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Export Financing Programs to Help Grow Your Business
Posted By US Small Business Administration On August 27, 2014 @ 8:00 am In Finance | 3 Comments
Tapping into international markets is one way to expand your customer base and grow your small business exponentially. However, small businesses face many barriers to exporting including high shipping costs, unfair trade policies by other countries, cultural differences and other challenges.
To help small businesses overcome these obstacles and mitigate the risk of exporting, the federal government provides a wide range of financial support. There are generally four main types of export assistance programs.
These enable small businesses to get loans that help grow sales abroad and boost competitiveness in the international marketplace. These include:
This program offers financing up to $500,000  for business purposes that will enhance a company’s export development such as international trade shows, standby letters of credit and translating product materials.
It is the simplest export loan product offered by the SBA and easily accessible to both borrowers and lenders by allowing participating lenders to use their own forms, procedures and analyses. SBA determines eligibility and provides a loan approval in 36 hours or less.
This program provides loan guarantees for financing  that can be used to buy finished products, raw materials, equipment supplies and other essentials.
This program assists lenders in meeting the needs of exporters  seeking short-term export working capital. The EWCP loan is designed to provide necessary financing to support an exporter’s transactions, from purchase order to final payment, with a $5 million maximum loan amount and 90 percent guaranty.
This includes the SBA’s International Trade Loan Program  which is designed to help small businesses enter and expand into international markets or, when adversely affected by import competition, to make the investments necessary to better compete.
The allowable size for the loan was increased to $5 million and it offers a combination of fixed asset, working capital financing and debt refinancing with the SBA’s maximum guaranty of 90 percent.
These programs help small businesses assist international buyers in finding financing to purchase American goods when there are no other financing options available or if interest rates are too steep. These programs from the Export-Import Bank include:
Provides term financing  to creditworthy international buyers in the private and public sector for up to 10 years.
Provides fixed-rate financing  for up to 12 years in general and up to 18 years for renewable energy projects.
Provides competitive medium-term financing  structured as finance leases.
The Department of Agriculture’s Export Credit Guarantee Program  encourages financing of commercial exports of American agricultural products while providing competitive credit terms to buyers.
Includes the Overseas Private Investment Corporation, which provides funding through direct loans  and loan guaranties to eligible projects in developing countries and emerging markets.
For more on how to sell your goods and services overseas including free training, events, compliance resources, and other exporting resources and tools, visit the export section  at BusinessUSA.
Money  Photo via Shutterstock
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URL to article: http://smallbiztrends.com/2014/08/export-financing-programs-help-grow-business.html
URLs in this post:
 financing up to $500,000: http://www.sba.gov/content/export-express-program
 loan guarantees for financing: http://www.exim.gov/products/work_cap.cfm
 assists lenders in meeting the needs of exporters: http://www.sba.gov/content/export-working-capital-program
 International Trade Loan Program: http://www.sba.gov/content/international-trade-loan
 Provides term financing: http://www.exim.gov/products/loanguarantee/index.cfm
 Provides fixed-rate financing: http://www.exim.gov/products/direct-loan.cfm
 Provides competitive medium-term financing: http://www.exim.gov/products/finance-lease-guarantee.cfm
 Export Credit Guarantee Program: http://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102
 funding through direct loans: http://www.opic.gov/what-we-offer/financial-products
 export section: http://business.usa.gov/export
 Money: http://www.shutterstock.com/pic-205382632/stock-photo-glass-globe-and-reflection-of-dollar-bill-and-pile-of-coins.html