The SBA State Trade Expansion Program (STEP) offers financial assistance to small businesses aiming to increase their exports and expand into international markets. While the specific benefit varies by state and activity, businesses may typically access up to $10,000 – $25,000, subject to state-level funding and SBA budget allocations. This program helps U.S. small businesses overcome obstacles to exporting by providing grants to cover various export-related costs.
What is the SBA State Trade Expansion Program (STEP)?
The State Trade Expansion Program (STEP) is a U.S. Small Business Administration (SBA) initiative designed to boost U.S. exports and enhance the global competitiveness of small businesses. Since 2011, the STEP grant program has assisted thousands of small businesses in finding customers in the international marketplace. The SBA provides financial awards to state and territory governments, which then administer the program at the local level through their economic development agencies or departments of commerce. Nationally, the program is managed by the SBA’s Office of Manufacturing and Trade.
Who Qualifies?
Eligibility for STEP grants is primarily for small businesses that meet the SBA’s size standards. The program targets businesses that are either new to exporting or are looking to expand into new international markets. While specific eligibility criteria can vary by state or territory, applicants generally need to:
- Meet the SBA’s definition of a small business.
- Be new to export or expanding into new markets.
- Have a viable product or service with potential for export.
- Be located in a state or territory that has received a STEP award from the SBA.
It is critical to verify specific requirements with your state’s administering agency, as these can differ significantly.
What You Can Get
The STEP program provides grants to small businesses to cover costs associated with entering and expanding into international markets. While the exact financial benefit varies by state and specific activity, businesses typically receive assistance ranging up to $10,000 – $25,000 per business. This amount is subject to state-level funding availability and SBA budget allocations, so it’s essential to confirm current limits with your state’s program administrator.
Funds from a STEP grant can be used for a variety of export-related activities, including but not limited to:
- Participation in foreign trade missions.
- Export training workshops and programs.
- Market research to identify international opportunities.
- Development of international marketing products and campaigns.
- Website globalization and e-commerce capabilities.
- Design of international packaging.
- Participation in export trade show exhibits.
- Subscriptions to services provided by the U.S. Department of Commerce and other federal agencies.
It is common for the STEP program to require a small business matching contribution, often around 25% of the total project cost. This co-payment helps ensure commitment from the participating businesses.
How to Apply — Step-by-Step
The application process for the STEP program is managed at the state level by state economic development agencies or departments of commerce. There isn’t a single federal application form for small businesses; instead, you apply directly to your state’s program.
- Identify Your State’s STEP Awardee: Begin by contacting the economic development agency or department of commerce in your specific state or territory. These are the “STEP awardees” that receive funding from the SBA and then provide grants to eligible small businesses. You can find contact information and links to state programs via the official SBA STEP page at sba.gov/funding-programs/grants/state-trade-expansion-program-step.
- Inquire About Program Details: Once you’ve identified your state’s contact, inquire about their specific STEP program details. This includes eligibility criteria, available funding amounts, approved activities, matching contribution requirements, and any state-specific deadlines.
- Prepare Your Application: Based on your state’s guidance, gather all necessary documentation. This typically includes information about your business, your product/service, your export goals, and a detailed plan for how you intend to use the grant funds.
- Submit Your Application: Follow your state’s instructions for submitting your application. This may involve online portals, email submissions, or physical mail.
- Await Notification: Processing times vary by state and the volume of applications. The state agency will notify you regarding the status of your application.
Always verify the most current application procedures and deadlines directly with your state’s administering agency before applying, as details can change.
Common Mistakes & Pitfalls
Navigating grant programs can be complex. Small businesses applying for STEP grants should be aware of common pitfalls to increase their chances of success:
- Not Meeting State-Specific Eligibility: Each state has unique criteria beyond the general SBA guidelines. Failing to thoroughly review and meet these specific requirements can lead to immediate disqualification.
- Lack of a Clear Export Plan: Applications without a well-defined strategy for how the funds will lead to increased exports or market expansion are often rejected. A vague plan suggests a lack of serious intent or understanding of the international market.
- Underestimating the Matching Contribution: Many STEP programs require a business to contribute a percentage of the project cost. Not budgeting for or being unable to meet this match can halt an otherwise strong application.
- Applying for Unapproved Activities: Funds are designated for specific export-related activities. Proposing to use funds for general business expenses or activities not explicitly covered by the program guidelines is a common mistake.
- Missing Deadlines: State programs often have strict application windows and deadlines. Submitting late, even by a small margin, typically results in the application not being considered.
- Incomplete or Inaccurate Documentation: Providing partial information or errors in the application can cause delays or outright rejection. Double-check all forms and supporting documents for accuracy and completeness.
Frequently Asked Questions
What is the primary goal of the STEP program?
The primary goal of the SBA State Trade Expansion Program (STEP) is to boost U.S. exports and enhance the global competitiveness of American small businesses. It aims to help small businesses overcome financial and knowledge-based obstacles to entering and expanding into international markets, thereby creating jobs and strengthening the U.S. economy.
Who manages the STEP program?
At the national level, the STEP program is managed by the U.S. Small Business Administration’s (SBA) Office of Manufacturing and Trade. However, the financial awards are provided to state and territory governments, which then administer and manage the program at the local level through their respective economic development agencies or departments of commerce.
Are there any costs for small businesses participating in STEP?
Yes, small businesses participating in the STEP program are often required to provide a matching contribution for the export activities they undertake. This matching requirement typically ranges around 25% of the total project cost, though the exact percentage can vary by state and specific program guidelines. It is important to confirm this with your state’s administering agency.
What types of activities does STEP financial support help U.S. small businesses with?
STEP financial support helps U.S. small businesses with a wide range of export development activities. These include learning to export, participating in foreign trade missions, designing international marketing products and campaigns, supporting website globalization and e-commerce capabilities, paying for subscriptions to services provided by federal agencies, and participating in export trade show exhibits and training workshops.
Where to Get Help
- Apply or check status: SBA.gov
- Free counseling from SCORE (sba.gov/local-assistance/find/?type=SCORE) or Small Business Development Centers (SBDC)
- Tax-related questions: IRS.gov or consult a licensed tax professional
- SBA Answer Desk: 1-800-827-5722
Reviewed by Gov Money Map Editorial Team — Last verified: 2026-05-13
Primary Sources: U.S. Small Business Administration (SBA.gov) and IRS. Official program page: https://www.sba.gov/funding-programs/grants/state-trade-expansion-program-step
DISCLAIMER: Gov Money Map is not a government agency, tax advisor, financial advisor, or law firm. This page provides general educational information only. Federal program rules, dollar amounts, and eligibility criteria change frequently — verify current details with the official agency before submitting an application or making a financial decision. Last updated: May 2026.