SBA Export Loan Program
Did you know that over 70 percent of all exporting businesses have 20 employees or fewer?
Since the majority of exporting companies fall into the small business category, the Small Business Administration (SBA) has created a series of loans specifically designed to fit their needs. There is the Export Express Program, the Export Working Capital Program (EWCP), and the International Trade Loan Program.
The Export Express Program offers loans as high as $500,000 and the lending office will contact you with your approval status within only 36 hours. The SBA also allows your local lender to use their own forms, procedures and analyses to make it easier for you to get the paperwork done. The qualifications are simple: Any small business that has been in operation for at least a year will qualify if they can demonstrate that the funds received from the loan will go towards exporting activity. But if you'd rather take get a revolving line of credit instead of a loan, you can do that too.
If you are interested in this kind of loan, simply contact your lender and ask if they are an SBA Express Lender. If they are, then they are eligible to make Export Express Loans. Apply directly to your local lender and if the request is approved, they will send the information to the SBA's National Loan Processing Center.
The Export Working Capital Program (EWCP) , unlike most banks, provides small businesses with working capital advances. (Working Capital link to Loan Lingo) The SBA gives lenders up to a 90 percent guaranty on all export loans as a credit enhancement so that the lenders, in turn, can provide small businesses with working capital. There is a plethora of benefits provided by the EWCP, including:
- Financing for suppliers, inventory or production of export goods
- Export working capital during long payment cycles
- Financing for stand-by letters of credit used as bid or performance bonds or down payment guarantees
- Reserves domestic working capital for the company's sales within the US
- Permits increased global competitiveness by allowing the exporter to extend more liberal sales terms
- Increases sales prospects in under-developed markets which have high capital costs for importers
- Contributes to the growth of export sales
- Low fees and quick processing times
The International Trade Loan Program is for small businesses that are not currently exporting but plan to start exporting in the future, and businesses that have been negatively affected by competition from imports. The benefits received from this loan must enable your company to better compete with the other import/export businesses. The maximum amount offered in this program is $1.75 million dollars.
The funds may be used for business acquisition, construction, renovation, modernization, improvement, or expansion. Or, if you currently have a different loan out for the same purpose, you can use this loan to refinance the other loan.
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