The Washington State Department of Commerce’s Export Voucher Program provides direct cash assistance to qualifying small businesses to help them expand their international sales. The review committee considers a number of factors when reviewing applications, and the Export Voucher Program Guidelines summary and checklist are meant to serve as a helpful reference.
Are you eligible?
Qualifying companies must:
- Be organized or incorporated and operating in the U.S.
- Be a registered business in Washington state.
- Meet a) the applicable industry-based small business size standard established under section 3 of the Small Business Act; or b) the alternate size standard applicable to the program, under section 7(a) of the Small Business Act and the loan program, under Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) The U.S. Small Business Administration (SBA) size standards are found at 13 C.F.R Part 121. Use this link for information on size standards for your business based on your NAICS code.
- Be in good standing with the Washington State Department of Revenue.
- Have a Federal Identification Number tied to a Washington address.
- Adhere to the following additional program criteria:
- have been in business for not less than the 1-year period ending on the date on which the Export Voucher is to be awarded;
- demonstrate understanding of the costs associated with exporting and doing business with foreign purchasers;
- export goods or services of US origin or have at least 51% US content (ex-factory price of a good minus the aggregate value of foreign sources equals more than 51%);
- have in effect a strategic plan for exporting;
- demonstrate export readiness; and
- Agree to provide information on export sales data resulting from the Export Voucher-supported activity, and respond to all subsequent Commerce surveys on a timely basis. Commerce will send surveys every six months, for up to 4 years. By applying for an export voucher, you are agreeing to respond to these confidential surveys with information on export sales data.
The following activities are eligible expenses for the STEP grant program. Applications should be focused on a group of activities to support the same goal. For example, a trade show in Japan may require trade show fees, an international flight, shipping of samples, and translating a website into Japanese. Awards are granted based on committee review of your export voucher application.
- Design of digital marketing materials for exclusive use in a foreign market (such as ads in a foreign industry magazine or Facebook/Google ads specifically targeting foreign markets).
- Search engine optimization (SEO) work exclusive to an international foreign market.
- Translation of marketing matierals, including audio/video.
- International e-commerce fees.
- Services of the U.S. Commercial Service.
- International shipment of product samples to support a foreign trade show (excluding custom’s fees/foreign duties).
- Compliance testing of an existing product for entry into an export market.
- Costs associated with international IP protection limited to USPTO PCT transmittal, filing fees, search fees, Hague International Design App transmittal fees, Trademark Madrid Protocol fees.
- International business travel for up to two company representatives. (Other restrictions apply, see FAQ section).
- International trade show or trade mission fees (virtual or in-person).
- Foreign market sales trips.
- EXIM Credit Insurance fees and private credit insurance fees.
- Attorney fees to review international distributor agreements.
Resources
Once you review the eligibility requirements and feel that your business qualifies, your next step is to register and apply for the program through the application portal — it’s a straightforward and easy-to-follow process.
Register for and complete your export voucher application.
Remember, if you have questions, please contact our STEP Export Voucher team,
- Callum Cleary: 206-256-6145
- Nicole Gunkle: 206-256-6131
Or email the STEP Export Voucher team at Step.Vouchers@Commerce.wa.gov.
Questions about Commerce’s Export Voucher Program? Here are some answers to the questions we receive most often.
How many vouchers can I receive?
Companies can qualify for three STEP vouchers per federal fiscal year (Oct to September) and up to $10,000.
If a company’s application for a voucher is denied, can they re-apply for a different event or activity in the same year?
Yes.
Can a company apply for an export voucher after they have already attended an event or activity?
Applications for an export voucher will only be considered for events or activities taking place in the future.
Can an export voucher be used for more than one sales trip or trade show?
No.
Can one trip with multiple stops qualify for an export voucher?
Yes, as long as the destinations are within the same general region of the world. The export voucher cannot be used to fund “around the world” tickets.
If I was awarded a voucher for a specific event, can I use that award for another event if our plans change?
No. The voucher must be relinquished and you must submit another application for the new event.
Can a distributor who plans to purchase goods for export receive a voucher?
Vouchers may be approved for these companies if at least 51% of the product’s value-added (including R&D) is from the U.S.
How do I know if I’m an SBA defined small business?
You can go to the WA Department of Revenue website to look up your NAICS code. Then you can look up your NAICS code in the SBA table to determine if you are an SBA defined small business.
What is a Statewide Vendor Number (SWV#) and why do I need one?
The state of Washington requires vendors (which include Export Voucher recipients) to have a Statewide Vendor Number (SWV#) before they can be paid by any state agency. If the Department of Commerce approves your Export Voucher application, this is how you will receive your reimbursement.
What is a cash match?
In compliance with SBA’s regulations, a voucher cannot cover more than 75 percent of a company’s expenses for an event. Therefore, a company must demonstrate that they have paid the amount covered by the voucher, and an additional 25 percent which will not be reimbursed.
What conditions must be met for my airfare to be reimbursed?
You must fly basic economy and be in compliance with the requirements as described on the Fly America Act website. If not flying a U.S. carrier, it must comply with the four Open Skies Agreements, also described on their website. When you return from your trip, you must submit your boarding passes and the email confirmation from the airline stating your itinerary and confirmation of payment. Specifically, these conditions must be met:
- Companies must retain ALL boarding passes for each leg of a traveler’s journey. Failure to retain passes will result in the exclusion of the expense
- Only basic economy class (premium economy is not economy) fares are eligible for reimbursement. Travelers may upgrade after booking economy and economy fare.
- Travelers must comply with the Fly America Act by booking routes using a US carrier. Codeshare flights are allowable if booked via a US carrier’s website and tickets are issued using the US carrier’s flight code.
- Companies must submit an email confirmation from the airline stating the itinerary and confirmation of payment to the STEP Program Manager.
- Airfare purchased with frequent flyer miles is ineligible for reimbursement.
When can I expect to be reimbursed after my trip?
All necessary documents must be submitted 30 days after the last travel date. Once everything is submitted, you can expect to see your reimbursement in about three weeks.
What other financing options besides the Export Voucher program are available to help Washington small businesses?
Companies that meet the criteria for an Export Voucher may also be eligible for other Department of Commerce initiatives. These services leverage federal, state and private funding to increase small business access to capital that helps grow businesses and create new jobs.
Washington state small businesses brought home more than $750 million in new export sales with assistance from the State Trade Expansion Program (STEP), funded through a grant with the U.S. Small Business Administration. From mobile app developers to wakeboard manufacturers, remanufactured engine specialists to turn-key metalworkers, more than 1600 companies have offset exporting expenses through this popular program.
Morgan Cosmetics
In 2012, Bachir Abba founded Morgan Cosmetics, an Issaquah, Washington, home-based business that connected with his cultural roots in Morocco. The company offered customers natural products based on traditional ingredients, such as argon oil. Morgan Cosmetics applied their STEP grant to registration for international trade shows in South Korea, the United Arab Emirates (UAE), Brazil and Germany. Capitalizing on these introductions, Morgan Cosmetics now reaches customers spanning ten different countries, representing multiple continents. The company also created jobs for 16 employees, and has exponentially grown annual revenues.
Tool Gauge
Founded in 1966, Tool Gauge manufactures complex, high-value plastic and metal assemblies for global aerospace original equipment manufacturers (OEMs). Globally, they are one of only a handful of Boeing-certified class I and II plastics shops capable of machining full five-axis parts. Tool Gauge entered the STEP program in 2016, attending trade shows such as Farnborough, AIX and the Paris Air Show, and expanding exports to key markets worldwide.
Since that time, the company realized over $16 million in sales from this program, nearly doubled the size of their manufacturing facility and are projected to hire 100 employees over the next five years. CEO Debbie Lee received Manufacturing Executive of the Year in 2019 from the National Association of Manufacturers’ Manufacturing Leadership Council for her leadership in productivity, growth and innovation, and launching a training program for workers to advance their careers.