State Trade Expansion Program 2026

The State Trade Expansion Program is administered by the U.S. Small Business Administration through its Office of Manufacturing and Trade to support export growth among small businesses across the United States and its territories. Established as a permanent program under the Trade Facilitation and Trade Enforcement Act of 2015, the initiative reflects SBA’s long-standing mission to strengthen small business competitiveness, innovation, and economic expansion. The program provides federal grant funding to states and equivalent entities to design and implement export assistance programs that directly benefit eligible small business concerns, with the overarching goal of increasing the number of exporting firms, expanding export sales, and encouraging participation in new international markets. The primary purpose of this funding opportunity is to enable state-level entities to provide targeted support services that help small businesses enter or expand in global markets. These services must align with defined statutory activities, such as participation in foreign and reverse trade missions, international trade shows, export training workshops, and subscription services that facilitate market research and partner identification. Additional allowable uses include translation and localization of websites, international marketing materials, and other initiatives approved by the SBA that directly contribute to export readiness and market expansion. The program requires that at least eighty five percent of federal funds be used for activities that directly benefit small businesses, ensuring that funding is primarily directed toward tangible export outcomes. Funding for this opportunity totals up to twenty million dollars for the fiscal year, with individual awards ranging from one hundred thousand to nine hundred thousand dollars. Awards are issued for a twelve month performance period, beginning September 30, 2026. Applicants are expected to propose realistic and achievable project plans that can be executed within this timeframe. The SBA emphasizes efficient use of funds and measurable outcomes, including increases in the number of exporting firms, total export value, and the number of businesses exploring new trade opportunities. Eligibility for this program is restricted to states and equivalent entities, including U.S. territories, that have been officially designated by their governor or equivalent authority as the lead entity for trade and export activities. Only one application per state is permitted, and applicants must demonstrate an established organizational structure, financial capacity, and partnerships necessary to implement export programs effectively. Entities must also meet federal compliance requirements and cannot have outstanding financial obligations, recent bankruptcies, or prior disqualifying performance issues. The application process requires submission through Grants.gov and includes a technical proposal, budget documentation, certifications, and supporting attachments. The technical proposal must outline the applicant’s export experience, project design, performance measures, collaboration strategy, and financial assistance plan. Applicants must also submit a detailed budget narrative and supporting forms that align with federal cost principles. Evaluation of applications includes both technical merit and past performance, with scoring criteria focused on project design, collaboration, measurable outcomes, and efficient use of funds. Applications opened on July 9, 2026 and must be submitted by August 18, 2026 at 11:59 PM Eastern Time. Questions from applicants were accepted through July 20, 2026, with responses published by the SBA shortly thereafter. The SBA anticipates awarding up to fifty six grants under this opportunity. Award decisions are based on a combination of technical evaluation and prior program performance, with a minimum score threshold required for funding consideration. Matching requirements apply and vary based on state export volume. High export states must provide a thirty five percent match, while other states must provide a twenty five percent match. Matching funds must include at least fifty percent cash contributions and may not be sourced from federal funds. Program income generated through STEP activities must be reinvested into approved program activities and cannot be used to meet matching requirements. Overall, the program is designed to build sustainable export capacity at the state level while delivering measurable economic benefits through increased small business participation in global trade.

Focus on measurable export outcomes, ensure at least 85 percent of funds directly benefit small businesses, and demonstrate strong collaboration with partners