Many small businesses
invest the time and resources to develop export leads, only to find
that they can't secure the credit to close the sales. Now there is a
program that both you and your banker can profit from. Use the EWCP
for...
- pre-export financing of labor and materials; financing the
receivables
- generated from these sales; and/or
- standby letters of credit used as performance bonds or payment
guarantees.
How Does An Export Working Capital
Loan Work?
The Export Working Capital Program gives lenders the comfort they need
so small businesses can get the financing they need. Under the
program, the SBA backs up your loan request with our repayment
guaranty. The SBA guarantees up to $1 million or 90 percent of the
loan amount, whichever is less; offers exporters preliminary
commitments (PCs) that encourage lenders to provide credit; and offers
a simplified application form.
Interest Rates And Terms
SBA offers the competitive rates and terms small businesses need to
compete globally. Applicants negotiate terms with the lender. Rates
may be fixed or variable. SBA offers a low guarantee fee of 0.25% for
loans of 12 months or less.
Maturiety And Renewals
Loan maturities are generally for 12 months, but can be up to 36
months, a borrower may reapply for a new guarantee.
Collateral
Collateral may include export inventory, foreign receivables and
assignment of contract and letter-of-credit proceeds. Personal
guarantees are required of anyone that owns 20% or more of the
applicant business.
Do I Qualify?
If you are a small businesses who needs transaction specific
financing, and have been in business operation, though not necessary
in exporting, for at least 12 months at the time of application, then
this program can help you!
Other Financing Needs?
The SBA offers a range of long- and short-term financing options for
small business exporters. If you're exporting or preparing to export,
or if you've been adversely affected by import competition, then ask
about an
International Trade Loan.
For More Information
Your first stop should be your nearest
U.S. Export
Assistance Center or SBA
District Office. Each center offers a full range of export
programs and services under one roof. Experts from the SBA, the U.S.
Department of Commerce, the Export-Import Bank of the United States,
and other public and private partners are available to answer your
questions and help you expand your export business.
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