Becoming an exporter can feel like an impossible goal for many small business owners. But an innovative federal program is making it easier for more companies to take that next big STEP.
STEP stands for the State Trade and Export Program. The U.S. Small Business Administration has awarded millions in grant funding to Missouri, Kansas and several other states, which in turn help companies market themselves globally.
The rationale for implementing the program is quite simple. When companies begin or increase export sales, product demand increases. Those companies need more workers to fulfill orders, unemployment decreases, and the U.S. economy strengthens. Imagine you are a salesperson walking into a room of 100 potential buyers, but you only pitch to four people. Sounds silly, right? Well, if you are an American company only marketing your product or service to American consumers, I’ve just described you.
How the Funds are Used
During 2012, STEP grants were used all over the country for activities such as participation in foreign trade shows and trade missions, translation services, market research, international marketing materials, export training and more. If you are accepted into the program, most of the initiatives you take to connect with new markets or increase awareness of your products abroad could be partially reimbursed through STEP.
Each state has a different cluster, market or industry focus. Missouri has special funding considerations for activities focused on the Brazilian, Russian, Indian, Chinese and Republic of Korea markets for the industries of processed foods, agriculture, machinery, transportation equipment (automotive and aerospace), renewable energy technologies and chemicals. Kansas is focusing its efforts on the Chinese, Russian
and Western European markets for the industries of aerospace and agriculture.
Companies that participate in the STEP Program will be pleased to find there is not a one-size-fits-all approach. State agencies work individually with companies to determine their specific needs and goals, then introduce them to the vast international support resources, right in their own backyard.
Is My Business Qualified?
This program is aimed at two types of small businesses: those that currently export to just one country, and those that have never exported but would like to start.
Key requirements include having 51 percent of operations in the state in which you’re applying, employing fewer than 500 people, and having profitable operations in the United States.
Special considerations will be given to those small businesses classified as rural, women- or veteran-owned, socially and economically disadvantaged, and those directly or indirectly affected by supply chain exports.
For more information or to apply, Missouri companies should call (573) 751-4855 or visit www.ded.mo.gov/mostep. Kansas companies can call Nathalie Scharf, international trade representative for the Kansas
Department of Commerce, at (913) 345-8072. Applications will be reviewed on a first-come, first-served basis pending the availability of funding.
The funding available for STEP is part of a three-year pilot initiative, so seize the opportunity while it’s available.
