Small Business owners involved in export and import can find ‘International Trade Loan’ from SBA now. This loan opens the opportunity for small businesses to export their products with several financing options. The program also allows business owners to go for investments so as to offset competition among importers. The loan is a combination of working capital financing, debt refinancing and fixed assets.
‘International Trade Loan’ is granted if the trader meets the 7(a) loan program standards. This loan also helps to grow the business through exporting. The loan money can be used to create, expand, acquire or improve facilities and equipments in US.
The international trade loan term is 10 years and for real estate’s it can be as long as 25 years. In case of equipment the term is 10 years until the life of the equipment exceeds that period. In case of fixed assets and working capital financing, the maturity of the loan is averaged. The interest rates range from 2.25 and 2.75 percent and that depends on term and amount of loan.
Collateral is required for ‘International Trade Loan’ and it should be located in the United States itself. The borrower has to fill in an SBA application form 4 and submit the same to the SBA. Applicants may also have to prove that they are being negatively impacted due to competition from importers.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org