Are you aware that 70 percent of all U.S. export firms employ 20 people or less? This is an ideal environment for SBA loan assistance. Not only are SBA loans available for these exporters, the Small Business Administration has made helping these companies succeed in the global market a prime focus.
The Small Business Administration offers a variety of SBA loans through its export programs. SBA export loan programs help small businesses become effective players in the world market.
Export Express Program
Small exporters can benefit from these fast and relatively easy SBA loans. Export Express combines flexibility with ease of use for borrowers and lenders, alike. The simplest SBA loan for export purposes, lenders can use their own internal forms, policies and procedures.
To be eligible, a business should be operating for at least 12 months. They need not be active in exporting, but they should demonstrate that loan proceeds will be used to support exporting operations.
This SBA loan can be standard term financing or it can be structured as a line-of-credit if that works better. SBA loan amounts go up to $500,000 and applicants typically have answers in 36 hours or less.
Export Working Capital Program (EWCP)
Small exporters face challenges raising funds as many U.S. banks will not provide working capital advances for export orders, receivables or letters of credit. This SBA loan program offers lenders up to 90 percent guarantees for export loans up to $5 million. This typically “alters the thinking” of many reluctant lenders.
These SBA loans come through a network of Senior International Credit Officers functioning at U.S. Export Assistance Centers around the U.S. With expertise in global trade finance, these professionals will explain SBA’s export financing programs, facilitate the application process, offer guidance regarding the best payment methods, and link you to specialists in increasing export sales.
International Trade Loan Program
These SBA loans offer term financing for fixed assets and/or working capital to small businesses ready to start or expand exporting. This SBA loan product also helps businesses that have been hurt by foreign competition, allowing borrowers to retool to become more competitive.
Eligible borrowers are companies in a position to expand their exporting markets or those that suffered from foreign imports or competition. Businesses must demonstrate that these SBA loan proceeds will enhance their competitive position. Once again, the SBA can offer up to a 90 percent guarantee on loans up to $5 million from participating lenders.
To apply for funding for your small business, use the form on the right to begin the application process.