Service Exports USA: A Growth Opportunity Section 3 Part 2 C

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CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 C

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on.

International Trade Loan Program

The International Trade Loan (ITL) is designed to help you enter and expand into international markets and, when adversely affected by import competition, make the investments that are necessary to better compete. The ITL offers a combination of fixed asset and working capital financing with SBA’s maximum guaranty— 90%— on the total loan amount.

Program Features: Guaranty Coverage

• Maximum Loan Amount: $5,000,000 in total financing.
• SBA can guaranty up to 90% of an ITL up to a maximum of $4.5 million, less the amount of the guaranteed portion of other SBA loans outstanding to the borrower. (When combined with any other SBA loans, the maximum guaranty for working capital cannot exceed $4 million.)
• Maturities on the working capital portion of the ITL are typically limited to seven years.
• Maturities of up to 25 years are available for facilities and equipment. • Loans with a mixed use of fixed asset and working capital financing will have a blended-average maturity.

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Guaranty Fee & Interest Rates

• Lenders may charge up to 2.25% or 2.75% above the prime rate (as published in The Wall Street Journal), depending upon the maturity of the loan. Interest rates on loans of $50,000 and less can be slightly higher.

Exporter Eligibility

• Applicants must ...

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International Trade Loan

Business News Daily

Best Alternative Small Business Loans 2016

Service Exports USA: A Growth Opportunity Section 3 Part 2 B

Source Google

CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 B

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on.

Export Working Capital Program (EWCP)

As an exporter, you can apply for EWCP loans in advance of finalizing an export sale or contract. With an approved EWCP loan in place, you have greater flexibility in negotiating export payment terms and can be assured that adequate financing will be in place when the export order is received.

Benefits of the EWCP

• Financing for suppliers, inventory or production of export goods
• Export working capital during long payment cycles
• Financing for Standby Letters of Credit used as bid or performance bonds or down payment guarantees
• Reserves domestic working capital for the company’s sales within the United States
• Permits increased global competitiveness by allowing the exporter to extend more liberal sales terms
• Increases sales prospects in underdeveloped markets that have high capital costs for importers
• Contributes to the growth of export sales • Low fees and quick processing times

Program Features

Guaranty Coverage

• Maximum loan amount is $5,000,000
• 90% of principal and accrued interest up to 120 days
• Borrower’s low guaranty fee of ¼% of the guaranteed portion for loans with maturities of 12 months or less
• Loan maturities are generally for 12 months or less

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List of Blogs On Exporting

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SBA/Managing Your Business

An Introduction To The SBA

Service Exports USA: A Growth Opportunity Section 3 Part 2 A

Source Google

CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 A

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on. Also the recommended list of lenders for this part of the information today no longer exists. I will try to locate that information.

The U.S. Small Business Administration (SBA) provides export loan guarantee programs to help small businesses sell products or services overseas. These SBA loan programs are important because most banks in the United States do not provide domestic loans for export working capital advances on export orders, export receivables or Letters of Credit.

 It is important to note that export working capital is different from domestic commercial lending. Because of this, you need to know which lenders are proficient in export terminology and financing to support your export sales.

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Locating an SBA Lender

Typically, small businesses turn to their local banks for financing. However, not all banks are experienced at providing export financing. SBA now has an online list of all export lenders, which should make finding a lender easier.

If your bank does not have global expertise, please review the list of SBA participating lenders who can meet your exporting needs. SBA guaranteed loans are available to assist with marketing overseas and provide export working capital and long-term loans for capital asset acquisition.

About SBA Lenders

While private sector banks will typically assume limited risk regarding foreign transactions, the U.S. government can provide export financing assistance in the form of guarantees made to U.S. commercial banks. These banks, in turn, make loans available to you, as a small business exporter.

• SBA provides lenders with up to a 90% guaranty on its three export loan programs as a credit enhancement so that the lenders will make the necessary export working capital available.
• A loan can support a single transaction or multiple sales on a revolving basis.
• To qualify, you must have been in business for a full year (not necessarily in exporting) at the time of application. However, SBA may waive this requirement if your company has sufficient export trade experience.

Once you commit  ...

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Service Exports: A Dynamic Export Option

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