Vermont businesses get export subsidies

Over the past two years, Ed Sawyer has used two federal grants of $20,000 each to develop export products for higher conversions. The Barre-based company makes specialty parts for trucks, buses and airplanes, as well as electrical grids and laser surgery.

“It’s not a huge amount of money, but it helps us make decisions to get out there and get our products to market,” said Sawyer, the company’s CEO.

Advanced Conversion uses grants to go to trade shows in Europe and travel abroad to meet key customers.

Last month, Vermont approved funding for these federal grants as part of the state’s business expansion program, meaning more local businesses will benefit.

“It’s been somewhat underutilized, but the state is expanding its rollout, so I think we’ll see more businesses using it,” said Darcy Carter, Vermont director of the federal agency’s Small Business Administration. .

States applied for the grant, and this year, the Small Business Administration awarded $249,000 to Vermont — a nearly 66 percent increase. Previously, the state had a grant of $300,000 for two years.

Businesses then apply for grants of up to $20,000 from the state Business and Community Development Agency, which administers the funds.

“Many people go to international trade shows or work on their websites to enter specific markets, through translation or search engine optimization,” said Tim Tierney, director of business recruitment and international trade at the State Trade Agency. Tierney said that during the pandemic, companies used funds to improve their online platforms to serve their international customers.

“The return on investment for some of these companies is huge,” Tierney said. “They bring someone to a new market and reach that market. It’s a big deal, not just for that company, but it creates jobs here in Vermont.

Tierney said the money also goes to exporters to hire consultants on customs clearance, compliance with trade regulations and market research.

At Advanced Conversion, exports account for more than half of the business, Sawyer said.

“Exporting is our lifeblood,” he said.

The company, which employs 34 people in Vermont, exports to China, South Korea, Japan, Taiwan, Mexico and the United Kingdom, Sawyer said. He pointed out that the subsidy will help pay for export trade insurance and that banks will cover the money paid by foreign customers.

Most of the manufacturing is done in Barre, Sawyer said, but the company has a manufacturing partner in China.

This week, using a grant from the State Business Expansion Program, the trade agency hosted 40 Canadian companies in Burlington to connect with Vermont businesses and organizations.

According to the agency, Vermont has $5 billion in annual trade with Canada, and 73 Canadian-owned businesses will employ 3,000 Vermonters by 2021. Vermont exported $830 million worth of goods and services to Canada last year.

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