Office of International Trade

Federal & State Trade Development International Trade Finance International Affairs Trade Agreements Stephen Sullivan, Senior International Trade Specialist Tanya Smith, International Trade Policy Specialist Office of International Trade

Today s Workshop I. Overview of SBA OIT II. Small Group Breakouts III. Re-group Summaries

Three Challenges for Small Business Exporters Lack of necessary information for exporting Lack of necessary capital for exporting Lack of necessary market access for exporting SBA should aid and assist small businesses to increase their ability to compete in International markets Information Capital Market Access 2

SBA s Office of International Trade Federal-State Trade Development & State Trade Expansion Program International Trade Finance International Affairs and Trade Policy Leveraging partnerships for outreach/matching funding to States for small business exporting assistance Loans for U.S. small business exporters and interagency trade finance collaboration Global market access, trade negotiation and enforcement for U.S. small business exporters Key Goals Increase the number of U.S. small businesses that are exporting; Increase the value of U.S. exports for small businesses currently exporting Key Goals Increase the number of U.S. companies that can access SBA export loan programs; Increase the number of lenders (banks) that are making export loans Key Goals Eliminate foreign tariff and non-tariff measures (regulations); Support bilateral and multilateral diplomacy efforts Outcome: More small businesses exporting to more markets Outcome: Expanded access to export finance Outcome: Expanded and level playing field for U.S. companies www.sba.gov/step www.sba.gov/international international@sba.gov

Federal-State Trade Development Effectively engage Federal, state and local partners in promoting and facilitating small business participation in global markets through: Collaboration on programs and initiatives that motivate and enhance the ability of small businesses to compete globally Gathering insight from stakeholders to inform program and policy development Educating internal and external resource partners on international trade and Federal programs and services that can support small businesses entry and/or expansion in global markets Administration and oversight of the State Trade Expansion Program (STEP) 4

Federal-State Trade Development Projects and Initiatives Trade Promotion Coordinating Committee Small Business Working Group State and Federal Export Promotion Coordination Working Group ASBDC International Trade Training Track SBDC Counselor International Trade Certification DITO Training and Networking Listening Tour (Illinois, Texas, Florida) STEP Administration and Oversight 5

Program Authorization STEP Overview Trade Facilitation and Trade Enforcement Act of 2015 Program Purpose Provide matching-fund awards to eligible state/territory/commonwealth applicants to assist U.S. small businesses enter and succeed in the international marketplace Awards earned through a competitive process Enables small businesses to carry out export development projects Program Outcomes Increase the number of U.S. small business exporters Increase the value of U.S. small business exports Increase the number of small businesses exploring significant new trade opportunities

STEP Allowable Activities STEP supported export activities for U.S. small businesses: Learn how to export Participate in foreign trade missions and shows Obtain services to support foreign market entry Translate websites to attract foreign buyers Design of marketing media, and more!

STEP Success Years 1 through 5 More than $103.1 million awarded STEP supported export activities in over 125 country markets Over 34,000 STEP-supported export activities completed by small businesses Exceeds $1.5 billion in U.S. export sales reported

International Trade Finance WHAT WE DO Counsel and train lenders and small businesses on SBA s three core export loan programs (delivered through private lenders) Underwrite SBA guarantees on Export Working Capital loans up the $5 million. Collaborate with Federal, state, and local resource providers to facilitate export finance solutions to small business exporters Provide management and oversight of field network delivering trade finance programs.

SBA Loans for Exporters SBA Export Financing Solutions Working capital or fixed-asset financing Financing to support export development activities Short-term financing to support export orders and resulting foreign A/R Long-term financing to expand exporting capacity SBA Export Finance Products Export Express Export Working Capital Program International Trade Loan

US Export Assistance Center (USEAC) SBA US Commercial Service (USCS) Ex-Im Bank USCS & State EDO - Market analysis - Match making - Buyer due diligence SBA - Export activity working capital - Transaction working capital - Fixed asset and real estate term loans Ex-Im Bank - Export working capital - Credit insurance

Directory of SBA Export Finance Managers: https://www.sba.gov/international

International Affairs and Trade Policy International Affairs and Trade Policy (IATP) staff conduct small business diplomatic actions to: 1) Advocate for small business interests in international trade negotiations help draft agreement text and bargain for fair deals to avoid costly barriers. 2) Break down trade barriers through a 100% small businessdedicated inquiry point: +1(855)722-4877; international@sba.gov and leverage trade agreements to resolve trade barriers. 3) Champion transparency and regulatory reform (e.g., deregulation) promote open, fair, and predictable global markets to pre-empt trade barriers through bilateral roundtables and arrangements.

Small Business Diplomatic Actions (SBDAs) International Affairs and Trade Policy (IATP) staff conduct small business diplomatic actions to: 4) Support the Administrator and White House-led foreign policy initiatives coordinate the Global SME Ministerial; participate in WH initiatives; and represent SBA in other bilateral and ministerlevel meetings. 5) Conduct outreach to U.S. small businesses stakeholders (domestic and abroad) on the small business benefits of U.S. trade agreements We employ all five means to assist U.S. small business exporters increase their competiveness in global markets.

SBA International Affairs and Trade Policy Trade Agreements Must Be for Small Business: Small businesses are underrepresented in government policy development and require an champion in order to ensure their interests are advanced in trade. Small businesses rely on trade agreement text to obtain reasonable certainty in all matters of foreign customs procedures, requirements and standards, and intellectual property protection. SBA actively participates in developing small business beneficial trade commitments and text so that foreign trade regulations do not unnecessary burden U.S. small business exporters.

SBA Trade Inquiry Point Created new inquiry point to report trade problems expressly for U.S. small businesses: +1(855)722-4877 or international@sba.gov Collaborate with U.S. small businesses to help them: 1. Articulate their foreign trade problems a formidable challenge of itself; 2. Conduct the necessary due diligence assemble the necessary supporting documents and materials and to assess the legitimacy of the alleged barrier; and 3. Develop an international advocacy strategy coordinate interagency support, and help resolve the obstacle to foreign market access.

Small Group Discussions I. Questions: I. Trade Policy- a) What do you see as the key trade policy issues that affect U.S. small businesses (from both a challenges and opportunities perspective)? b) How can NASBITE and SBA help ensure the small businesses benefit/trade more under a new NAFTA? c) Other topics or ideas? II. Fed & State Trade Development- a) How can we best encourage and support the development of local partnerships/collaboration for export promotion? b) How can SBDCs, CGBPs, and other stakeholders be better engaged in the STEP? c) Other topics or ideas? II. Report back

Contact Info Stephen.Sullivan@sba.gov 202-205-6961 Tanya.Smith@sba.gov 202-205-7268 For more information, please visit www.sba.gov/international