Senate Committee Holds Hearing Highlighting Importance of Export Programs for Small Businesses
July 6, 2009On June 30, the U.S. Senate Committee on Small Business and Entrepreneurship held a field hearing at the Port of New Orleans to discuss government export programs that aid small businesses. Titled Keeping America Competitive: Federal Programs that Promote Small Business Exporting, the event included testimony from a number of witnesses, including U.S. Trade Representative (USTR) Ron Kirk, U.S. Small Business Administration (SBA) Administrator Karen Gordon Mills, and Export-Import Bank of the United States (Ex-Im Bank) Chairman and President Fred Hochberg.
In her opening statement (PDF), Committee Chair Senator May Landrieu (D.-La.) noted that in 2008, $70 billion in exports maintained or created 600,000 high-paying jobs, and that small businesses make up nearly 97% of exporters nationwide. However, she went on to say, “while most of our exporters are small businesses, most of our small businesses are not exporting. In fact, small businesses make up just more than a quarter of the country’s export volume; trade remains dominated by larger businesses. What’s holding our entrepreneurs back?”
During his testimony (PDF), Ambassador Kirk stressed that improving small businesses’ access to new overseas markets is a priority for his office. He discussed a number of things the office is doing to specifically benefit those businesses, including making trade information more accessible and expanding small businesses’ representation on its advisory committees.
“USTR is working hard to ensure that small businesses are able to take full advantage of our trade agreements and the opportunities they provide,” Kirk explained. “We are partnering closely with the Department of Commerce and the Small Business Administration to reach out to networks of small businesses around the country to talk to them about the benefits of trade and the resources available to them through USTR.”
SBA Administrator Gordon Mills pointed out during her testimony (PDF) that in fiscal year 2008, the SBA facilitated more than 3,300 loans for exporters. She also highlighted the benefits of several SBA programs designed to aid exporters, including the Export Working Capital Program, American’s Recovery Capital, and Export Express loans.
Jerry Hingle, Executive Director of the Southern U.S. Trade Association, also provided testimony (PDF) before the committee, during which he stressed the importance of U.S. small business exports to the nation’s economic recovery. He underscored the critical nature of federal trade development programs, like the U.S. Department of Agriculture’s (USDA) Market Access Program (MAP), that provide small firms with the additional resources they need to become successful exporters. He expressed concern over proposals in Washington to cut funding for MAP by 20%, adding that in the current economy it appears counterintuitive to scale back a program that clearly helps small businesses grow internationally and create jobs locally.
“Since MAP’s creation in 1985, U.S. agricultural exports have increased by nearly 300%,” Hingle noted. “These programs have proven to be highly effective at supporting American jobs and encouraging spending in the private sector. We are working to help our representatives in Congress understand that by bringing new companies into the export arena using MAP, we lay the foundation for American small businesses to prosper in the years to come.”
