Program Overview
The MEDC International Trade Program has a new allocation of State Trade Expansion Program (STEP) funds available for eligible small business concerns. On September 12, 2019, the U.S. Small Business Administration (SBA) awarded Michigan the maximum state award of $900,000 in MI-STEP funds for FY20. With additional state match funding, total funds available are $2.1 million.
The program has three primary objectives:
- Increase the number of Michigan small businesses that export
- Increase the dollar value of Michigan exports
- Increase the number of Michigan small businesses exploring significant new trade opportunities
Eligibility
Up to $15,000 in assistance is available to offset 50 percent of pre-approved expenses per fiscal year. Michigan companies must meet the following eligibility criteria to qualify for MI-STEP funds:
- Be in accordance with Small Business Administration
(SBA) guidelines and size standards:
www.sba.gov/content/small-business-size-standards
- Demonstrate an understanding of the costs associated
with exporting and doing business with foreign purchasers,
including the costs of freight forwarding, customs brokers,
packing, and shipping, per SBA guidelines
- Demonstrate potential for export success and positive
impact on the regional economy
- Provide an EIN number linked to a Michigan address
- Be in good standing with the Michigan Department of
Treasury and other regulatory agencies
- Must be an export-ready U.S. company seeking to
export goods or services of U.S. origin or have at least
51 percent U.S. content
Determine U.S. COntent
Allowable Uses of MI-STEP Funds
Program funds may be approved for export marketing-related activities including:
- Participation in foreign trade missions
- U.S. Department of Commerce services
- Website translation into foreign language, search engine optimization, and localization services capped at $6,000 reimbursement per award year*
- Design of marketing media (brochures, branded giveaways, social media, advertising, etc.) capped at $6,000 reimbursement per award year
- International trade show participation
- Foreign sales trip
- U.S.-based international trade show participation
- Participation in export training workshops
- Reverse foreign buyer missions (meeting space/audio visual)
*In response to COVID-19, international website development is now reimbursable up to 75% effective through 9/29/2020.
Expense/Reimbursement Limitations
Ineligible expenses include:
- Meals, entertainment, cell phone charges, gifts, and personal expenses
- Passport and visa fees
- Immunization expenses
- Travel reimbursement for distributors or sales representatives not employed by the Michigan company
- Fees for shipping products to be sold in market
- Export compliance testing expenses
- Printing materials/services
Please also note:
- Travel reimbursement is limited to two (2) travelers who must be U.S. citizens
- Flights must adhere to Fly America/Open Skies agreements. Only economy flights are eligible for reimbursement — no upgrades
- Fees for shipping sample products cannot exceed $4,000 reimbursement per award year (cap increased to $4,000 from $2,000 due to COVID-19 response)
- Mileage is reimbursable at the federal per diem rate — no gas receipts, unless used with a rental car
Contact your ITM to Apply
