Programs

EXPORT ASSISTANCE PROGRAMS

The potential for growth of American small business in international trade is huge, since 96% of the world's population and 67% of the world's purchasing power are located outside the borders of the USA. The SBA offers three guaranteed loan products to assist small business exporters.

Export Express

This program combines lending and technical assistance to help the smallest businesses that have difficulty in obtaining adequate financing to develop or expand export markets. Loan amounts up to $150,000 carry an 85% SBA guaranty. With a wide variety of eligible uses for loan proceeds, this is one of the SBA's most flexible programs. Funds can be used to finance standby letters of credit, for transaction specific financing of overseas orders, for export revolving credit lines, for facility or equipment expansion to produce export goods and services, and for development activities such as product literature translation or foreign trade show participation. Once an SBA Express lender has approved the loan application and SBA has completed its eligibility review, technical assistance is provided by local representatives of the SBA's U.S. Export Assistance Center.

Export Working Capital Loan

When support for larger transactions is required, this program can either be used on a revolving basis for multiple transactions, or for a single transaction. With a 90% SBA guaranty of up to $1 million available, loan proceeds can be used to finance foreign accounts receivable, or purchase U.S. goods and inventory for export, or finance pre-export costs of U.S. labor, materials and overhead used to produce goods or services for export, or even finance standby letters of credit used for bid or performance bonds. These loans typically mature in 12 months or less, with interest rates and fees negotiated between the lender and the borrower; SBA charges a guaranty fee of 0.25% on the guaranteed portion of the loan for maturities up to 12 months.

International Trade Loan

With the largest maximum benefit available under any 7(a) program (and nearly as much as is available under 504), this program provides up to $1.25 million in SBA guaranty applied at a rate of 75% against loan amounts over $150,000. Proceeds from an IT Loan can be used to acquire fixed assets used for engaging in export trade, or to supplement working capital - either permanently or temporarily as in an Export Working Capital Loan. Debt refinancing, however, is not allowed under this loan program. The guaranty for fixed asset loans cannot exceed $1 million, and the guaranty for working capital loans cannot exceed $1 million; in combination, fixed asset loans and working capital loans together under this program cannot exceed $1.25 million. Only collateral located in the USA or its territories and possessions is acceptable for IT Loans, and the lender must be in a senior lien position on the fixed assets financed under this program. As with the other Export Assistance Programs and in addition to meeting the other 7(a) eligibility requirements, applicants under the IT Loan Program must establish and demonstrate that the loan proceeds will enable the business to either: (1) expand an existing export market, or; (2) develop a new export market, or; (3) combat the adverse impact of competition from foreign imports.