The number of small business exporters tripled in the past decade, and the value of small business exports has increased 300 percent in the past five years. These statistics reflect a largely untapped potential for increasing U.S. exports. Exporting statistics also show that even the smallest of businesses is involved in export transactions. We know that nearly 20 percent of small and medium- sized enterprises (SMEs) exporting have no employees beyond the principal, reflecting a change in who is exporting and what they export. We also know that 2/3 of all SMEs sold to just one market. To support greater numbers of small businesses pursue overseas ventures, the SBA has developed a new loan program called SBA Export Express.

Does your company need funding to support market penetration strategies? Are you wondering how to fund a promising trade mission overseas?

SBA has the answer with SBA Export Express. This new loan guarantee program helps small businesses that have exporting potential, but need funds to cover the initial costs of entering an export market, to buy or produce goods or to provide services for export. This new program has the flexibility to use loan proceeds for most business purposes, including expansion, equipment purchases, working capital, inventory or real estate acquisitions.

Also with this new program, loan proceeds may be used to help finance such items as participation in overseas trade shows or trade missions, standard certifications (i.e. CE Mark & ISO 9000) and modifications of a company’s website to accommodate export transactions.

To help you structure your loan application, plan your export market penetration strategy or just locate a new market for your product overseas, SBA Export Express offers you the technical assistance your company needs to open new markets for your company. This loan program is especially suited to companies that have traditionally had difficulty in obtaining adequate export financing. The pilot program runs through September 30, 2005.

PROGRAM REQUIREMENTS

SBA Export Express loans are available to persons who meet the normal requirements for an SBA business loan guaranty.

Loan applicants must 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.

HOW DO I APPLY?

Any lender/bank that is authorized to participate in the SBA Express loan program may participate in SBA Export Express. A list of authorized lenders can be obtained by contacting the SBA representative at your local U.S. Export Assistance Center.

SBA Export Express lenders use streamlined and expedited loan review and approval procedures to process SBA guaranteed loans to ensure that all loan applications are processed smoothly and quickly. This is accomplished by SBA allowing the lenders to use their own loan analyses, loan procedures and loan documentation. Quick turn-around is also assured by centralizing processing at SBA’s processing center in Sacramento, California. The SBA provides the lender with a response, typically within 36 hours.

THE SBA GUARANTY

By means of this guarantee program, which gives participating lenders an 85 percent loan guarantee from SBA, the SBA is encouraging lenders to make loans to small business exporters that they might not make on their own. The SBA’s Export Express maximum loan amount is $150,000.

TECHNICAL ASSISTANCE

Because many small business exporters face unique problems and challenges, the SBA Export Express Program also includes technical assistance in the form of marketing, management and planning assistance.

Technical assistance is provided by U.S. Export Assistance Centers, in cooperation with SBA’s network of resource partners, including the U.S. Department of Commerce Commercial Service, the Export Legal Assistance Network, the Small Business Development Center Network, and the Service Corps of Retired Executives (SCORE).

On approval of a SBA Export Express loan, a U.S. Export Assistance Center representative will contact the borrower to offer appropriate assistance. This assistance may include training, such as the Export Technical Assistance Program (ETAP) offered through SBA or one of its partners. The ETAP program takes a new-to-export company from start to finish in exporting, including finding an overseas trade show or mission appropriate for the company products or services.

OTHER FINANCING PROGRAMS

The SBA also offers a range of other long- and short-term financing options for small business exporters. The Export Working Capital Program (EWCP) allows the SBA to provide lenders with a repayment guaranty of up to $1,000,000 or 90 percent of the loan amount, whichever is less, on short-term working capital loans that participating lenders make to small business exporters. This loan program is transaction-back financing, can be single or revolving line of credit and usually has a term of 12 months or less.

The SBA’s International Trade (IT) Loan Program was designed to assist small business exporters that require both working capital and fixed-asset financing. Under this program, the SBA can guarantee as much as $1.25 million in combined working capital and facilities-and-equipment loans. The working capital portion of the loan may be made according to the provisions of the Export Working Capital Program.

CONTACT INFORMATION

For more information about SBA Export Express or other SBA export assistance programs, please contact the SBA representative in the U.S. Export Assistance Center nearest you. A complete list of Export Assistance Centers can be found on the back cover of this publication. The SBA maintains representatives in the following cities: