the STEP program is an important part of
that equation.
Thank you for your time, and I look forward to the
discussion.
Chairwoman FINKENAUER. Thank you, Mr. Merritt.
Ms. Bacon, you are now recognized for 5 minutes.
STATEMENT OF JENNIFER BACON
Ms. BACON. Chairwoman Finkenauer, Ranking Member Joyce, and
members of the Subcommittee, I am here and pleased to discuss
how the SBA's STEP program has impacted my small business in
Colorado.
My husband, Dave Bacon, and I founded FlapJacked in 2012
and believe that healthy meals should not only fuel our bodies
but also taste fantastic. Of course. We began our FlapJacked
journey as a result of trying to get our five children to eat
healthier. We sought cleaner ingredients with more protein for
our active lifestyles. This was especially important for our
son who has autism. He has difficulty with the texture of most
proteins. Jace was not getting the nutrition that he needed to
thrive, so we set out to reinvent his favorite foods, which are
pancakes, muffins, and cookies.
Currently, FlapJacked can be found domestically in more
than 20,000 stores, including large retailers such as Kroger
and Walmart.
It is our goal to expand the brand of Better-for-You space
in the United States and abroad. We feel that healthy foods
should be afforded by all people in all economic statuses,
especially for children, but that can be difficult to
accomplish while maintaining a healthy margin. Oftentimes, we
are approached by distributors in other countries asking for
payment terms with extremely slim margins.
It took us over a year to establish trust in our first
export customer. We would not accept terms and were advised by
our local agricultural agency to beware. This is a huge risk
for a young company such as ours, and at that time we were
netting just under $1 million in sales.
The STEP program funds have enabled FlapJacked to get in
front of retailers directly and bypass expensive distributors,
making it easier to offer our products at affordable prices. We
have benefitted from three grants to date that have allowed us
to attend trade shows such as Fancy Foods in 2017, and ANTAD
(Mexico) in both 2018 and 2019. The STEP program also pays
directly to cover tradeshow expenses such as both, graphics,
booth set up, shipping of samples, and printing of brochures.
We have found that the support at the trade shows give us a
full understanding of the market with great support that
included meetings with retailers, providing translation
assistance as well. They take on store tours, meet
distributors, media. The meetings are face-to-face and are
incredibly invaluable.
STEP funds received to date total $6,200, which we have
attributed about $50,000 in sales in 2018, additionally, and we
are on track for about $75,000 additional sales in 2019. That
is greater than a 10x ROI on the money that we have received to
date.
The additional income, which is paid 100 percent prior to
shipping our product from our exporters is instant cash influx
into the business. Walmart, for example, is net 90, so this has
enabled us to build the proper team to handle the growth. In
2018, we added three new hires to the team that were local to
our community, and in 2019, we add one new hire.
STEP is not just worth the $6,200 cash reimbursement and
additional income. To attend a show such as ANTAD on our own,
it would have cost approximately $12,000 to $15,000, not
including travel and hotel. The disadvantages would be no
translation, no direct meetings, our own set up and tear down,
printing of materials and shipping of samples. The Colorado
Agricultural Department pays 25 percent for four shows of which
the STEP funds pay 75 percent of approximately $65,000. This
allows 10 to 12 Colorado companies to exhibit within a Colorado
pavilion group of booths at the show.
Relationships are extremely important to our export
partners, and STEP funds allow us to create these direct
relationships with retailers. These relationships now belong to
us, which is completely invaluable.
One important factor is it takes time and trust, and it can
take months and sometimes years--upwards of a year, pardon me--
so the shows are a great facet for meetings for existing and
new partners to really build those relationships around the
globe.
When we show up year after year, it shows that we are here
to stay. We evoke trust within our partners, and proudly in
2018, FlapJacked won the Colorado Exporter of the Year. We have
created a space for Better-for-You categories domestically, and
now abroad, actively exporting to 15 countries where we receive
consistent POs and have sold to over 25 countries total.
FlapJacked would like to advocate for continuing to support
the STEP program to assist small, women-owned businesses like
mine to expand and grow beyond our borders and our reach. The
STEP program not only allows us to grow through export and
create jobs but to actively stimulate our economy and enhance
financial security for our communities and families.
Thank you for your time and attention. I look forward to
answering any questions you may have.
Chairwoman FINKENAUER. Thank you, Ms. Bacon.
Mr. Broumand, you are now recognized for 5 minutes.
STATEMENT OF CLIFTON BROUMAND
Mr. BROUMAND. I want to thank the Chairwoman and the
Subcommittee for allowing me to speak about STEP.
Again, my name is Clifton Broumand. I am ``The Big Cheese''
at Man and Machine. We do not have standard titles. I do not
take myself that seriously.
We manufacture waterproof keyboards and mice, of which I
have some samples, in Maryland and also in China using our
molds that we have designed. Most of our competitors are from
China or Europe but we have an 18,000-19,000 square foot
facility where I have about 19 employees who work in supporting
the manufacturer of keyboards and mice that we ship worldwide
literally from Australia to Europe, all over Europe, and we
have an office in Europe and in Taiwan. Our customers include
HP, Dell, GE, Boeing, Coors, Sara Lee, and more hospitals than
I can mention.
The reason I am here today is to discuss STEP and the
successes and failures of the program in regards to small
businesses such as mine. Notice, I have also brought up
failures because that is a growth area, too for us. That shows
us what we need to do to get better.
Programs such as STEP help prime the pump to develop export
markets. They do not give us all the money. You have to pay to
play in these programs. And it helps in two ways. One of the
ways it helps is with export grants, which allow us to have
matching funds to attend trade shows. And the second, it allows
the states to have these trade pavilions, which we are a part
of because it allows us just to walk in and start showing our
product without having to spend the money that Ms. Bacon
explained that we would have to spend for just a small booth
and all the other costs involved.
And they also bring together all the small business owners
so they can learn best practices and learn where other
companies have made mistakes. So it is not just giving money to
sell. It is also networking within your own state and with
other states and learning what they do because most of the time
you are in a USA pavilion that allows you to learn from others.
So sales rarely happen immediately in my business. We sell
business to business, and one of the things that has happened
is that we are also asked how much have you sold at this trade
show? And the answer normally is none. It takes years,
sometimes up to 5 years for people to hear, to literally take
our product and go through a whole process to put our keyboards
in a hospital.
And so one of the questions is measurement, of how
successful can this program be if you cannot measure sales? So
with us, we do about $75,000 a year in the Middle East, which
we use the export grants for, for the Arab Health Show. So more
than 1 percent of my business is just from the Middle East, and
it is due directly to these exports grants which is $3,000
every 2 years. So it is not like I am getting a lot of money
but we are getting a big bang because of it.
One of the other things that you might want to measure is
to see how many companies come back to another trade show, even
if they do not get the grant, because that is really showing
somebody it is effective because a business owner is not going
to spend their money without knowing that there is some return
if it is all their money at that point in time. So that is
another option of looking at how effective is this? Are people
coming back without having to get an export grant?
In regard to the failures that we have seen in this
program, I have done the Paris Air Show with Maryland. We have
done other shows, and other than at the trade show in Paris,
other than great French food, we really did not get much
business. But we learned from it and now we have developed an
oil proof keyboard and mouse that nobody else in the world has.
So what I see is that there are definitely things that have
to be dealt with in this program, but that is in any program
that you have. The question here is, does it, basically, $1,500
a year that adds up to $75,000 a year in sales is a pretty good
return on investment. And I would do that any day of the week.
And I think a lot of small businesses would if they knew about
this program.
Thank you.
Chairwoman FINKENAUER. Thank you, Mr. Broumand.
Ms. Black, you are now recognized for 5 minutes.
STATEMENT OF JENNIFER BLACK
Ms. BLACK. Thank you.
Chairwoman Finkenauer, Ranking Member Joyce, and members of
the Subcommittee, thank you very much for the opportunity to
appear before you today.
My name is Jen Black. I serve as the executive director of
Pennsylvania's Export Development program.
To summarize my written testimony, I will begin by
providing some background that I hope will give context to
further discussion on how we have leveraged STEP funds to
benefit small businesses across our commonwealth, and ways we
believe the STEP program can be improved to help all of us
build upon the success we have already achieved together.
We know that exporting makes an impact. In 2018, goods
exports from Pennsylvania were valued at over $41 billion, and
helped to support 176,000 Pennsylvania jobs.
Of all the exporters in our state, 89 percent are small-
and medium-sized firms (SMEs), and it is in support of SMEs
where our export assistance program, those of our Federal
partners, and SBA's STEP program play a critical role.
Through Pennsylvania's Export Development program,
companies can access customized consulting and in-market
support services to help them develop and successfully execute
their international marketing and sales objectives.
We administer our program in partnership with 10 economic
development agencies across Pennsylvania, and we also maintain
15 trade offices worldwide covering 51 markets.
Last year through our program we worked with 1,009
companies, the majority of which are SMEs, and confirmed over
$810 million in client-reported export sales.
Using economic modeling, we estimate these sales helped to
support 6,354 jobs in Pennsylvania, and generate $45.8 million
in state and local tax revenue.
In addition to our program, Pennsylvania companies have
access to an extensive `export ecosystem' of Federal Government
service providers, including SBA district offices, 18 small
business development centers, and two U.S. commercial service
offices. Together, we offer a wide variety of complementary
programs and services to new exporters and experienced
exporters alike, as outlined in our Federal-State Annual Plan.
The STEP grant is certainly an important component and asset to
our share admission.
Pennsylvania has applied for STEP funding every year. We
were selected to receive awards in years 1 through 4 and again
in years 6 and year 7. In the past two funding rounds, our STEP
awards were less than what we applied for, so we scaled down
our project plans and opted to put nearly all of our STEP funds
toward our Global Access program (GAP). Through GAP, qualified
companies can apply to receive 75/25 matching grants of up to
$5,000 to help them offset the cost of export activities that
meet their specific business objectives.
Last year, we supported 168 companies through the STEP
program. Of these, 23 were new-to-exporting. We are confident
the investment of STEP funds we make in support of our
companies will continue to yield returns.
But even for a larger state program like ours, with an
experienced team working on the STEP grant and a comprehensive
performance metrics and reporting system already in place,
keeping up with STEP reporting is a challenge.
Our staff spends a significant amount of time compiling and
consolidating data and running calculations manually to fill in
the required forms. And in the end, we question how relevant
some of the data is to a meaningful and constructive evaluation
of our program and our progress.
Of course, we understand the importance of accounting for
how taxpayer dollars are spent on this program. I mentioned
earlier some of the key performance indicators and economic
modeling we used to do the same at the state level.
But as we prepare for the 8th year of STEP, we encourage
SBA to take further steps to reduce the administrative burden
of managing the grant.
Specifically, we recommend SBA collaborate with states and
the Committee to do two things. One, identify and define the
most important data points and performance indicators needed to
evaluate the STEP program. And two, optimize the application
process and reporting requirements to capture and compile that
data more efficiently.
Doing so will also enhance our ability to make the most of
additional STEP funds to support more small business exporters.
We strongly support increased funding for the STEP program to
$50 million.
We believe additional funding for the STEP program,
combined with reducing the administrative burden on clients, on
states, and on SBA staff, will help all of us achieve our
shared objectives.
Thank you and the Committee for your leadership and ongoing
support of your leadership and ongoing support of the STEP
program, and for the opportunity to share our state's
perspective. I look forward to your questions.
Chairwoman FINKENAUER. Thank you, Ms. Black. Thank you to
all our witnesses again that are here today. I am really
excited for the discussion we will be having.
Let's get started.
I will begin by recognizing myself for 5 minutes.
This question is for Mr. Merritt and Ms. Black. I really
want to highlight that Iowa does a great deal with STEP. In our
state, STEP has provided $265,000 to help increase exporting
opportunities for small businesses. I understand your states
have also received sizeable amounts to expand exports in Maine
and Pennsylvania. When the Subcommittee held a hearing in March
on STEP, we learned that a dozen states only used 75 percent of
their funds in 2015. The GAO credited these leftover funds to
the fact that the timelines for states were too short. These
tight turnarounds hindered their ability to fully utilize the
program.
The Iowa International Trade Program reported only having 1
month from the day that the grant was announced to the day
their application was due. Compared to other programs, I
understand that timeline is terribly short and very difficult
to meet.
Could you please discuss the application process and your
experiences with it?
Ms. Black, do you want to start?
Ms. BLACK. Thank you.
So I did make some notes regarding the STEP 8 announcement
this year. So we just submitted our STEP 8 applications last
week. I think the deadline was Friday, the 7th of June. The
funding announcement was made on May 1st with an initial
deadline of the 31st, I believe, of May, and that was then
changed. There were some problems with the downloads and some
of the forms, and so the deadline was extended until June 7th.
So in the end we had a month and a week to submit our
applications.
Something I would like to point out is that when we filed
the applications now that STEP is a 2-year program, we are
estimating events that are going to happen as far out as 2021
in this latest round. And so I think having the ability to
modify our project designs quickly and efficiently as we move
through the award year would go a long way to states utilizing
all of the funds.
I do not want to take all of the response time. But I do
want to mention that in our case, we distribute funds first
using state dollars. So we are cutting checks to companies for
the GAP program with state funds. And then we ask SBA to
reimburse us later. Because we are using state funds first, and
we do not have a cushion of state dollars to supplement the GAP
program, we are over allocating, but as reimbursements come in,
they are sometimes less than what companies had anticipated. So
almost by design I do not believe that we would be able to
achieve 100 percent disbursement on our award. Thank you.
Mr. MERRITT. I will not go too far into the application
process. I think I had a very similar experience to Jen Black's
in Pennsylvania.
I do want to address the 75 percent utilization. I think we
have talked a bit about the lateness of the award versus kind
of our programmatic needs. Generally, our year as far as the
overseas activities and the work that we do generally starts
around September. It kind of follows the school year calendar
if you can imagine that. Unfortunately, we end up not knowing
whether or not we are going to have our award until September,
until the middle or even late September. The busiest, or second
busiest quarter of the year for state trade offices taking
groups of companies overseas is that October to December
quarter. So almost by default, we just lose that time as we
have no idea whether we are going to be able to commit state
dollars. I mean, commit STEP dollars to these programs, which
definitely hinders the recruitment process.
The move to the 2-year award helped because we do not lose
quarter five, which would be the first quarter of the second
year. That certainly helps things, but we do lose that first
quarter oftentimes.
Chairwoman FINKENAUER. Okay. In your view, would it make
sense to standardize the process requiring SBA to announce
grants no later than March 31st, give states 60 days from that
date to complete the application, and then make sure those
awards are finalized, for example, by August 1st of the year?
Would that be helpful?
Mr. MERRITT. Absolutely. If there was predictability to
this process and that timeline works beautifully, the earlier
the better because we are often recruiting for shows in
November in the summer, so August is great, 60-day window is
great. And just being able to have a predictable time that we
know that this is what is going to happen. Part of the issue
has been, for us anyway, we just do not know when it is going
to be. And when it appears, it is kind of a bomb in the middle
of the spring of like you have got 4 weeks to go. So.
Chairwoman FINKENAUER. Okay.
Mr. MERRITT. Predictability is important here.
Chairwoman FINKENAUER. So you can put it on the schedule.
Would you agree with that, Ms. Black?
Ms. BLACK. Yes, I would definitely agree with my colleague
from Maine.
Chairwoman FINKENAUER. Great.
Ms. BLACK. Thank you.
Chairwoman FINKENAUER. I saw your head nodding but I wanted
to make sure we got it into the record.
Ms. BLACK. Yes, thank you.
Chairwoman FINKENAUER. Thank you, Ms. Black.
With that, my time has expired.
I will recognize Ranking Member Dr. Joyce for 5 minutes.
Mr. JOYCE. Thank you, Madam Chairwoman.
Mr. Merritt, I am going to extrapolate something that you
said about Pennsylvania not being Maine and Maine not being
Pennsylvania.
I will speak from this side. With our Chairwoman, I will
tell you that Pennsylvania is not Iowa, and Iowa is not
Pennsylvania. And yet, this is one of the strongest, bipartisan
Committees you can find in the United States Capitol. We work
well together. We work for you, and I think that you have to
hear that from us, that statement has to be made clear.
I am going to address this to Ms. Black. Can you explain
regional export network and how it affects trade opportunities
to small businesses throughout Pennsylvania?
Ms. BLACK. Sure. Thank you.
We administer our export development program and
partnership with these 10 economic development agencies across
the state, which we refer to as our Regional Export Network.
Our office provides a grant (using state fund only) to these
agencies to help them identify and counsel small businesses who
are interested in exporting. So we have sort of a hub and
spokes model--the head office in Harrisburg and then we have
our first points and local points of contact across the state.
And using that network we are able to broadcast opportunities
including the GAP program or other STEP-funded activities, and
we are certainly reaching companies in urban areas and in rural
areas and a lot of areas in between.
Mr. JOYCE. Can you continue and expand specifically
regarding using organizations such as Southern Alleghenies
Planning Commission within South Central Pennsylvania? How do
they utilize? How do they work with you in this process,
please?
Ms. BLACK. Sure. So this is through our state-funded
program. We have identified these agencies, and each of them
are staffed with experienced trade consultants who can provide
technical assistance to companies. The Southern Alleghenies
Planning and Development Commission is our partner in the
Southern Alleghenies region. The manager there is Tina Taylor.
She manages their international trade program and it is her
role to be the face of Pennsylvania's Export Development
Program in the field. And I should comment to Tina that she is
doing a fantastic job.
Mr. JOYCE. When you choose businesses, when they are chosen
in Pennsylvania, how do you look specifically for those that
you feel are going to have the most advantage from a STEP
grant?
Ms. BLACK. So there is a process for that. We do keep our
Regional Export Network partners as the first point of contact.
We want companies to submit GAP applications directly through
them. They will evaluate the company's project plan based on
the company's objectives and certainly, they are all unique as
we heard today. The financial need of the company. And we ask
the companies to specifically highlight to us the impact they
believe this funding can make on their company in terms of
sales, in terms of jobs, and certainly just in available
capital.
So the first pass is done at the regional level.
Applications are sent into Harrisburg and they are reviewed by
Committee there. It is a competitive process, the GAP program,
and applications are reviewed weekly and funds are awarded on a
competitive basis, first come, first serve as far as the
available funds.
Mr. JOYCE. This question is for all the members, all the
panelists who are here today.
I realize how different each one of you and what you bring
to the table. And so we are faced with what metrics would you
suggest are best used to measure success? Dollars, certainly
the amount invested versus the amount of return. Are there
other measurable metrics that you would recommend that we bring
into play when analyzing the success of this program?
Mr. Merritt, I would like to start with you, please.
Mr. MERRITT. Thank you, congressman, for the question.
The issue of metrics in the state trade programs has been
something that our organization, the national organization has
been working on for years. I can speak to what we are doing in
Maine.
We do use the export sales numbers because we think that
that is the easiest thing to quantify, or it is the closest
thing to the ground to quantify to say this company, you know,
we have heard from a couple of them today, because of this,
because of our participation in a trade show, we were able to
make this amount of sales. That one is kind of a
straightforward one.
The other ones we look at are number of companies accessing
the programs, but we also look at the number of new companies
accessing the programs. Number of companies that are repeat
customers. You know, that was one. The importance of going back
time and again and making sure that you are developing the
programs. There are a lot of these.
And then, of course, when we start getting into the
qualitative work as well, having success stories from it, that
is usually the most compelling. You have heard a couple of the
stories here of this is what we have been able to do with it.
Mr. JOYCE. Mrs. Bacon, I, too, have a child with autism,
and I realize what you have done by providing palliative
protein to children who have sensory issues when eating. That
is significant on so many levels.
But again, I am going to pivot back to are there measurable
metrics besides dollars and cents that we should be using to
evaluate your success?
Ms. BACON. For us, it is giving back to the community;
right? But also the building of the relationships. So you know,
as we have talked about, it takes a lot of time to build those
relationships, and once those relationships are established
they do not go away if you work at them. So like relationships
with our kids and getting them to eat, it is also the same in
business for us. But for us also it is adding the people,
obviously, but really giving back into the community. Right?
They make a paycheck in our town. They spend it in our town. So
it is kind of that revolving interest of our team members.
Mr. JOYCE. Thank you.
Mr. Broumand, would you please comment to the metrics that
we are using?
Mr. BROUMAND. As I said in my testimony also, I look at do
you go back when you do not have money from the state? I think
that actually really shows that it is successful for a business
person because they are looking at what is my rate of return
without any money coming into their pocket except for maybe the
pavilion that you are in. It is do you have repeat customers? I
think you said that, Mr. Merritt, that if I go back, then it
must be pretty successful for me. If I do not go back, then it
was not really giving me the return that I wanted and that is
really telling you, are these programs I think helping small
businesses?
Mr. JOYCE. I thank all the panelists. We wish you success.
Madam Chairwoman, thank you for indulging me the additional
time.
Chairwoman FINKENAUER. Thank you, Dr. Joyce.
I would now like to recognize the Chairman of the
Subcommittee on Contracting and Infrastructure, Mr. Golden.
Mr. GOLDEN. People do that all the time. Do not worry
about.
Thank you very much.
Some people probably do not know unless it was in the bio.
Mr. Merritt actually helped work with the drafting of this
original program back when Senator Olympia Snowe from Maine was
chairing the Small Business Committee in the Senate. So we have
got someone here with a lot of depth and knowledge of the
program. You have been watching this for a while. So I think we
have a good opportunity to get some good feedback from you.
It sounds to me like there has been an appeal from Ms.
Black and you for a little bit of flexibility perhaps in the
program once the money is out the door because you are dealing
now with a 2-year program which was, I think you think, a good
change, but what you are telling me is the business climate
changes during the life of the grant program. Is there some
kind of administrative burden that comes with that? Do you have
to go back and request permission to modify your program? Or
what is it that we could work with the SBA to make that process
easier for you?
Mr. MERRITT. Thank you, Congressman.
Yes, absolutely. I mean, as Ms. Black mentioned with the 2-
year program in the STEP 8 program application we are now
having to predict activities that we would be undertaking in
the summer of 2021. We are just on the cusp of the summer of
2019. So that does tend to make things a little bit difficult.
The world changes a lot. Obviously, we built our expected ROI
for this year on lobster exports to China, and that
significantly impacted our ROI. I had to go back to the agency
a couple times to explain them why we were not meeting our ROI
targets because it is on the backbone of the lobster industry.
So the flexibility I think needs to--we do need some
flexibility in our ability to kind of redeploy resources as
they come in and recognizing that the plan that we lay out in
the spring of 2019 is probably not going to have--it may not
look like what it needs to look like by the time we get to
2021.
So the process that works that we do have to go through
either a request process if the change is under a certain
threshold, or we have to go through a more formalized process
which tends to make it a bit more challenging.
Mr. GOLDEN. All right. So maybe we could look at the
threshold or something along those lines. But more flexibility.
So it is like a change package kind of request.
All right. You brought up lobster so, you know, it is an
interesting time to talk about that.
One of the questions I actually had for you is, I mean, I
know you get in, you do one-on-one. You probably work with the
Maine Lobster Dealers Association on some of that export,
increasing that market to China. You know, and one would think
that they might be looking at other markets. But do you also
work with cooperatives? Because I know that you have got the
IAMAW Local 207 group there, and they have done some hard work
to get out and fine some new markets in years past. But are you
able to work with cooperatives as well?
Mr. MERRITT. Good question. We are not allowed to work
directly with the cooperatives, but we are allowed to work with
the members of the cooperative. So, yes. And we have had some
great successes with the Dealers Association for the Lobster
Industry, but also a lot of the other industry associations in
Maine that share membership essentially with our organization
in getting the word out through those communities and helping
them access the market.
Mr. GOLDEN. Is there a purpose behind not being able to
work with a cooperative directly?
Mr. MERRITT. It is the program is specifically designed for
for-profit entities. So, an association is a nonprofit,
therefore, we cannot go directly that way.
Mr. GOLDEN. Not like the lobsterman is the business?
Mr. MERRITT. The lobsterman is the business in that case;
yes.
Mr. GOLDEN. Right. Yep, okay.
And just in general, could you just brag about the program
a little bit in terms of--I just wrote down a list of things I
suspect you are working on in Maine and I hope you are. So we
have got small, you know, kind of lighter manufacturing
development going on in the state. Are you working on
increasing manufacturing exports? You talked about composites
and forest products. I would love hearing that. Farming and
fishing, too. Like, what are you having the most success with?
Mr. MERRITT. Well, as you all know, our state is a state of
natural resource-based small businesses. So the lobster
industry and the forest products industry tend to kind of lead
the charge. But also, yeah, absolutely. Lighter and small
manufacturers, the composites industry which comprises
everything from boat builders to civil infrastructure, some of
the research, spinouts that are going out of the University of
Maine. We have been working with those folks. We just completed
a grant through the Department of Defense. They are an OEA
program to help diversify the defense supply chain. That grant
has ended and we are going to start moving those companies over
to the STEP program. They have been active in the STEP program
in the past.
So it is benefitting companies all around the state. And in
a number of different industry sectors. We pick on the lobster
industry because that tends to drive the export numbers but
there is a lot more to it and the companies that we are working
with.
Mr. GOLDEN. Well, I am out of time here. I am going to
probably have a second round, but I do want to just comment
that----
Chairwoman FINKENAUER. Well----
Mr. GOLDEN. Are you going to let me keep going?
Chairwoman FINKENAUER. Yes. You use the minutes.
Mr. GOLDEN. All right. Very good.
You know, it sounds like a good measure of success for the
program if I am hearing you all correctly, it would be that
kind of analysis or return on investment because it makes a
pretty strong argument for why we are making a worthy
expenditure and a good use of taxpayer dollars. One for 100 is
pretty good. I think I saw nationally this was like one for 30
or something along those lines.
I did want to ask, and this is for anyone, but I think,
Mr.--is it Mr. Broumand?
Mr. BROUMAND. Close enough for government work.
Mr. GOLDEN. I am sorry. Well, I would like it to be better.
But you kind of indicated, I think, about this a little
bit, but do you have anything to say about what the program
could do, or any of you can take this in regard to maybe
marketing the program itself so that more businesses know about
it, more manufacturers, more farmers, more lobstermen, whatever
it may be, know to come out and actually apply. What is it
about the program that people are not hearing about it maybe?
Mr. BROUMAND. Well, I think that part of the problem
inevitably is that everybody gets so insular in trying just to
survive as a small businessperson that you are not looking out.
I have always looked out but I think that that is in, like for
example, in Prince Georges County where my company is located,
their economic development is trying to do that and it would be
helping the local, like you have the regional groups in
Pennsylvania, helping them tell more people, hey, this exists.
Again, it is more of trying to get people to open up rather
than just focus on the local area, what they do.
Mr. GOLDEN. Do you all feel like SBA is doing a good enough
job of having a strategy for making sure that the word is
getting out there, or is that something that you think about?
Ms. BLACK. Well, I do not mean to speak out of turn but I
think in our case our feeling is that it is our responsibility
as the state program managers to craft a program that makes
sense for our states and then to market that effectively to
companies. Could we do a better job? For sure. We could do a
better job marketing Pennsylvania's program without a doubt. So
that is always a challenge. And I think leveraging our
partnerships with our Federal colleagues across the state makes
a big difference, and certainly I think word of mouth-companies
that have utilized these financial assistance programs and can
talk about the benefits to their company. I mean, we have seen
here today there is really no better way to tell the STEP
story, I think, than to hear it right from companies.
Chairwoman FINKENAUER. And the gentleman's time has
expired. Thank you, Chairman Golden.
And I would now like to recognize the Ranking Member of the
Small Business Committee, Mr. Chabot.
Mr. CHABOT. Thank you, Madam Chair. And thank you to the
Ranking Member as well. I just like to step in and see how
these Subcommittees are going sometimes. This one seeks to be
functioning very well. So I want to commend both the Chair and
the Ranking Member.
I will be brief. I think, and this may have already been
mentioned as so many things have been. I apologize. But about
96 percent of the consumers on the globe that we all share live
outside the borders of the United States. And I know it is a
pretty small percentage of small businesses. I think 1 percent
or so of small businesses that actually sell their products
overseas through trade.
And so the function that you all have at the state level
and in conjunction with the Federal Government obviously and
some of the funding and things is critical. So we thank you for
the good work that you are all doing.
But last few years have been kind of tumultuous times when
it comes to trade for various reasons. It was somewhat
disconcerting to me as somebody who would consider myself more
or less a free trader over the years, to see both the
candidates in the latest presidential race on both sides, for
example, come out against TPP. And it got kind of a bad name,
and I think the United States, for example, at the
international level, rather than be worked about China, so that
is a reason to keep us out of TPP. It gave them a
disproportionate share of the power with the United States
being absent. And so that is my point of view. And the current
administration does not necessarily share that and they believe
more in bilateral trade agreements rather than regional
agreements which I think they are both important and valuable
to the U.S.
But going back to what I was saying, kind of tumultuous
nature, whether it is the tariffs or kind of--I will just leave
it, let us say the tariffs. What impact has that had on you all
and what you are trying to do for your clientele, the people
that you are working with, the emphasis on trying to get more
people to sell their products on the markets and around the
globe? You know, what additional challenges are there? Do we
need to educate the public more about the fact that trade does
not mean that we are exporting jobs? It generally means we are
exporting products and jobs are being created here. It does not
mean that jobs sometimes do not get exported. But if we do it
right that is not what the effect should be.
So just sort of, you know, what impact has this general
environment that we have seen in recent years relative to
trade, how has that impact what you all do?
Yes, sir?
Mr. BROUMAND. It has impacted us a great deal in regard to
time and effort. As a small business, I am losing focus to
developing new products and manufacturing. Right now, because
we sell computer gear, our components come from China and we
assemble them and sell them all over the world. Now, we have to
worry about do I build it in Taiwan and bring it into the
country so I do not get impact in regard to the tariffs? For
products that I am making for Australia right now, we are
trying to manufacture in Australia and Europe. I actually have
to do production now in China rather than bringing it here to
do the production. People like American made products. They
appreciate American made products. The quality we bring is
paramount. But now, if I have to pay tariffs for a product
coming in to build and then to ship out, I cannot be
competitive with the Chinese, nor with the Germans. So the
amount of time I have wasted, I just cannot even--it is so
frustrating.
And my brother says, you know, do not buy into it. And he
is a doctor. Nothing against doctors. But he is not a
manufacturer and he does not understand all the ramifications.
For a small business person, you know, GE or General Motors,
they might have hundreds of people doing this. I have me and my
operations manager having to figure this stuff out. It is very
frustrating.
Mr. CHABOT. Madam Chair, my time is about to expire. I do
not know if any of the other witnesses might want to respond to
that question but, thank you.
Chairwoman FINKENAUER. I would be happy to expand the time.
Ms. BACON. Hi. For OS, our products are made in the U.S. So
we do not have a lot of issues in terms of the manufacturing.
But where we do make decisions because of tariffs are our
ingredients suppliers and where those come from. Sixty-five
percent are U.S. The rest is imported. So a lot of times we
make choices based on how that impacts our business. Thank you.
Mr. CHABOT. Thank you very much. I yield back.
Chairwoman FINKENAUER. Thank you, Ranking Member Chabot.
Thank you to all of the witnesses who came here today. I
know you took time out of your very busy schedules to be here
and it means a great deal. Your stories are so important for us
to make sure that when we reauthorize STEP, we do it the right
way and fix the things that need to be fixed. We know that STEP
offers many promising opportunities for entrepreneurs in Iowa
and across the country. By connecting small businesses with
customers overseas, we know STEP can help entrepreneurs grow
their businesses at home and abroad. You showed that here
today.
When small businesses succeed, their communities thrive.
Increased economic activity from exports helps support Main
Street businesses and gives other companies the chance to grow.
I wanted to very specifically say thank you to our small
business owners who came here today, taking time out of your
very busy schedules. I know there is a lot going on for you
right now, very specifically when it comes to trade and its
impact on your businesses, but to hear from you firsthand helps
us to do our jobs better. Thank you, thank you, thank you, for
being here.
I again want to say it is unfortunate the Iowa Economic
Development Authority could not be here today, but I am very
grateful I had a chance to hear from folks in Pennsylvania and
Maine about all the work that you guys are doing when it comes
to STEP. You know firsthand what works and what does not. I am
also very grateful for the small businesses sharing their
stories to really tie this all together.
We must make it easier for small businesses to compete in
the global market, especially at a time like this. STEP has the
potential to help entrepreneurs across the country tap into new
markets, and we have seen that from what works. Again, we now
are learning what we need to fix to make sure it continues.
I look forward to again hearing from Iowans on this program
in the coming weeks and working with my colleagues on both
sides of the aisle to take the feedback we have received today
and make critical improvements to STEP and ensure it better
serves our communities and small businesses.
We have a lot of work to do, and I am grateful every day to
get to work across the aisle and show up for Iowans and our
country. I'm grateful that you guys are here helping us do the
job the right away.
Now I would like to ask unanimous consent that members have
5 legislative days to submit statements and supporting
materials for the record.
Without objection, so ordered.
And if there is no further business to come before the
Committee, we are adjourned. Thank you.
[Whereupon, at 11:04 a.m., the Subcommittee was adjourned.]
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