Courtesy of the New Mexico Economic Development Department
SANTA FE – The New Mexico Economic Development Department’s Office of International Trade has been awarded an $187,802 federal grant from the U.S. Small Business Administration (SBA), along with a $15,000 cash match from the state of New Mexico Economic Development Department to boost its international trade efforts. This SBA STEP Grant will be part of a larger initiative that the Office of International Trade will execute over the next 12 months with expectations of continued growth in exports.
“Over the past 22 months, increasing the state’s international exports has been a focus for Governor Martinez and the New Mexico Economic Development Department,” said Economic Development Cabinet Secretary Jon Barela. “We have seen those efforts pay off as New Mexico’s exports have doubled in that period; we believe promoting exports is a great way to create economic-base jobs, grow our manufacturing sector and provide opportunities for New Mexicans.”
In addition to doubling its merchandise exports, in that same time period, New Mexico’s percentage merchandise export growth jumped from 38th to 2nd in the nation. According to official U.S. Department of Commerce estimates, it is calculated that for every $1 billion in exports up to 6,250 jobs are created or supported.
The New Mexico STEP Grant will be utilized to provide funding and assistance to New Mexico companies seeking to participate in international trade shows; trade missions; foreign market specific conferences; workshops focused on export basics and other international trade promotion activities.
The STEP Grant is directed to eligible small and medium-sized enterprises with fewer than 500 employees. This segment represents 84 percent of the companies exporting from New Mexico which in turn generate over 46 percent of the state’s exports. The purpose for the grant is to encourage more U.S. companies to export overseas and to diversify their export markets. Businesses approved must be New Mexico companies paying taxes in New Mexico even if they are affiliates of a company with headquarters outside New Mexico. The product content must be 51 percent U.S. content as required by the U.S. Department of Commerce to promote the product overseas.
The funding received this year is more than double the level of the $81,000 that was awarded to the Office of International Trade in 2011, the first year of the STEP grant program. Funding under the initial grant in 2011 was applied to assisting New Mexico companies participate in a state led international trade mission to South America; participation in the Trade Winds matchmaker program in Southeast Asia; Global Supply Chain marketing in Canada; trade representation in Brazil; trade mission Mexico; an export workshop jointly with the National Association of Women Business Owners (NAWBO) for women owned businesses seeking to learn about exporting and participation in an Oil and Gas trade show in Colombia.
For more information on the New Mexico Office of International Trade, forms for eligible businesses, New Mexico SBA STEP Grant funding application and trade events calendar visit: http://www.gonm.biz/internationaltrade/default.aspx
The Office of International Trade (OIT) at the New Mexico Economic Development Department was created to promote New Mexico exports around the globe by helping companies identify new markets and locate distribution partners in promising markets. OIT maintains a network of international trade offices serving the Greater China, Middle East and Brazil to support New Mexico businesses and facilitate trade opportunities. OIT has been awarded an SBA STEP Grant, which is being utilized by the department to pay for company participation in foreign trade shows and in matchmaking services like the U.S. Department of Commerce Gold Key Service. OIT conducts frequent seminars and workshops spotlighting on doing business in specific markets or regions, also on the fundamentals of exporting such as export marketing, establishing and managing foreign distribution networks, export financing and letters-of-credit; shipping and logistics and cross cultural communications.
