SBA Export Loans

SBA Export Loans


Use of SBA Export Loan Proceeds

 

Develop or expand small business exporting


 


SBA Export Loan Minimum Requirements

 


Credit score above 660 (check your score here for free)


Business must be involved in exporting goods or services to foreign countries


For the Express Export loan, the business must be at least 1 year old.


 


SBA Export Loan Interest Rates

 


SBA Export Loan Interest Rates SBA Export Working Capital Loan: no limit (but monitored for reasonableness)


SBA Export Express Loan: 8% - 10%


International Trade Loan: 5.75% - 8.25%


 


SBA Export Loan Amount

 


SBA Export Loan Amount Up to $5 million


(SBA Export Express: up to $500k)


 


SBA Export Loan Terms

 


SBA Export Working Capital Loan: up to 7 years


SBA Export Express Loan: up to 3 years


International Trade Loan: up to 25 Years

 

SBA Export Loans In-Depth Overview

There are three types of SBA Export Loans:

1. SBA Export Express Loan

Streamlines funding up to $500k in working capital to promote small businesses with export activities. Terms up to 7 years.

2. SBA Export Working Capital Loan

Funding up to $5 million in working capital to fund export transactions with long when the small business has a purchase order from a foreign customer. Terms typically under 12 months, but up to 3 years.

3. SBA International Trade Loan Program

Funding up to $5 million in working capital and/or fixed assets for businesses that export or for businesses negatively impacted by imports. Terms up to 25 years.
In general, SBA Export Loans are designed to help American small businesses expand their export activities, engage in international transactions, and enter new foreign markets.

What are SBA Export Loans Used For?

 

The SBA Export Express Loan is quite flexible in what the proceeds can be used for. From covering the cost of participating in foreign trade shows, producing promotional materials for foreign markets, or buy equipment and expand your facilities.

The SBA Export Working Capital Loan (EWCP) can be used to pay suppliers, buy inventory, or cover the production costs for goods/services you will be exporting. All of this has the goal of allowing your business to be able to offer more favorable/flexible terms to your foreign customers.

The SBA International Trade Loan (ITL) can be used to buy, renovate, or repurpose facilities and/or equipment located in the U.S. in order to expand into new or existing foreign markets. This loan can also be used to to refinance existing debt.

What are the SBA Export Loan Qualifications?

Qualifications for an SBA Export Loan closely resemble the requirements for an SBA 7(a) loan with a few variations depended on which SBA Export Loans you apply for. In general, you’ll need:
• A good credit score (above 660 – check your score for free here)
• No recent bankruptcies, foreclosures, or tax liens
• Personal guarantee from owners of 20% or more
• Collateral (the more, the better)

In addition, the Export Express Loan provides requires businesses be at least one year old and export products overseas. You don’t necessarily have to have a year’s history in exporting so long as your principles can show significant experience exporting.

The SBA Export Working Capital Loan doesn’t have borrower requirements beyond the SBA 7(a) program other than you must show a need for short-term working capital for the purpose of export expansion.

Finally, the SBA International Trade Loan Program you must show that you can develop new foreign markets, expand existing foreign markets, and/or that your small business was adversely affected by imports and that the loan will increase your competitiveness.

SBA Export Loan Interest Rates, Terms, and Limits
SBA Export Express loans currently have interest rates between 8-10 %, which are the same rates as SBA Express loans and come with terms up to 7 years.

The SBA Export Working Capital loans do not have a restricted interest rate. In theory this means the rate could be very high, but in practice the rates are usually in the range of 6-10%. The SBA reviews each deal and must deem the rates “reasonable.” The term on this loan is most often under 12 months, but can be up to 3 years.

The SBA International Trade Loans have rates between 5.75 % and 8.25 %, which are the same rates as SBA 7(a) loans. Terms can be up to 25 years.

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