SBA State Trade Expansion Program (STEP) Explained

STEP can help an established U.S. small business pay approved costs of entering or expanding an export market. You apply to a participating state or territory program, which sets the available activities, business-level limits, and payment procedure. Start before committing to an event or expense: an activity that is already completed may be too late to fund.

Check business eligibility and export readiness

The State Trade Expansion Program provides awards to states and territories so they can support eligible businesses. The basic business requirements include being organized or incorporated and operating in the United States, meeting the applicable SBA small business size test, being in business for at least one year when assistance begins, and having sufficient resources for the costs of trade. A new company with only a few months of operations should check this timing before preparing an application.

Your state can add requirements about location, export readiness, U.S. content, eligible industries, or prior awards. Prepare a specific target market, product or service, proposed activity and dates, expected sales benefit, vendor quotes, and a budget. STEP supports export development; it is not a general grant to cover rent, domestic advertising, or ordinary production costs.

Find the current state application

1. Find your state contact. Use the STEP state and territory contact directory and follow the link for your location. The totals in the national directory are awards to state programs, not amounts promised to your company.
2. Read that program's active round. Check the application window, activity dates, remaining funds, business-level cap, covered percentage, exclusions, and required approvals. An old federal notice inviting applications from state governments is not the application for your business.
3. Request approval for the particular activity. Submit the state application and budget as instructed. Ask which expenses can be incurred before written approval and which would become ineligible. Do not treat a submission confirmation as a funding commitment.
4. Follow the award conditions. Once approved, carry out the authorized activity, retain the payment and participation records, and submit the reimbursement or other payment request by the state's deadline. Obtain approval for changes rather than substituting a different event on your own.

Approved activities can include trade missions and shows, export training, market-entry services, translation, international marketing, website globalization, and certain federal export services. The state must approve the particular expense; a broad activity category does not make every related charge reimbursable.

Budget for the payment method

There is no nationwide business entitlement of $10,000 to $25,000 or universal 25% business match. The state's current rules control your maximum award, covered percentage, eligible cost categories, and whether assistance is a reimbursement, subsidized service, or another approved arrangement.

For a reimbursement award, budget enough cash to pay the full eligible expense first, any excluded expenses, and the amount you will keep paying after reimbursement. Check the approved dollar ceiling as well as the percentage. A grant covering 75% of eligible costs may still pay less when the approved ceiling is lower.

Washington example: a reimbursement is not upfront cash

The Washington STEP export voucher application currently covers future activities, with up to three vouchers and $10,000 under its stated program limits. A voucher cannot cover more than 75% of an event's expenses. If a business has $4,000 of approved eligible expenses and a $3,000 voucher, it pays $4,000 first, then can claim $3,000 with the required records; its share is $1,000. Excluded costs increase that share.

Washington requires a Statewide Vendor Number for payment and the required reimbursement documents within 30 days after the last travel date. Airfare has additional carrier, fare, payment, and boarding-pass requirements. If the event changes, the existing voucher must be relinquished and a new application submitted. These are Washington's rules; use your own state's instructions for a project elsewhere.

If funding or reimbursement is denied

Ask the state program which eligibility condition, activity, cost, or document caused the decision. Missing proof of payment is different from an event that was never eligible or a round that has exhausted its funds. Follow the state's correction or review procedure and deadline; approval of an activity does not excuse an incomplete reimbursement packet.

For an application denial, ask whether a different eligible activity or later round can be considered. Washington explicitly permits a new application for a different event or activity in the same year. If your product or export plan is not ready, ask the state export team or a local business counselor for planning help before booking another event.