SBA Export Loans
SBA Export Loans are designed to help small businesses expand in to foreign markets. There are three types of SBA Export Loan (see below for details).
- Promotional materials for an export business
- Working capital to fulfill and out-of-country order
- Recovery capital for businesses negatively impacted by imports
- Credit score above 660
- No recent bankruptcies, foreclosures or tax liens
- Must be involved in exporting goods to foreign countries
- Personal guarantee from the owners of 20% or more
- For the Export Express Loan, must have been in business for at least one year
Depending upon the Export Loan product you are applying for there may be additional requirements.
PROS & CONS
- Set payments at regular intervals
- Can be used for a wide variety of purposes
- Relatively low interest rate
- Long repayment schedule
- Lengthy application process
- May carry early payment penalty
- Variable interest rates may increase
Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.
SBA EXPORT LOANS IN DETAIL
SBA Export Loans are designed to help small businesses expand in to foreign markets. There are three types of SBA Export Loan:
SBA Export Express Loan. Up to $500,000 in working capital with terms up to 7 years. This loan is very flexible and may be used for a wide variety of export related purposes including but not limited to costs associated with manufacturing export products, producing promotional materials and attending trade shows.
SBA Export Working Capital Loan. Up to $5 million in working capital to fund existing purchase orders from a foreign customer. Terms usually less than 12 months but can be up to 3 years. Intended to allow your business to offer more favorable terms to foreign customers, the EWCP allows businesses to use funds to pay suppliers, purchase inventory, and cover production and export costs.
SBA International Trade Loan Program. Up to $5 million in working capital and/or fixed assets for businesses which export products outside the US, or for businesses which have been negatively impacted by imports. Terms up to 25 years. This type of loan may be used to buy or renovate facilities or purchase equipment located in the U.S. for the purpose of entering in to or expanding trade with foreign markets.