SBA STEP Grant: Get Up to $10,000 to Export Your Products

95% of the world’s consumers live outside the United States. If you are only selling to customers in the US, you are leaving a massive amount of money on the table. But exporting is scary. It’s expensive. You have to translate your website, pay for booths at trade shows in Germany or Japan, and figure out complex shipping rules.

The SBA State Trade Expansion Program (STEP) is designed to remove the financial risk from that equation.

Here is the deal: The Federal Government gives money to State Governments, and State Governments give that money to you in the form of a reimbursement grant. While the exact amount varies by state (because each state runs its own version of the program), the typical award is between $2,500 and $10,000 per year.

This is essentially “free money” to pay for things you should be doing anyway if you want to grow: upgrading your website, going to trade shows, and designing international marketing materials. If you are a small business with a product that can be shipped, you are crazy not to apply for this.

Key Details at a Glance

Detail	Information
Grant Amount	Typically up to $10,000 (varies by state)
Type of Funding	Reimbursement Grant (You spend, they pay you back)
Application Deadline	Rolling (States accept applications year-round until funds run out)
Key Requirement	Product must be 51% U.S. content
Managing Entity	Your State’s Economic Development Agency (funded by SBA)
Success Rate	High (Many states struggle to give all the money away!)

What This Opportunity Offers

Trade Show Travel This is the most popular use of STEP funds. It can cover your booth fee, your flight, and your hotel for an international trade show. Want to go to the Paris Air Show? Or a massive electronics expo in Tokyo? STEP can pay for a huge chunk of it.

Website Internationalization You can use the funds to translate your website into Spanish, Chinese, or Arabic. You can also use it to pay for “Search Engine Optimization” (SEO) for foreign markets, ensuring that customers in Brazil find you when they Google your product category.

Compliance and Testing Selling electronics in Europe? You need a CE mark. Selling food in Canada? You need compliant packaging. STEP funds can often be used to pay for the testing and certification fees required to enter these new markets.

U.S. Commercial Service Fees The US Department of Commerce offers amazing services, like the “Gold Key Service” where they set up meetings for you with pre-vetted buyers in a foreign country. These services cost money (usually $500-$1,000). STEP can reimburse you for these fees.

Who Should Apply

This program is for established small businesses. It is not for a “guy with an idea.” You need to have a product, a track record of sales in the US, and the capacity to fulfill international orders.

Ideal Candidates:

The Manufacturer: You make specialized machine parts in Ohio. You know there is demand in Germany. You need money to fly to a trade show in Munich to meet distributors.
The E-Commerce Brand: You sell organic skincare products. You want to launch a Japanese version of your Shopify store and run Google Ads targeting Tokyo.
The Service Provider: You are an architecture firm. You want to bid on projects in the Middle East and need to translate your portfolio and travel to Dubai for meetings.

Eligibility Checklist:

SBA Size Standard: You must be a “Small Business” (usually under 500 employees, but check your NAICS code).
US Content: Your product must be at least 51% US content by value. If you just import cheap widgets from China and resell them, you are NOT eligible.
Profitable: Most states require you to be in business for at least 1 year and show a profit (or at least a solid business plan).
Export Ready: You must have a basic understanding of export logistics (or be willing to learn).

Insider Tips for a Winning Application

I have helped dozens of companies get STEP grants. Here is the secret sauce.

1. Apply Early in the Fiscal Year States get their money from the SBA on October 1st (the start of the Federal Fiscal Year). The money is “first come, first served.” If you apply in October or November, your chances are nearly 100%. If you wait until August, the pot might be empty.

2. Read Your State’s Specific Rules Every state is different.

California might cap travel reimbursement at $3,000.
New York might allow $5,000 for website upgrades.
Texas might require a 25% cash match.
Action: Google “[Your State] STEP Grant” and read the specific PDF guidelines for your state.

3. The “51% Rule” Calculation This is where people get stuck. You need to prove your product is American.

Formula: (Factory Price - Cost of Foreign Components) / Factory Price.
Tip: Labor counts! If you import raw materials but your expensive US engineers and factory workers assemble it, the “value add” of their labor counts towards the US content.

4. Combine with “Gold Key” States love it when you use STEP money to buy US Commercial Service products (like the Gold Key Service). It shows you are serious and using government resources efficiently. Mention this in your application.

5. Keep Your Receipts! This is a reimbursement grant. You have to spend the money first. If you lose the hotel receipt or the boarding pass, you will NOT get paid. Scan everything immediately.

Application Timeline

September: The Prep

Action: Identify the trade shows you want to attend next year.
Action: Get quotes for website translation or marketing campaigns. You need real numbers for the application.

October: The Launch

Action: Most states open their applications. Apply immediately.
Action: Fill out the “Self-Representation as an Eligible Small Business Concern” form (SBA Form 1623).

November-December: The Approval

Action: You will get an “Award Letter.” Do not spend money before you get this letter. Costs incurred before approval are usually not reimbursable.

January-June: The Execution

Action: Go to the trade show. Run the ads.
Action: Save every receipt. Save proof of payment (credit card statement). Save “Proof of Activity” (photos of your booth, screenshots of the ads).

July-August: The Reimbursement

Action: Submit your “Reimbursement Request.”
Action: The state will cut you a check (usually within 30-60 days).

Required Materials

SBA Form 1623: Certification that you are a small business and not debarred from federal contracts.
IRS W-9 Form: So the state can pay you.
Budget/Quotes: Vendor quotes for the flight, booth, or website work.
Product Description: Explanation of your product and its US content.
Export Plan: A simple 1-2 page document saying “We want to sell to Country X because Y.”

What Makes an Application Stand Out

Strategic Focus Don’t just say “I want to go to a trade show.” Say “I want to go to the Medical Design Expo in Germany because Germany is the largest market for medical devices in Europe, and we have identified 3 potential distributors there.”

Digital Savvy States are increasingly encouraging “Digital Trade.” Proposals to upgrade e-commerce capabilities or run targeted international digital marketing campaigns are seen as very modern and high-ROI.

Follow-Through If you received a STEP grant last year, did you report your sales? States need to report “Export Sales” to the SBA. If you can say “The $3,000 grant you gave me last year resulted in $50,000 in sales to Mexico,” they will give you money again and again.

Common Mistakes to Avoid

Spending Before Approval I cannot stress this enough. If you buy the plane ticket before you get the signed grant agreement, they will not pay for it. Wait for the signature.

Booking “Economy Plus” Federal rules are strict. They only reimburse economy class airfare. If you book “Economy Plus” or “Business Class,” they might reject the entire ticket cost, not just the upgrade. Fly coach.

Using Non-US Carriers The “Fly America Act” applies to federal funds. You generally must fly on a US carrier (Delta, United, American) or a code-share partner. If you fly Lufthansa or Emirates without a code-share, you might not get reimbursed.

Frequently Asked Questions

Is the grant taxable? Yes. It is considered income for your business. You will receive a 1099-G from the state. However, the expenses you paid for (travel, marketing) are deductible business expenses, so it usually nets out.

Can I apply to multiple states? No. You must apply to the state where your business is headquartered / registered.

What if I am a service business? You are eligible! Architects, engineers, consultants, and software companies export “services.” As long as the buyer is outside the US, it counts.

Do I have to pay it back? No. It is a grant, not a loan. As long as you submit the receipts and show you did the work, the money is yours.

How to Apply

Find Your State Contact: Go to the SBA STEP Map.
Click Your State: It will take you to your local Department of Commerce or Economic Development website.
Download the Application: It’s usually a simple PDF or online form.

The world is waiting for your product. Let the government pay for your ticket to get there.