Riverside C I T D April 2010

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SBA export loan programs

SBA export loan programs

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  • 1. U.S. Small Business Administration International Trade Finance Programs Riverside CITD Export Seminar Series Arrowhead Credit Union San Bernardino CA April 6, 2010
  • 2. Martin Selander International Trade Specialist U. S. Small Business Administration U. S. Export Assistance Center 3300 Irvine Ave #307 Newport Beach CA 92660 (949) 660-1688 ext 115 Serving exporters of Southern California, California Nevada, Arizona and Hawaii
  • 3. SBA Los Angeles District Office 330 North Brand Blvd #1200 Glendale CA 91203 (818) 552 3210 552-3210 SBA Santa Ana District Office 200 West Santa Ana Blvd #700 Santa Ana CA 92701 (714) 550-7420
  • 4. Additional information available on line www.sba.gov/oit b / it Including I l di copies of all required i f ll i d application forms, program info and national staff directory
  • 5. SBA Export Finance Assistance Programs: Export Working Capital Program SBA Export Express Importers…
  • 6. Export Working Capital Program Pre-Shipment Guarantee Loan proceeds to acquire/produce goods or services for export Post-Shipment Guarantee Discounting accounts receivable
  • 7. Export Working Capital Program Transaction Based Assignment of payment proceeds from foreign buyer: -Letter of Credit Letter -Open Account
  • 8. Export Working Capital Program Features Single Transaction Si l T ti or Revolving Credit Line. Disbursements must be linked to specific export transaction, contract, PO, LC, invoice, etc. Maximum gross loan limit $2,000,000. (no minimum). Maximum 90% SBA guaranty to the lender
  • 9. Export Working Capital Program Interest Rates & Fees Negotiable between applicant and lender SBA fee is one quarter of 1.00% of the SBA guaranteed portion for 12 months or less Example $100,000 $100 000 loan x 90% SBA guaranty =$90,000 SBA guaranteed portion x0.25% 0 25% =$225.00 fee due from borrower
  • 10. Export Working Capital Program Collateral A) UCC lien on raw materials- inventory purchased with SBA funds B) Assignment of contract proceeds C) Personal guaranty D) Additional collateral may be required on a case-by-case basis basis.
  • 11. Export Working Capital Program Eligibility & Features Exporter must demonstrate ability to perform / i.e. in business 12 months (Note other “non-export” SBA loans are available from SBA District Office) Minimal collateral Service & Trading companies are eligible Country limitation schedule Credit Insurance Applications processed at SBA USEAC
  • 12. SBA Export Finance Assistance Programs: Export Working Capital Program SBA Export Express
  • 13. SBA Export Express p p Provides financing to small businesses whose borrowing needs are too small to be profitably met by traditional SBA programs “Small” = maximum loan $250,000 $250 000 (no minimum) Flexible use of proceeds
  • 14. SBA Export Express p p Incentives/Advantages No SBA application forms No SBA underwriting or credit review (eligibility review only) i ( li ibilit i l ) “Application” faxed or emailed by pp y bank to SBA national processing center in Sacramento SBA turnaround 24-48 hours
  • 15. SBA Export Express p p Eligibility Lender to obtain a brief narrative from applicant to clarify how loan proceeds will be utilized. Applicant in business for at least 12 months. th Proceeds are to be used to develop or expand e pand applicant’s export markets. e port
  • 16. SBA Export Express p p Use of Proceeds • Finance Export Development activities supported by U.S. Department of Commerce Commercial Service: Gold Key ICP etc Key, ICP, • Other marketing costs such as participation in a foreign trade show or translation of product literature for use in foreign markets. markets • Real Estate acquisition or construction to support production of goods for export. • Acquisition of machinery or equipment (i.e. computers, forklifts, etc) to be used in the production of goods for export. ) p g p • Permanent long term working capital infusion
  • 17. Martin Selander International Trade Specialist U. S. U S Small Business Administration U. S. Export Assistance Center 3300 Irvine Ave #307 Newport Beach CA 92660 (949) 660-1688 ext 115 Serving exporters of Southern California, Nevada, Arizona and Hawaii