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Market Development Cooperator Program
Comparison of Export Development Financial Assistance Programs: STEP and MDCP
In 2011, the Small Business Administration started the State Trade and Export Promotion (STEP) initiative to help states to help small businesses to export. STEP objectives are aligned closely with those of the Market Development Cooperator Program (MDCP). STEP and MDCP financial assistance awards are compared below.
| Main objective | Eligible partners | Exports per $1 of award | Total annual funding available for awards | Project duration ceiling | Percent share federal/ partner | Award ceiling | |
|---|---|---|---|---|---|---|---|
| STEP | Exports | State export agencies, which award subgrants to individual companies. |
$31 * | $18,000,000 (Note: This figure is from FY 2019. It has varied year-to-year from $7 - $30 million) |
12 months | 75 / 25 | $3,000,000 |
| MDCP | Exports | Trade associations, chambers of commerce, World Trade Centers, Small Business Development Centers, economic development entities, other non-profit industry groups. | $357 | $2,000,000 (Funding has varied year-to-year from $0 - $2.5 million) |
72 months | 33 / 67 | $300,000 |
Exports generated per award dollar invested for other federal programs include USTDA at $95 and USDA/FAS programs which have hovered at about $100 over the last few years. The MDCP return has been above $300 since fiscal 2013.
* This actual return is noted on page 51 of FY 2018 Annual Performance Report, U.S. Small Business Administration. Also on page 51 is its stated goal for STEP: "The SBA targets a return on investment of $30 million in small business exports for every $1 million invested in STEP grants through FY 2020."
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