Capital Opportunities for Small Businesses - sbtdc

C A P I T A L O P P O R T U N I T I E S F O R SMA L L B U S I N E S S E S
You can apply online for an SBA MREIDL. You must submit the completed loan application and a
signed and dated IRS form 8821 giving permission for the IRS to provide SBA your tax return
information. For additional information, please contact the SBA disaster assistance customer service
center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.
EXPORT FINANCING
Export Express Loan Program
SBA Export Express offers financing up to $500,000. It is the simplest export loan product offered by
the SBA and allows participating lenders to use their own forms and procedures. The SBA determines
eligibility and provides a loan approval in 36 hours or less.
Any business that has been in operation, although not necessarily in exporting, for at least 12 full
months and can demonstrate that the loan proceeds will support its export activity is eligible for Export
Express. The 12-month in business requirement can be waived if the borrower’s key personnel can
demonstrate export expertise and successful previous business experience and the lender uses
conventional commercial loan underwriting procedures and does not rely solely on credit scoring. Loan
proceeds may be used for business purposes that will enhance a company’s export development.
Export Express can take the form of a term loan or a revolving line of credit.
The Export Working Capital Guarantee Program
The SBA’s Export Working Capital Program (EWCP) was developed in response to the needs of
exporters seeking short-term working capital. The EWCP uses a simplified application form and
streamlined documentation with turnaround usually within ten days. A letter of pre-qualification is also
available from the SBA. All exporters who need transaction-specific financing and have been in
operation for at least 12 months are eligible.
The EWCP guarantee is given to banks for revolving lines of credit that are extended to creditworthy
exporters. The Lender receives a maximum 90% guarantee on loans up to $5,000,000. Borrowers may
also have other current SBA guarantees, as long as the SBA’s exposure does not exceed $4,500,000.
Loan maturities are generally 12 months, and interest rates are negotiated with the lender. Personal
guarantees are usually required, and collateral is tied to the specific transaction being financed, such as
the export inventory, foreign receivables, or letter-of-credit proceeds.
EWCP guarantees can be extended for pre-shipment working capital, post-shipment exposure, or a
combination of the two. A pre-shipment guarantee is used to finance the production or acquisition of
goods and services for export. A post-shipment guarantee can be used to finance the resulting
receivables.
The International Trade Loan Program
This SBA program is designed for a business presently engaged or preparing to engage in international
trade or that is adversely affected by competition from imports. The SBA can guarantee up to 90% of
an International Trade Loan up to a maximum of $4.5 million, less the amount of the guaranteed
portion of other SBA loans outstanding to the borrower.
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