Permanent link for Gov. Gretchen Whitmer Announces $1.2 Million in Export Assistance Funds Available for Michigan's Small Businesses on October 1, 2024

LANSING, Mich. – Governor Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) today to announce Michigan has received the top award of $900,000 from the U.S. Small Business Administration (SBA) State Trade Expansion Program (STEP) for the upcoming fiscal year. The Michigan Strategic Fund is providing an additional $300,000 as the state match to support the Michigan STEP initiative (MI-STEP) and help small businesses grow through increased access to global markets. MEDC’s International Trade program has now facilitated nearly $6 billion in small business export sales development by deploying critical export resources and fostering a statewide network of export support.

This year marks the 13th year of STEP funding from SBA, which has awarded nearly $15 million to the state of Michigan since its inception. With 95% of the world's consumers and two-thirds of all purchasing power located outside of the United States, Michigan’s administration of STEP dollars to small businesses is critical in promoting Michigan’s goods and services worldwide.

Michigan has historically led the nationwide STEP grant program in results of facilitated export sales. While the national return on investment (ROI) remains 40:1 for facilitated sales realized from SBA STEP dollars, Michigan retains #1 status with a reported ROI of 328:1 during STEP program history.

“This year, Michigan has secured a top STEP award from the Biden-Harris administration’s SBA to help small local businesses access the international market and export their high-quality goods,” said Governor Whitmer. “We are focused on connecting our businesses with the international network they need to expand and create jobs in Michigan. We will get it done by bolstering our federal partnerships and shoring up our state-level initiatives including the MEDC’s International Trade program. Together, we will grow our economy and help small businesses thrive right here in Michigan.”

This year’s SBA award will continue to support export development for small- and medium-sized businesses through grants for international sales trips, trade missions, and trade shows. However, no additional activities will be eligible for the FY25 administration of MI-STEP. MI-STEP is designed to spur job creation by empowering small- and medium-sized businesses to export their products, providing reimbursement grants up to $15,000 annually for eligible export-related expenses.

“Increasing the sale of Michigan goods and services to global markets is an important part of taking the state’s ‘Make It in Michigan’ economic development strategy globally. Growing export sales not only fosters increased company revenue and stability but also supports higher incomes for Michiganders by helping Michigan exporters revitalize communities and create greater employment and entrepreneurial options,” said Quentin L. Messer, Jr., CEO of MEDC and President and Chair of the MSF Board. “In fiscal year 2023, federal and state funding for MI-STEP allocated more than $2 million to 254 companies. Michigan small businesses utilizing MEDC’s International Trade resources, including MI-STEP, reported $510 million in new export sales to 127 countries.”

MI-STEP applications are accepted Nov. 1, 2024 through Sept. 15, 2025 for small- and medium-sized businesses pursuing export development. MI-STEP grants are competitive awards and funding is not guaranteed. Companies that may not qualify for MI-STEP or do not receive MI-STEP funding are encouraged to engage with Michigan’s network of international trade resources and service providers offering support for businesses at any point along their international growth journey. These services include B2B matchmaking, qualified and unqualified partner lists, worldwide credit reports, export compliance support, customized market research, and more –available at no cost to Michigan small businesses.

Click below to get details on how to apply for assistance, including MI-STEP eligibility requirements and the application process, or complete the online intake form to start a conversation with an International Trade Manager.

Get Details on How to Apply

Categories: MEDC New Articles
Posted on Permanent link for Gov. Gretchen Whitmer Announces $1.2 Million in Export Assistance Funds Available for Michigan's Small Businesses on October 1, 2024.

Permanent link for Reaching Global Markets: A Small Business Guide to Funding Exports on February 8, 2024

How can small businesses grow their customer base and increase profitability? Export!

When local markets are facing tough times or simply not bringing in enough revenue, the next step in expanding a small business and increasing revenue is to start exporting goods to access new global markets.

Common Concerns about Exporting

Exporting, however, may seem quite daunting and expensive to the inexperienced individual. Fortunately, there are several financial resources, mentors, and consultants available for small businesses to utilize to create an export strategy and set up export operations unique to their business needs.

Setting up and maintaining export operations does require an investment of both time and money, but with 95% of the world’s consumers outside of the U.S., it has the potential to turn into a profitable investment. If traditional bank financing doesn’t fit your business needs, there are different types of loan programs that help in setting up and/or maintaining export plans and provide alternatives to traditional loan options to fund export endeavors.

Export Programs

Programs funded through the U.S. Small Business Association (SBA) that small businesses should be aware of include: 

• SBA State Trade Expansion Program (STEP)
• SBA International Trade Loan Program
• SBA Export Working Capital Program
• SBA Export Express Loan Program

SBA loans are provided through banks, but SBA guarantees a substantial portion of the loan – up to 90% – making it more likely to get accepted than a traditional, non-SBA-backed loan.

State Trade Expansion Program (STEP)

One of the most easily accessible financial assistance options available for exporting is the STEP program.

The State Trade Expansion Program (STEP) is a completely different category than the other loan program since technically it’s not a loan at all. Though the money given to the state government is awarded by SBA, it is ultimately the individual state’s economic development department that distributes these funds– no repayment is required.

State-level STEP assistance helps small businesses:

• Learn how to export
• Participate in foreign trade missions and trade shows
• Obtain services to support foreign market entry
• Develop websites to attract foreign buyers
• Design international marketing products or campaigns

Roughly 46 of the 50 states were awarded STEP funds, including Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgie, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Michigan’s STEP program, MI-STEP, administered by the Michigan Economic Development Corporation, offers export assistance that covers up to 50% of export-eligible expenses. For more information on MI-STEP, check out our blog article Michigan Small Businesses Are Missing Out on Free Money: Why You Should Take Advantage of MI-STEP .

Coverage rates and total assistance varies by state, check your state’s STEP policy for exact export assistance information.

International Trade Loan Program

The most expansive of these would be the International Trade Loan Program. Companies can be approved to borrow a maximum of $5 million through this program with a processing time of roughly 5 - 10 business days.

These loans are available to help small businesses enter international markets and compete with businesses already present in the market. It works by combining fixed assets, working capital financing, and debt refinancing for the maximum amount of assistance.

Export Working Capital Program

The Export Working Capital Program is similar to the International Trade Loan Program in that there is a $5 million maximum borrowing limit and 5 - 10 day processing time, but the purpose is slightly different.

People applying for this loan already have a finalized sale or export contract in hand and just need the extra funds to seal the deal. This venture is ultimately a bit less risky than going into a market blind – like the prior program – which makes the approval process easier.

Export Express Loan Program

The Export Express Loan Program allows small businesses to get loans accepted within 36 hours with the trade-off of only being able to borrow $500,000 or less.

The reason turnaround time is so quick is that Export Express lenders can directly underwrite a loan without SBA prior approval.

Meet Your Export Mentors

For businesses interested in learning how to export their goods and explore funding opportunities and resources available for this endeavor, GVSU’s Van Andel Global Trade Center along with state and federal partners from the Michigan Economic Development Corporation (MEDC), Michigan West Coast Chamber of Commerce, U.S. Department of Commerce - Grand Rapids, Michigan Small Business Development Center, Export-Import Bank of the United States, Networks Northwest, U.S. Small Business Association (SBA), and more, are offering four opportunities to join us for our New to Export Workshops throughout the state of Michigan in 2024, visit our event page for dates and details!

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Natalie Bremmer is a Student Assistant at GVSU’s Van Andel Global Trade Center . She is a Junior currently pursuing a Bachelor in Business Administration degree in Finance, Human Resource Management, and General Management at Grand Valley State University. She enjoys lifting weights, getting lost in a good video game, spending time with friends, and going on long hikes.

Originally published 12/14/2022 - Updated 2/8/2024

Categories: Export MEDC
Posted on Permanent link for Reaching Global Markets: A Small Business Guide to Funding Exports on February 8, 2024.

Permanent link for Michigan Small Businesses are Missing Out on Free Money: Why You Should Take Advantage of MI-STEP on April 20, 2022

by Natalie Bremmer

Michigan Economic Development Corporation's MI-STEP

The Michigan Economic Development Corporation (MEDC) oversees Michigan’s State Trade Expansion Program (MI-STEP) to give financial assistance to small businesses to pursue exporting their products and gain access to larger global markets.

They have roughly $2.667 million worth of aid to give out to small businesses across the state. Up to 75% of pre-approved exporting expenses can be covered with a $15,000 maximum per business in a fiscal year when the Michigan company follows the MI-STEP eligibility criteria.

This program makes entering or expanding in new global markets viable for small or medium-sized businesses eager to expand while accommodating a more limited budget.

MI-STEP may seem confusing at first glance, so here are its three main objectives:

• Increase amount of small and medium-sized businesses in Michigan that participate in exporting
• Grow the dollar value of Michigan exports
• Provide an avenue for Michigan small businesses to explore new trade opportunities

The eligibility criteria to secure aid from this program include:

1. Being in accordance with SBA standards
2. Demonstrate understanding of export costs and business with foreign markets; including freight forwarding, packing, shipping, and customs brokers
3. Show potential for successful exporting as well as a positive impact on the regional economy
4. Provide an EIN number that is linked to a Michigan address
5. Must be in good standing with the Michigan Department of Treasury as well as any other regulatory agencies
6. Must be a U.S. company that is prepared to export goods of U.S. origin with a minimum of 51% U.S. content

Once a business gets this aid, there are particular transactions that will be covered by MI-STEP funds. These include but are not limited to:

• Participating in foreign-trade missions
• E-commerce fees for advertisement and website design
• Participation in international trade shows
• Foreign sales trips (up to two people on an economy flight)
• EXIM export credit insurance premiums
• Participation in export training workshops

One company that benefitted greatly from an MI-STEP award was Armor Protective Packaging: a rust removal company that specializes in making clean, safe, and easily used vapor corrosion inhibitor packaging. Through MI-STEP, they were able to expand to provide to 90% of the Fortune 500’s industrial companies as well as several other countries across the world. More specifically, MI-STEP helped this company with having the funds to create a local website translated and customized for the different languages and cultures of the specific countries they were selling to– effectively expanding their digital footprint. They were also able to travel to some of these countries to network and secure international business partners which was another huge step for them to reach their global markets.

GVSU's Van Andel Global Trade Center

The Van Andel Global Trade Center is an easily accessible resource with various export training programs and workshops that are eligible for MI-STEP coverage that teaches small businesses how to find success similar to how Armor Protective Packaging did. VAGTC’s incredibly knowledgeable team has been working with businesses across Michigan for over two decades in both one-on-one and group settings– entirely depending on their clients' needs. Throughout their time at GVSU they’ve worked with over 10,000 companies and have assisted more than 31,000 business professionals. Not only do they have a wealth of experience with exporting, but they also assist companies of all sizes with importing concerns.

VAGTC consults with companies in the following areas:

• Exporting/Importing
• Export & Import Procedure Manuals
• Compliance (export and import)
• Free Trade Agreements such as USMCA
• Global Supply Chain Logistics
• Export Controls Training: ITAR & EAR
• Cultural Training
• Market Research
• Foreign-Trade Zones
• Global Risk Factors
• Harmonized Schedule/Classifications, Export Control Classification Numbers
• and more!

Their website has a variety of helpful resources like guidebooks, available programs, trade zones, and Worldwide Credit Reports. VAGTC memberships are also available for discounts on workshops and more individualized assistance.

With an ever-expanding global market, there has been no better time to enter it than right now. Check out MEDC's MI-STEP website with full details on the program and begin taking full advantage of all that MEDC has to offer! Companies can also learn more about VAGTC’s services and how we can get you connected to the MI-STEP program by contacting us today! Now is the time to grow your small business through increased export sales, let us help!!

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About the Author

Natalie Bremmer is a Student Assistant at  GVSU’s Van Andel Global Trade Center . She is a sophomore currently pursuing an undergraduate degree in Finance and Human Resource Management at Grand Valley State University. She enjoys lifting weights, playing video games, spending time with friends, and going on long hikes.

Categories: Export MEDC
Posted on Permanent link for Michigan Small Businesses are Missing Out on Free Money: Why You Should Take Advantage of MI-STEP on April 20, 2022.