DC STATE TRADE EXPORT PROMOTION (STEP) PROGRAM PROGRAM APPLICATION APRIL 2012 Program Purpose The DC State Trade

Export Promotion (STEP) Program is an initiative funded by the District of Columbia and the United States Small Business Administration (SBA) as part of the National Export Initiative to double U.S. exports by 2015. The purpose of the DC STEP initiative is to increase exports and create jobs in the District of Columbia by helping small businesses expand into new international markets. DC STEP Program funds will reimburse participant companies for eligible activities associated with new international marketing initiatives.

Instructions Before completing the Export Readiness Assessment and the STEP Program Application form, please read carefully the Guidelines for Funding and the Eligibility Criteria on the following pages. To qualify for the DC STEP Program, an applicant must meet two sets of eligibility criteria: 1. DC Department of Small and Local Business Development (DSLBD) criteria, and 2. SBA/Federal criteria If you have any questions about the STEP Program and/or application, please contact: Martha LaCrosse, Director, ExportDC Tel: 202-741-0858 Email: martha.lacrosse@dc.gov. Application requirements In order to be considered for the DC STEP Program, all applicants are required to submit the following documents: A signed original application is required from each candidate (when completed, please print form for signature) Export Readiness Assessment (12 questions) Strategic Export Plan SBA Self Representation as an Eligible Small Business Concern SBA Debarment Certification Form DSLBD Self Certification Form (DC eligibility criteria) DSLBD Clean Hands Self Certification Form Attach copy of DC License (DCRA) and DC Registration (OTR) Remittance of Documents Please send a scanned copy of all required documents to martha.lacrosse@dc.gov Remit all required documents by certified mail or courier service to: DC Department of Small and Local Business Development Attn: Ms. Martha LaCrosse, Director, ExportDC 441 4th Street NW, Suite 970N Washington, DC 20001

Guidelines for Funding STEP application must be received six weeks prior to commencement of activities. Reimbursement for eligible expenses is not guaranteed until notice of acceptance into the STEP Program. STEP awards are administered on a first-come, first-served basis and are contingent upon availability of funds. STEP awards will be based on the overall quality of the export-related activity, as determined by the Export DC review committee. After the costs are incurred, the participating company will be reimbursed upon submission of the following to the DC Department of Small and Local Business Development: - Invoice on company letterhead - Proof of payment (receipts, cancelled checks, credit card statements, wire transfers) - Proof of activity (photographs, participation agreements, mission itinerary, etc.)

Eligibility Criteria (DC DSLBD Requirements) Company operates a business concern in the District of Columbia to manufacture, assemble, and/or distribute a product or provide an exportable service. Principal office in the District of Columbia for at least six months prior to STEP Program approval Licensed and Registered in the District of Columbia* Company is in good standing with the DC Office of Tax and Revenue (OTR) and submits Clean Hands Self Certification Form Eligible activities (e.g. trade mission travel, export training programs, business matchmaking services) must be executed by direct employees of the company. The DC STEP program requires the application to be signed by a corporate officer, certifying that the eligibility criteria will be met. The applicant agrees to submit a detailed report that illustrates the initial results and overall effectiveness of their project no later than September 30, 2012. A follow-up report will be required at six-month intervals.

*Guidelines on business license and registration in the District of Columbia: Businesses eligible for the DC STEP Program must submit a copy of their Basic Business License, issued by the DC Department of Consumer and Regulatory Affairs (DCRA), along with a copy of their registration issued by the DC Office of Tax and Revenue (OTR). Business entities whose principals are required to maintain professional licensure by a local, state or national certification board or body will not be required to obtain a Basic Business License. The DC Department of Small and Local Business Development reserves the right to request additional documents to substantiate a firms credentials in the District of Columbia (DC and federal tax returns, FR-500 form, copy of lease, rental agreement, etc.)

Additional Eligibility Criteria (SBA/Federal Requirements) Company must have an exportable product or service at time of application. Company asserts that it meets the requirements of the Small Business size regulations set forth by the SBA (see Appendix for further information). Company has been in business for not less than the one-year period ending on the date on which assistance will be provided under a STEP grant. Company is operating profitably, based on operations in the United States from the firms most recently completed fiscal year. Company has demonstrated an understanding of the costs associated with exporting and doing business with foreign purchasers, including the costs of freight forwarding, customs brokers, and packing and shipping. Company has in effect a strategic plan for exporting (see Appendix for guidelines). The products to be exported must contain a majority of U.S. content (51% or higher). Company agrees to abide by the Fly America Act* when utilizing STEP funds for air travel expenses (requirement to use U.S. flag air carrier unless exception applies). Company attests that it shall not knowingly enter into any lower tier covered transaction with a person in the Excluded Parties List System (see SBA Debarment Certification form**). For further information about the Excluded Parties List System, go to https://www.epls.gov .

*Fly America Act

In most circumstances, the Fly America Act requires that individuals whose travel is paid for with federal grant funds fly on U.S. flag air carriers. (Such carriers include American, United, Delta, US Airways, etc.). For this reason, the Fly America Act is applicable to travel by STEP Program recipients. However, there are several exceptions that enable travel on non-U.S. flag air carriers. See Appendix for further information. **Debarment Certification Form The federal government cannot do business with contractors or grant recipients that have been debarred or suspended. Thus, it requires that contractors and grant recipients certify their own eligibility for federal contracts and grants by completing a Debarment Certification.

Export Readiness Assessment (ERA) Questionnaire

To determine the level of your companys export readiness, please answer the following questions (circle the choice that best describes your company).
1. How many years of experience does your company have in the domestic market? a. 0-5 b. 6-10 c. 11-15 d. 16-20 2. Did your company achieve a positive net worth at the end of last year? a. Yes b. No 3. How many employees does your company currently have? a. 1-500 b. 501-1,000 c. > 1,000 4. Is your company able to increase its production capacity beyond the domestic market? a. Yes b. No 5. Is your companys product price competitive in the domestic market? a. Yes b. No 6. What kinds of sales and distribution channels does your company use to market domestically? a. Wholesaler b. Retailer c. Final Consumer d. Other _______________________ 7. Does your company have an outstanding tax liability with the District of Columbia? a. Yes b. No 8. To what extent does your company advertise and promote your products in the domestic market? a. Fairly aggressively b. Modestly c. Not much d. None 9. Does your company customarily conduct market research and planning for your domestic operations? a. Always b. Sometimes c. Rarely d. Never 10. Does your company have access to lending? a. Yes b. No 11. Has your company received any unsolicited inquiries from foreign firms? a. Yes b. No 12. Does your company have export experience? a. Yes b. No

STATE TRADE EXPORT PROMOTION (STEP) PROGRAM APPLICATION

STEP GRANT CANDIDATE COMPANY: GENERAL INFORMATION

Note: Use the arrow keys to navigate from section to section within the application form. Official Company Name: Mailing Address:

Physical Location (if different from mailing address):

Contact Information: Telephone: Fax: Email: Website: Year of Incorporation: Place of Incorporation: Is ownership of the company public or private? Number of Employees: Located in DC Facilities: Within Total Corporation: Annual Sales: Located in DC Facilities: Within Total Corporation: Federal ID (FEIN) #:

Indicate the industry category that best describes your company (2-3 words): Provide a brief description of your product(s) and/or service(s):

HTS Code(s) for manufactured products to be exported, if known: NAICS Code(s) for services to be exported, if known: If you do not know the HTS or NAICS Code(s), please describe in detail your product(s) or service(s). An ExportDC trade manager will follow up with you to determine the appropriate classification(s).

CURRENT INTERNATIONAL SALES PROFILE

Does your company have export experience? If yes, please describe.

Is your company currently exporting (within the last 12 months)? List the countries to which your company currently exports:

What are your companys current international sales to all non-domestic markets (in US$)? What percentage of total annual sales is drawn from international sales? Describe the nature of any existing international sales relationships (such as distributors, agents and/or sales reps).

DC DSLBD ELIGIBILITY CRITERIA

Does your company operate a business concern in the District of Columbia to manufacture, assemble, and/or distribute a product or provide an exportable service? Is your companys principal office located in the District of Columbia? When did your company establish operations in the District of Columbia? Do you have a Basic Business License issued by the DC Department of Consumer and Regulatory Affairs (DCRA)? When was the date of issuance of your DC Basic Business License? Do you maintain professional licensure by a local, state or national certification body? Have you registered with the DC Office of Tax and Revenue (OTR)? Is your company in good standing (no outstanding tax liability) with the DC Office of Tax and Revenue? Do you agree to submit a detailed report that illustrates the initial results and overall effectiveness of your project/activity approved by the STEP Program review committee?
SBA/FEDERAL ELIGIBILITY CRITERIA

Does your company have an exportable product or service at time of application? Does your company comply with the SBA size standards found at 13 C.F.R. Part 121? Note: The SBA size standards are based on either number of employees (mfr.) or average annual receipts (service provider). If you do not know whether you are in compliance, please refer to the Appendix for further information. Has your company been in business for not less than the 1-year period ending on the date on which assistance will be provided under a STEP grant? Is your company operating profitably, based on operations in the United States? Has your company demonstrated an understanding of the costs associated with exporting and doing business with foreign purchasers, including the costs of freight forwarding, customs brokers, packing and shipping?

Does your company have in effect a strategic plan for exporting? If yes, please describe in a separate document (see guidelines in the Appendix). Is your company a for-profit concern? Do your products contain a majority of U.S. content (51% or higher)? Do you agree to abide by the Fly America Act when utilizing STEP funds for air travel expenses?
STEP GRANT PROGRAM APPLICANT CONTACT INFORMATION

Name of Applicant: Title: Telephone: Email: Name as you would like it to appear on your nametag: Please describe this individuals role within the companys international sales initiative:

STEP GRANT PROGRAM APPLICATION AUTHORIZATION

The final page of this document requires an original signature in order to complete the STEP Program Application. The signature of a member of the STEP Grant Candidates senior management team is required in order to authorize the submission of this application for the STEP Program to the DC Department of Small and Local Business. With this signature, the information presented in this document (STEP Program Application) is accepted as an accurate and verifiable representation of the candidate company for use in the selection process and future collaboration between the company and the DC Department of Small and Local Business Development.

__________________________________________________ Signature

__________________________________________________ Printed Name, Title

___________________________ Date

DC STEP PROGRAM APPLICATION

REQUIRED DOCUMENTS CHECKLIST

APPLICATION FORM (when completed, print form for signature) EXPORT READINESS ASSESSMENT (12 questions) STRATEGIC EXPORT PLAN (see Appendix for guidelines) SBA SELF REPRESENTATION AS AN ELIGIBLE SMALL BUSINESS CONCERN SBA DEBARMENT CERTIFICATION FORM DSLBD SELF CERTIFICATION FORM (eligibility criteria) DSLBD CLEAN HANDS SELF CERTIFICATION FORM (no outstanding tax liability) DC LICENSE ISSUED BY DCRA DC REGISTRATION ISSUED BY OTR

APPENDIX
Strategic Export Plan - Guidelines Please submit as a separate document an export plan to explain your companys need for funding (12-pt font, 2-3 pages in length). Each applicant should address all of the following as part of the companys export plan: 1. Foreign market(s) the applicant intends to pursue 2. Appropriateness of the applicants products or services to the target foreign market(s) 3. Objectives the applicant expects to achieve in the target foreign market(s), and relevant time frames 4. Sufficiency of the applicants financial resources to support its entry into or expansion in the target foreign markets 5. Sufficiency of the applicants productive capacity for entry into or expansion in the target markets 6. Sufficiency of the applicants staff resources and time to support marketing and development of opportunities in the target foreign markets 7. Sufficiency of the applicants international trade capacity (i.e. knowledge of U.S. export requirements, the import market requirements of the foreign market, logistics, export financing, etc.) with respect to the target foreign markets

Size Standards In accordance with SBA requirements, the DC STEP Program is reserved for small business concerns. In order to qualify for the DC STEP Program, businesses must satisfy SBAs definition of a small business concern, along with the size standards for a small business. A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and federal contracting programs. The definition of small varies by industry. How to calculate average annual receipts and average employment of a firm can be found in 13 CFR 121.104 and 13 CFR 121.106, respectively. To help small business owners determine their small business status, the SBA has established a Table of Small Business Size Standards, which is matched to the North American Industry Classification System (NAICS) for industries. Table of Small Business Size Standards:
http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf

Specific Size Standards for Service Providers: Most common: $7 million Computer programming, data processing and systems design: $25 million Engineering and architectural services and a few other industries have different size standards. Research and development and environmental remediation services: the only service industries with size standards in number of employees. The highest annual-receipts size standard in any service industry: $35.5 million. Exceptions: Because of a wide variation in the structure of other industries (such as finance, insurance and real estate), there is no common pattern of size standards. To identify the appropriate classification for your sector, please refer to the Table of Small Business Size Standards. How to Calculate Your Small Business Size: Since size standards are mostly based on the average annual receipts or the average employment of a firm, refer to these links for more information on: How does SBA calculate annual receipts?
http://www.gpo.gov/fdsys/pkg/CFR-2002-title13-vol1/pdf/CFR-2002-title13-vol1-sec121-104.pdf

How does SBA calculate number of employees?

http://www.gpo.gov/fdsys/pkg/CFR-2007-title13-vol1/pdf/CFR-2007-title13-vol1-sec121-106.pdf

For More Information: If you have any other questions concerning size standards, contact a Size Specialist at your nearest SBA Government Contracting Office (list at the end of the table), or contact the Office of Size Standards by email at sizestandards@sba.gov or by phone at (202) 205-6618.

Fly America Act and Open Skies Agreements

Use of United States Flag Air Carriers
301-10.131 What does United States mean?

For purposes of the use of United States flag air carriers, United States means the 50 states, the District of Columbia, and the territories and possessions of the United States (49 U.S.C. 40102). 301-10.132 Who is required to use a U.S. flag air carrier? Anyone whose air travel is financed by U.S. Government funds, except as provided in 301-10.135, 301-10.136, and 301-10.137. 301-10.133 What is a U.S. flag air carrier?

An air carrier which holds a certificate under 49 U.S.C. 41102 but does not include a foreign air carrier operating under a permit. 301-10.134 What is U.S. flag air carrier service?

U.S. flag air carrier service is service provided on an air carrier which holds a certificate under 49 U.S.C. 41102 and which service is authorized either by the carriers certificate or by exemption or regulation. U.S. flag air carrier service also includes service provided under a code share agreement with a foreign air carrier in accordance with Title 14, Code of Federal Regulations when the ticket, or documentation for an electronic ticket, identifies the U.S. flag air carriers designator code and flight number. 301-10.135 When must I travel when using U.S. flag air carrier service?

You are required by 49 U.S.C. 40118, commonly referred to as the Fly America Act, to use U.S. flag air carrier service for all air travel funded by the U.S. Government, except as provided in 301-10.136 and 301-10.137 or when one of the following exceptions applies: (a) Use of a foreign carrier is determined to be a matter of necessity in accordance with 30110.138; or (b) The transportation is provided under a bilateral or multilateral air transportation agreement to which the United States Government and the government of a foreign country are parties, and which the Department of Transportation has determined meet the requirements of the Fly America Act. (1) Information on bilateral or multilateral air transportation agreements impacting United States Government procured transportation can be accessed at http://www.gsa.gov/openskies; and (2) If determined appropriate, GSA may periodically issue FTR Bulletins providing further guidance on bilateral or multilateral air transportation agreements impacting United States Government procured transportation. These bulletins may be accessed at http://www.gsa.gov/bulletins. (c) You are an officer or employee of the Department of State, United States Information Agency, United States International Development Cooperation Agency, or the Arms Control Disarmament Agency, and your travel is paid with funds appropriated to one of these agencies, and your travel is between two places outside the United States; or (d) No U.S. flag air carrier provides service on a particular leg of the route, in which case foreign air carrier service may be used, but only to or from the nearest interchange point on a usually traveled route to connect with U.S. flag air carrier service; or

(e) A U.S. flag air carrier involuntarily reroutes your travel on a foreign air carrier; or (f) Service on a foreign air carrier would be three hours or less, and use of the U.S. flag air carrier would at least double your en route travel time; or (g) When the costs of transportation are reimbursed in full by a third party, such as a foreign government, international agency, or other organization. 301-10.136 What exceptions to the Fly America Act requirements apply when I travel between the United States and another country? The exceptions are: (a) If a U.S. flag air carrier offers nonstop or direct service (no aircraft change) from your origin to your destination, you must use the U.S. flag air carrier service unless such use would extend your travel time, including delay at origin, by 24 hours or more. (b) If a U.S. flag air carrier does not offer nonstop or direct service (no aircraft change) between your origin and your destination, you must use a U.S. flag air carrier on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would: (1) Increase the number of aircraft changes you must make outside of the U.S. by 2 or more; or (2) Extend your travel time by at least 6 hours or more; or (3) Require a connecting time of 4 hours or more at an overseas interchange point. 301-10.137 What exceptions to the Fly America Act requirements apply when I travel solely outside the United States, and a U.S. flag air carrier provides service between my origin and my destination? You must always use a U.S. flag carrier for such travel, unless, when compared to using a foreign air carrier, such use would: (a) Increase the number of aircraft changes you must make en route by 2 or more; or (b) Extend your travel time by 6 hours or more; or (c) Require a connecting time of 4 hours or more at an overseas interchange point. 301-10.138 In what circumstances is foreign air carrier service deemed a matter of necessity?

(a) Foreign air carrier service is deemed a necessity when service by a U.S. flag air carrier is available, but (1) Cannot provide the air transportation needed; or (2) Will not accomplish the agencys mission. (b) Necessity includes, but is not limited to, the following circumstances: (1) When the agency determines that use of a foreign air carrier is necessary for medical reasons, including use of foreign air carrier service to reduce the number of connections and possible delays in the transportation of persons in need of medical treatment; or (2) When use of a foreign air carrier is required to avoid an unreasonable risk to your safety and is approved by your agency (e.g., terrorist threats). Written approval of the use of foreign air carrier service based on an unreasonable risk to your safety must be approved by your agency on a case by case basis. An agency determination and approval of use of a foreign air carrier based on a threat against a U.S. flag air carrier must be supported by a travel advisory notice issued by the Federal Aviation Administration and the Department of State. An agency determination and approval of use of a foreign air carrier based on a threat against Government employees or other travelers must be

supported by evidence of the threat(s) that form the basis of the determination and approval; or (3) When you cannot purchase a ticket in your authorized class of service on a U.S. flag air carrier, and a seat is available in your authorized class of service on a foreign air carrier. 301-10.139 May I travel by a foreign air carrier if the cost of my ticket is less than traveling by a U.S. flag air carrier? No. Foreign air carrier service may not be used solely based on the cost of your ticket. 301-10.140 May I use a foreign air carrier if the service is preferred by or more convenient for my agency or me? No. You must use U.S. flag air carrier service, unless you meet one of the exceptions in 301-10.135, 301-10.136, or 301-10.137 or unless foreign air carrier service is deemed a matter of necessity under 301-10.138. 301-10.141 Must I provide any special certification or documents if I use a foreign air carrier?

Yes. You must provide a certification, as required in 301-10.142 and any other documents required by your agency. Your agency cannot pay your foreign air carrier fare if you do not provide the required certification. 301-10.142 What must the certification include?

The certification must include: (a) Your name; (b) The dates that you traveled; (c) The origin and the destination of your travel; (d) A detailed itinerary of your travel, name of the air carrier and flight number for each leg of the trip; and (e) A statement explaining why you met one of the exceptions in 301-10.135, 301-10.136, 30110.137 or a copy of your agencys written approval that foreign air carrier service was deemed a matter of necessity in accordance with 301-10.138. 301-10.143 What is my liability if I improperly use a foreign air carrier?

You will not be reimbursed for any transportation cost for which you improperly use foreign air carrier service. If you are authorized by your agency to use a U.S. flag air carrier service for your entire trip (i.e., when not permitted under this regulation), your transportation cost on the foreign air carrier will not be payable by your agency. If your agency authorizes you to use U.S. flag air carrier service for part of your trip and foreign air carrier service for another part of your trip, and you improperly use a foreign air carrier (i.e., when neither authorized to do so nor otherwise permitted under this regulation), your agency will pay the transportation cost on the foreign air carrier for only the portion(s) of the trip for which you were authorized to use foreign air carrier service. The agency must establish internal procedures for denying reimbursement to travelers when use of a foreign air carrier was neither authorized nor otherwise permitted under this regulation. Source: U.S. General Services Administration Chapter 301 Temporary Duty (TDY) Travel Allowances, Part 301-10 Transportation Expenses, Subpart B Common Carrier Transportation

Documentation Required for Reimbursement

Companies receiving STEP funding must submit an invoice and all proof of payment/activity documents associated with the approved event/ activity no later than 30 days after event/activity completion. Expense documentation will be submitted to ExportDC for audit, review, and final approval. To protect against fraud and other improper activities, ExportDC requires the following documentation to be submitted for all reimbursement claims: 1. Invoice Submit document on company letterhead stating charges and details of the services rendered. 2. Proof of Payment Because reimbursement is based on your payment, ExportDC must have the proper documentation. Accepted proof of payment includes the following: Cash receipt: Must be marked paid and show a zero balance. Check: You must provide the cancelled version of the check (a copy of the front and back of check) or a copy of the check accompanied by a bank statement showing it was posted. Credit Card: Credit card statement must show the charge(s). Signature slips are not acceptable. ExportDC does not need to see payment to the credit card company. Wire Transfer: ExportDC must see wire transfer confirmation or the bank statement showing the posted transaction. The request alone is not sufficient.

3.

Proof of Activity This form of documentation depends upon the type of activity approved by the STEP review committee. A. Travel Reimbursement for Overseas Trade Mission Participation Airline Itinerary: ExportDC must receive a detailed itinerary/invoice from either a travel agent or airline. Document must show flight information. Note: Online ordering confirmations are not the same as passenger receipts. It must list the ticket number. Passenger Receipts: This document comes from the airline and indicates your ticket number(s) as well as price. Although paper tickets have become less common, it is still possible to obtain a receipt upon request when checking in at the airport (including automated check-in kiosk) or it can be printed when ordering online. Boarding passes are not eligible passenger receipts. Itemized Hotel Bill: ExportDC must receive a hotel document that shows your check-in/out dates as well as the nightly room rate. If you were charged by a travel agency or similar service provider, ExportDC asks that you still obtain documentation from the hotel itself that verifies your check-in/out dates. Proof of Activity: You must submit a copy of the participant agreement (if applicable) or a mission itinerary that includes a meeting schedule. Trade Show Participation In most cases, expenses related to exhibiting at a trade show require a photo of your companys booth or your listing in the trade show guide. International Marketing Materials You must submit samples, either originals or copies, of the marketing materials produced for the approved event/activity. Subscription to U.S. Department of Commerce Services The document should be evidence of the type of service(s) rendered (e.g. meeting schedule for business matchmaking services, advertisement in Commercial News USA, etc.)

B.

C.

D.