Ask business leaders from across the commonwealth about the global demand for products from Kentucky companies, and they will give you the same answer — it has never been higher. Earlier this year, Gov. Andy Beshear announced more Kentucky-made products were shipped around the world in 2023 than any other year on record, as the commonwealth broke its single-year total with $40.2 billion in products exported, a 16.6% increase over the previous year.
With the commonwealth preceding a record-setting 2023 with more than $34.4 billion in exports in 2022, it’s safe to say Kentucky businesses are finding success in today’s global market.
Helping these businesses grow in international markets is the State Trade Expansion Program (STEP). In September 2023, Gov. Andy Beshear announced the U.S. Small Business Association (SBA) awarded the commonwealth $400,000 in funds to help more Kentucky companies export.
The grant program, in its 11th year of funding small business growth, provides companies with the information and tools needed to successfully sell their products and services worldwide. Within five years, the goal is to have a STEP company located in each of Kentucky’s 120 counties.
Eligible Kentucky businesses may receive up to $10,000 in reimbursement grant funding, and companies can begin the application process now by visiting kyexports.com.
A wide range of activities are supported by STEP, including training and workshops for export readiness, U.S. Department of Commerce user service, website development including SEO and translations, trade missions, foreign market sales trips, design of international marketing media, exhibiting at trade shows with international audiences, compliance testing, export credit insurance premiums and much more.
Since its inception in 2011, Kentucky STEP has awarded $3.3 million to more than 275 businesses across the state. With 95% of the world’s consumers and two-thirds of all purchasing power located outside the United States, this grant program plays a critical role in providing access to capital, access to markets and access to buyers.
“STEP funds should be seen as an exciting opportunity to become part of a big, new world,” said Mary NeCamp, Kentucky’s STEP director. “Exporting is proven to help businesses increase profits, while making them more resilient by creating diverse revenue sources. STEP can help companies from across the state realize those benefits by introducing their products and services to customers around the globe. The training and education components of Kentucky’s STEP program also equip businesses to successfully navigate challenges that may come with exporting. Reimbursement through STEP gives business owners the tools to bridge the gap between domestic and international markets and receive expert assistance through partner organizations. We look forward to helping eligible businesses in all 120 counties to capitalize on the immense opportunities.”
To set businesses up for success, STEP seeks to help new-to-exporting firms by initially requiring they spend their awards on export training, website development including SEO and translations, and design of marketing media. After those activities have been completed, compliance testing, traveling to exhibit at trade shows and meeting with buyers is encouraged. Once businesses are admitted into STEP, they are expected to use their funds expeditiously as reimbursements are made on a first-come, first-serve basis. Businesses looking to expand markets are welcome to spend funds as they see fit with travel approved in advance.
In Kentucky, STEP has served as a leading example of how a state can partner with companies to expand and enter new markets. Since the program was established, the commonwealth has established itself as a major player on the global stage in a variety of different industries.
“We’ve used STEP funds over the years to attend international trade shows in Spain, Australia and Japan. Our attendance would not have been possible without it. We were able to market effectively, strengthen international business connections, meet with end-users that we would not have been able to contact otherwise, and find a new lead for a distributor in the Asian market,” said Angelika Fath-Goodin, co-founder of Lexington-based ParaTechs Corp. “With the help of the STEP grant we were able to redesign and update our website to offer ecommerce, allowing international purchases to be placed directly from our website. Providing samples to our international customers helped to promote our products and increased our international sales as well. Kentucky’s STEP resources have been very helpful in assisting us with export questions, and we are thankful for the services that STEP is providing to the small business community.”
Basic eligibility requirements should be that a for-profit, Kentucky-based business has been operating for at least one year and is capable of taking on the burden of exporting. Not all industry sectors are eligible to participate in the STEP grant program, especially those in the service sector. Businesses must have products or services that are exportable and have a chance at succeeding overseas by meeting certain criteria for growth. STEP is geared toward businesses that are in the growth phase of their journey rather than the start-up phase, meet the federally defined criteria of a small business and will export products that are at least 51% U.S. content.
Anyone interested in applying for STEP is encouraged to visit kyexports.com for the application and other valuable sources of information for exporters. For more information, or to apply for STEP funding, visit kyexports.com/step-grant. Email completed applications to STEP Program Manager Mary NeCamp at mnecamp@ky.gov.
STEP aligns with the Kentucky Export Initiative (KEI). Through KEI, the cabinet partners with a coalition of agencies and organizations to streamline and promote the state’s efforts to help Kentucky businesses reach global markets.
