Export Financing
The SBA International Trade Loan program is a term loan designed for
businesses that plan to start/continue exporting or those that that have been
adversely affected by competition from imports. The proceeds of the loan must
enable the borrower to be in a better position to compete.
Export Transaction Financing
SBA’s Export Working Capital Program (EWCP) loans are targeted for
businesses that are able to generate export sales and need additional working
capital to support these sales. SBA’s aim for the EWCP program is to ensure
that qualified small business exporters do not lose viable export sales due to a
lack of working capital. SBA provides incentives to banks so that they will
make export loans to companies who would otherwise lack the funds. EWCP loans
are used for transaction financing. For example, EWCP loans will support 100% of
supplier costs for an export transaction. The EWCP loans can also be used to
even out cash flow when exporters have negotiated longer sales terms and cannot
carry the resulting receivables with their own working capital. The EWCP loan
can be a short-term loan for a single contract or in the form of a line of
credit that supports ongoing export sales for a period of 12 months.
The SBA Export Express program provides exporters
and lenders a streamlined method to obtain SBA backed financing for loans and
lines of credit up to $250,000. Lenders use their own credit decision process
and loan documentation; exporters get access to their funds faster. The SBA
provides an expedited eligibility review and provides a response in less than 24
hours.
