Texas is the largest exporting state in the country, and small businesses that export can access one of the most underused federal grant programs available: the State Trade Expansion Program (STEP). Administered through the SBA and the Texas Governor’s Office of Economic Development and Tourism, STEP provides direct financial assistance to small businesses entering or expanding in international markets. This guide explains how the program works, what it covers, and how to apply.
What STEP Is
The State Trade Expansion Program is a federally funded, state-administered grant program that reimburses eligible small businesses for export-related activities. Unlike many federal programs, STEP provides direct financial assistance, not loans, to cover specific costs associated with entering or expanding international trade. The program is authorized under the Small Business Act and funded through annual Congressional appropriations to the SBA.
What STEP Covers
STEP funds can be used for a wide range of export development activities:
- Trade show participation: Booth fees, registration, and travel costs for exhibiting at international trade shows, both domestic shows with international buyers and shows held abroad.
- Trade missions: Participation in organized trade missions to foreign markets, including travel and lodging.
- Export training: Courses and workshops on export compliance, documentation, market research, and international business strategy.
- Website translation and localization: Translating business websites, marketing materials, and product documentation into foreign languages.
- International marketing: Development of export-specific marketing materials, product brochures, and catalogs for foreign markets.
- Export compliance: Costs associated with obtaining export licenses, certifications, and regulatory compliance documentation.
- Design of international marketing campaigns: Digital and print marketing targeted at specific foreign markets.
Eligibility Requirements
To qualify for STEP in Texas, your business must meet these criteria:
- Meet the SBA’s definition of a small business based on your industry’s size standard (employee count or annual revenue)
- Be in business for at least one year
- Have a product or service that is export-ready or nearly export-ready
- Be registered in the Texas Secretary of State’s records
- Not be debarred, suspended, or otherwise excluded from federal assistance
Both new-to-export businesses and companies looking to expand into additional markets can qualify. The program prioritizes small businesses that have not previously exported or that export to only a limited number of markets.
How Much Funding Is Available
Individual STEP awards in Texas have typically ranged from $2,500 to $10,000 per company per program year, though amounts vary by funding cycle and the number of applicants. The program operates on a reimbursement basis: you pay the costs upfront and submit receipts for reimbursement after the activity is completed. Some activities may require pre-approval before the expense is incurred.
How to Apply
Step 1: Contact the Administering Agency
In Texas, STEP is administered through the Governor’s Office of Economic Development and Tourism, which works with regional export assistance organizations. Contact the office or check the SBA’s STEP page for the current Texas program administrator and application timeline.
Step 2: Prepare Your Export Plan
Applications that demonstrate a clear export strategy perform better. Identify your target market, explain why your product or service is competitive in that market, describe the specific activities you plan to undertake, and provide a budget for each activity.
Step 3: Submit the Application
Complete the application during the open window. Application periods vary by program year, and the window is sometimes open for only a few weeks. Include all required documentation: business registration, financial statements, export plan, and activity budget.
Step 4: Complete Activities and Submit for Reimbursement
After approval, complete the funded activities within the program period. Submit receipts, attendance records, and activity reports for reimbursement. Documentation requirements are strict: keep detailed records of all expenses and outcomes.
Other Export Resources for Texas Businesses
- Export-Import Bank of the United States: Provides export credit insurance, working capital guarantees, and direct loans to support US exporters. Texas businesses are among the heaviest users nationally.
- US Commercial Service Texas offices: Federal trade specialists located in Houston, Dallas, Austin, San Antonio, and other Texas cities provide market research, trade counseling, and buyer matchmaking services.
- SBA Export Express loans: Streamlined SBA loans up to $500,000 specifically for export-related purposes, including working capital to fulfill export orders.
- Texas SBDC International Trade Centers: Several Texas SBDCs have dedicated international trade advisors who provide free export counseling and market research.
Find All Programs That Fit Your Business
STEP is a strong starting point for Texas businesses exploring international markets, but it is just one program in a broader landscape. Export-oriented businesses may also qualify for manufacturing tax exemptions, workforce training grants, and R&D tax credits. Our screening report checks your business against 150+ verified programs and shows you everything you may qualify for. Start your free screening →