By Dave Somers and Mike Fong / For The Herald
There’s no question international exports are big business for Snohomish County and Washington state.
In 2019, more than 12,000 Washington businesses exported over $55 billion worth of goods and services internationally. Last year, the Port of Everett broke ground on a major expansion of Norton Terminal that will modernize our ability to move goods to market. We have more than 200 aerospace and advanced manufacturing companies in Snohomish County that represent a significant number of export-related jobs. Snohomish County’s Paine Field Airport is the most economically important airport in the state of Washington, accounting for $60 billion in economic impact and over 158,000 jobs according to the Washington Aviation Economic Impact Study. At the same time, following five consecutive years of export declines from 2016 to 2020, an analysis from our regional economic development organization, Greater Seattle Partners, found a significant reversal of this trend with exports up over $7.3 billion in 2021.
With trade being key to our region’s economic growth and prosperity, it is critically important that the economic opportunities created through exports prioritize small businesses and advance equity.
We know that already nearly 90 percent of export activity in our state is generated from small businesses representing roughly 25 percent ($14 billion) of the total value of goods and services. During the pandemic, many small businesses had to quickly modify their business models by going digital and relying on e-commerce as a means of survival. This dramatic and global adaptation creates disparities given the resources, time and access to broadband and other infrastructure challenges for our rural communities and BIPOC- and women-owned businesses. To advance an equitable recovery, we must be intentional about how we focus services and programs that expand export capacity and build broader awareness of the resources currently available.
The Washington State Trade Expansion Program (STEP) is a program funded through the Small Business Administration that provides direct cash assistance, in many cases up to $10,000, to help small businesses expand their international sales. The reimbursement program will pay for marketing materials, web design, international payment handling, shipping of product samples, travel, trade missions and translation services. Over 900 companies have used the STEP program in our state. For more information, visit the state Department of Commerce website.
Often small businesses owners and entrepreneurs are interested in expanding into international markets but don’t know where to start. The Washington Export Outreach Team and SBA’s resource partners at the Small Business Development Centers have certified experts who can provide one-on-one advice and ongoing support for businesses interested in exporting. These underutilized services are generally offered at no-cost and can assist with business development, planning, and market research.
Small businesses that want to expand by exporting may require access to additional funding. Fortunately, SBA offers three financing options for U.S. small business exporters or businesses adversely affected by import competition:
The Export Express Loan Program allows quick access to capital for businesses that need financing up to $500,000. You can apply for a line of credit prior to finalizing an export sale or even before visiting a foreign market. Getting your financing lined up ensures that adequate money is in place before you agree to contract terms.
The Export Working Capital Program allows small business owners to apply for loans of up to $5 million in advance of finalizing an export sale or contract, giving exporters greater flexibility in negotiating payment terms to fulfill orders and finance international sales.
The International Trade Loan Program helps small businesses enter international markets and make investments to compete with other importers. These loans, up to $5 million, offer a combination of fixed-asset, permanent working-capital financing, and debt refinancing with SBA’s maximum guaranty of 90 percent on the total loan amount.
We are both committed to having SBA and Snohomish County work together to help small businesses reach new customers through exporting and build an even stronger base of good-paying jobs. We have a history of strong innovation and entrepreneurship in our region, and since 90 percent of the world’s consumers live outside the United States, according to the International Trade Administration, we know where we need to focus.
As we continue to recover from the pandemic and global travel fully rebounds, we have a great opportunity to prioritize exporting. With our region’s partners, we look forward to creating more equitable access to the tools and resources necessary for small businesses to succeed.
Dave Somers is Snohomish County executive and a member of the board for Greater Seattle Partners. Mike Fong is Pacific Northwest regional administrator for the U.S .Small Business Administration and former chief recovery and resilience officer for Snohomish County.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
