U.S. Small Business Administration’s Loan Guarantee Programs for Exporters Used by Lenders

1. Export Working Capital Program (EWCP)

Transactional financing: To manufacture and/or purchase goods or services for export (pre-export financing), and; for export trade account receivables (post-export financing). Indirect exporters are eligible. EWCP offers a 90% loan guarantee to Lenders for loans up to $1.66 million.Don’t miss sales opportunities in foreign markets due to a lack of capital. Here are some important features:

• The EWCP is transactional financing and can be structured for single export transactions as well as for a revolving line of credit.
• The EWCP helps your bank increase your financing to cover your costs of foreign transactions by lending either against supporting letters of credit or export credit insurance (pre-export financing) and foreign receivables (post-export financing). Repayment is through the collection of the financed transactions.
• The low guaranty fee is 0.25% of the guaranteed amount (e.g. $250 fee for a $100,000 guaranteed loan amount).
• The loan can be used to support stand-by letters of credit when required as bid/performance bonds or prepayment guarantees.
• Pre-export financing covers your costs up-front(labor, material, overhead). Post-export financing gets you through the payment cycle and allows you to be more competitive by offering terms of payment to your foreign customers.
• Indirect exporters: Suppliers and export trade service providers to Exporters of Record are eligible.
• Eligibility: Small Businesses that meet the normal requirements for an SBA loan guaranty and have been in operation (not necessarily in exporting) for at least one year are eligible.

2. International Trade Loan Program (ITL)

Fixed assets financing for permanent working capital and supplies and/or to acquire, construct, renovate, modernize, improve or expand productive facilities or equipment to be used in the United States that will be used at least partially to expand existing export markets or develop new export markets. ITL offers an 85% SBA loan guarantee up to $150,000 to Lenders and 75% guarantee for loans greater than $150,000 and up to $2 million.

3. SBA Export Express Loan Program

This program is a hybrid of the two above loan programs. Loan proceeds may be used for most business purposes, e.g.:

• Provide transaction-specific financing for overseas orders;
• Provide revolving lines of credit for export purposes;
• Finance export development activities, such as, participation in a foreign trade show or the translation of product literature for use in foreign markets;
• Finance standby letters of credit used for bid/performance bonds or prepayment guarantees;
• Provide term loans to acquire, construct, renovate, modernize, improve or expand productive facilities or equipment to be used in the United States in the production of goods or services involved in international trade.

SBA Export Express offers an 85% loan guarantee to Lenders on loans up to $150,000; a 75% guarantee for loans over $150,000 and up to $250,000, the maximum loan amount under Export Express.

Any SBA Lender with SBA Express loan processing authority may also make SBA Export Express loans. Lender uses its own loan analyses, loan procedures and loan documentation. SBA only provides such Lenders with a loan number and borrower eligibility determination within 36 hours of Lender’s request

For more information, contact:
Mr. Dan Holt
SBA Export Trade Finance Officer
C/O U.S. Export Assistance Center
521 East Morehead Street, Suite 435
Charlotte, NC 28202
Tel: (704)333-4886
Fax: (704)332-2681
dan.holt@mail.doc.gov