- 1. International Trade Programs
Helping you start, grow and succeed 2. WHAT IS THE SBA ?
- Small Federal Government Agency
- Established by Congress in 1953
- Aid, counsel and assist Americans start, operate, and expand
their businesses
- Provide access to capital, counseling and training, and
increase federal procurement opportunities
- SBA is primarily a guarantor of loans made by private and other
institutions.
- The SBA does not offer grants to start or grow small
businesses.
3. How Important Are Small Businesses to the U.S. Economy?
- Represent 99.7 percent of all employers
- Employ half of all private-sector employees
- Generated 2/3 of net new jobs annually over the last
decade
- Are employers of 39 percent of high-tech workers (such as
scientists, engineers, and computer workers)
4. National Export Initiative
- Double Exports in 5 years, create up to 2 million jobs
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- Increase access to credit (trade finance)
5. National Export Initiative
- Identify SMEs with export potential
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- Have you thought about exporting?
- Prepare SMEs for exporting
- Connect SMEs with actual trade opportunities
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- Collaborate with other federal agencies on trade missions,
etc.
- Support SMEs with export financing
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- ExportExpress, EWCP/Ex-Im Co-guarantee
6. SBA PARTNERS
- Banks:Regional and Local Community
- U.S. Government International Agencies
- Overseas Private Investment Corporation (OPIC)
- U.S. Export-Import Bank (Co-guarantee)
- U.S. Department of Agriculture/Commodity Credit
Corporation
7. SBA Loan Programs for Exporters
- Export Working Capital Program (EWCP)
- SBA-EXIM EWCP Co-Guarantee Program
8. Export Working Capital Program
- $1.5 Million is maximum SBA guaranteed portion
- Single Project or Revolver
9.
- Company meets SBA size standards
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- Manufacturing: under 500 employees
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- can be as high as 1,500 employees
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- Ex-Im has no restrictions for size.
- Product is titled and shipped from U.S.
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- No U.S. content requirement, Military OK
- In business 12 months or proven expertise
- Other SBA eligibility provisions
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- Criminal History, Previous loss to govt. etc.
Export Working Capital Program Eligibility 10. EWCP - Indirect
Exports
- Applicants who produce products or services that enter into the
export channel but do not directly export their products are
eligible for EWCP financing
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- Manufacturers using an Export Trading Company
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- Suppliers to other domestic manufacturers
- Requires certification from domestic customer that goods are in
fact being exported.
11. EWCP Use of Proceeds
- Loan proceeds to acquire/produce goods or services for export,
the accounts receivable of such foreign sales or standby letters of
credit.
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- Foreign Accounts Receivable financing
12. CO-GUARANTEE BETWEEN SBA ANDTHE U.S. EXPORT IMPORT BANK
- Max loan amount of $2 million
- SBA underwriting rules apply
- SBA guarantee fee at 0.25% will apply
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- Longer than 12 months fee eliminated (temporarily as a result
of Stimulus Package)
- ExIm requirement for 51% domestic
- ExIm ban on military goods will apply
13. EWCP - How to Apply
- Apply with a commercial loan officer at your existing bank.The
Bank will forward your application to SBA for approval if SBA
support is needed for the transaction.
14. EXPORT EXPRESS
- Maximum loan amount $250,000
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- applicant in business for at least 12 months
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- proceeds for developing or expanding export markets
- Maximum loan guarantee coverage
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- 90% as a result of American Recovery and Reinvestment Act
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- normally 85% Up to $150,000 and 75% up to $250,000
15. EXPORT EXPRESS
- Minimizes Use of Government Forms and Procedures
- Streamlines Processing and Costs of Smaller Loan
Transactions
- Lenders Granted Expanded Authority and Autonomy
16.
- Finance export development activities
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- Participation in a foreign trade show
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- Translation of product literature for foreign markets
- Provide transaction-specific financing for overseas orders
- Provide revolving lines of credit for export purposes term may
not exceed five years
- Finance standby letters of credit used for either bid or
performance bonds
EXPORT EXPRESS CAN HELP 17. www.sba.gov/oit A free resource
guide that provides a comprehensive guide to exporting. 18.
http://www.ita.doc.gov/media/Publications/abstract/trade_finance_guide2008desc.html
Trade Finance Guide:A Quick Reference for U.S. Exporters
2008designed to help small and medium-sized enterprises learn the
basics of trade finance.Turn export opportunities into actual sales
and achieve the ultimate goal of getting paid -especially on time.
Concise, two-page chapters offer the basics of numerous financing
techniques, from open accounts, to forfaiting, to government
assisted foreign-buyer financing.Trade Finance Guide 19.
www.sba.gov/oit 20. QUESTIONS?
- Office of International Trade
- Baltimore District Office