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Export Express

SBA Export Express combines the SBA’s small business lending assistance with its technical assistance programs to help small businesses that have traditionally had difficulty in obtaining adequate export financing.

SBA Export Express helps small businesses develop or expand their export markets.  Loan proceeds may be used to finance export development activities such as:

  • Standby Letters of Credit when required as a bid bond, performance bond or advance payment guarantee;
  • Participation in a foreign trade show;
  • Translation of product brochures or catalogues for use in overseas markets;
  • General lines of credit for export purposes;
  • Service contracts from buyers located outside the United States;
  • Transaction-specific financing needs associated with completing actual export orders;
  • Purchase of real estate and equipment to be used in the production of goods or services for export;
  • Provide term loans and other financing to enable small business concerns, including export trading companies and export management companies, to develop foreign markets;
  • 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 for export.

Who Can Use this Program?

SBA Export Express loans are available to persons who meet the normal requirements for an SBA business loan guaranty. Loan applicants must also demonstrate that the loan proceeds will enable them to enter a new export market or expand an existing export market, and- have been in business operation, though not necessarily in exporting, for at least 12 months.

How Does the Program Work?

Any lender that is authorized to participate in the SBA Express loan program may participate in SBA Export Express. SBA Export Express lenders use streamlined and expedited loan review and approval procedures to process SBA guaranteed loans. The lender uses its own loan analyses, loan procedures and loan documentation. Completed loan applications are submitted for approval to the SBA’s processing center in Sacramento, California. The SBA provides the lender with a response, typically within 36 hours.

What is the SBA Guaranty?

The SBA guaranty encourages lenders to make loans to small business exporters that they might not make on their own. The SBA’s Export Express guaranty is 85 percent for loans up to $150,000 and 75 percent for loans more than $150,000 up to a maximum loan amount of $250,000. The maximum loan amount under Export Express is $250,000.Interest rates are negotiated between the borrower and the lender. Rates can either be fixed or variable, and are tied to the prime rate as published in The Wall Street Journal. Lenders may charge up to 6.5 percent over prime rate for loans of $50,000 or less and up to 4.5 percent over the prime rate for loans over $50,000.

Terms, Interest Rates, and Fees

Interest rates are negotiated between the borrower and the lender. Rates can either be fixed or variable, and are tied to the prime rate as published in The Wall Street Journal. Lenders may charge up to 6.5 percent over prime rate for loans of $50,000 or less and up to 4.5 percent over the prime rate for loans over $50,000.

Like most 7(a) loans, the maturity of an SBA Export Express term loan is usually five to 10 years for working capital, 10 to 15 years for machinery and equipment (not to exceed the useful life of the equipment), and up to 25 years for real estate. The maturity for revolving lines of credit may not exceed five years.Because many small business exporters face unique problems and challenges, the SBA Export Express Program also includes technical assistance in the form of marketing, management and planning assistance.

Technical Assistance

Technical assistance is provided by SBA’s U.S. Export Assistance Centers, in cooperation with SBA’s network of resource partners, including the Small Business Development Centers (SBDCs) and Service Corps of Retired Executives (SCORE).

On approval of an SBA Export Express loan, a U.S. Export Assistance Center representative will contact the borrower to offer appropriate assistance. This assistance may include training offered through the SBA’s Export Trade Assistance Partnership, SBDC International Trade Center, SCORE, District Export Council, or Export Legal Assistance Network.

For more information on Export Express, please click here.