EXPORTER LOANS ARE OFFERED BY HUNDREDS OF LENDERS
IF YOU NEED MONEY FOR AN EXPORTING BUSINESS, there are hundreds of lenders you can tap into—either for yourself or for a client. And these lenders make loans for many different uses, such as:
• Buying real estate or equipment used in the production of goods or services for export.
• Term loans and other financing to develop foreign markets.
• Lines of credit you can tap into for financing exports.
• Constructing, renovating, or modernizing production facilities or equipment to be used in the United States for items to export.
• Standby Letters of Credit to guarantee performance or advance payments involved in exporting.
• Plus a number of other export-related financing activities.
“WHY IS SUCH FUNDING AVAILABLE?” you ask. For several reasons, namely:
• The Federal Government wants to encourage exporting because exporting helps reduce the balance of payments.
• Exports create jobs in the U.S., improving the economy and increasing the inflow of tax payments.
• Other industries benefit from increased exporting—shipping, airlines, packing, freight forwarders, lenders, etc.
TO GET SOME SBA-GUARANTEED EXPORT FUNDING, you or your client, should be in some type of business (not necessarily exporting) for at least 12 months. Once you’ve achieved this:
• Check with lenders in the area of the business as to their export lending practices. A number of such lenders are listed in this issue.
• Get the lending guidelines from the lender and see if you, or your client, can meet them. Since most such guidelines are easy to meet, there should be little trouble in meeting them, and getting the money!
SMALL BUSINESS ADMINISTRATION (SBA) PROGRAM
SBA Export Express offers small business lending assistance and provides additional help to small
businesses that have difficulty in getting adequate export financing. The program also helps small businesses develop and expand their export markets. Loan proceeds may be used to finance export development activities such as:
· Standby Letters of Credit when required as a bid bond, performance bond or advance payment guarantee
· Participation in a foreign trade show
· Translation of product brochures or catalogs for use in overseas markets
· General lines of credit for export purposes
· Service contracts from buyers located outside the United States
· Transaction-specific financing needs associated with completing actual export orders
· Purchase of real estate and equipment to be used in the production of goods or services for
· Term loans and other financing to enable small business concerns, including export trading
companies and export management companies, to develop foreign markets
· Acquisition, construction, renovation, modernization, and improvement or expansion of
productive facilities or equipment to be used in the United States in the production of goods
or services for export.
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.