It is now the exporters’ turn. SBA has opened up agency-guaranteed loans for exporters and has raised it to 1%. The amount volumes to $923 million and the agency has been relentlessly giving grants during the last 12 months that ended on Sept 30.
SBA has three loan programs addressing financing needs of small exporters. The programs are Export Express loans, Export Working Capital Program and International Trade Loans. It is money made available through these programs that enabled extending support of $1.7 billion in small-business exports.
Export Express loans – Under this program, businesses are given loans of up-to $500,000. A guarantee of 90% is given for amounts ranging up to $350,000 and 75% guarantee is on amounts up to $500,000. The program makes loans available that can be used for proceeds and to pay costs for entering into new business ventures.
Export Working Capital program – Under this program, a maximum of $5 million is made available with 90% guarantee on loans. The program provides financing for export transactions.
International Trade Loans – It also offers $5 million in maximum grants with a 90% guarantee on loans that are being offered to small business exporters.
So, small business export programs are good enough tools that are needed to export goods and services. Exporting helps to create more number of jobs. Since 2009, it has been found that SBA agency guaranteed 6,100 loans to small business exporters that amounts to $3.1 billion and supports $6 billion in exports.
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.