The Compass Grant helps Delaware small businesses navigate international business development through grant funding to support marketing and sales activity around the world.
Delaware small businesses may apply for a Compass Grant to support international travel or business development activities. This grant offers greater flexibility than previous programs. Compass Grant funds may be used to reimburse up to 50 percent of all pre-approved, eligible, international marketing expenses, up to a maximum of $10,000 per fiscal year, per company.
Are you wondering how to connect with new customers around the world?
Do you feel you’ve exhausted your pipeline of clients domestically?
Would you like to exhibit at an international trade show?
If this sounds like your business, the Compass Grant is for you.
It’s more expensive to travel now than ever before. It can also be very challenging to connect with new prospective customers around the world. That’s why the Delaware Department of State created the Compass Grant, to help Delaware small businesses navigate international business development.
Companies that sell internationally (export) are more profitable, grow faster, and are more resilient to economic fluctuations. They also create more local jobs!
You don’t have to be a huge company to sell internationally. According to the SBA, some of the most successful exporters are innovative small- and medium-sized businesses (which account for 98 percent of U.S. exporters).
Here are some examples of how you can use Compass Grant funds:
Booth fees for exhibiting at a tradeshow overseas
Travel expenses (hotel and airfare) for visiting potential clients or distributors in another country
Fees to work with the US Commercial Service on International Partner Search
Fees associated with obtaining your CE Mark
Expenses for translating your product manual into another language
Expenses for optimizing and localizing your website for a foreign market
In addition to these activities, Delaware Small Businesses may participate in Export Delaware’s Business Trips. These trips are an excellent opportunity to meet face-to-face with distributors and potential customers – all with the assistance of seasoned global trade experts. Travel expenses on these trips are eligible for reimbursement through the Compass Grant. Click here to learn more.
Note, to be eligible to receive a Compass Grant, your business must have a physical operation and employees in Delaware and meet additional requirements listed below.
How it Works
Apply for a Compass Grant if you’re seeking financial assistance expanding into new international markets.
Apply: Apply by completing an online Compass Grant Application. List the amount of funds you are requesting on your application. Note the maximum grant award amount you may be eligible for is $10,000.
Award: If your business meets the Compass Grant requirements, and there are funds available, you will be awarded a grant to move forward on the project. All expenses must be pre-approved by Export Delaware, so be sure not to incur any expenses before you receive final award from our office.
Project Execution and Payment: Go about your international business and keep a good record of your expenses along the way. Note what expenses are allowable and unallowable per the Compass Grant Guidelines below.
Reimbursement: Once the project/trip is complete, you can submit your reimbursement request to Export Delaware per the Compass Grant guidelines. You will be reimbursed 50% of the costs associated with your project, as long as they meet the requirements. For example, if the project costs $10,000, you may submit a reimbursement request for $5,000 (50% of the cost).
Does My Business Qualify?
To qualify for Compass Grant funds, your business must meet the size requirements of a small business (listed here), and the goods or services your organization that you will promote on this trip must be of US origin OR have at least 51% US content.
In addition, you must meet the following requirements:
Operate in Delaware at a Delaware street address
Be in business longer than one year
Have an export plan
Be determined export-ready by Export Delaware
Compass Grant Allowable Expenses
Click each item category below to find out which expenses are allowable (and unallowable). If you have questions about whether an expense is eligible, please get in touch with Export Delaware before incurring any expenses.
Travel expenses can only be reimbursed for ONE traveler per company. An exception may be made if the second traveler is a technical person who is needed to facilitate sales.
Allowable Expenses:
Airfare – Coach fare is encouraged. If you prefer to fly business class, your flight may be eligible for reimbursement if it meets the following criteria: the scheduled flight time, including non-overnight stopovers and change of planes, is in excess of 14 hours; and you are required to report for business duty within 24 hours of arrival at the destination. Please check with the Delaware Department of State staff to verify your ticket’s reimbursement eligibility before purchasing.
Transportation costs (airfare, ground transportation, parking, taxis, Ubers, mileage, tolls, and other associated and allowable travel expenses).
Lodging – Up to 150% of the maximum lodging rate of the federal per diem for each city of travel.
Baggage fees
Design of marketing material fees
Development of market research materials
Fees for shipping sample products
Language interpretation services
Unallowable Expenses:
Two staff members travel
Expenses related to entertainment of current or prospective clients or government officials
International trade shows where your business is exhibiting or have one-on-one business meetings with prospects at the show.
Allowable Expenses:
All registration fees for an in-person trade show booth
All registration fees for a virtual trade show booth
Raw booth space (can be purchased and reimbursed up to 1 year prior to the trade show)
Design costs of the booth – this may include or is limited to: signage, furniture costs, graphics
Trade show catalog listing fees
Trade show advertising fees
Airfare – Coach fare is encouraged. If you prefer to fly business class, your flight may be eligible for reimbursement if it meets the following criteria: the scheduled flight time, including non-overnight stopovers and change of planes, is in excess of 14 hours; and you are required to report for business duty within 24 hours of arrival at the destination. Please check with the Delaware Department of State staff to verify your ticket’s reimbursement eligibility before purchasing.
Lodging – Up to 150% of the maximum lodging rate of the federal per diem for each city of travel.
Transportation costs for one traveler per company (airfare, ground transportation, parking, taxis, Ubers, mileage, tolls, and other associated and allowable travel expenses)
Fees for shipping sample products
Baggage fees
Design of marketing material fees to bring to show
Unallowable Expenses:
Expenses related to entertainment of current or prospective clients or government officials
Development of training materials related to exporting
Venue fees to host a training
A/V fees for the training
Speaker fees
Export certification or training workshops offered by SBA resource partners, such as, Small Business Development Centers (SBDCs), Women Business Centers (WBCs), and SCORE
U.S. Commercial Service trainings that assist companies going to market and with executing strategic export plans
ExporTech program – jointly offered by the NIST Manufacturing Extension Partnership and federal/state export partners
New to Export SIDO ESBC Training
Export compliance training from the Bureau of Industry and Security (BIS), Dept. of Commerce, Defense Directorate of Trade Controls (BIS), U.S. State Dept., and U.S. Census Bureau, Dept. of Commerce
State and local training programs by private-sector consultants including compliance, logistics, financing, and international marketing
Consultant fees, market research fees, certification, and compliance testing fees for the following projects.
Allowable Expenses:
Design a market entry strategy for an eligible small business
Provide a customized, market research for an eligible small business
Provide long-term market entry growth strategies for an eligible small business
Assist with compliance testing for products to enter a foreign market. This can include, but not limited to: CE Mark certification, ISO certification, RoHS certification, ITAR certification by the DDTC, State Dept., EAR licensing and certification fees by the BIS, US Dept. of Commerce
Fees incurred for export credit insurance policy (including EXIM Bank fees and private sector providers)
Monthly “pay-as-you-go” fees from EXIM Bank
Initial annual premium from private providers
Foreign buyer credit reports
Testimonials
“Funds were provided to visit our two distributors in China and have meetings at key accounts. This account will help generate a large percentage of sales over the next several years.”
– Stephanie Rosenberg, Advanced Materials Tech
“This program helps us meet existing, and develop new, distribution channels, for our products. The two largest, medical trade shows in the world were part of our itineraries. This provided a great opportunity to gain market intelligence. The grant, and all the other excellent support we receive from Export Delaware, has been an invaluable aid to our expansion overseas.”
– Andy Wood, LiteCure
“Export Delaware are very helpful to small businesses who want to export. They have a great team, who are ready to help.”
– Naresh Batta, Batta Environmental
“The folks at Export Delaware have been very helpful with our efforts to reach prospects outside of the US by taking away the fear of the unknown.”
Jeff Palmer, OASIS Inspection Systems
Additional Funding For Export Activities
Additional capital resources are available from the federal government and other organizations for export activities. Options range from tax credits to low interest loans, and other financing plans. Search here to find the right option for your business.
Name of Incentive: International Trade Loan Program
Issuing Organization: SBA
Details: Loans available to small businesses in a position to expand existing export markets or develop new export markets, or that have been adversely affected by import competition and can demonstrate that the loan proceeds will improve their competitive position.