Riverside C I T D April 2010

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SBA export loan programs

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Riverside C I T D April 2010

  1. 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. 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. 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. 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. 5. SBA Export Finance Assistance Programs: Export Working Capital Program SBA Export Express Importers…
  6. 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. 7. Export Working Capital Program Transaction Based Assignment of payment proceeds from foreign buyer: -Letter of Credit Letter -Open Account
  8. 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. 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. 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. 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. 12. SBA Export Finance Assistance Programs: Export Working Capital Program SBA Export Express
  13. 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. 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. 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. 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. 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

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