A new trade agreement that was just made between the United States and Korea is likely to help American small businesses succeed in the Korean market. This agreement is a part of President Obama’s National Export Initiative, and it will provide American business with access to a growing market and many more jobs.
To help small businesses get a piece of this huge new market, there are several provisions in the agreement geared toward the small business industry. For example, the agreement increases American businesses’ access to Korean government contracts while simultaneously ensuring that small businesses will be able to bid on a level playing field.
The trade agreement will also allow American companies to send their goods into Korea with less red tape. Within five years, 95 percent of tariffs on consumer and industrial goods will be eliminated. Furthermore, the trade agreement offers advantages to small businesses in the areas of electronic commerce, telecommunications and cross-border services.
To help small businesses take advantage of these new opportunities, the United States Small Business Administration has created a variety of new initiatives and programs. For example, the Export Working Capital, Export Express and International Trade Loans programs are all capable of helping American small businesses benefit from the new trade agreement. In addition, a joint state, federal and local program known as the State Trade Export Promotion that was designed to help American small businesses export to other countries can also assist American small businesses in exporting their products to Korea under this new agreement.
The SBA predicts that this new agreement will help the American economy to continue its recovery and gain more momentum. The SBA’s main goal during this time is to ensure that small businesses are able to benefit from the agreement’s provisions.
The SBA also offers assistance to small businesses in the form of SBA loans, which are small business loans insured by the SBA. These loans can help new small businesses obtain the capital they need to compete in this new overseas market.
To apply for funding for your small business, use the form on the right to begin the application process.