SBA Export Express helps
small businesses that have
exporting potential, but need
funds to buy or produce goods,
and/or to provide services,
for export. Loan proceeds may
be used for most business
purposes, including expansion,
equipment purchases, working
capital, inventory or real
estate acquisitions.
Who Can Use
this Program?
SBA Export
Express loans are available to
persons who meet the normal
requirements for an SBA
business loan guaranty. Loan
applicants must also –
demonstrate
that the loan proceeds
will enable them to enter
a new export market or
expand an existing export
market, and
have
been in business
operation, though not
necessarily in exporting,
for at least 12 months.
How Does the
Program Work?
Any lender that is
authorized to participate in
the SBA Express loan program
may participate in SBA Export
Express. A list of authorized
lenders can be obtained by
either contacting the SBA
representative in the U.S.
Export Assistance Center
nearest you (a list of centers
is on the back of this
brochure). SBA Export Express
lenders use streamlined and
expedited loan review and
approval procedures to process
SBA guaranteed loans. The
lender uses its own loan
analyses, loan procedures and
loan documentation. Completed
loan applications are
submitted for approval to the
SBA’s processing center in
Sacramento, California. The
SBA provides the lender with a
response, typically within 36
hours.
For loans up to $150,000,
SBA offers the Lender a
guaranty of 85%, for loans
over $150,000 up to the
program maximum of $250,000,
SBA offers the Lender a
guaranty of 75%.
INTERNATIONAL TRADE LOAN
PROGRAM
Description----The
International Trade Loan
Program provides financing for
small businesses that are
engaged or preparing to engage
In international trade or that
have been adversely affected
by competition from exports.
Loan proceeds can be used to
purchase, build or upgrade
facilities, machinery or
equipment used for producing
goods or services in the
United States, and for
permanent working capital to
assist in such efforts.
Who Makes the
Loan?--Selected lenders.
Who Is Eligible?--Small
businesses planning to export
or to significantly increase
existing exports; small
businesses adversely affected
by competition from imports.
Loan Amount---No limit, but
SBA cannot guarantee more than
$1.25 million.
Loan
Maturity----25 years for
facilities, 10 years for
equipment.
Other
Criteria--Lender must hold a
first lien on assets being
financed.
Other business assets,
personal guarantees by
principals and/or personal
assets may be required as
security on the loan. Only
collateral located in the
United States is acceptable.
EXPORT WORKING CAPITAL
PROGRAM
Description Export Working
Capital Program provides loan
guarantees for loans used to:
finance labor and material for
manufactured goods for export;
purchase goods or services for
export; or finance accounts
receivable generated from
export sales.
Who Makes the
Loan?--Selected lenders.
Who Is
Eligible?--Small businesses
engaged in exporting.
Loan
Amount--No limit, but SBA
cannot guarantee more than 90
percent of loans up to $1.1
million, or $1,000,000
(whichever is less). When
combined with an international
trade loan, the amount can be
up to $1.25 million. Loan
requests over $1.1 are
processed through Eximbank
(see below).
Loan
Maturity---Maximum of 18
months for a single
transaction. If the loan is
for a revolving line of
credit, the maturity is
typically one year and can be
reissued two times for a
maximum maturity of three
years.
Other
Criteria---Collateral may
include export inventory,
foreign receivables, and
assignments of contract and
letter of credit proceeds.
Personal guarantees usually
are required.
U.S. Department of
Commerce
(202) 482-2000 or (800)
USATRADE
14th St. and
Constitution Avenue, NW,
Washington, DC 20230
The U.S.
Department of Commerce's
Commercial Service is one of
the lead agencies providing
export services through U.S.
Export Assistance Centers (USEAC).
USEACs are federal export
assistance offices which
streamline export marketing
and financial assistance by
integrating in one location
the services of the U.S.
Commercial Service, EXIMBANK,
and the SBA. Services are
targeted to export-ready
firms.
EXIMBANK is
an independent federal
government agency that
provides export financing to
large and small businesses and
to potential exporters who
need working-capital loans
from commercial lenders.
EXIMBANK financial assistance
is provided in the form of
direct loans, insurance, and
loan guarantees for lenders to
foreign buyers of goods and
services produced in the
United States. EXIMBANK offers
the following export financing
programs:
Working Capital
Guarantee Program for
commercial loans to U.S.
exporters
Direct loans to foreign
buyers
Loan guarantees for
lenders to foreign buyers
of U.S. products
Special financing
programs for environmental
exports Export credit
insurance for commercial
and political risk
For more information about
specific EXIMBANK programs,
call the EXIMBANK Financing
Hotline at (800) 565-3946.
The
Overseas Private Investment
Corporation (OPIC) is a
self-sustaining federal agency
that helps U.S. businesses
invest in almost 140
developing nations and
emerging markets. OPIC
provides medium and long-term
loans and political risk
insurance. Companies with
annual revenues less than $250
million qualify for OPIC's
special small business
programs. Small business
programs include direct loans
with a minimum loan size of
$250,000 and streamlined loan
procedures. The Contractor's
Guarantee Program helps small
contractors and construction
companies obtain financing for
projects overseas. OPIC will
guarantee up to 75 percent of
a standby letter of credit or
other form of performance or
advance-payment guarantee
issued on behalf of a
contractor. OPIC's small
business services also include
"quick cover"
insurance with a two-week
turnaround to small businesses
investing in certain sectors.
OPIC offers a simplified
insurance application for
small businesses and a
streamlined contract which
helps reduce premium costs.
For more information on OPIC
programs, call the OPIC Small
Business Hotline at (202)
336-8799.
Alternative
Financing
What is
factoring? - (Receivable Base
Financing)
Simply
put...factoring turns your
receivables into cash today,
instead waiting to be paid at
a future date. Factoring
is the time honored and
increasingly utilized
financial tool that speeds
client cash flow and helps
avoid the problems that
slow-paying customers can
create for fast-growing
companies. Factoring provides
quick and convenient funding
to growing companies who need
capital to expand their
business. To do this, factors
purchase your credit-worthy
accounts receivable at a small
discount and fund you with
immediate cash.
Factoring
is not a loan. There is no
debt repayment, no compromise
to your balance sheet, no
long-term agreements or delays
associated with other methods
of raising capital. Factoring
allows you to use your own
hard earned assets to create
cash for the growth needs of
your company today.
What is
factoring? Buying invoices
from a business at a discount.
Capital Associates
- Factoring, trucking,
factoring cash,
factoring...
USA
Factoring, 358 South
Main Street #31,
Orange, California:
92868, PH:
714-348-3778, Fax:
714-948-8292, Attn:
Daniel Doane,
President, Email: usafactoring@aol.com
Forfaiting
is the purchase of an
exporter’s trade receivables
at a discount to face value
"without recourse"
to the exporter. This discount
will imply a fixed rate of
interest to the maturity of
the importer’s obligation.
Once the goods have been
shipped and the necessary
satisfactory documentation
obtained (such as shipping
documents and commercial
invoices), Nedbank is able to
purchase the trade receivables
(i.e. the importer’s debt
obligations) and so assume the
responsibility for the debts.
Thus the exporter is free of
credit, transfer, and
political risks, and can then
concentrate all his efforts on
new business.
AFIA - Association
of Forfaiters in the
Americas - FORFAITING
Barter
allows you to buy what you
need and pay for it with
otherwise unsold products and
services --- without the use
of cash. A leading barter
company executive, when asked
"How big is the barter
business?", responded by
saying "No one really
knows how big it is because
companies won't talk about
it." "They're not
advertising it," he said.
"They don't want their
competitors to know about
bartering."
"Whatever it is --surplus
or seasonal inventory, a
discontinued line, canceled
orders, store returns-- you
can trade it, rather than
liquidate it, and recover the
value that has been
lost."
