Dahlkemper Introduces New Plan to Help Small Business Increase Exports, Expand into New Markets

Statement

Congresswoman Kathy Dahlkemper (PA-3) has introduced new legislation to help small businesses expand through exports. The Small Business Export Enhancement Act of 2010 will help small businesses gain access to new markets and increase their exports by strengthening and improving Export Assistance Centers.

"Exporting to new markets represents a major opportunity for growth for our region's small businesses, yet very few are taking advantage of foreign markets. My bill will provide greater support to businesses looking to export by strengthening Export Assistance Centers. The more support we can provide to small businesses to navigate the exporting process, the better," said Rep. Dahlkemper, a member of the House Committee on Small Business. "Businesses in our region stand to benefit greatly by our proximity to the number one recipient of American goods--Canada."

Export Assistance Centers, operated jointly by the U.S. Small Business Administration, the U.S. Department of Commerce, the U.S. Export-Import Bank, provide small- and medium- sized businesses with direct, personalized support with exporting. Rep. Dahlkemper's bill will ensure that the Centers are fully staffed with export finance specialists and expand the number of specialists available to small businesses within two years. The legislation also directs the SBA to analyze the gaps in coverage by the export finance specialists to ensure that all areas are being served by the Export Assistance Centers.

"Exporting has allowed our business to grow by a significant margin," said Michael L. Noble, President of HERO BX in Erie. "Helping small- and medium- sized businesses break into exporting accelerates growth and gives businesses access to an entirely new consumer and client base. Rep. Dahlkemper's plan will surely help businesses in Western Pennsylvania." Hero BX was recently awarded the U.S. Commercial Service's Export Achievement Award.

Currently, less than one percent of our nation's nearly 29 million small businesses export their goods and services; yet, that one percent accounts for about 31.3% of our nations export volume, totaling more than $311 billion in FY2009. According to a study by Comptia, the Computing Technology Industry Association, 86% of small businesses that are exporting reported their export sales are growing faster than their domestic sales.

In FY 2009, the SBA provided over 1,500 loans totaling over $600 million to exporters. On average, over the last five fiscal years, every dollar invested in SBA Export Assistance programs has resulted in $382 in export sales.

Services offered through Export Assistance Centers include three SBA trade and export loan programs targeted towards small business:

* International Trade Loan Program (ITL): The ITL program offers term loans to small businesses that plan to start or continue exporting, as well as to small businesses that have been adversely affected by competition from imports.
* Export Working Capital Program: SBA's Export Working Capital Program (EWCP) loans are targeted to small businesses that are able to generate export sales and need additional working capital to support their sales.
* Export Express Loan Program: SBA Export Express helps small businesses develop or expand their export markets. The program provides exporters and lenders a streamlined method to obtain SBA-backed financing for loans and lines of credit up to $250,000.

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