Sba Financing For Exports

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Overview of SBA financing for international trade

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Sba Financing For Exports

  1. 1. SBA Financing for Exports By: Vincent McCoy, Executive Director Inland Empire Small Business Development Center
  2. 2. Export Finance <ul><li>Activity of governments helping companies by financing their export activities. </li></ul><ul><li>Usually lower interest rate loans that the company could otherwise not obtain at a rate lower than market price. </li></ul>
  3. 3. SBA Assistance <ul><li>SBA provides counseling, training and financing to support small business export opportunities. </li></ul><ul><ul><li>Small Business Development Center </li></ul></ul><ul><ul><li>SCORE </li></ul></ul><ul><ul><li>SBA District Office </li></ul></ul><ul><ul><ul><li>200 W Santa Ana Blvd Suite 700 </li></ul></ul></ul><ul><ul><ul><li>Santa Ana, CA </li></ul></ul></ul>
  4. 4. SBA Financing Programs <ul><ul><li>International Trade Loan </li></ul></ul><ul><ul><li>Export Working Capital Program </li></ul></ul><ul><ul><li>SBA Export Express </li></ul></ul><ul><ul><ul><li>Fast and easy loans for small exporters </li></ul></ul></ul><ul><ul><ul><li>Financing up to $500,000 </li></ul></ul></ul><ul><ul><ul><li>Must be twelve months in operation </li></ul></ul></ul><ul><ul><ul><li>Loan proceeds will support export activity </li></ul></ul></ul><ul><ul><ul><li>Term or line of credit </li></ul></ul></ul><ul><ul><ul><li>Apply via participating lenders </li></ul></ul></ul>
  5. 5. International Trade Loan <ul><ul><li>Details </li></ul></ul><ul><ul><ul><li>Up to $5,000,000 in financing </li></ul></ul></ul><ul><ul><ul><li>SBA Guarantee up to 90% </li></ul></ul></ul><ul><ul><ul><li>Ten year amortization </li></ul></ul></ul><ul><ul><ul><li>Used for working capital and fixed assets </li></ul></ul></ul><ul><ul><ul><li>Ex-Im Banks eligible to operate </li></ul></ul></ul><ul><ul><ul><li>Similar to 7(a) program </li></ul></ul></ul>
  6. 6. SBA Export Express <ul><ul><li>SBA Export Express </li></ul></ul><ul><ul><ul><li>Fast and easy loans for small exporters </li></ul></ul></ul><ul><ul><ul><li>Financing up to $500,000 </li></ul></ul></ul><ul><ul><ul><li>Must be twelve months in operation </li></ul></ul></ul><ul><ul><ul><li>Loan proceeds will support export activity </li></ul></ul></ul><ul><ul><ul><li>Term or line of credit </li></ul></ul></ul><ul><ul><ul><li>Apply via participating lenders </li></ul></ul></ul>
  7. 7. Export Working Capital <ul><ul><li>Benefits of the EWCP </li></ul></ul><ul><ul><li>For suppliers, inventory or production of export goods </li></ul></ul><ul><ul><li>Export working capital during long payment cycles </li></ul></ul><ul><ul><li>Financing for stand-by letters of credit used as bid or performance bonds or down payment guarantees </li></ul></ul><ul><ul><li>Reserves domestic working capital </li></ul></ul><ul><ul><li>Permits increased global competitiveness by allowing the exporter to extend more liberal sales terms </li></ul></ul><ul><ul><li>Increases sales prospects in under-developed markets which have high capital costs for importer </li></ul></ul>
  8. 8. SBA Export Lenders Lenders active in SBA Export Loan Program WILSHIRE STATE BANK SUPERIOR FINANCIAL GROUP, LLC PLAZA BANK GBC INTERNATIONAL BANK CALIFORNIA BANK AND TRUST EAST WEST BANK COMMERCE NATIONAL BANK CENTER BANK CALIFORNIA STATEWIDE CERT. DEV BORREGO SPRINGS BANK, N.A.
  9. 9. Lenders <ul><li>Finding Lenders isn’t easy </li></ul><ul><ul><li>California Bank and Trust, San Diego </li></ul></ul><ul><ul><li>Center Bank, Oakland </li></ul></ul><ul><ul><li>GBC International Bank, Los Angeles </li></ul></ul><ul><ul><li>Superior Financial, Walnut Creek </li></ul></ul>
  10. 10. Conclusion <ul><li>Government sponsored help is available </li></ul><ul><li>Federal initiatives focused on trade expansion are at top of list </li></ul><ul><li>Proving the marketability of products and services remains key </li></ul>

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