Deadline: 10-Aug-2026
The State Trade Expansion Program (STEP) Grant Program, funded by the U.S. Small Business Administration (SBA), supports state-led initiatives that help eligible small businesses expand into international markets, increase export sales, and access new trade opportunities. The FY2026 program expects to provide up to $20 million in funding, with individual awards ranging from $100,000 to $900,000 for eligible designated state entities.
Overview of the State Trade Expansion Program (STEP) Grant Program
The State Trade Expansion Program (STEP) is a U.S. Small Business Administration (SBA) funding initiative designed to help small business concerns participate in global trade activities.
The program provides financial assistance to state-level organizations that support small businesses in:
- Entering international markets
- Increasing export revenue
- Participating in global trade events
- Developing international marketing strategies
- Building long-term export capacity
The primary goal of STEP is to increase the number of U.S. small businesses that export products and services while strengthening international trade opportunities.
Program Objectives and Priorities
The STEP Grant Program focuses on expanding U.S. small business participation in international commerce.
Key objectives include:
- Increasing the number of small businesses engaged in exporting
- Increasing the total value of exports generated by small businesses
- Helping businesses explore new international markets
- Creating sustainable global trade opportunities
The program supports activities that reduce barriers faced by small businesses entering foreign markets.
Eligible Export Activities Supported by STEP Funding
STEP grants may support a wide range of export-related activities.
Eligible activities include:
International Trade Missions
Funding may support participation in:
- Foreign trade missions
- Reverse trade missions
- International business delegations
These activities help small businesses connect with overseas buyers, distributors, and partners.
International Trade Shows and Exhibitions
Support may be provided for participation in:
- Foreign trade exhibitions
- International industry events
- Export-focused trade shows
These opportunities allow businesses to promote their products and establish international partnerships.
Export Marketing and Localization
Eligible activities may include:
- Website translation
- Product translation
- Search engine optimization (SEO)
- Website localization for foreign markets
- International marketing media design
These activities help businesses adapt their products and marketing materials for international customers.
Export Training and Business Development
STEP funding may support:
Training helps businesses understand export regulations, international sales strategies, and market requirements.
Other Approved Export Initiatives
The SBA may also approve additional activities that support small business export development.
Funding Amount and Grant Details
Under the FY2026 funding opportunity:
- Expected total funding: Up to $20 million
- Individual award range: $100,000 to $900,000
Funding is intended to support state-level programs that provide export assistance to eligible small business concerns.
Who Is Eligible?
The STEP Grant Program is open to eligible non-federal entities that meet SBA requirements.
Eligible applicants may include:
- State governments
- Public and state-controlled institutions of higher education
- Private institutions of higher education
- Nonprofit organizations with 501(c)(3) status
However, eligibility alone is not sufficient. Applicants must also meet STEP designation requirements.
Required Applicant Designation
Applicants must be officially designated as the state’s lead entity for trade and export activities.
The applicant must:
- Be a state agency or another entity officially designated by the state governor or equivalent authority
- Act as the sole applicant and lead organization for state export activities
- Have an official agency relationship with the state government
- Receive state financial support for required matching funds
- Submit a written designation letter signed by the governor or authorized representative
Only entities meeting these requirements may receive STEP awards.
How STEP Funding Can Be Used
STEP funds may support costs directly related to eligible export activities.
Allowable uses include:
- Expenses incurred by eligible small businesses participating in approved export activities
- Participation costs for trade missions
- Trade show participation expenses
- Export training activities
- International marketing support
- Travel expenses for designated state STEP personnel
STEP personnel travel may be supported when the purpose is to:
- Identify eligible small businesses
- Build export opportunity pipelines
- Support businesses during trade missions and trade shows
Who Is Not Eligible?
Organizations may be disqualified if they:
- Have not received official designation from the state governor as the lead trade entity
- Have unresolved federal financial obligations
- Are suspended or debarred from federal funding
- Have unresolved material audit issues from the previous three years
- Had a STEP award terminated or not renewed for cause within the previous year
- Filed bankruptcy within the last five years
- Plan to operate only as a pass-through entity managed by another organization
- Have been convicted of certain federal felony violations within the previous two years
How to Apply for the STEP Grant Program
Eligible entities should follow these steps:
Step 1: Confirm Eligibility
Applicants should verify that they:
- Meet SBA applicant requirements
- Have official state designation
- Can provide required matching funds
- Have authority to manage statewide export activities
Step 2: Obtain State Designation Documentation
Applicants must secure:
- Governor’s designation letter or authorized equivalent
- Proof of state agency relationship
- Evidence of state financial backing
Step 3: Develop an Export Assistance Plan
The proposal should explain:
- Export activities to be supported
- Target small businesses
- Expected international trade outcomes
- Budget requirements
- Performance goals
Step 4: Submit Application Materials
Applicants must provide required SBA application documents and supporting information according to program instructions.
Common Mistakes and Application Tips
Applicants should avoid:
Missing State Designation Requirements
A common reason for ineligibility is failure to provide official state authorization.
Tip: Obtain the required governor-signed designation letter before submission.
Proposing Activities Outside STEP Priorities
Projects should clearly connect funding requests to export growth.
Tip: Explain how activities will increase exporters, export value, or international opportunities.
Weak Outcome Measurement
Applications should demonstrate measurable results.
Tip: Include expected outcomes such as:
- Number of businesses assisted
- Number of trade opportunities created
- Expected export growth
Ignoring Matching Fund Requirements
Applicants must demonstrate state financial support.
Tip: Confirm availability of required matching resources before applying.
Why the STEP Program Matters
The STEP Grant Program helps small businesses overcome challenges associated with international expansion.
The program supports:
- Global market access
- Export readiness
- International business relationships
- Economic growth through trade
- Increased competitiveness of U.S. small businesses
By connecting businesses with international opportunities, STEP strengthens local economies while expanding U.S. participation in global markets.
Frequently Asked Questions (FAQ)
1. What is the State Trade Expansion Program (STEP)?
STEP is an SBA-funded grant program that supports state-led export assistance initiatives for eligible small businesses.
2. How much funding is available under the FY2026 STEP Grant Program?
The SBA expects to provide up to $20 million in total funding, with individual awards ranging from $100,000 to $900,000.
3. Can individual small businesses apply directly for STEP grants?
No. STEP grants are awarded to eligible state-designated entities that use funding to support small businesses with export activities.
4. What activities can STEP funding support?
Funding can support trade missions, trade shows, export training, website translation, SEO localization, international marketing, and other approved export activities.
5. Who can apply for STEP funding?
Eligible applicants include state agencies and other entities officially designated by a state governor or equivalent authority to manage state export activities.
6. Are nonprofit organizations eligible?
Yes, nonprofit organizations may be eligible if they meet STEP requirements and have the required official state designation.
7. What is the main goal of STEP funding?
The goal is to increase the number of small businesses exporting, increase export sales, and create new international trade opportunities.
Conclusion
The State Trade Expansion Program (STEP) Grant Program 2026 provides critical support for expanding U.S. small business participation in international trade. By funding export development activities, trade missions, training, and international marketing efforts, STEP helps state-level organizations create stronger pathways for businesses to enter and succeed in global markets.
For more information, visit Grants.gov.