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Senate Commerce subcommittee hears experts urge central outreach, broadband and financing to help rural exporters

Commerce, Science, and Transportation: Senate Committee · July 31, 2024

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Summary

Witnesses told the Senate Commerce subcommittee that rural exporters face regulatory complexity, limited broadband and transport access, workforce shortages and capital gaps, and urged centralized federal outreach (revived SBA rural office/radar), expanded rural export centers, and targeted workforce and infrastructure investments.

The Senate Commerce Committee's Subcommittee on Tourism, Trade and Export Promotion on Monday heard testimony from trade and state officials who said rural U.S. businesses need clearer, better‑coordinated federal support to sell products abroad.

Chair Rosen opened the hearing by noting exports's importance to the national and Nevada economies and saying only about 1% of American companies export despite most customers living abroad. Reid Westcott, executive director of the Small Business Exporters Association (a council of the National Small Business Association), told senators that the top barrier for small and rural exporters is awareness: "I don't know enough," he said, adding that centralizing information through a revitalized Office of Rural Affairs at the Small Business Administration or a one‑stop dashboard would help close the gap.

The hearing focused on several recurring needs. Dylan Davidson, senior trade officer for the Nevada Department of Agriculture, pointed to regulatory uncertainty, logistics and broadband shortfalls in Nevada's rural counties and credited the Las Vegas West Rural Export Center with helping local producers navigate export processes. "Every exporter and every small business has their own needs," Davidson said, urging more outreach through SBDCs and interagency partnerships.

Gary Salomito, president and CEO of the North Carolina Chamber of Commerce, emphasized workforce and infrastructure as central constraints: "It's about talent, it's about infrastructure, access to capital," he told the panel, citing cold chain investments, port capacity and programs that connect employers with training and banks. Salomito described a "Capital Opportunities" app that matches small firms with lenders' criteria to help businesses become bankable.

On policy responses, witnesses and senators repeatedly recommended two practical steps: (1) centralize and publicize existing federal programs (Westcott urged empowering SBA's Office of Rural Affairs and pointed to S.4764 as a legislative vehicle), and (2) invest in hard infrastructure and workforce pipelines, including broadband, transportation links to ports, cold‑chain storage and apprenticeships. Westcott said harmonizing trade rules and simplifying compliance would lower costs for SMEs; Davidson highlighted the role of USDA programs such as the Market Access Program and State Trade Expansion Program in helping ag exporters reach new markets.

Members of the subcommittee also raised sector‑specific points: Senator Welch noted EXIM Bank financing for Vermont's Beta Technologies and asked how to scale similar support; Senator Klobuchar stressed shipping costs and urged progress on the farm bill to preserve export promotion programs; Senator Hickenlooper asked about apprenticeships and repair rights for rural operators.

Witnesses emphasized that many federal programs already exist but are hard to find or use: Westcott pointed to RAISE (Rural America's Intelligence Service for Exports Research) and rural export centers as sources of data and market intelligence, and urged better coordination with SBDCs and state partners so small firms know "where they live." Davidson and Salomito both recommended stronger outreach, simpler application pathways for export finance, and targeted youth and adult education tied to employer needs.

The hearing produced no votes or formal committee actions. Chair Rosen left the record open for written questions and submitted materials through August 12, 2024, and asked witnesses to respond promptly to any questions for the record.

The testimony underscored bipartisan agreement on the goals — expanding market access for rural firms — but showed differences in preferred tools (regulatory simplification vs. expanded programs). Senators and witnesses converged on a short checklist for follow-up: boost awareness of existing federal supports, expand broadband and transport links that connect rural producers to ports, scale workforce training and apprenticeships, and tailor finance products to the smaller loan sizes typical of rural exporters.