Approximately 70 percent of all U.S. exporters have 20 or fewer employees. SBA has placed a priority on helping these small business exporters by providing a number of loan programs specifically designed to help them develop or expand their export activities. If you own or wish to start a small export business, the following loans may be available to you:
Export Working Capital Program (EWCP)
International Trade Loan Program
Export Express Program
Fast and easy loans for small exporters
Small business exporters are taking advantage of the world market and selling billions of dollars of goods and services overseas every year. In fact, 70% of all exporters have fewer than 20 employees. If you are one of these businesses, or would like to join in this growing trend, and you think you are too small to receive government sponsored export financing, think again!
Streamlined financing up to $500,000
SBA Export Express offers flexibility and ease of use to both borrowers and lenders. It is the simplest export loan product offered by the SBA and allows participating lenders to use their own forms, procedures and analyses. The SBA provides an answer in 36 hours or less.
Who is eligible to receive Export Express financing?
Any business that has been in operation, although not necessarily in exporting, for at least 12 full months and can demonstrate that the loan proceeds will support its export activity is eligible for Export Express.
What can the loan funds be used for?
Loan proceeds may be used for business purposes that will enhance a company’s export development. Export Express can take the form of a term loan or a revolving line of credit. As an example, proceeds can be used to fund participation in a foreign trade show, finance standby letters of credit, translate product literature for use in foreign markets, finance specific export orders, as well as to finance expansions, equipment purchases, and inventory or real estate acquisitions, etc.
How do I apply?
Interested businesses should contact their existing lender to determine if they are an SBA Express lender. Lenders that participate in SBA’s Express program are also able to make Export Express loans. Application is made directly to the lender. The lenders use their own application material in addition to SBA’s Borrower Information Form. Lenders approve the request and then submit a limited amount of eligibility information to SBA’s National Loan Processing Center.
For More Information
SBA staff can help you by weighing financing options and risk mitigation as well as providing you with advice and more details about SBA loan products and application procedures. Contact your local U.S. Export Assistance Center to learn more about the Export Express Program and whether your business might qualify.
Export Working Capital Program (EWCP)
SBA’s Role in Export Financing
Many banks in the U.S. do not provide working capital advances on export orders, export receivables or letters of credit. Because of that, some small businesses may lack necessary export working capital to support their export sales. That is where an SBA program can make the difference. SBA provides lenders with up to a 90% guaranty on export loans up to $5 million as a credit enhancement, so that the lenders will make the necessary export working capital available.
The SBA delivers its export loan program through a network of SBA Senior International Credit Officers located in U.S. Export Assistance Centers throughout the country. These specialists understand trade finance and are available to explain SBA’s export lending programs, the application process and forms and to guide exporters in selecting appropriate payment methods. They can also link companies to specialists for increasing export sales and managing foreign payment risk.
Exporters can apply for EWCP loans in advance of finalizing an export sale or contract. With an approved EWCP loan in place, exporters have greater flexibility in negotiating export payment terms—secure in the assurance that adequate financing will be in place when the export order is won.
Benefits of the EWCP
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Financing for suppliers, inventory or production of export goods
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Export working capital during long payment cycles
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Financing for stand-by letters of credit used as bid or performance bonds or down payment guarantees
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Reserves domestic working capital for the company’s sales within the US
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Permits increased global competitiveness by allowing the exporter to extend more liberal sales terms
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Increases sales prospects in under-developed markets which have high capital costs for importers
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Contributes to the growth of export sales
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Low fees and quick processing times
For More Information
SBA staff can help you by weighing financing options and risk mitigation as well as providing you with advice and more details about SBA loan products and application procedures. Contact your local U.S. Export Assistance Center to learn more about the Export Working Capital Program and whether your business might qualify.
International Trade Loan Program
The International Trade Loan Program offers term loans for fixed assets and working capital to businesses that plan to start or continue exporting, or that have been adversely affected by competition from imports and need to retool to become more competitive. The proceeds of the loan must enable the borrower to be in a better position to compete. The program provides the lender with a 90% guaranty on loans up to $5 million.
How Funds May Be Used
Funds may be used for the following purposes for long term fixed assets:
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Acquisition
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Construction
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Renovation
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Modernization
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Improvement
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Expansion
Funds may also be used for the refinancing of an existing loan.
Who is Eligible for an International Trade Loan?
International Trade loans are available to small businesses that are in a position to expand existing export markets or develop new export markets, or small businesses that have been adversely affected by international trade and can demonstrate that the loan proceeds will improve their competitive position.
How to Apply for an International Trade Loan
You should apply through a participating lender. SBA will work with your lender to determine eligibility.
For More Information
For more information, contact your local U.S. Export Assistance Center to learn more about the benefits of an International Trade Loan and find out whether your business might qualify for this financing.
