STEP FY 2018 Synopsis.docx

Program Synopsis General Information

Archive Date:

Explanation of “Other” Category of Funding Activity:

The Federal share of project cost for States that do not have high export volume will be 75% and State matching funds required will be 25% of the sum of the Federal award and Recipient match amount. This means that for every $1 of Federal funds proposed, these Recipients must provide $.333333 in match.

If an insular area non-Federal entity is an agency or instrumentality of the area’s government, pursuant to 48 U.S.C. § 1469a, SBA will waive up to $200,000 of the matching funds required if a STEP award is made to American Samoa, Guam, the U.S. Virgin Islands, or the Commonwealth of Northern Mariana Islands. If the insular area non-Federal entity is not an agency or instrumentality of the area’s government, the full matching funds requirement applies.

Matching funds must be comprised of not less than 50% cash and not more than 50% of indirect and in-kind contributions. Matching funds may not be derived from any Federal program. Non-Federal entity personnel salary and fringe proposed as match will be counted as cash.

Non-Federal entities may not use program income for the purpose of meeting their match.

Eligible Applicants:

The Trade Facilitation and Trade Enforcement Act of 2015 provides that STEP grants may be awarded only to “States,” meaning any of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of Northern Mariana Islands, and American Samoa. Therefore, only non-Federal entities that meet this definition are eligible for an award under this Funding Opportunity Announcement.

For purposes of this Funding Opportunity Announcement, the term “eligible non-Federal entity” means a State agency or other entity that, prior to the date of application for this Announcement, has been officially designated by the State Governor, or equivalent thereof (e.g., Mayor of the District of Columbia), as the sole applicant and lead entity for conducting the State’s trade and export activities.

i. The organizational structure of the State’s designated international trade arm must show an official agency relationship with State government, and the State must provide financial backing in meeting the required match amount and show support for program activities.

ii. Only those proposals accompanied by the written designation of the State Governor, or his/her designee, may submit an application for evaluation and funding consideration.

iii. Should the Governor, or equivalent thereof, assign to a designee the signatory responsibility for the designation letter, the designation letter must include an acknowledgement that the Governor, or his/her equivalent, has authorized the designee to sign the letter on his/her behalf.

iv. For insular areas, the equivalent of a State Governor is the appropriate signatory.

Description:

Program Announcement No. OIT-STEP-2018-01 U.S. Small Business Administration/Office of International Trade (OIT)

SUMMARY: The Trade Facilitation and Trade Enforcement Act of 2015 (HR 644), signed into law on February 24, 2016, made the State Trade Expansion Program a permanent provision of the Small Business Act to make grants to States, and the equivalent thereof, to carry out projects that help develop exports by eligible small business concerns (ESBCs). The objective of STEP is to increase the number of US small businesses that export, to increase the dollar value of exports, and new export opportunities.

The SBA is issuing Funding Opportunity Announcement No. OIT–STEP–2018–01 to invite the several States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of Northern Mariana Islands (hereinafter ‘States’) to apply for a STEP grant to carry out export development projects that assist ‘eligible small business concerns’ to become exporters and to increase the value of small business exports. The STEP grants will be awarded on a competitive basis. A State may not submit more than one application for an award under the program. Awards will be made for a two year period of performance.

SUPPLEMENTARY INFORMATION: The objective of STEP is to increase the number of US small businesses that export, to increase the dollar value of exports, and new export opportunities.

States may apply to SBA for awards of financial assistance under this Announcement to fund projects to carry out milestone goals and supporting export activities to assist eligible small business concerns, such as:

1. Participation in foreign trade missions

2. Subscription to services provided by the Department of Commerce

3. Payment of website fees (specifically, translation to foreign languages, localization for foreign markets, and search engine optimization)

4. Design of marketing media

5. Trade show exhibitions

6. Participation in export training workshops

7. Reverse trade mission which brings foreign buyers to the United States to meet with potential suppliers of U.S.-manufactured goods and services

8. Procurement of consultancy services (after consultation with the Department of Commerce to avoid duplication of services)

9. Other export initiatives determined appropriate by SBA’s Associate Administrator (or the Deputy Associate Administrator) of the Office of International Trade and do not duplicate the services available from SBA, SBA resource partners, or other applicable Federal trade agencies.

Applicants selected for awards under this Announcement are expected to leverage SBA funding by working in conjunction with SBA’s District Offices, U.S. Export Assistance Center trade finance specialists and SBA’s resource partners such as Small Business Development Centers (SBDC), SCORE, Women’s Business Centers, Veterans Business Outreach Centers, Small Business Investment Companies, Certified Development Companies, SBA lenders. SBA is particularly interested in demonstrated collaboration with Federal agencies (such as, U.S. Commercial Service) and other Federal, state, local and tribal government export development programs and activities provided by institutions of higher education (colleges & universities), trade and vocational schools or private organizations such as; chambers of commerce, trade and industry groups and associations.

Before submitting an application under the STEP Funding Opportunity Announcement, Applicants will consult with applicable trade agencies of the Federal Government to ensure coordination to reduce duplication in the execution of the export activities that the Applicant intends to propose for funding under a STEP award. At a minimum, Applicants must consult with:

a. The SBA District Office serving the non-Federal entities State (or the District Office that serves the non-Federal entities State capital or is located nearest to the non-Federal entities office for States with multiple SBA District Offices); and,

b. The Department of Commerce US Commercial Service US Export Assistance Center (USEAC) serving the non-Federal entity State capitol or located nearest to the non-Federal entities office for States with multiple USEACs.

c. American Samoa, the Commonwealth of Northern Mariana Islands, and Guam should consult with the SBA District Office and the USEAC located in Hawaii.

SBA expects to issue awards under this Funding Opportunity Announcement totaling the full $18,000,000 appropriated for this purpose during the Federal FY 2018. Individual State project award amounts will vary based on the State’s proposed project plan and budget, approved by the SBA. The Federal share of project costs for grants to the 10 States with the highest number of exporters that are small business concerns will not exceed 40% of the $18,000,000 awarded. The States with the highest number of small business exporters will be determined based on the latest data available from the U.S. Department of Commerce.

FOR FURTHER INFORMATION:

Obtain the Program Announcement OIT-STEP-2018-01 at www.grants.gov.

Applicants may submit questions to STEP email inbox (STEP@SBA.gov) during the open period (April 9, 2018 through April 13, 2018). SBA will post answers to the questions on https://www.sba.gov/STEP by April 20, 2018.