PROVIDENCE, RI – In an effort to help local small businesses increase their exports and stay competitive in a global economy, U.S. Senator Jack Reed today announced that Rhode Island will receive a $300,000 boost from the U.S. Small Business Administration's (SBA) 2014 State Trade and Export Promotion (STEP) program. This federal funding, which will be matched by $100,000 in state funds, will help the Chafee Center for International Business at Bryant University to continue and expand their STEP program, which provides assistance to Rhode Island businesses to explore new international markets and export their products.

“I commend the Chafee Center for providing comprehensive international trade services to help local businesses expand into international markets.  This federal funding is a smart investment in growing Rhode Island’s exports and employment,” said Reed, a member of the Appropriations Committee, who helped include $8 million in fiscal year 2014 to make these competitive awards available to states around the country.

Reed helped create the STEP program as part of the Small Business Jobs Act of 2010.  According to the SBA, during the program’s first year, STEP grants produced a return on investment of 11:1.  According to the SBA, for the second round of awards, made in fiscal year 2012, awardees reported a return on investment of federal funds of over 19:1, supporting $575 million in state-reported export sales.

For this latest round of funding, the SBA made 24 STEP awards to states to help support activities designed to increase exporting by small businesses. 

The STEP program’s main objectives are to increase the number of small businesses that export and to increase the value of exports for small businesses that currently export.

The Chafee Center has used STEP funding in the past to create a successful program to support small businesses in their efforts to enter into new markets.  Over the course of the first two years of the STEP program, the Chafee Center was awarded $907,927 which, according to the Center’s estimates, resulted in almost $32 million in forecasted export business.

“Exports are vital to reviving Rhode Island's economy, supporting not only additional sales revenue, but also job creation, innovation, and a global competitive edge that will help revive our industries,” said Ray Fogarty, Director of the Chafee Center for International Business.  “Through the STEP program the Chafee Center has been able to assist over 75 Rhode Island small businesses, some that had never exported before and others that needed assistance to expand into new markets.  STEP funding is critical to providing the most comprehensive and targeted support possible to continue to grow Rhode Island's exports.  We appreciate Senator Reed’s leadership and support for this program and for promoting efforts to expand Rhode Island's export business.”

Fogarty also noted that during the first two years of the STEP program, Rhode Island was able to support seven trade missions to 11 countries which resulted in projected sales of over $12 million; help with 30 trade show events and 39 training programs; and provide numerous hours of one-on-one consulting to Rhode Island companies seeking to export their products and services abroad.

“It is important to help small, growing businesses compete and connect with new customers.  This federal STEP funding will help the Chafee Center to expand small business participation in international trade missions and trade shows, provide in-country market assistance, and support companies with strategic international marketing assistance in order to develop successful international strategies.  In short, it helps small businesses get big expertise,” said Reed.  “This STEP funding will provide continued and much needed support for small business growth and job creation.”

The 2014 STEP grants are designed for states to assist small businesses with the following export related activities: participation in foreign trade missions, foreign market sales trips, subscription services provided by the U.S. Department of Commerce, design of international marketing campaigns, export trade show exhibits, training workshops, or other export initiatives that are in line with the objectives of the program.

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