If you own or want to start a small export business, there may be financing available to help you grow your business.
Many businesses think they’re too small to participate in global markets, but the SBA can help you get started and succeed. If you own or want to start a small export business, there may be financing available to help you grow your business. Bank of American Fork is a Preferred Lender, which means faster turnaround times and local decision-making authority. We have money to lend and experienced SBA loan staff and lenders.
The SBA wants to support U.S. business production, and is offering the following loan programs to help your business:
1. Export Express Loan Program
This program offers streamlined financing up to $500,000. It is the simplest export loan product offered by the SBA and allows participating lenders to use their own forms and procedures. The SBA determines eligibility and provides a loan approval in 36 hours or less. Export Express can be a term loan or a revolving line of credit.
Use of proceeds:
• Participate in a foreign trade show
• Support standby letters of credit
• Translate product literature for use in foreign markets
• Finance specific export orders
• Expand production facilities
• Purchase equipment inventory or real estate
Bank of American Fork has Preferred Lender status for this type of loan, so we can provide approval in-house, speeding up the loan process.
2. Export Working Capital Program
This program offers financing up to $5 million as a credit enhancement. This program is delivered through SBA Senior International Credit Officers located in U.S. Export Assistance Centers. The Export Working Capital (EWCP) loan provides advances for up to $5 million to fund export transactions from purchase order to collections. This loan has a low guaranty fee and quick processing time.
Use of Proceeds
• Finance suppliers, inventory, WIP, or production of export goods or services
• Working capital to support foreign accounts receivable during long payment cycles
• Finance stand-by letters of credit used as bid or performance bonds or as down payment guarantees
This loan must be submitted to the Export Assistance Center in Denver, so the time to complete it is longer.
3. International Trade Loan Program
This program offers loan financing for fixed assets and working capital to businesses that plan to start or continue exporting, or that have been adversely affected by competition from imports.
Use of proceeds:
• Acquire, construct, renovate, modernize, improve or expand facilities or equipment to be used in the United States to produce goods or service involved in international trade
• Develop and penetrate foreign markets
• Refinance an existing loan
Bank of American Fork will likely operate with Preferred Lender status on these types of loans, so they can be approved in-house.
Bank of American Fork is committed to offering these big-city products with our small-town service. If you are thinking about starting or growing your export business, or have questions, don’t hesitate to contact Richard Gray, senior vice president of commercial lending at Bank of American Fork, at email@example.com or 801-642-3871.