STEP FY2020 NOFO - FINAL - 508 Compliant.pdf

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U.S. Small Business Administration Office of International Trade

State Trade Expansion Program Notice of Funding Opportunity No. OIT-STEP-2020-01

Office of International Trade

STATE TRADE EXPANSION PROGRAM (STEP)

Notice of Funding Opportunity No.

OIT-STEP-2020-01

FY2020

The purpose of this Notice of Funding Opportunity is to invite proposals for funding from eligible state entities interested in and capable of providing assistance and guidance to eligible small business concerns to increase the number of such firms that export and the dollar value of small business exports.

Opening Date: Feb 6, 2020 Closing Date: Apr 7, 2020

Proposals responding to this Notice of Funding Opportunity must be posted to Grants.gov by 11:59 p.m.

Eastern Standard Time, Apr 7, 2020. No other method of submission will be permitted. Proposals submitted after the stipulated deadline will be rejected without being evaluated.

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Table of Contents

Section Subject

1.0 Notice of Funding Opportunity Information 4

1.1 Program Overview 4

1.2 Introduction 5

1.3 Background 5

1.4 Purpose and Allowable Statutory Activities 5

1.5 Collaboration and Leveraging of Resources 8

1.6 SBA Roles and Responsibilities 8

1.7 Changes or Cancellation 9

2.0 Award Information 9

2.1 Estimated Funding 9

2.2 Expected Number of Awards 9

2.3 Period of Performance/Budget Periods 9

2.4 Reprogramming of Unexpended Funds 9

2.5 Funding Information 10

2.6 Funding Instrument 10

2.7 Matching Requirement 10

2.8 Program Income 10

3.0 Eligibility Information 11

3.1 Eligible Non-Federal Entity 11

3.2 Ineligible Non-Federal Entity 11

4.0 Application and Submission Information 12

4.1 General 12

4.2 Application Instructions 12

4.3 Submission Instructions 19

4.4 Required Proposal Submission Date 23

5.0 Application Review Information 23

5.1 General 23

5.2 Evaluation Criteria 23

5.3 Merit-based Review and Selection Process 27

6.0 Award Administration Information 27

6.1 Award Notification 27

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Office of International Trade

State Trade Expansion Program Notice of Funding Opportunity No. OIT-STEP-2020-01

6.2 Administrative and National Policy Requirements 28

6.3 STEP Financial Requirements 28

6.4 Reporting Requirements 30

7.0 Agency Contacts 31

7.1 State Trade Expansion Program Point of Contact 31

7.2 Financial/Awards Management Point of Contact 31

7.3 Grants.gov Technical Support 31

8.0 Other Information 31

8.1 Definitions 31

9.0 Key Policies Applicable to this Announcement 34

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1.0. Notice of Funding Opportunity Information

1.1. Program Overview

1.1.1. Federal Agency Name U.S. Small Business Administration (SBA)

1.1.2. Notice of Funding Opportunity Title State Trade Expansion Program (STEP)

1.1.3. Announcement Type Initial

1.1.4. Notice of Funding Opportunity Number: Notice of Funding Opportunity Announcement No.

OIT-STEP-2020-01

1.1.5. CDFA Number 59.061

1.1.6. Closing Date for Submissions: Apr 7, 2020 11:59 PM Eastern Standard Time

1.1.7. Authority: 15 U.S.C. § 649(l)

1.1.8. Duration of Authority: Permanent

1.1.9. Funding Instrument: Grant

1.1.10. Funding: Funding is for a base period of 12 months, with one option period of 12 months.

1.1.11. Award Amount/Funding Range: The projected amount of STEP funding in FY 2020 and FY 2021 may be $19,000,000 or more each year subject to the availability of funds. Applicants can apply for awards ranging from $100,000 (minimum) to $900,000 (maximum) per year.

Per the statutory authority above, the 10 States with the highest number of small business exporters shall receive no more than 40 percent of the total Federal fiscal year appropriation. Based upon the latest data available from the U.S. Department of Commerce, for purposes of this Notice of Funding Opportunity, these states are: California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Texas.

1.1.12. Project Duration: Awards will be made for a base period of 12 months, with one option period of 12 months. The exercise of the option is at SBA’s discretion and is subject to continuing program authority, the availability of funding, and satisfactory performance by the Non- Federal entity.

1.1.13. Project Starting Date: Within 30 calendar days of the start date of the Project Period.

1.1.14. Proposal Evaluation: An initial screening for eligibility (in accordance with Section 3.1) will be conducted by the program office.

Proposals will be reviewed for sufficiency and quality as detailed in Sections 4 and 5. SBA may ask

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Applicant for clarification of technical proposal and cost aspects of proposals.

1.1.15. Agency Programmatic Point of Contact: James Parker, Director, State Trade Expansion Program, U.S. Small Business Administration, Office of International Trade

Applicants may submit questions to STEP email inbox (STEP@SBA.gov) during the open period (Feb 6, 2020 through Mar 5, 2020). SBA will post answers to the questions on https://www.sba.gov/STEP by about Mar 17, 2020. No additional questions will be answered after Mar 5, 2020.

1.2 Introduction

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) (as defined in Section 8.1.5) . The objective of STEP is to increase (1) the number of U.S. small businesses that export, (2) the dollar value of exports, and (3) the number of U.S. small businesses exploring significant new trade opportunities (as defined in 8.1.15).

1.3 Background

Since its inception in 1953, SBA has served to aid, counsel, assist and protect the interests of small businesses. SBA offers a wealth of financial support, resources and services to small businesses through an array of loan, contract, and grant opportunities. The Agency also plays a critical role in business counseling and training to small businesses and nascent entrepreneurs. The primary purpose is to promote growth, expansion, innovation, increased productivity and management improvement.

The mission of SBA’s Office of International Trade (OIT), which bears responsibility for administering the State Trade Expansion Program, is to build the capacity of current and future small business exporters to compete in the global marketplace through capital, counseling, and the advancement of commercial interests at home and abroad.

1.4 Purpose and Allowable Statutory Activities

The underlying premise of STEP is to supplement non-Federal entities’ (as defined in Section 3.1) funds for export activities, not to substitute Federal funds to cover costs that Applicants would normally or otherwise cover. Per 2 C.F.R. Section 200.408, non-Federal entities’ proposed use of Federal funds for STEP will be limited to the below statutory uses of funds that directly benefit ESBCs to become an exporter, increase their export sales, and/or increase new export opportunities.

Allowable Statutory Activities Guidance

1. Participation in foreign trade missions. For the purposes of STEP, a foreign trade mission is defined as travel to a foreign country by ESBCs that will enable them to explore or expand international business opportunities. As a result of ESBCs participating in foreign trade missions with STEP funds, they are expected to yield tangible outcomes; such as, seeking out potential buyers, and increasing export sales volume. One staff member from the non-Federal entity may participate in the mission (unless reasonable justification can be made that two staff members are mailto:STEP@SBA.gov https://www.sba.gov/STEP

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Office of International Trade needed to participate in the trade mission) is expected to provide direct support to them in achieving these outcomes.

2. Subscription to services provided by the U.S. Department of Commerce. STEP grant recipients may elect to utilize the services available from the U.S. Commercial Service, the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration, to assist ESBCs with entering or expanding their markets; such as, choosing the best market for their products or services; evaluating prospective foreign business partners; increasing market potential;

and gold key matchmaking services.

3. Payment of website fees. This activity pertains to translation of websites into foreign languages, localization for foreign markets, and search engine optimization for ESBCs.

4. Design of Marketing Media. STEP defines marketing media as the ability to promote an eligible small business concern’s product or service to strengthen their export sales potential, ability to reach target audiences, and/or expand export market opportunities using any of the following: Brochures, Social media platforms; Websites; Billboards; Newspapers; Branding and advertising; Posters;

Advertisements in international magazines; Other media approved in advance by STEP as consistent with its definition of marketing media.

5. Trade show exhibition. A trade show is defined by STEP as an exhibition for ESBCs to showcase and demonstrate their products and services. This includes foreign trade shows appropriate for ESBC export development, and domestic trade shows, according to the domestic trade show policy (as specified in Section 8.2.3).

6. Participation in export training workshops. Training workshops and education courses that are offered to recipients of STEP funds must have a direct benefit to, and assist, ESBCs with gaining credible knowledge of export policies, regulations, and/or best practices. Ideally, training should be part of a “pipeline” approach that leads to assisting a first time or ‘novice’ exporter to become an ‘experienced’ exporter. Outcomes, such as, export plans, strategies, and best practices handouts should be deliverables.

Export certification or training workshops offered by SBA resource partners; such as, Small Business Development Centers (SBDCs), Women Business Centers (WBCs) and SCORE are encouraged. Another example is ExporTech: a structured program jointly offered by the NIST Manufacturing Extension Partnership and the U.S. Commercial Service that assist companies going to market and with executing strategic export plans.

7. Reverse trade mission. Reverse trade missions are defined as bringing foreign buyers to the

United States to meet with potential suppliers of U.S. manufactured goods and services. Proposals for this activity are limited to costs borne directly by ESBCs to participate in a reverse trade mission and paid for by a STEP grantee which directly benefit ESBCs (e.g., meeting space, audio/visual support). Payment of any costs associated with travel (transportation, lodging, etc.) of foreign buyers is not allowed.

8. Procurement of consultancy services. This activity is only allowable after the ESBC consultation with the U.S. Department of Commerce to avoid duplication of services.

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9. Other export initiatives. The ‘other’ export initiatives must be determined appropriate by SBA’s Associate Administrator (or the Deputy Associate Administrator) of the Office of International Trade and cannot duplicate the services available from SBA, SBA resource partners, or other applicable Federal trade agencies. For example, foreign market sales trips have been determined by STEP as an appropriate use of STEP funds and is considered an item 9 activity.

STEP Priorities: To ensure the full utilization of all STEP funds, it is strongly recommended that every non-Federal entity request a Federal award amount that can be managed and realistically achieved within a two-year period of performance. A non-Federal entity’s technical proposal and budget should be clearly focused and targeted based on the TOP PRIORITY exporting needs of small businesses in the non-Federal entity’s state that addresses the key performance measures outlined below.

Key Performance Measures:

1. Reach 100% utilization of the award.

2. Increase the number of eligible small business concerns in the State that export.

3. Increase the value of exports by eligible small business concerns in the State.

4. Increase the number of eligible small business concerns exploring significant new trade opportunities.

5. Increase the number of eligible small business concerns in Small Business Communities (as defined in Section 8.1.16) that export.

Direct Support to Eligible Small Business Concerns:

Federal funds must directly support development of New to Export ESBCs (NTE) (as defined in Section 8.1.11) and Market Expansion ESBCs (ME) (as defined in Section 8.1.10). Accordingly, Applicants must reflect in their Technical Proposal and Budget Narrative the use of at least 85 percent of their proposed Federal award for the purpose of providing direct benefit to ESBCs, drawn from the above list of nine allowable statutory activities. An application with less than 85 percent will be considered “not responsive” to the Notice of Funding Opportunity requirements and will not be evaluated. Proposed costs that directly benefit ESBCs are composed of:

i. Costs directly borne by an ESBC to participate in an approved export activity as part of a trade expansion program;

ii. Approved travel by state STEP personnel listed on the A-10 form and with the funding designated on the SF 424A to develop the pipeline of ESBCs and to assist ESBCs on trade missions and shows; and,

iii. Approved contract services that directly support ESBCs (e.g., interpreters that are engaged in meetings between ESBCs and foreign buyers, companies engaged in ESBC website development, and providers of export training).

Applicants may propose efforts that comprise financial assistance awards (e.g., vouchers, stipends) for reimbursements to STEP Clients (as defined in Section 8.1.17) for participation in approved export activities.

1.5 Collaboration and Leveraging of Resources

Non-Federal entities selected for awards under this Announcement are strongly expected to leverage SBA funding by working in conjunction with SBA’s District Offices, SBA’s Export Finance Managers, and SBA’s resource partners such as SBDCs, SCORE, WBCs, Veterans Business Outreach Centers (VBOCs), Small Business Investment Companies (SBICs), Certified Development Companies (CDCs), Page | 8

Office of International Trade and SBA lenders. SBA is particularly interested in demonstrated collaboration with Federal agencies (such as the U.S. Commercial Service) and other Federal, state, local, and tribal government export development programs and activities provided by institutions of higher education (i.e., colleges and universities), trade and vocational schools, and private organizations such as chambers of commerce and trade and industry groups and associations.

Examples of working in conjunction include joint planning, coordination, or execution of export activities between the Applicant and the above entities.

1.6 SBA Roles and Responsibilities

STEP is the statutory responsibility of the Associate Administrator, Office of International Trade. The STEP Director:

i. Establishes program policy, planning, review, coordination, and evaluation;

ii. In collaboration with the Office of Grants Management, manages STEP in accordance with a competitive merit-based review process;

iii. Directs program management and monitoring activities executed by SBA Program Managers and other agency resources;

iv. Ensures effective use of program funds; and,

v. Resolves issues, problems, and/or disputes.

The STEP Program Manager:

i. Has the delegated authority for programmatic execution and financial management of the program;

ii. Serves as the Grants Officer’s Technical Representative (GOTR);

iii. Serves as liaison between OIT and his or her assigned STEP non-Federal entities;

iv. Maintains communication with the District International Trade Officer;

v. Receives copies of all official project documents and maintains project files containing copies of the applications, proposals, budgets, notices of award, web-site information, client follow-up plans, financial, statistical and narrative reports, correspondence, modification requests, payment requests, notes, etc.; and,

vi. Recommends or denies requests for programmatic and budgetary changes to awards and requests for advance of Federal funds and reimbursement of expenditures to the Grants Management Officer.

The Grants Management Officer, Office of Grants Management:

i. Has full responsibility for financial management of grants;

ii. Is responsible for issuance of the notices of award, terms and conditions, and approval of programmatic and budgetary modifications; and,

iii. Reviews and approves all requests for advance of Federal funds and reimbursement of expenditures incurred under the grant.

The District International Trade Officer, SBA District Offices:

i. Serves as SBA’s local point of contact for coordination of the non-Federal entities’ efforts and activities with other SBA resource partners;

ii. Assists STEP non-Federal entities with evaluating activity eligibility for ESBCs; and

iii. Acts as an advocate for a STEP non-Federal entity’s (as defined in Section 8.1.17) program within a district by referring STEP Clients to the STEP program, and helping other SBA personnel and resource partners understand which of their clients are best served by referral to the STEP program.

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The SBA Export Finance Managers:

i. Has lead area responsibility for providing support and assistance regarding SBA’s export-focused loan programs; and,

ii. Guides the STEP non-Federal entity, as necessary, in identifying sources of export-related financial assistance that may be appropriate for STEP Client needs.

1.7 Changes or Cancellation

SBA reserves the right to amend or cancel this Announcement, in whole or in part, at the Agency’s discretion. Should SBA make material changes to this Announcement, the Agency will extend the Closing Date as necessary to afford Applicants sufficient opportunity to address such changes.

2.0 Award Information

2.1 Estimated Funding

SBA may award $19,000,000 or more in FY2020, and $19,000,000 or more in FY2021 under this Announcement, subject to availability of funding.

The award amounts that can be proposed under this Announcement is a minimum of $100,000 each in the base year and option year, and a maximum of $900,000 each in the base year and option year.

2.2 Expected Number of Awards

SBA anticipates making about 48 awards, subject to receiving a passing evaluation score under Section 5.2, available funding for proposed activities, and requested amounts. If the total awards requested by the number of passing applicants is greater than the appropriated funding levels, an applicant may be asked to amend their request to account for the oversubscription of available funds.

2.3 Period of Performance/Budget Periods

An award under this announcement will be made for a two-year period of performance (eight quarters), consisting of a base period of 12 months from the date of the award (September 30, 2020 – September 29, 2021), and one (1) option period of 12 months (September 30, 2021 – September 29, 2022). Exercise of the option periods will be solely at SBA’s discretion and is subject to the continuing program authority, the availability of funds, and Recipients continued satisfactory performance and compliance with all the terms and conditions of the award. The option period will constitute a separate and distinct 12-month Budget Period. Each application should address funding for both the base and option year Budget Period.

2.4 Reprogramming of Unexpended Funds

In accordance with the award amount/funding range established in section 1.1.11, to maximize utilization of available STEP grant funds to the benefit Eligible Small Business Concerns, Non-Federal Entities that receive an award but fail to meet their proposal for forecasted cash needs as reporting in their SF 424A, Section D, may be subject to a mid-performance period reduction in their award level. A Non-Federal Entity will be notified of their failure to meet their proposal for forecasted cash needs in the second and/or third quarter of the period of performance. If at the end of the third quarter of the period of performance a Non-Federal Entity has still not met their proposal for forecasted cash needs, unexpended funds from the first three quarters of the period of performance may be reprogrammed to another Non-Federal Entity during the second year of the period of performance using objective criteria

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Office of International Trade consistent with this Notice of Funding Opportunity. Subject to the statutory limitations, the $100,000 minimum and $900,000 maximum established in section 1.1.11 may be waived by OIT when reprogramming funds in accordance with this section.

2.5 Funding Information

In accordance with 2 C.F.R. Section 200.408, allowability of costs is restricted to the statutory export activities, specified in Section 1.4 above.

In addition, all costs proposed in the non-Federal entity’s budget must meet the tests of reasonableness necessary, allowability, and allocability set forth in the applicable Office of Management and Budget (OMB) cost principles. SBA will not reimburse the non-Federal entity for its proposal preparation costs, and pre-award costs are not allowable for STEP awards under 2 C.F.R. § 200.458.

Funds provided under STEP must be used solely for the purposes stipulated in this Announcement and the Notice of Award for this performance period and may not be commingled with any other monies or transfer of funds from one award to another.

2.6 Funding Instrument

The funding instrument used will be a Grant.

2.7 Matching Requirement

i. The Federal share of project cost for States that have high export volumes will be 65% and the State matching funds required will be 35% of the sum of the Federal award. High export volume was determined based upon U.S. Census Bureau export data by state. This means that for every $1 of Federal funds proposed, STEP non-Federal entities must provide $0.53846 in match. For purposes of this Notice of Funding Opportunity, the high export volume States are California, Texas, and New York.

ii. 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, STEP non-Federal entities must provide $0.333333 in match.

iii. SBA will waive up to $200,000 of the matching funds required for an insular area non-Federal entity that is an agency or instrumentality of an area’s government pursuant to 48 U.S.C. § 1469a, which includes American Samoa, Guam, the U.S. Virgin Islands, and 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.

iv. 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.

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

2.8 Program Income (reference 13 CFR 143.25, 2 CFR 200.80, 2 CFR 200.307)

Program income is gross income from fees or any other monies collected by a STEP non-Federal entity or a partner entity from a STEP ESBC. For STEP, Program Income must be:

i. Included in the applicant-proposed and SBA-approved budget,

ii. Accounted for separately from other Federal and Non-Federal monies,

iii. Added to the approved STEP Federal award amount, and

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iv. Used to directly benefit STEP ESBCs for activities approved by the assigned SBA STEP Program Manager.

Fees paid by a STEP ESBC directly to a recognized provider of export services are not Program Income. The provider can be an independent entity (e.g., U.S. Dept. of Commerce, trade show organizer, export trainer). The entity can be under contract to a STEP non-Federal entity to provide export-related services.

Program income may not be used for the purpose of meeting match requirement and may not be used to support salaries of STEP personnel.

When Applicant intends to serve solely as a fiscal agent and simply receive monies from ESBCs and then provide 100% of the collected costs to third party for services for those ESBCs, rather than using the monies to recoup costs the Applicant has already paid, this approach can be requested, approved and not considered Program Income.

3.0 Eligibility Information

3.1 Eligible Non-Federal Entity (Eligible Applicant)

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 to apply for, and administer an award under this Notice of Funding Opportunity.

For purposes of this Notice of Funding Opportunity, 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.

3.2 Ineligible Non-Federal Entity

The following organizations will automatically be considered ineligible and their applications will be rejected without being evaluated:

i. Any organization that has not been officially designated by a State Governor as the sole applicant and lead entity for conducting the State’s trade and export activities (See Section 3.1 Eligible non-Federal entity, above.);

ii. Any organization that owes an outstanding and unresolved financial obligation to the Federal government;

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iii. Any organization that is currently suspended, debarred or otherwise prohibited from receiving awards of contracts, grants, or cooperative agreements from the Federal government;

iv. Any organization with an outstanding and unresolved material deficiency reported under the requirements of the Single Audit Act or OMB Circular A-133 within the past three years;

v. Any organization that has had a STEP grant or cooperative agreement involuntarily terminated or non-renewed by SBA for cause within the past one year;

vi. Any organization that has filed for bankruptcy within the past five years;

vii. Any organization that proposes to serve as a pass-through and permits another organization to manage the day-to-day operations of the project; and/or

viii. Any organization that was convicted, or had an officer or agent acting on its behalf convicted, of a felony criminal violation under any Federal law within the past two years.

4.0 Application and Submission Information

4.1 General

i. A State may submit only one proposal in response to this Notice of Funding Opportunity.

ii. Any additional applications from a State will automatically be rejected without being evaluated. (Only the latest application successfully submitted by an eligible non-Federal entity to Grants.gov will be screened for potential evaluation for an award.)

iii. Non-Federal entities must round all monetary values to the nearest whole dollar in all budgetary and financial application document submissions.

4.2 Application Instructions

All applications successfully submitted to SBA via Grants.gov will undergo a screening process, consisting of a review for Applicant eligibility and application completeness. Applications will be rejected without further evaluation if they are submitted by ineligible entities or they are non-responsive to the requirements of this Notice of Funding Opportunity.

For Applicant convenience, a technical proposal template and list of application elements are provided to ensure the application package follows the order listed in the Notice of Funding Opportunity.

The following documents are completed as part of the electronic application form on Grants.gov:

1) SF-424, Application Federal Assistance,

2) SF-424A, Budget Information, All documents must be submitted as separate attachments due to new Grants.gov workspace requirements. Documents cannot be bundled together.

Instructions for file naming conventions: Please include the following attachments separately using the exact name and standard order outlined below. The Application elements as described below should be named with the Attachment number [#], Applicant’s State abbreviation (do not spell out state name), and name of document (identified in the left-hand side of chart below). Do not add the word “attachment” in the file name.

For example: [1] [State abbreviation] Cover Letter. Applications must upload the following elements as attachments in Grants.gov:

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REQUIRED APPLICATION ELEMENTS

The following Financial Assistance General Certifications and Representations are located within the System for Award Management (SAM.gov) and do not need to be submitted with this application:

Lobbying Disclosure Act of 1995, 2 U.S.C. 1601 et seq.

Financial Management Certification – 2 CFR 200.302 & 2 CFR 200.303 Debarment and Suspension – 2 CFR Part 180 Drug-Free Workplace – 41 U.S.C. 8103 Tax Compliance – Section 543 of PL 112-55 Conflict of Interest – 2 CFR 200.112

Cover Letter (Maximum 1 page) [1] [State abbreviation] Cover Letter - (Sig ned) Pdf format The first element of the application must be a cover letter containing a summary of each non-Federal entity’s key proposed export activities, which will be sent to Congress and appear on the SBA’s STEP webpage. Submit the Cover Letter electronically in pdf format. The cover letter is not counted in the 10-page requirement and must be one page and include the following information:

i. Non-Federal entity’s name and address (which must match the Governor’s Letter of designation);

ii. Non-Federal entity’s website address;

iii. Non-Federal entity’s STEP webpage, if one already exists;

iv. Name, telephone number, fax number, and email address of the non-Federal entity’s designated point of contact (the Authorized Organizational Representative);

v. Dollar amount of Federal assistance being requested;

vi. A one paragraph summary (110-125 words) of the proposed export activities supporting the proposed milestone goals. Use the following language to start this requirement:

“The (fill in State name) will use STEP award funds to support export development for eligible small business concerns to include (insert the proposed export activities)”.

Technical Proposal template (Maximum 10 pages) [2] [State abbreviation] Technical Proposal-Word format To expedite the proposal review process, Applicants must submit their Technical Proposal using the template provided in the application instructions Appendix. The proposal elements must be in the same order as the evaluation criteria in Section 5.2 of the Notice of Funding Opportunity. The proposal may not exceed 10 pages (excluding title page and cover page) and must be double-spaced on 8 ½ x 11- inch paper. Times New Roman in 12-point font is required. Only the first 10 pages will be reviewed and evaluated. An applicant will not be notified and consulted if additional pages are eliminated and not reviewed.

Non-Federal entities do NOT need to address every allowable statutory export activity (identified in Section 1.4).

Non-Federal entities are strongly encouraged to prepare focused proposals including, performance measures and supporting activities that can realistically be achieved within the two-year performance period.

i. Introduction: Start the Technical Proposal with an ‘Introduction’ section on page one (not on the title page) that summarizes in no more than one (1) paragraph, your organization’s requested Federal and Non-Federal award amount, targeted number of eligible small business concerns, brief description of proposed statutory activities that will be achieved with STEP funds in the base year and in the option year, the total expected export sales, and anticipated return on investment that is realistic and achievable.

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ii. Exporting Experience: In an estimated (1) page, the organizational capability to achieve success in the past and/or present to increase the number of small business exporters, export sales, and significant new trade opportunities.

iii. Project Design: In an estimated 1-7 pages, labeled with the main heading ‘Project Design’, this section should demonstrate how credible and impactful the non-Federal entity’s organization can leverage partnerships to produce new small business exporters, increase ESBCs’ export sales, and expand significant new export opportunities; as well as promote export services to a broad range of small business communities. This section must address all components as described in Section 5.2:

a. Performance Measures & Outcomes;

b. Direct Benefit to ESBCs;

c. Direct Benefit to Small Business Communities; and

d. Collaboration;

iv. Financial Assistance Plan - In an estimated 1 page, labeled with the main heading ‘Financial

Assistance Plan’, this section must outline the eight elements (detailed in Section 5.2) for ESBCs seeking assistance with award funds.

v. Data Collection & Measurement of Outcomes - In an estimated 1 page, labeled with the main heading ‘Data Collection and Measurement of Outcomes’, this section must address the required data collection elements identified in Section 5.2.7 (and listed in technical proposal template); and, the quality of Applicant’s ability to quantitatively measure progress towards achieving proposed outcomes.

STEP’s proven results are measured by an increase in the number of firms, an increase in the value of ‘actual’ export sales, and an increase in significant new export trade opportunities. Refer to Technical Proposal template for more details. Applicants are encouraged to discuss the benefit that can be realized to Your state’s economy as a result of job created and/or job retained stemming from ESBCs participation in export activity. Non-Federal entities shall include a question on your STEP Application to capture the number of jobs created plus jobs retained completed by the client to collect this data.

Proposed Plan: Performance Measures & Outcomes [3] [State abbreviation] Proposed Plan - Excel format Non-Federal entities will be responsible for preparing a Proposed Plan including, Performance Measures and Outcomes in an excel spreadsheet (‘Instructions’ on how to complete proposed plan can be found in the application instructions as an Appendix., based on the Milestone Goals submitted in the Technical Proposal.

The Proposed Plan serves as the data blueprint to measure the extent to which the STEP grant recipient achieves program activities and the results (outcomes) of those measures. If awarded a grant, the grant recipient will be assigned a STEP Program Manager who is responsible for reviewing and approving your plan. Grant recipients will be required to report performance measures achieved, activities completed, and measurable results on a quarterly basis for the full two-year award period. SBA will collect, analyze and utilize this data to evaluate the program’s overall success. Client data will be confidential and used by SBA only if permission is given by a representative of the eligible small business concern

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BUDGET INFORMATION

Each Applicant must provide budget information according to the specific instructions for each item. Submit budget information documents separately, in the following order, with the file name labeled as follows:

Standard Form (SF) 424, Application for Federal Assistance [4] [State abbreviation] SF 424 Online and Pdf format SF 424 Application for Federal Assistance. This standardized form requires basic information about your organization.

The STEP Project Director must be listed in block 8f on the SF 424, not a grant writer or any other contact person, since this is where SBA obtains the contact information to generate the Notice of Award (NOA) for acceptance of the grant. Pertinent information regarding this announcement and all programmatic matters will also need to be provided to the STEP Project Director listed in block 8f.

SF-424A, Budget Information (Non-Construction Programs) [5] [State abbreviation] SF 424A - Online and Pdf format This form requires an estimate of the Applicant's total cost of executing STEP activities described in the technical proposal.

a. Do not show non-Federal funds overmatch. Include only Applicant staff travel in the “Travel” cost category and ESBC travel in the “Other” cost category;

b. For Section A, fill in columns (a) with ‘STEP’, (b) with 59.061, and appropriate total amounts in (e), (f), and (g);

c. For Section B, label column (1) ‘Federal’, label column (2) with exact ‘Non-Federal’ (Cash) match, label column (3) with any ‘Non-Federal’ (In-kind) contribution (from Applicant or a third party). The ‘Total’ Federal and Non-Federal amount is in column (5) and across line K;

d. For Section C, (Non-Federal Resources): Only complete columns 8(a) Grant Program with ‘STEP’, column (b) Applicant (combined Cash/In-kind, if applicable), and column (e) Totals; and;

e. Prepare SF424A, Section D to match Approved Plan expenditures for the first four quarters. In other words, the ‘forecasted cash needs’ for year ONE (base year), Federal amount (line 13) and non-Federal amount (line 14) must match the activity expenditure amounts on your proposed plan by quarter. Line 15, the total amount of expenditures you proposed in your Federal and Non-Federal budget and approved plan for all activities must be the same for the first four quarters; Do not merely divide the total amount by eight (quarters). They should match the technical proposal and proposed plan exactly for proposed activities and requested amounts.

f. Prepare SF424A, Section E, to match Approved Plan expenditures for the 2nd four quarters. In other words, the “forecasted cash needs” for the SECOND year (option year) of award. Federal amount (line

16) and non-Federal amount (line 17) must match the activity expenditure amounts on your proposed plan by quarter. Line 19, the total amount of expenditures you proposed in your Federal budget and Non-Federal budget and proposed plan for all activities must be the same for the 2nd four quarters. Do not merely divide the total amount by quarters. They should match the technical proposal and proposed plan exactly for proposed activities and requested amounts.

Attachments A-10 through A-12 (Budget Detail Worksheets) [6] [State abbreviation] A10 - A12- Pdf format

a. A non-Federal entity STEP Project Director must devote at least 50% of his/her time, to the STEP project if the non-Federal entity is NOT a recipient of a FY 19 STEP (Year 8) award. If the non- Federal entity is a FY 19 STEP (Year 8) grant recipient, the STEP Project Director may divide his/her time across both STEP years to meet the minimum 50% requirement.

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b. On the A-10, identify all personnel who will be funded by Federal and Non-Federal amounts or who will support the STEP project without project funding (follow the sample shown on the A-9 ‘Supplementary Instructions’ for personnel calculations; do not include the A-9 instruction page in the application package);

c. All subtotals and totals on the A-10 through A-12 must match all dollar amounts reflected on SF-424A;

and,

d. Non-Federal entities may substitute their own forms or spreadsheets in place of the A-10 through A-12, provided these alternate forms include all the same cost elements and columns in the same order as the A-10 through A-12.

Budget Narrative [7] [State abbreviation] Budget Narrative - Pdf format

a. Provide a detailed explanation of the components of each budget cost category listed on the SF-424A;

Section B.

b. Explain how each cost component directly benefits ESBCs.

c. Indicate which cost category (item and dollar amount) comprises the proposed Non-activity related

Federal Expense that was entered in the yellow highlighted section at the bottom row (P 21) in the Proposed Plan.

Match Certification [8] [State abbreviation] Match Certification - Pdf format

Provide a match certification letter that reflects the Applicant’s match components composed of the following elements:

-match dollar amount -type of match (cash, indirect expense, or in-kind) -description

A sample match certification letter is included in the application instructions package as an Appendix.

Include as attachments any commitment letter(s) from sources which the Applicant intends to obtain in-kind matching funds.

Commitment letter(s) [9] [State abbreviation] Commitment Letter - Pdf format Commitment letter(s) from sources which the non-Federal entity intends to obtain in-kind matching funds (if applicable).

CERTIFICATION FORMS AND ASSURANCES

Submit certification and assurances forms separately in the following order, with the file name labeled as follows (Note: Where applicable, if the applicant has submitted these certifications and assurances via https://www.SAM.gov over the past 12 months, the applicant can rely on those forms instead of submitting new versions. Applicable forms are marked below. END NOTE):

Cost Policy Statement [10] [State abbreviation] Cost Policy Statement - (Sig ned) Pdf format

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The Cost Policy Statement must describe non-Federal entities general accounting policies and a description of their cost allocation methodology (how each type of proposed cost is allocated: direct, indirect, or match). This policy must be signed by the Chief Financial Officer (or equivalent thereof, holding analogous responsibilities, and having analogous expertise).

Designation Letter [11] [State abbreviation] Governor Designation Letter - (Sig ned) Pdf format Governor’s letter, or equivalent thereof (e.g., Mayor of the District of Columbia), designating the Applicant as the State’s sole applicant and lead entity for conducting the State’s trade and export activities.

Address letter to:

Ms. Michele Schimpp, Deputy Associate Administrator Office of International trade 409 3rd Street, S.W.

Washington, D.C. 20416

For insular areas, the Governor, or equivalent must state that the Applicant is an agency or instrumentality of the area to receive the waiver of matching funds. See Section 3.1.

Consultation Letter [12] [State abbreviation] Consultation Letter - (Sig ned) Pdf format This is a letter documenting consultation with the applicable trade agencies of the Federal Government on the export activities and contract services the non-Federal entity proposes to carry out using a STEP award to reduce duplication with existing Federal services. At a minimum, non-Federal entities must consult with:

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

b. The U.S. Export Assistance Center (USEAC) serving the non-Federal entity’s State capitol or located nearest to the non-Federal entity’s 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.

d. The consultation letter’s purpose is to reduce STEP duplication of existing Federal services. The Consultation Letter has no other purpose.

Use the template Consultation letter for this purpose, which is can be found in the application instructions as an Appendix.

ORGANIZATIONAL MANAGEMENT

Each Applicant must provide budget information according to the specific instructions for each item. Submit org aniza tiona l management documents separately in the following order, with the file name labeled as follows:

Key Personnel Résumés and Position Descriptions [13] [State abbreviation] Key Personnel Resumes and Position Descriptions - Pdf format Résumés and position descriptions for ALL key personnel (including vacant positions) supporting the STEP project.

a. Résumé of STEP Project Director should reflect knowledge and experience with both administering a Federal award and executing the proposed export activities;

b. Other résumés must reflect experience and education relevant to the proposed STEP project.

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Résumés may not be more than one page in length. Only the first page of each resume will be reviewed and evaluated. An applicant will not be notified and consulted if additional pages are eliminated and not reviewed.

Lists of Contractual and Consulting Agreements [14] [State abbreviation] List of Contractual and Consulting- Pdf format Provides two separate lists of Contracts and Agreements as follows:

1. List of Contractual and Consulting Agreements - List of all extant or anticipated contractual and consulting agreements that directly support the Applicant’s proposed export activities which must include:

a. Contract provider name or TBD if contractor is anticipated;

b. Manner in which the provider was or will be selected (i.e., competitively or sole source);

c. Summary of support provided;

d. Actual or estimated contract cost to support the proposed STEP activities;

e. Identity of the employee or official of the Applicant organization who will be responsible for overseeing the agreements; and,

f. Description of oversight process.

Non-Federal entity may follow their own procurement policies and procedures when contracting with Project Funds but must comply with the requirements of 2 C.F.R. §§ 200.317-200.326.: Additionally, when using Project Funds to procure supplies and/or equipment, You are encouraged to purchase American-manufactured goods to the maximum extent practicable. American-manufactured goods are those products for which the cost of their component parts that were mined, produced, or manufactured in the United States exceeds 50 percent of the total cost of all their components. For further guidance regarding what constitutes an American-manufactured good (also known as a domestic end product), see 48 C.F.R. Part 25.

The following additional rules apply to contracts involving $10,000 or less:

a. You do not need to submit copies of the proposed contracts to the GOTR for approval before executing them.

b. The contracts are not required to be awarded via competition if Your organization considers their prices to be reasonable.

The following additional rules apply to contracts involving between $10,001 and $250,000 in Project Funds:

a. You do not need to submit copies of the proposed contracts to the GOTR for approval before executing them.

b. You must obtain price quotes (either orally or in writing) from at least three qualified sources and inform SBA of these quotes in the corresponding payment requests/financial reports.

c. If You do not choose to go with the lowest price quote, you must explainwhy.

The following additional rules apply to contracts involving more than $250,000 in Project Funds:

a. You must submit copies of the proposed contracts to the GOTR for approval before executing the contract.

b. The contracts must be awarded via competition. Non-competitive contracting at this level is only allowed if You can demonstrate to SBA’s satisfaction either: (i) there is only one possible source for a particular good or service or (ii) there is an

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2. List of contracts that the non-Federal entity proposes to charge against the project as a direct cost or to meet matching funds requirement that will be outside the indirect cost rate agreement (e.g., a facilities lease).

a. Contract provider/lessor name.

b. Summary of support provided.

c. Actual or estimated contract cost.

If non-Federal entity does not propose any contract support for this award, include this attachment marked “N/A.”

FINANCIAL MANAGEMENT

Each Applicant must provide financial management information according to the specific instructions for each item. Submit financial management documents separately in the following order, with the file name labeled as follows:

A-133 Audit Report

[15] [State abbreviation] Audit Report - Pdf format

Attach the most recent A-133 audit report. If the Non-Federal entity is not subject to the requirements of the Single Audit Act, the non-Federal entity must instead submit a copy of its most recently audited financial statement and the CPA opinion of this audit (e.g., unqualified, qualified, adverse, etc.)

Note: if the Non-Federal entity’s A-133 or most recent financial statement audit is large, provide a blank page with website link and instruction on where to locate the audit.

Indirect Cost Rate Agreement (ICRA) or…