State Trade Expansion Program (STEP)

The U.S. Small Business Administration (SBA), through its Office of Manufacturing and Trade, administers the State Trade Expansion Program (STEP) under the authority of 15 U.S.C. § 649(l). This program was permanently authorized through the Trade Facilitation and Trade Enforcement Act of 2015. The purpose of STEP is to increase the number of eligible small business concerns (ESBCs) that export, to raise the dollar value of their exports, and to support exploration of significant new trade opportunities. The program supports non-federal entities, specifically state-designated organizations, that can deliver export development services directly benefiting small businesses. STEP provides federal grants to eligible state-level entities to support a range of export promotion activities. These include participation in foreign and reverse trade missions, subscription services with the U.S. Commercial Service, translation and localization services, international marketing media design, trade show participation, and export training workshops. Applications must dedicate at least 85% of proposed federal funds to activities that directly benefit ESBCs. Proposals that fail to meet this threshold are considered nonresponsive and will not be evaluated. Eligible applicants are restricted to U.S. states and insular areas officially designated by a state governor or equivalent authority. The designated entity must be the state’s lead agency for trade and export activity and must demonstrate financial backing for the required match. Proposals must be submitted electronically through www.Grants.gov by July 31, 2025, at 11:59 PM EST. Only one proposal per state will be accepted. Applications require detailed documentation including a technical proposal, performance measures plan, budget forms, designation letters, and various certifications. Evaluation criteria are divided into two tiers. Tier I assesses project design and the extent to which the proposal directly benefits ESBCs and engages collaborative partnerships. Tier II evaluates past performance, with new applicants automatically awarded partial credit to prevent disadvantage. A minimum combined score of 70 points is required to receive funding. SBA anticipates awarding approximately 56 grants totaling up to $20 million for FY2025, with individual awards ranging from $100,000 to $900,000. Key dates include the application open date of June 16, 2025, and the close date of July 31, 2025. Questions must be submitted to STEP@sba.gov by June 26, 2025, and responses will be posted by July 11, 2025. Award notifications are expected on or after September 30, 2025. All awards are for a 12-month base period with a potential 12-month option period, both contingent upon continued program authority and funding availability. The STEP program enforces strict compliance requirements including cost allowability, matching funds, and restrictions on expenditures. For example, matching funds may not originate from federal sources, and costs such as domestic marketing or passport fees are disallowed. Reporting obligations include quarterly financial and progress reports. SBA emphasizes the importance of leveraging partnerships and encourages proposals that serve underserved small business communities.

Use SBA templates Submit early to avoid technical issues Ensure 85% of funding benefits ESBCs Include opt-in SBA referral language in client forms