STEP Synopsis 5-11-17.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 volumes will be 75%, and State matching funds required will be 25%.

Pursuant to 48 U.S.C. § 1469a, SBA will waive up to $200,000 in matching funds requirement for STEP Awards to the insular areas (American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth of Northern Mariana Islands).

Eligible Applicants The Trade Facilitation and Enforcement Act of 2015 (HR 644) directs the Small Business Administration’s Office of International Trade to establish the State Trade Expansion Program (STEP) to make grants to ‘States,’ meaning any of the United States plus the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of Northern Mariana Islands, and American Samoa.

For purposes of this Program Announcement, the term ‘eligible applicant,’ shall mean a state agency that has been officially designated by a 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, and that such designation occurred prior to the date of application submission for an award under the State Trade Expansion Program.

1. The organizational structure of the State’s designated international trade agency must show an official agency relationship with State government, and the State must provide financial backing and show support for proposed export activities.

2. Only those proposals bearing the written designation as an eligible applicant by the State Governor, or his/her designee, may submit an application for evaluation and funding consideration.

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

4. For insular areas, the equivalent of a State governor is the appropriate signatory.

5. Only one proposal will be considered per state.

Description:

Program Announcement No. OIT-STEP-2017-01 U.S. Small Business Administration/Office of International Trade (OIT)

SUMMARY: The Trade Facilitation and 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 awards to States, and the equivalent thereof, to carry out projects that help develop exports by eligible small business concerns (ESBC). The intended outcomes of STEP are to increase the number of US small businesses that export (including expansion into new markets) and to increase the dollar value of exports by those small businesses that currently export.

The SBA is issuing Funding Opportunity Announcement No. OIT–STEP–2017–01 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 project period of 12 months from the specified beginning of the performance period.

Each Applicant is expected to design a proposal that reflects the export development needs of their State export economy and is encouraged to promote export development to a broad range of small businesses, to include the following four small business communities:

i. Owned and controlled by socially and economically disadvantaged individuals;

ii. Owned and controlled by women;

iii. Owned and controlled by veterans and/or service-connected disabled veterans; and/or,

iv. Rural.

SUPPLEMENTARY INFORMATION: The objective of the STEP is to increase the number of small businesses that are exporting and to increase the value of small businesses exports.

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 of the Office of International Trade that 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 other Federal, State, local and tribal governments; SBA’s District Offices and Trade Finance Specialists at U.S. Export Assistance Centers and SBA resource partners such as Small Business Development Centers, SCORE, Women’s Business Centers, Veterans Business Outreach Centers, 7(j) Technical Assistance providers, Small Business Investment Companies, Certified Development Companies, and SBA lenders; universities, colleges, and other institutions of higher education; and private organizations such as chambers of commerce and 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 Applicant State (or the District Office that serves the Applicant’s State capitol or is located nearest to the Applicant’s office for States with multiple SBA District Offices); and,

b. The Department of Commerce US Commercial Service US Export Assistance Center (USEAC) serving the Applicant State capitol or located nearest to the Applicant’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.

Because of the scope and substance of services contemplated under this program announcement, in making awards under it, SBA will emphasize project collaboration with international trade service providers and the return on investment (ROI) of export activities that support the accomplishment of STEP objectives. The ROI is the measure of export sales derived from the activity divided by the Federal award amount expended on the activity.

SBA expects to issue awards under this Funding OpportunityAnnouncement totaling the full $18,000,000 appropriated for this purpose during the Federal FY 2017. 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-2017-01 at www.grants.gov.

Email questions about STEP to STEP@sba.gov.