STEP Improvement Act of 2026

When program funding is at least $30 million for a second consecutive fiscal year, grants would use a formula: it sets minimum allocations for states, territories and commonwealths, then distributes remaining funds using measures including export sales, program activities, new participants and businesses in underserved communities. The formula would also limit how far apart some metric-based allocations can be.

A state, territory or commonwealth generally could not receive less than 80 percent of its prior grant. The minimum could be adjusted for reduced program funding or low spending, and reduced if funds cannot cover all qualified applicants or a grantee significantly violates program rules.

The bill would change the program’s authorization of appropriations from fiscal years 2016 through 2020 to fiscal years 2027 through 2031; it does not specify dollar amounts for those years.

The SBA would publish grant application information on a yearly schedule and create a concise application using common federal trade-program forms where feasible. States could revise budgets after receiving funds, but revisions reallocating at least 10 percent would generally need approval.

The SBA would survey states receiving grants, collect performance data and report on outcomes, grant calculations and monthly funding obligations. It would also use a reporting process designed to reduce duplicate data entry and notify a grantee if reimbursement information has not been processed within 21 days.

The bill defines economically distressed small businesses using location-based criteria, including low- or moderate-income areas and designated zones. Grant funds for foreign trade missions could be used only for eligible small businesses that have operated for at least 1 year.