SBA offers export loan guarantees which encourage banks to finance US export shipments.
The U.S. Small Business Administration (SBA) is committed to helping American small business compete in the global marketplace. Through an extensive network of field offices and partnerships with banks and other organizations, SBA delivers its services nationwide.
SBA exporting finance programs
Most U.S. banks view loans for exporters as risky. This makes it harder for exporting businesses to get loans for things like day-to-day operations, advance orders with suppliers, and refinancing existing debts. That’s why the SBA created programs to provide lenders with up to a 90 percent guaranty on export loans. The three main SBA export finance programs are:
1. Export Express Loan
Export Express lenders can directly underwrite a loan without getting prior approval from the SBA, which allows you to get capital quickly. Loans are typically approved within 36 hours, and can be up to $500,000.
2. Export Working Capital Loan
Export Working Capital loans allow small business owners to apply for loans in advance of finalizing an export sale or contract, giving exporters greater flexibility in negotiating export payment terms. These loans can be up to $5 million, and the turnaround time is usually five to 10 business days.
3. International Trade Loan
International Trade loans help small businesses enter international markets and make investments to compete with other importers. These loans offer a combination of fixed asset, working capital financing, and debt refinancing with the SBA’s maximum guaranty of 90 percent on the total loan amount. The maximum loan is $5 million in total financing.
To learn more about SBA export loan programs, you can read our full article on SBA Export Financing, contact your local SBA International Trade Finance Specialist or SBA’s Office of International Trade.
Click here to view our webinar in SBA export loans.