South Dakota State Trade Expansion Program (STEP) Grant

South Dakota State Trade Expansion Program (STEP) Grant

Program Goal: Increase the number of small businesses that export, increase the value of exports, and increase the number of small businesses exploring significant new trade opportunities.

Funder: South Dakota Trade (SDT), a local chapter of the federal grant program funded in part by the U.S. Small Business Administration (SBA)

Geographic Scope: South Dakota only

Award Structure: Up to 75% reimbursement of total cost of eligible expenses related to export development activities

Eligibility Requirements

• Business Type: Eligible small business concerns (as defined by SBA)
• Location: South Dakota companies
• Operations: Must have profitable U.S. operations
• Products/Services: Must have products or services for export with at least 51% U.S. content
• Compliance: Must be in good standing with the South Dakota Department of Revenue and the IRS
• Media: Must agree to a limited media release
• Multiple Grants: If funds are available and the company is approved, eligible businesses can apply for a second grant

Allocation Method: Funds allocated on a first-come, first-served basis

Qualifying Business Expenses

• Foreign trade missions (virtual or in-person)
• Foreign trade shows
• Foreign market sales trips
• Export-related website, app, or e-commerce platform enhancements (including translation)
• Department of Commerce subscription services
• Export-related training and education courses
• Design of international marketing materials (including digital materials and ad placements)
• Costs relating to foreign product certifications/compliance testing
• International intellectual property protection costs
• Fees for shipping sample products
• Airfare (limited to one person, economy class on U.S. air carrier, compliance with Fly America Act)
• Hotel accommodations (limited to one person, subject to S. State Department Foreign Federal Hotel Per Diem Rates; invoices must contain only room rates, taxes, and/or hotel fees)
• Premiums on trade insurance (e.g., Export-Import Bank premiums)
• Any other eligible expenses subject to review

Ineligible Expenses

• Compensation, wages, or salary
• Alcoholic beverages, meals, and incidentals
• Phone and Internet usage
• Passport or visa fees
• Immunizations
• New product development or alteration of existing products
• Printing of international marketing materials
• Video and radio production costs
• Capital goods, product samples, giveaways, supplies, and conference registrations

Grant Period and Deadlines

• Current program available for projects through September 29, 2026 (as available funding allows)
• All grant activities and reporting must be completed by September 29, 2026
• Multiple grant periods may run simultaneously

Reporting Requirements

• Successful applicants must provide quarterly activity reports during entire grant period (September 30, 2024 – September 29, 2026)
• Reports required even after reimbursement received
• Activity reports must detail export successes such as joint ventures, actual sales, contract agreements, and/or partnerships with distributors/agents
• Companies failing to meet reporting requirements may not be eligible for future STEP Grants
• Reimbursement payments normally issued within one month of submission

Reimbursement Process

• Reimbursement only after activity completed and all documentation/receipts submitted
• Only itemized receipts or invoices with eligible expenses and proof of payment reimbursed
• If award activity not executed, applicant responsible for all activity costs; no pre-paid activity costs for non-executed activities reimbursed

Funding Details

STEP 11:

Federal Share: 75% ($225,000)

Non-Federal Share: 25% ($75,000)

Total Program Cost: $300,000

STEP 12:

Federal Share: 75% ($250,000)

Non-Federal Share: 25% ($83,333)

Total Program Cost: $333,333

Contact Information

Email: step@southdakotatrade.com or info@SouthDakotaTrade.com

Phone: (605) 338-3424

Address:
South Dakota Trade Association
150 E. 4th Place, Suite 800
Sioux Falls, SD 57104

Additional Locations:

Sioux Falls: 3501 N. Aviation Avenue, Suite 209, Sioux Falls, SD 57104

Rapid City: 18 E Main St. Rapid City, SD 57701

Organization

South Dakota Trade is a 501(c)(6) nonprofit association that navigates international trade for South Dakota.