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process, particularly renewed export businesses that would be very 

 helpful. 



Seminars, I know when we have seminars, and we did have one 

 not long ago and had an FAS staff person there with someone from 

 the regional trade association. We had a large turnout, more than 

 50 companies, and again it was very insightful for them and very 

 helpful. 



Mr. Penny. The market promotion program as modified as part 

 of the reconciliation package this summer. Do you have any obser- 

 vations you would like to share on the recommendations taking 

 into account your testimony that you would like to see more than 

 less money devoted to MPP? How do you feel about the redirection 

 of that program based on those reforms? 



Mr. Walker. I think I could support the — realizing again the 

 budget problems we have been facing in Washington and the need 

 to tailor the program and in light of the criticisms of the program 

 in the past, I think that reforms and changes were necessary to 

 preserve the program. 



I do feel, however, that more money could hopefully be made 

 available to the States through the regional trade associations be- 

 cause the States are closer to working with the businesses that are 

 exporting or that are interested in exporting and can leverage 

 these funds with our own State resources and staff to do a better 

 job in helping companies export. 



Mr. Penny. The changes that were made still allow MPP funds 

 to be allocated to these regional trade groups. Are you simply indi- 

 cating that my priority be placed 



Mr. Walker. Yes, sir; Mr. Chairman. That is what I am doing. 

 I think, again, if you look at the track record of the regionals work- 

 ing with the States, that you will see there is an enormous return 

 on the investment as far as exports and increased export sales from 

 these regional associations. And we do have information I could 

 provide to your office. 



Mr. Penny. Paul, you mentioned in your testimony the potential 

 for job creation in rural areas as we move in the direction of value- 

 added commodities. Is that one of the priority goals of our focus on 

 smaller firms that are located in rural settings? 



Mr. O'Connell. Of the 23 projects we have, 18 of them would 

 be considered very small businesses and so that was the focus that 

 we had. Now, there are some technologies that require for you to 

 work with middle-sized or larger companies, but our focus is on the 

 smaller businesses. 



And like I say, 18 of the ones that we funded are in that cat- 

 egory. The first thing that we look for, the board looks for when 

 it is funding a project, is that the particular technology and that 

 company and the business that it has and the business plan and 

 so forth likely would be profitable. In other words, that is the first 

 thing that we look at. 



We have people on the board that are venture capitalists and 

 business people. The technology may be very real, and may look 

 very promising, but unless the individual or the company that is 

 involved has a good business plan and knows where it is going, 

 knows where the markets are, the product that they are talking 



