Small Business Administration Trade and Export Promotion Programs
Congressional Research Service
Summary
Approximately 166,384 small businesses in the United States currently export, accounting for
about 26% of all U.S. exports ($341 billion of $1.32 trillion) and about 96% of all exporters
(166,384 of 173,459 exporters). With roughly three-quarters of world purchasing power and
almost 95% of world consumers living outside U.S. borders, more attention is being paid to small
business export promotion programs’ potential economic benefits for small businesses and
national economic output. In addition, some Members of Congress believe the contributions of
small businesses to commercial innovation and economic opportunities for firms and workers
could be enhanced through greater access to growing international markets.
Consistent with these policy goals, the Small Business Administration (SBA) provides export
promotion and financing services to small businesses through its loan guaranty programs,
management and training programs, and other initiatives. SBA’s Office of International Trade
(OIT) coordinates these activities as it assists with four stages of export promotion: (1)
identifying small businesses interested in export promotion; (2) preparing small businesses to
export; (3) connecting small businesses to export opportunities; and (4) supporting small
businesses once they find export opportunities.
The Small Business Jobs Act of 2010 (P.L. 111-240) elevated trade within SBA by establishing an
associate administrator position to lead OIT and report directly to the SBA administrator. The act
also authorized the precursor to what is now known as the “State Trade Expansion Program”
(STEP), which provides states and territories grants to assist small business trade promotion.
STEP was appropriated $20.0 million for FY2022.
In FY2021, SBA’s export-related loans amounted to approximately $856.8 million
(approximately 1.9% of the SBA’s total business loan portfolio). Most of SBA’s export-related
loans occur through SBA’s Export Express, Export Working Capital (EVCP), and International
Trade loan guarantee programs. Although not specifically targeted at exports, SBA’s 7(a) and
504/CDC loan guarantee programs also provide loans to small business exporters.
This report examines the history, role, and scope of SBA’s export promotion activities and OIT’s
creation. SBA output data and qualitative data from other sources are presented to assess SBA’s
assistance to small business exporters. This report concludes with a discussion of the following
three policy issues for Congress:
Are there market barriers impeding smaller firms from exporting and, if so, what
should the federal government do, if anything, to address these barriers?
Is there a compelling governmental interest in promoting exports in the name of
national “competitiveness”?
Are SBA’s export promotion programs duplicative of other federal programs,
and, if so, what should the federal government do, if anything, to address this
duplication?