Export grants would use formulas in a second straight $30 million year

SBA would calculate State Trade Expansion Program grants with a set formula in years that meet the funding rule. The formula would begin with 0.75% of total program funding for each state and 0.5% for each territory or commonwealth. Six measures would divide the rest among states. One 15% pool would use the number of participating firms trading abroad for the first time compared with the state's earlier grant amount. A state would receive its formula amount only if it commits the required share through cash, overhead costs, and noncash support. States could decline or return money within 15 days after receiving an award notice. Declined or remaining money would go proportionally to states that request it. The formula would apply in the second consecutive federal budget year with at least $30 million available and every later year meeting that level. Other years would use a competitive process. The program's funding authorization would cover fiscal years 2027 through 2031.

SBA would set an 80% grant floor for returning recipients, with several adjustments and exceptions. The 80% floor would cover states, territories, and commonwealths, based on the most recent earlier budget year in which each received a grant. A separate floor would cover states only. Program-wide funding cuts would scale down the earlier grant amount used in the 80% calculation. If a recipient spent less than 80% by the end of its earlier grant period—leaving more than 20% unused—the calculation would reduce its baseline by half the money still available. Exactly 20% unused would not trigger this adjustment. If new recipients make funding insufficient, SBA could make a one-time proportional reduction to the 80% minimum. A serious violation of program rules could also allow a lower award. The separate state floor would not protect money a state chooses to return.

SBA would use a concise application, publish grant instructions and calculations, explain award results, and maintain current program guidance online. Unsuccessful applicants would receive advice for improving a later application. Successful applicants would receive an explanation when an award differs significantly from their request. Applications would include a spending plan and, when practical, use forms shared with other federal trade programs. Recipients could revise plans for allowed spending after notifying SBA. Moving at least 10% of planned money would require SBA approval, unless SBA neither approves nor denies the revision within 30 calendar days. SBA would publish instructions by March 31. Applications would remain open at least 60 days and normally close by May 31, with awards announced by September 30. If full-year funding is not enacted by February 1, those last two deadlines would become 120 and 210 days after funding becomes law.

SBA would survey state recipients, collect performance data, simplify recipient reports, process reimbursement requests, and report program finances and formula calculations to Congress. SBA would survey each state that received a grant during the previous year. Congress would receive monthly funding reports, reports explaining formula calculations, and a report on how SBA carries out the program. Recipient reports would minimize manual and repeated work except when needed for required performance measures, funding decisions, or oversight. Performance data would cover export sales, new markets, jobs, and first-time participants. Some results would be separated for economically distressed, women-owned, and rural small businesses. If reimbursement information is not processed on or before day 21 after submission, SBA would notify the recipient and give an estimated completion date. Monthly reports would begin within 30 days after the bill becomes law. Formula reports would be due within 180 days after each covered year, and the broader program report within one year.

Grant money for organized overseas trade trips would be limited to eligible small businesses operating at least one year, and SBA would face worker-data limits. The program would define an economically distressed small business as one in a low- or moderate-income area or one of several federally designated development areas. Worker-data limits would cover officials and employees of states, territories, and commonwealths. For workers other than the designated grant manager, SBA generally could collect only names, jobs, and contact details, apart from allowed salary reporting. Salary-reporting limits would also cover the designated manager. SBA generally could require salary information only when the salary counts toward the recipient's required share of costs or grant money pays some or all of it. These limits would not block information relevant to suspected mismanagement, fraud, or wrongdoing, or information needed to meet federal grant rules.