sba financing for exports

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Overview of SBA financing for international trade

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T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

SBA Financing for Exports

By: Vincent McCoy, Executive Director

Inland Empire Small Business Development Center

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Export Finance

Activity of governments helping companies by financing their export activities.

Usually lower interest rate loans that the company could otherwise not obtain at a rate lower than market price.

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

SBA Assistance

• SBA provides counseling, training and financing to support small business export opportunities.

– Small Business Development Center

– SCORE

– SBA District Office200 W Santa Ana Blvd Suite 700

Santa Ana, CA

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

SBA Financing Programs

International Trade Loan Export Working Capital ProgramSBA Export Express

Fast and easy loans for small exportersFinancing up to $500,000Must be twelve months in operationLoan proceeds will support export activityTerm or line of creditApply via participating lenders

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

International Trade Loan

DetailsUp to $5,000,000 in financingSBA Guarantee up to 90% Ten year amortizationUsed for working capital and fixed assetsEx-Im Banks eligible to operateSimilar to 7(a) program

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

SBA Export ExpressSBA Export Express

Fast and easy loans for small exportersFinancing up to $500,000Must be twelve months in operationLoan proceeds will support export activityTerm or line of creditApply via participating lenders

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Export Working Capital

Benefits of the EWCP– For suppliers, inventory or production of export goods– Export working capital during long payment cycles– Financing for stand-by letters of credit used as bid or

performance bonds or down payment guarantees– Reserves domestic working capital – Permits increased global competitiveness by allowing

the exporter to extend more liberal sales terms– Increases sales prospects in under-developed markets

which have high capital costs for importer

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

SBA Export Lenders

BORREGO SPRINGS BANK, N.A.

CALIFORNIA STATEWIDE CERT. DEV

CENTER BANK

COMMERCE NATIONAL BANK

EAST WEST BANK

CALIFORNIA BANK AND TRUST

GBC INTERNATIONAL BANK

PLAZA BANK

SUPERIOR FINANCIAL GROUP, LLC

WILSHIRE STATE BANK

Lenders active in SBA Export Loan Program

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Lenders

• Finding Lenders isn’t easy– California Bank and Trust, San Diego– Center Bank, Oakland– GBC International Bank, Los Angeles– Superior Financial, Walnut Creek

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Conclusion

• Government sponsored help is available

• Federal initiatives focused on trade expansion are at top of list

• Proving the marketability of products and services remains key

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