Lex 18 Highlights STEP program: https://www.lex18.com/news/covering-kentucky/kentucky-exports-see-record-breaking-year
FRANKFORT, Ky. (Oct. 17, 2024) – Following a record year that saw Kentucky businesses top $40 billion in exports for the first time, today Gov. Andy Beshear announced new federal funding is available to help build the global presence of Kentucky-based companies.
The $400,000 in State Trade Expansion Program (STEP) funds comes from the U.S. Small Business Administration (SBA), bringing federal funding to 75% of the project. The funding will help more companies increase their presence in global markets, in turn creating economic growth and additional jobs for Kentucky residents.
“This grant program has helped hundreds of Kentucky businesses become exporters, boosting economic development and momentum across our state,” said Gov. Beshear. “We know that small and medium-size businesses are crucial to the success of our economy and workforce. Gaining the resources to empower even more of our great companies to access international markets is a huge win for Kentucky businesses, as well as the families and communities they support.”
This funding follows a record-breaking year for exports in Kentucky with Gov. Beshear announcing in February that more Kentucky-made products were shipped around the world in 2023 than in any other year on record. The commonwealth broke its single-year total with $40.2 billion in exports, a 16.6% increase over the previous year.
The grant program, which marks its 12th anniversary of funding small-business growth, provides companies with the information and tools needed to successfully sell their products and services worldwide.
A wide range of activities are supported by STEP, including training and workshops for exporting, U.S. Department of Commerce user service, website translations, e-commerce platforms, 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 $3.4 million to more than 260 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, markets and buyers.
How To Apply:
Eligible Kentucky businesses may receive up to $15,000 in reimbursement grant funding for year 12 of the STEP program. Anyone interested in applying for funding is encouraged to visit kyexports.com for the application and other valuable sources of information for exporters.
“Once again, the hard work of Kentucky’s businesses to get their products and services into the hands of international buyers has paid off resulting in a record-breaking year of exports. Our federal partners at the SBA recognize Kentucky STEP funds are being maximized, awarding the commonwealth a third consecutive round of grant funding of $400,000 to administer to eligible small businesses,” said Mary NeCamp, director of STEP at the Kentucky Cabinet for Economic Development. “Kentucky’s STEP grant program uniquely ‘meets businesses where they’re at’ offering a wide array of allowable activity options to fit their plans on their timelines, fully reimbursing them for things they want and need to push forward into new markets. Many are surprised at the definition of ‘small business.’ The Small Business Measuring Tool allows for several hundred employees at most manufacturing companies and millions of dollars in average revenue for service companies. We encourage interested companies to not rule out the possibility of participating based on size until you check it out. If you need assistance figuring out if your business qualifies, please don’t hesitate to ask.”
As of 2023, Kentucky was home to more than 363,000 small businesses that employ 706,640 people. That represents approximately 99.3% of all companies in the state. Small businesses have made significant contributions to Kentucky’s record economic success, and STEP has taken that momentum to new heights.
Peg Hayes, president of Stillworks LLC dba Casey Jones Distillery in Hopkinsville, commented: “With our expansion into international markets, we collaborated closely with Kentucky STEP to amplify our global footprint. Through STEP, we received targeted funding that supported our participation in key international trade shows, directly leading to significant export sales and valuable new trade leads. This initiative not only expanded our market presence but also enhanced our team’s expertise through specialized training in export compliance and market strategies. Our partnership with the SBA and the state has been instrumental, fostering a network that continues to fuel our growth and success in the spirits industry.”
STEP is an SBA program administered in the commonwealth by the Kentucky Cabinet for Economic Development. Companies that meet the federally defined criteria of a small business and will export products that are at least 51% U.S. content could be eligible for a grant.
STEP also 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.
The newly announced STEP funding builds on the best four-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $32.8 billion in announced investments, creating more than 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
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.
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