State Trade Expansion Program (STEP)

The U.S. Small Business Administration (SBA), through its Office of Manufacturing and Trade, has released the FY2025 Notice of Funding Opportunity (NOFO) for the State Trade Expansion Program (STEP), under announcement number OIT-STEP-2025-01. STEP is authorized by the Trade Facilitation and Trade Enforcement Act of 2015, which permanently amended the Small Business Act to empower SBA to make grants to states and equivalent entities for the purpose of expanding the number and value of small business exports. The overarching goal of the STEP program is to enhance the ability of eligible small business concerns (ESBCs) to compete in the international marketplace by funding activities that help them explore new markets and increase export sales. The SBA anticipates awarding up to $20 million in FY2025, contingent upon Congressional appropriations, to approximately 56 recipients. Award amounts range from a minimum of $100,000 to a maximum of $900,000. The project period spans 12 months, beginning September 30, 2025, and may be followed by a one-year option period at the discretion of SBA. The application process opens on June 16, 2025, and closes at 11:59 PM EDT on July 31, 2025. Applications must be submitted through www.Grants.gov. Proposals submitted by ineligible entities or past the deadline will be automatically rejected. Funding can only be used for allowable statutory activities that directly benefit ESBCs, including participation in foreign and reverse trade missions, trade shows, translation and localization of marketing materials, subscription services to commercial databases, export training workshops, and digital marketing. Applicants must demonstrate that at least 85% of proposed federal award funds will go toward direct support for ESBCs. Administrative costs are strictly limited and must be fully documented. Matching requirements differ based on state export volume: states with high export volumes (California, New York, and Texas) must provide 35% match, while other states must provide 25%. Matching contributions must be composed of at least 50% cash and may not be sourced from federal funds. Only states and equivalent entities designated by their governor or the equivalent authority are eligible to apply. The applicant must be a state agency or organization with a formal designation as the sole entity responsible for international trade and export activities. The application must include various components including a technical proposal, financial assistance plan, budget forms (SF-424, SF-424A), a match certification letter, a governor’s designation letter, cost policy statement, audit report, and resumes of key personnel. The technical proposal must outline export strategy, proposed activities, collaboration plans, performance measures, and outcomes. Applications are reviewed through a two-tier evaluation process. Tier I evaluates project design, collaboration, benefit to small businesses, and data collection plans, accounting for 20 points. Tier II evaluates past performance, with a maximum of 80 points. Applications must receive a minimum combined score of 70 to be considered for funding. First-time applicants or those without a STEP 10 award automatically receive 55 points for Tier II. Preference is given to proposals that support new exporters (New-to-Export, or NTE) and businesses expanding into new markets (Market Expansion, or ME), and that prioritize underserved communities, rural businesses, and first-time STEP participants. Questions related to the NOFO may be submitted to STEP@sba.gov between June 16 and June 26, 2025. SBA will respond to all submitted questions by approximately July 11, 2025, via www.sba.gov/STEP. No additional questions will be accepted after June 26. The primary point of contact is Mina Wales, Director of the State Trade Expansion Program. Reporting requirements for grantees include quarterly financial and progress reports. Costs associated with domestic travel, lobbying, construction, and product development are not eligible for reimbursement. Additionally, SBA emphasizes that all products supported with STEP funds must contain at least 51% U.S. content.

Submit questions by June 26. Match 85% direct benefit rule. Follow naming guidelines.