How Can the US Federal Government Help You With Financing Your Small Business Exports?
Whether you want to enter into the export market, upgrade your facilities or equipment for exporting, or help your international buyers do business with you, you can take the assistance of the financing program of the US government.
But what sort of financing programs are offered by the US government? Both Export-Import Bank (Ex-Im Bank) and SBA provide credit and loan programs. Here is all that you should know if you want to take the assistance of the federal government to finance your small business exports:
This is a loan program offered by the SBA to the eligible small businesses. The SBA offers a loan up to 500,000 dollars and it doesn’t lend money directly. Rather it offers a guarantee to the lending institution or bank, which in turn lends the money to the small business—eliminating the investment risk for the lending institution or bank. What does this mean? You are going to work directly with your bank for obtaining the loan. If everything is fine with the application, SBA may approve your loan within 36 hours. You can use these funds for any kind of activity related to developing your small business exports.
SBA Export Working Capital Program or EWCP
If your small business already generates export sales but needs more working capital for supporting these sales, the EWCP can be of great help to you. These loans are offered through banks and you can use these funds for export transaction. They are available up to five million dollars and support short-term requirements.
SBA International Trade Loan Program
Only if you want to upgrade your equipment or facilities and are badly affected by import competition, you may be eligible for this program. The loans are available up to five million dollars and you can use these funds for refinancing any existing loan, constructing, renovating, improving, modernizing or expanding equipment and facilities in preparation for exporting. You can’t use it as working capital.
Working Capital Guarantee Program
Just like the SBA , the Export-Import Bank provides a Working Capital Guarantee Program for the small business exporters via the lending partners with whom the credit agency has agreements. You can take as much loan as you want; there is no limitation.
Financing Programs for International Buyers
The Export-Import Bank can finance your international buyers as well. The programs offered to international buyers include:
- Loan Guarantee Program
- Direct Loan Program
- Finance Lease Guarantee Program
- USDA Export Guarantee Program
So, if you want to take the help of the US federal government to finance your small business exports, take a note of all these above-mentioned programs. One or the other program might surely be helpful to you!
Author of the Post : Adriana Sopi is a business consultant whose main motto is to help the small businesses grow. She has even written a lot of articles pertaining to topics like 8a certification , federal contracting opportunities for small businesses etc.