PURE MICHIGAN STATE TRADE and EXPORT PROMOTION (STEP) PROGRAM For Global Business Club of Mid-Michigan November 17, 2011 By Deanna Richeson MEDC Director, Export Office

2 Pure Michigan STEP Export Program OVERVIEW National Export Initiative goal to double exports in five years (by 2014) Small Business Administration (SBA) State Trade & Export Promotion (STEP) Pilot Reimbursement Program $30 million/year nationwide for 3 years 2

3 Pure Michigan STEP Export Program $2 million Michigan STEP Program for FY $1.5 million SBA award to the MEDC $0.5 million MEDC match Objectives: Increase Michigan’s export sales Increase number of Michigan companies exporting Introduce Michigan’s current exporters to new foreign markets Increase Higher Paying Jobs 3

4 STATEWIDE PARTNER COLLABORATION Next Tier of Regional Partners Multipliers Banks Law Firms Accounting Firms

5 Pure Michigan STEP Export Program ROLE of REGIONAL EXPORT HOSTS (RENs) Customize the region’s export strategy Promote export opportunities & connect SMEs to export resources House MEDC’s International Trade Development Manager (ITM) Facilitate STEP grant applications Facilitate pre-approved STEP grant reimbursements Cover counties 5

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7 Pure Michigan STEP Export Program WHO CAN QUALIFY Have 500 or fewer global employees Provide an Employer Identification Number (EIN) linked to a Michigan address Be in good standing with Michigan Department of Treasury and other federal, state and local government agencies Have the commitment and ability to export to foreign markets (export-ready) 7

8 Pure Michigan STEP Export Program ELIGIBILITY TIERS Tier 1 Early stage company; never exported Will benefit from SBTDC consultation, training and market research Need to complete only the STEP Intake form Tier 2 Strong domestic sales track record; strong financials Never exported or reactively exported 50% reimbursement up to $10,000 for qualified export activities Need to complete STEP Intake form, Company Profile and STEP Grant request Tier 3 Established international sales; proactive export sales strategy Selling in one or more foreign markets 50% reimbursement up to $25,000 for qualified export activities Need to complete STEP Intake form, Company Profile and STEP Grant request 8

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10 Pure Michigan STEP Export Program ALLOWABLE USES OF STEP FUNDS STEP funds may support, but are not limited to, marketing- related activities such as: Overseas trade mission participation International or domestic trade show participation Foreign market buyer missions Subscription to U.S. Department of Commerce services Website development related to international trade Language translation of marketing materials 10

11 Pure Michigan STEP Export Program HOW IT WORKS Interested SME applicants submit an Intake Form at Intake Forms are reviewed and assessed for eligibility by MEDC export staff within 5 days of submission If eligible, applicants are assessed as Tier 1, 2 or 3 If ineligible, applicants are notified with reason for denial, and invited to resubmit if appropriate Tier 1 will be referred to resources for export training, market research and consultation. They do not need to complete the STEP Company Profile Tiers 2 and 3 will be contacted by the ITM and invited to complete the STEP Company Profile and STEP Export Grant Agreement 11

12 Pure Michigan STEP Export Program REQUESTING APPROVAL FOR A STEP GRANT STEP Export Activity Summary and Budget must be submitted at least 30 days prior to incurring expenses, or 60 days if travel is included in the activity Estimated expenses must be approved in advance by REN/ITM to assess measurable economic impact and ensure SBA approval of export activity Applicants agree to track results of funded export activities and share with REN/MEDC Applicants must respond to quarterly surveys and provide export sales total, export transactions and business activities resulting from STEP program Applicant must pay for qualifying activities to receive 50% reimbursement 12

13 Pure Michigan STEP Export Program OBTAINING REIMBURSEMENT All receipts and proof of payment documentation must be submitted to REN within 30 days of export activity REN and ITM will verify that receipts align with approved STEP grant If documentation is complete, applicant will receive reimbursement within 30 days of submission. REN will notify applicant within 2 weeks of submission if documentation is incomplete; applicant will be asked to resubmit with complete information Documents will be subject to state and federal review and audit 13

14 Pure Michigan STEP Export Program If you have questions, please contact: Your Regional Export Network Host (see REN Map) or MEDC Export Office Thank you! 14