Michigan’s State Trade Expansion Program

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 6, 2023 the U.S. Small Business Administration (SBA) awarded Michigan $900,000 in MI-STEP funds for FY24. With additional state match funding, total funds available are $1.2 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

MI-STEP applications are accepted annually November 1 through September 15 pending funding availability. Applications must be received a minimum of three (3) business days prior to the start date of travel or the start date of an eligible non-travel activity. Applications that do not meet this requirement are not eligible and will not be processed or approved. Reimbursements are subject to funding availability on a first-come, first-served basis regardless of application approval status.

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:

1. Be in accordance with Small Business Administration
   (SBA) guidelines and size standards:
   www.sba.gov/content/small-business-size-standards
2. Be able to provide, upon request, a copy of a Michigan LARA Annual Report Filing OR a copy of sole proprietorship or limited partnership filing from the county registrar's office.
3. 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
4. Demonstrate potential for export success and positive
   impact on the regional economy
5. Provide an EIN number linked to a Michigan address
6. Be in good standing with the Michigan Department of
   Treasury and other regulatory agencies
7. 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
8. Be able to demonstrate minimum gross annual revenue of $100k
9. Be a full-time means of employment
10. Demonstrate a competitive advantage and capability of entering international markets against local products and services
11. Wholesale distributors of imported products are ineligible
12. MI-STEP program utilization is not guaranteed and is subject to past performance, program compliance, return on investment (ROI) and a demonstrated export growth need as detailed in the export strategic plan

Determine U.S. Content

Allowable Uses of MI-STEP Funds

Program funds may be approved for export marketing-related activities including:

1. Participation in foreign trade mission
   - Participations fees
   - Basic economy airfare and
   - Lodging expenses at the nightly federal per diem rate
   
   
2. Participation in international trade shows
   - Booth space fees, associated booth space expenses i.e. electrical, furniture, carpet
   - Basic economy airfare and
   - Lodging expenses at the nightly federal per diem rate
   
   
3. Up to three lifetime participations in U.S. based trade shows where at least 20% international attendance can be demonstrated by the company
   - Booth space fees, associated booth space expenses i.e. electrical, furniture, carpet
   - Basic economy airfare and
   - Lodging expenses at the nightly federal per diem rate
   
   
4. Participation in foreign market sales trips
   - Basic economy airfare
   - Lodging expenses at the nightly federal per diem rate
   - USCS Gold Key services

Expense/Reimbursement Limitations

Ineligible expenses include:

• Meals, entertainment, cell phone charges, gifts, personal expenses, giveaways, promotional items, clothing, etc.
• Passport and visa fees
• Immunization and COVID related testing expenses
• Travel reimbursement for distributors or sales representatives not employed by the Michigan company
• Fees for shipping products to be sold in market
• Printing materials/services
• Ground transportation including but not limited to mileage, taxis, Ubers, trains, and rental cars
• Annual membership fees and dues, conferences, annual meetings, and symposiums

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. Flight eCredits are ineligible

Contact your ITM to Apply