The Export Working Capital Program (EWCP) was designed to provide
short-term working capital to exporters.
The SBA's Export Working Capital Program (EWCP) supports export
financing to small businesses when that financing is not otherwise
available on reasonable terms. The program encourages lenders
to offer export working capital loans by guaranteeing repayment
of up to $1.5 million or 90 percent of a loan amount, whichever
is less. A loan can support a single transaction or multiple sales
on a revolving basis.
Designed to provide short-term working capital to exporters,
the EWCP is a combined effort of the SBA and the Export-Import Bank. The two agencies have joined
their working capital programs to offer a unified approach to
the government's support of export financing. The EWCP uses a
one-page application form and streamlined documentation with turnaround
usually 10 days or less. A letter of prequalification is also
available from the SBA.
Maximum 7(a) Loan Amounts
Export Working Capital
Program Eligibility (EWCP)
In addition to the eligibility standards listed below, an applicant must be in business for a full year (not necessarily in exporting) at the time of application. SBA may waive this requirement if the applicant has sufficient export trade experience. Export management companies or export-trading companies my use this program; however, title must be taken in the goods being exported to be eligible.
Most small businesses are eligible for SBA loans; some types
of businesses are ineligible and a case-by-case determination
must be made by the Agency. Eligibility is generally determined
Business Type, Use of Proceeds, Size of Business, and Availability
of Funds from other sources. The
following links provide more detailed information about each of
these areas.
TYPE OF BUSINESSES ELIGIBLE
USE OF LOAN PROCEEDS:
SIZE
AVAILABILITY
The proceeds of an EWCP loan must be used to finance the working capital needs
associated with a single or multiple transactions of the exporter.
Proceeds may not be used to finance professional export marketing
advice or services, foreign business travel, participating in
trade shows or U.S.support staff in overseas, except to the extent
it relates directly to the transaction being financed. In addition,
"proceeds may not be used" to make payments to owners,
to pay delinquent withholding taxes, or to pay existing debt.
The applicant must establish that the loan will significantly
expand or develop an export market, is currently adversely affected
by import competition, will upgrade equipment or facilities to
improve competitive position, or must be able to provide a business
plan that reasonably projects export sales sufficient to cover
the loan.
Export Working Capital Program (EWCP) Maturities
SBA guarantees the short-term working capital loans made by participating
Lenders to exporters. An export loan can be for a single or multiple
transactions. If the loan is for a single transaction, the maturity
should correspond to the length of the transaction cycle with a
maximum maturity of 18 months. If the loan is for a revolving line
of credit, the maturity is typically twelve (12) months, with annual
reissuances allowed two times, for a maximum
maturity of three years.
Four Unique Requirements of the EWCP Loan
A borrower must give SBA a first security interest equal to 100%
of the EWCP guaranty amount. Collateral must be located in the United
States.