Many small businesses invest the time and resources to develop export leads only to find they cannot obtain the credit they need to secure the sale. That is where an SBA Export Working Capital Guarantee comes into play. The lender makes the loan to the small business guaranteed by SBA.
Features of the Guarantee:
- 90% guarantee on a loan up to $1,100,000
- Guarantee fee, to the borrower, of one-quarter of one percent on the amount guaranteed
- Flexible terms
- Support for single transactions or revolving lines of credit
- Support for indirect sales
- The maturity of the guarantee is generally for a term of 12 months. At the end of this time period, the borrower may apply for a re-issuance
- The borrower and lender negotiate the interest rate and other lender fees
Use of Proceeds:
- Purchase finished goods for export or acquire inventory to be exported
- Finance pre-export costs of labor and materials used in the manufacture of goods for export
- Finance costs of U.S. labor and overhead for service company exports
- Finance Standby Letters of Credit used for bid or performance bonds
- Finance foreign accounts receivables
Eligibility:
- Small businesses that meet the normal requirements for an SBA loan guarantee
- Small businesses that have been in operation [not necessarily in exporting] for at least one year
Guarantee Coverage to the Lender:
- 90 percent of the loan up to $1,000,000
- If an Export Working Capital Guarantee is combined with an International Trade Loan, SBA can guarantee up to $1,250,000 for working capital and fixed-asset financing combined.
More Information
Contact Deborah Conrad, Senior International Credit Officer at Deborah.Conrad@mail.doc.gov or Tell Us About You