International Trade Assistance Grant Introduction The Alaska Department of Commerce, Community, and Economic Development (DCCED) administers the International Trade Assistance Grant (ITAG) through its Office of International Trade within the Commissioner's Office. The ITAG program is designed to help Alaskan small businesses enter and expand into international markets by offsetting the cost of certain export-related expenses through reimbursement-style grants. It is funded by the U.S. Small Business Administration’s (SBA) State Trade Expansion Program (STEP). Companies must be either "new to export" (NTE) or engaging in "market expansion" (ME)—that is, the event/activity must help them to enter a new market or expand where they do not already have significant export sales. Eligibility Eligible businesses must meet and adhere to the following criteria: For-profit business headquartered and registered to do business in Alaska. Hold an active business license and an entity registration (if applicable) with the State of Alaska. Manufacture, assemble, and/or distribute a product or provide an exportable service. If you are not the manufacturer of the product you must have the rights to export as an authorized distributor. The product(s) or service(s) must be export-ready and already selling in the U.S. market and/or internationally. Must have been in business for at least one year. Must meet the SBA size standards. Small businesses are generally defined as those with 500 or fewer employees; however, the SBA might have different parameters based on your company’s NAICS code. Have access to sufficient resources to bear the costs associated with trade. The product or service for export must contain at least 51% United States content. There is an explanation of how to calculate this located in the FAQs at the bottom of the page. Cannot be presently debarred, suspended, proposed for disbarment, declared ineligible, and/or voluntarily excluded from participation by any federal department or agency. The business must have a valid Unique Entity ID (UEI) issued by SAM.gov and an active SAM.gov Registration: sam.gov/content/entity-registration. Site visits and/or telephone interviews may be conducted to further determine a company’s eligibility. Ineligible industries include (but are not limited to): Businesses acting as intermediaries for other companies Law firms Non-profit organizations Educational institutions Companies involved with cannabis Retail Companies that are recruiting foreign investment Funding Available The maximum award amount per company is $10,000 and the minimum amount is $1,000. Eligible export activities can be combined under one application to reach the minimum award amount, if necessary. Applications must be for activities that will conclude on or before June 30, 2025. Applications are processed and awarded on a rolling first-come, first-served basis until all funds are expended. Submit your application as early as possible before your intended export activity, but at least 30 days before the start of the activity. A grant agreement must be signed before initiation of activities. The grant agreement details the terms and conditions for your grant. Expenses incurred by a company prior to an ITAG grant award and execution of a grant agreement are not eligible expenses and will not be reimbursed. Companies will be reimbursed up to 75% of eligible expenses. The 25% of eligible expenses that is covered by the company is considered the company’s match and may not come from any other federal government source. Companies will only be reimbursed for the approved export activity and expenses stated in the grant agreement. Applicants must notify the ITAG Program Manager immediately if they are unable to complete an activity that has been awarded. The ITAG program is a reimbursement-style grant. Payments will only be issued to a company after the completion of the approved export activity and upon submission of an initial performance report and an expense detail report. These forms will be included in your grant agreement. Receipts and proof of payment are required for all expenses for which a company is seeking reimbursement. Generally, a company must request reimbursement within 30 days of completion of their export activity. Allowable Uses of Funds International trade show exhibition: Grant funds can be used for costs associated with participating in an international trade show to showcase and demonstrate its products and services at an international trade show. This includes foreign and domestic trade shows, but additional rules apply for domestic trade show participation. Participation in export training workshops: Grant funds can be used for training workshops and education courses that assist companies with gaining credible knowledge of export policies, regulations, and/or best practices. Outcomes should be export plans and strategies. Payment of international website fees: Grant funds can be used for translating websites into foreign languages, localizing websites to foreign markets, and search engine optimization for foreign markets. Design of international marketing media: Marketing media is used to promote a company’s product or service to strengthen its export sales potential, ability to reach its target audience, and/or export market opportunities using brochures, social media platforms, websites, billboards, newspapers, branding and advertising, posters, advertisements in international magazines, or other media approved in advance by DCCED. Subscription services provided by the U.S. Department of Commerce: Grant funds can be used for the services available from the U.S. Commercial Service, the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration, to assist with entering or expanding their markets, choosing the best market for their products or services, evaluating prospective foreign business partners, increasing market potential, and gold key matchmaking services. Procurement of international consultancy services: This activity is only allowable after company consultation with DCCED and the U.S. Commercial Service to avoid duplication of services. Eligible expenses can include consultant fees, market research fees, certification and compliance testing fees, and licensing fees. Participation in foreign trade missions: A foreign trade mission is defined as travel to a foreign country or participation in a virtual event that will enable companies to explore or expand international business opportunities. It can be organized by the state or an outside service provider. Companies participating in foreign trade missions are expected to yield tangible outcomes, such as seeking out potential international buyers and increasing export sales volume. Ineligible Expenses Ineligible expenses include (but are not limited to): Airfare that is does not conform with the Fly America Act Airfare that is not coach/economy Immunizations Salary or payroll Association or membership fees Cellphones and cellphone charges New product development or alteration of existing products Visa and passport fees Construction or renovation of facilities or acquisition of real estate Litigation, whether civil, criminal, or administrative Providing matching contributions to any other Federal awards Activities that are being funded or subsidized by other organizations Meals, lodging, per diem, or other expenses associated with local travel. Local travel is any travel conducted entirely within a 50-mile radius of your organization’s address of record Costs associated with printing materials Application Materials Below are links to download the application, budget workbook, and required forms. Submit your application, completed forms, and proof of SAM.gov registration to the ITAG Program Manager via email at Laura.Vaught@Alaska.Gov. ATTENTION: You must download the PDF Application to your computer before you begin filling it in to save your information. ITAG Program Application Application Budget Workbook (clicking the link will initiate download of the Excel spreadsheet) Budget Workbook Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Form Debarment Certification Form SBA Self-Representation as an Eligible Small Business Concern Self-Representation Form DCCED Small Business Survey Small Business Survey Evaluation Process DCCED staff will review and make an eligibility determination within 30 days of receipt of a complete application. Applications will be evaluated based on several factors including availability of funds, the merits of a given application (including the export readiness assessment for new-to-export companies and strategic export plans for market-expansion companies), the projected sales resulting from the activity, and, if applicable, an applicant’s prior engagement with the program rules and requirements. In accordance with SBA guidelines, priority will be given to applications received from the following types of small businesses: businesses owned and controlled by socially and economically disadvantaged individuals, women-owned or veteran-owned businesses, businesses located in one of Alaska’s 25 Opportunity Zones, and businesses located in rural Alaska (defined as anywhere outside of the Municipality of Anchorage). Reporting The SBA requires the State to report on all grant recipients after their activity has concluded. Companies will be required to fill out an initial performance report within 30 days of completion of their export activity, as well as quarterly performance reports for the duration of the program performance period, which ends September 29, 2025. The performance reports will detail sales associated with the export activity. Not completing the reporting requirements may result in a company being ineligible to receive future grants from the ITAG program, forfeiture of any remaining grant funds under ITAG, and reimbursement to DCCED of grant funds already expended. Release of Information All documents submitted to DCCED, including applications, are public records governed by the Alaska Public Records Act, AS 40.25.110 – 40.25.295. Information disclosed to DCCED that is claimed as confidential or proprietary may be exempt from production under the Alaska Public Records Act. If you wish to have information treated as confidential, you must identify the information and mark it as confidential. All applicants should review the Alaska Public Records Act to determine what information may be exempt from disclosure. Frequently Asked Questions (FAQs) What is the difference between STEP and ITAG? STEP is the State Trade Expansion Program, a grant program that is administered by the U.S. Small Business Administration (SBA). STEP is available for states and territories to apply and help fund their export assistance programs. The International Trade Assistance Grant (ITAG) is the State of Alaska’s name for the program that utilizes the SBA’s STEP funds. You may see references to both STEP and ITAG throughout the program materials. What is the program performance period? DCCED’s ITAG program is funded by a STEP 11 award from the SBA (STEP 11 indicates the round of funding). DCCED’s STEP 11 funds have a program performance period from September 30, 2023-September 29, 2025. DCCED will accept ITAG applications from companies to use STEP 11 funds until June 30, 2025. The application period will close early if all available funds have been awarded. If funding remains after June 30, 2025, DCCED will reopen ITAG for applications. What is a Unique Entity Identifier, why do I need one, and how do I get one? The ITAG program is a passthrough of federal funds. All entities applying for federally funded awards are required to have a Unique Entity ID (UEI) issued by SAM.gov, the official U.S. government system for contracting, federal assistance, and entity information. Registering for a UEI is free. To obtain a UEI, go to SAM.gov and follow the instructions to register your entity. Does my company need to fill out the follow-up surveys and reports once we have received our reimbursement? Yes. The SBA requires the state to report on all STEP fund recipients after their activity has concluded. Your company will be required to fill out quarterly reports for the duration of the federal program performance period (September 29, 2025). Not completing the reporting requirements will result in your company being ineligible to receive future grants from the ITAG program, forfeiture of any remaining grant funds under ITAG, and reimbursement to DCCED of grant funds already expended. How are reimbursements calculated? Reimbursements will be awarded up to 75% of the total costs submitted. The minimum award amount is $1,000 and the maximum award amount is $10,000. For example, if your company applies to the ITAG program to attend an export training that costs $1,500 and your application is accepted for 75% reimbursement, the calculation would be $1,500 x 0.75 = $1,125. Your company would receive a reimbursement of $1,125 for that activity. Total costs cannot be lower than $1,335 to meet the 75% reimbursement floor of $1,000. The maximum amount a company can be reimbursed is $10,000 regardless of the total costs of the export activity. For example, if your company applies for expenses totaling $15,000, your reimbursement will still only be $10,000. The activity my company wants to apply for does not reach the $1,000 minimum. Can we combine activities in one application? Yes, eligible activities can be combined into one application to meet the $1,000 reward floor. For example, if a company applied for an export training that costs $1,200 and a U.S. Department of Commerce subscription service that costs $500, they would list both activities in their application with the total expected cost of $1,700. The reimbursement they would receive would be $1,700 x 0.75 = $1,275. How do I determine United States content for manufactured goods? U.S. content for manufactured goods = [ex-factory price of a good] minus [aggregate value contributed by non-U.S. or foreign sources (e.g., costs or payments to foreign suppliers/providers/employees not resident in the United States)]. The following links may also be helpful in determining your U.S. content: EXIM Bank Calculator – Manufactured Goods, EXIM Bank Calculator – Services, and EXIM Bank Content Policies. How do I determine United States content for services? U.S. content for services = [contract value of the service, whether delivered in the U.S. or overseas] minus [aggregate value contributed by non-U.S. or foreign sources (e.g., costs or payments to foreign suppliers/providers/employees not resident in the United States)]. The following links may also be helpful in determining your U.S. content: EXIM Bank Calculator – Manufactured Goods, EXIM Bank Calculator – Services, and EXIM Bank Content Policies. Questions? Please Contact: Laura Vaught ITAG Program Manager Phone: 907-269-7387 Email: Laura.Vaught@Alaska.Gov Other Export Resources Export Council of Alaska Alaska International Business Center U.S. Commercial Service ITA Why Export Export Readiness Assessment System (ERAS) Export Start-Up Kit ITA Learn How to Export