Small businesses across Oregon will have access to over half a million dollars in funding to help them enter and compete in the global marketplace as the U.S. Small Business Administration (SBA) announced 44 awards from the agency’s State Trade Expansion Program (STEP) will be made to states and territories to support activities to increase exporting by small businesses.
This is the 5th consecutive year Business Oregon has received SBA STEP funding.
“In the first three years of the pilot program, Oregon’s small businesses have received over $800,000 in STEP funding,” said Business Oregon’s Global Strategies Officer Amanda Welker. “Oregon small businesses grew their sales to new customers across the globe to over $40 million, in this period, with almost an additional $200 million in anticipated sales contracts. It’s been an exciting program to launch with Oregon small businesses that are poised and ready to diversify their customer base and profit from opportunities in the global economy. Grant recipients from across the state, both urban and rural communities, are benefitting from the program, growing sales and creating higher wage jobs. [Business Oregon] is thrilled that the State Trade Expansion Program (STEP) is now a permanent federal program, and we look forward to providing additional funding and technical assistance to small businesses eager for success in new markets.”
The purpose of the 2016 awards is for states to assist small businesses with export-related activities or other export initiatives that are in line with the objectives of the program.
These objectives include participation in foreign trade missions, foreign market sales trips, subscription services provided by the U.S. Department of Commerce, as well as design of international marketing campaigns, export trade show exhibits, training workshops and more.
“Whether it’s enabling a business owner to meet face-to-face with a buyer overseas or providing education on options for foreign financial transactions, the SBA STEP grant helps local businesses grow their customer base,” SBA Regional Administrator Calvin Goings said. “Together with our local export and international trade partners, we’re able to provide small business owners with tools, opportunities and peace-of-mind when doing business outside the U.S.”
The STEP program is designed to increase both the number of small businesses that begin to export and the value of exports for small businesses currently exporting. Expanding the base of small business exporters and making the process as easy as possible is a key component of the Administration’s National Export Initiative.
Recipients in the first two rounds of STEP awards – during in Fiscal Year 2011 and Fiscal Year 2012 – reported a strong return on investment of more than 19:1.
STEP’s positive impacts are especially clear in Oregon. “It is a pleasure to watch and facilitate the exploration of foreign markets by local Oregon companies,” stated SBA Acting District Director Jennifer Baker,“and to see these exporters grow in sales and production capacity as their brands proliferate.”
Senator Jeff Merkley agrees. “Oregon’s small businesses make some of the best goods anywhere, and these world-class products deserve to be on shelves around the globe,” said Senator Merkley. “This grant will help give our ‘Made in Oregon’ products an even further reach and grow small businesses and jobs here at home.”
STEP Success Story: Adelsheim Vineyard
Husband-and-wife team David and Ginny Adelsheim dreamed of planting a vineyard to make high quality wine.Nearly 50 years and 200 acres later, the couple’s modest dream has grown tremendously. According to Adelsheim’s winemaker, by “honoring the natural characteristics of our land, we’ve helped change the world’s view about world-class wines in the [Oregon] Willamette Valley.”
And the world has taken notice. Catherine Douglas, Manager of Export Sales, witnessed this growth firsthand when the winery decided to “step up our focus on exports” around late 2011, a time when export sales totaled only around 1% of the business. In 2015, that figure grew to 3-5%, and she states the goal is to reach 10% by volume in five years.
The Oregon winery has expanded steadily in part through the assistance of the U.S. Small Business Administration’s State Trade Expansion Program (STEP) grant. In 2013, the winery used STEP funds to attend the Prowein International Trade Fair in Dusseldorf, Germany. As a result, Adelsheim now exports to 14 countries and territories. Today, a new generation of wine professionals has joined David and Ginny Adelsheim to continue the growth of their winemaking dream.
Exporting Impact on the Small Business Economy
- U.S. exports continue to play a vital role in the national economy contributing more than 13 percent to the country’s GDP and supporting more than 11 million jobs.
- Small businesses accounted for 34 percent of all U.S. export dollars in 2014, an increase of five percent, from 29 percent in 2006.
- While 98 percent of U.S. exporters are small businesses, fewer than five percent of all U.S. businesses export goods.
- Approximately 95 percent of a small business’ potential customers live outside the U.S.
- Small businesses that export to foreign markets sell more, support more jobs, and pay higher wages than small businesses that don’t export.
- In 2014, the value of goods exported from Oregon totaled $20.9 billion, up 87% percent since 2004.
- An estimated 86,157 U.S. jobs were supported by goods exported from Oregon in 2014.
- A total of 5,922companies exported goods from Oregonin 2013. Among these, 5,247 – or 88.6 percent were small firms.
- Small businesses generated 35.2 percent of Oregon’stotal known export value in 2013.
- Export loans through the SBA Loan Guarantee Program can have a guarantee of up to 90 percent, the highest available through the program.
Sources: U.S. Trade Representative &Department of Commerce’s International Trade Administration
About the SBA Portland District Office:
The SBA Portland District is responsible for the delivery of programs and services to 30 of the 36 counties in Oregon and Clark, Skamania, Cowlitz and Wahkiakum counties in Southwestern Washington. SBA Portland District staff provides resources and services in three areas referred to as “the three C’s” – counseling, capital and contracting. Visit www.sba.gov/OR for more information including resource partners, lenders, workshops, success stories and other resources to help business start, grow and succeed.
About the SBA Office of International Trade:
As the SBA office that supports small business international trade development, the Office of International Trade works in cooperation with other federal agencies and public- and private-sector groups to encourage small business exports and to assist small businesses seeking to export. Through 21 U.S. Export Assistance Centers, SBA district offices and a variety of service-provider partners, the office directs and coordinates ongoing export initiatives in an effort to encourage small businesses going global. For more information, visit www.sba.gov/exporting.
