Grow Nebraska Through International Trade January 21, 2016
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1 Grow Nebraska Through International Trade January 21, 2016 Susan R. Rouch Nebraska Department of Economic Development 301 Centennial Mall South Lincoln, NE
2 What do you do?!
3 Our mission is to provide quality leadership and services that enable Nebraska communities, businesses and people to succeed in a global economy.
4 International Trade & Investment: One-on-one counseling Initial market research Export documentation assistance International contact development International marketing efforts Referrals to local assistance
5 Nebraska Department of Economic Development International Personnel Joe Chapuran, International Development Manager Susan Rouch, International Export Manager & STEP Grant Administrator Cobus Block, International Development Assistant Manager
6 JAPAN Ø Established December, 2006 Ø Ø The Japan office, led by Mr. Koji Nagasaka, Executive Director, serves as a hub for Nebraska s international business operations, including exporting to Japan, the recruitment and expansion of Japanese-owned companies to Nebraska, agricultural market expansion, and the cultivation of multinational partnerships for economic growth. The center is available as a public work and meeting space to business partners and Nebraskans visiting abroad for economic development purposes.
7 CHINA In , the Nebraska Department of Economic Development contracted with Ms. Jennifer Zhang, JZW International LLC in Omaha, to provide assistance to Nebraska companies interested in developing business with China, and screening companies in China interested in doing business in Nebraska.
8 CHINA In 2013, the Nebraska Department of Economic Development opened the Nebraska Center China to further expand and support our growing markets across China. The Office is located in Shanghai. Supporting the office is the Shanghai Small and Medium Enterprise Center for International Cooperation, providing key contacts for Nebraska businesses.
9 We also utilize and partner with other service providers. US Department of Commerce US Small Business Administration Nebraska Department of Agriculture Nebraska Business Development Center Nebraska Chambers of Commerce University of Nebraska State Colleges
10 There have been 31 Nebraska trade missions to 22 countries, since November, led by Governor Ben Nelson, 8 led by Governor Mike Johanns, 6 by Governor Dave Heineman, 2 by Lt. Governor Rick Sheehy, 1 by current Lt. Governor Mike Foley, and 2 led by current Governor Pete Ricketts
11 More than 130 business and government leaders from Brazil, Colombia, Nicaragua, Canada, Spain, South Africa, China, Hong Kong, Japan, and South Korea joined Nebraska s first Reverse Trade Mission in Our guests spent four days participating in one-on-one business meetings, panel discussions, and networking opportunities with business and academic leaders from across the State.
12 More than 100 business and government leaders from Argentina, Canada, Chile, China, Czech Republic, Germany, Japan, Korea, Mexico, Russia, South Africa, Spain, United Arab Emirates and Vietnam joined Nebraska s second Reverse Trade Mission in Gov. Dave Heineman announced international business expansions in Nebraska with companies located in Korea, China and South Africa, as part of Nebraska s second Reverse Trade Mission. This event offered trade representatives and international business leaders the opportunity to see firsthand the benefits of doing business in Nebraska.
13 Over the past 5 years we ve had approximately 30 international investments from 12 countries Investing over $4.17 billion Creating almost 1,500 new jobs
14 Overview of Nebraska s Export Activity Nebraska exports increased 162% over the past 10 years! $7,863,218, $5,820,958, $3,003,380,987
15 Nebraska exported to more than 170 countries in 2014! Overview of Nebraska s Export Activity Top manufactured products we exported were processed foods, ag and industrial machinery, chemicals, and transportation equipment; Top five importers of these products were Canada, Mexico, Japan, China, and South Korea; 50 countries accounted for 98% of Nebraska s exports in However, 45% of Nebraska s exports went to two countries. - 28% - Canada ($2,170,541,910) - 17% - Mexico ($1,339,377,608)
16 State Trade & Export Program (STEP Grant) Federal grant program administered by SBA Goal: Increase the number of small businesses that export; Increase the value of exports for those small businesses currently exporting.
17 State Trade & Export Program (STEP Grant) Nebraska awarded $300,570 for Direct Market Research Reports Scholarships for ExporTech Training UNO Executive MBA Research Project International Marketing Access Grants
18 State Trade & Export Program (STEP Grant) Direct Market Research Reports Intermediate Market Research Reports will be available through the Nebraska Business Development Center (NBDC) in Omaha through the University of Nebraska at Omaha (UNO). These reports will provide international market research to assess global demand, identify potential markets, and/or investigate specific markets of interest to individual companies. Reports are capped at one report per company. Contact for this service is: Harold Sargus, NBDC, or Josh Nichol-Caddy, NBDC,
19 State Trade & Export Program (STEP Grant) Scholarships for ExporTech Training Scholarships for up to eight (8) eligible small business entities to defray the cost of participating in the 2016 ExporTech Program, an export acceleration program sponsored by the Nebraska Manufacturer s Extension Partnership (MEP) through the University of Nebraska-Lincoln. This program guides participants through the process of assessing export readiness, market research and training, culminating in an export marketing plan uniquely designed for their company. Contact for this service is: Bob Walters, NMEP, rwalters2@unl.edu.
20 State Trade & Export Program (STEP Grant) UNO Executive MBA Research Project In-depth, extensive report focused on market entry analysis that addresses industry, company, and product specific international opportunities and challenges in the client s country of interest will be available through an International Business Consulting Project which is a component of the UNO Executive Master of Business Administration Program. Contact for this service is: Bill Swanson, UNO, wswanson@unomaha.edu.
21 State Trade & Export Program (STEP Grant) International Marketing Access Grants (IMAG) Domestic and International Trade Shows, Missions, Conferences & Sales Trips International Advertising Translation and Printing Services Website translation and Search Engine Optimization Participation in USDOC Matchmaking Programs 3 rd Party Product Testing
22 International Market Access Grants (IMAG Program) Export Focused Trade Activities: $2,000 - Domestic trade shows, conferences & educational forums; $5,000 - International trade shows, conferences & educational forums; $5,000 - International sales trips and other activities that require international travel.
23 International Market Access Grants (IMAG Program) Export Focused Trade Activities: 50% company match of the maximum reimbursement amount required for previous grant recipients; There is a maximum of $15,000 available per company over the life of this grant for these Export Focused Trade Activities that require travel.
24 International Market Access Grants (IMAG Program) International Advertising: $2,000 toward the cost of an ad placed in an advertising venue focused on international export opportunities; 25% company match of the maximum reimbursement is required to qualify; Reimbursement is capped at $2,000/year per company.
25 International Market Access Grants (IMAG Program) Translation Services: $5,000 toward the cost of translating and printing company prodiles, catalogs, product literature, packaging, labels, manuals or sales videos for international distribution; Approval is limited to two (2) awards per company OR a maximum reimbursement of $5,000/year per company; A 25% company match of the maximum reimbursement amount allowed is required to qualify.
26 International Market Access Grants (IMAG Program) Translation Services: $3,000 toward website translation and search engine optimization to accommodate international marketing needs; Approval is limited to one (1) award per company OR a maximum reimbursement of $3,000/year per company; A 25% company match of the maximum reimbursement amount allowed is required to qualify.
27 International Market Access Grants (IMAG Program) USDOC Business Matchmaking Programs: $700 - Gold Key Service (GKS) $550 - International Partner Search (IPS) $600 - International Company Prodile (ICP) $1,500 - Export USA (formerly known as CNUSA)
28 International Market Access Grants (IMAG Program) USDOC Business Matchmaking Programs: 25% company match of the maximum reimbursement amount required; Approval for USDOC Business Matchmaking Programs is limited to two (2) programs/year per company and must be pre- approved by the USDOC.
29 International Market Access Grants (IMAG Program) 3 rd Party Product Testing: $2,000 toward the cost of product testing required to verify international safety, quality, labeling and/or technical conformity standards, registration or certidication to enter a foreign market; Approval is limited to two (2) awards/year per company OR a maximum reimbursement of $2,000/year per company; 25% company match of the maximum reimbursement is required to qualify.
30 Company Eligibility Requirements Must operate a business in Nebraska to process, manufacture, and/or distribute a product; or provide an exportable service; Be in business at least one year, operating proditably in the US; Produce products that contain at least 51% U.S. content; Qualify as a small business entity according to SBA s North American Industry Classidication System (NAICS); All employees of afdiliates, such as parent companies, subsidiaries, etc., must be included in employee and annual receipt totals;
31 Company Eligibility Requirements Complete a Self Representation as an Eligible Small Business Concern form; Submit a copy of your company s strategic plan for exporting; OR a signed Summary of International Trade Activities form; Submit a Debarment Certidication Form to certify that the applicant is not on the U.S. Excluded Parties List; and, Complete a one page application outlining eligibility requirements are met and providing a history of previous STEP grant participation.
32 Distribution of Funds IMAG operates on a reimbursable basis; therefore successful applicants will be reimbursed for eligible expenses when their project/activity has been completed and all required documentation has been received.
33 Reimbursement Process Reimbursement requests must be submitted within 45 days of completion of the IMAG activity or reimbursement amounts may be forfeited; Expenses include eligible expenses incurred for 1-2 direct employees from your US facility; Reimbursement requests must include a Summary of Expenses; receipts for all expenses for which reimbursement is requested; and An activity report on the activity completed.
34 Eligible Expenses: Coach/Economy Class Airfare (pursuant to the Fly America Act) Baggage fees Ground transportation Lodging Trade Show Related Expenses Shipping Fees (25% match required; capped at $2,000/year per company) Interpreter Services Program/registration fees for USDOC Programs and Export Focused Trade Activities as required International Advertising 3 rd Party product Testing Design, translation and printing of materials, sales videos, and/or website information; Foreign Transaction Fees.
35 Ineligible Expenses: Employee compensation, wages, or salaries; Meals, beverages and tips; Capital goods, product samples & supplies; New product research & development costs; or alteration of existing products; Passport or Visa Fees; Immunizations; Cell phone & cell phone charges; Expenses related to entertaining current or prospective clients or government ofdicials; Expenses incurred by company representatives, consultants, agents or distributors, or individuals other than direct company employees within or outside the US; Travel expenses without prior travel approval from SBA; Any expenses not included on the Itemized Budget Request; Any expenses incurred AFTER September 29, 2015.
36 Maximum Reimbursement Maximum reimbursement per company over the life of this grant is limited to $20,000; All activities AND expenses must be completed and incurred PRIOR to September 29, 2016.
37 Other Notable Requirements Reporting Requirements: Completion of a quarterly evaluation form provided by NDED to include the number of sales leads collected, closed sales, projected sales and any other information pertinent to how this IMAG activity helped your company enter new or existing international markets.
38 Application Process Overview of the STEP Program Application found at: trade- and- investment
39 Nebraska has become an international player and will continue to make its mark in foreign markets and international business worldwide.
40 Thank you! Susan R. Rouch Nebraska Department of Economic Development 301 Centennial Mall South Lincoln, NE Tel: Fax: Website:
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