Unlock Global Opportunities: Navigate International Trade with the SBA's Export Financing Program

The Small Business Administration’s (SBA) Export Financing Program can be valuable for businesses needing foreign receivable financing as it provides them with access to capital for their export operations. It helps businesses fulfill export orders, manage cash flow, and mitigate the risk associated with international trade.

Under the SBA Export Financing Program, the Export Working Capital Program (EWCP) and the Export Express Program are two options that offer receivable financing. The EWCP provides short-term working capital to businesses to support the export of direct or indirect goods or services, whereas the Export Express program offers a broader range of uses, such as financing for capital expenditures, working capital, export development activities, and financing to provide services to foreign countries.

Commercial banks and financial institutions offer various solutions that should be considered before applying to the SBA Export Financing Program. Some of these solutions include trade credit insurance, export factoring, accounts receivable financing, and letters of credit. These conventional financing options may offer more flexibility, customization, and quicker turnaround times compared to the SBA program. However, they may also come with higher interest rates or stricter eligibility criteria.
Compared to traditional financing methods, the SBA Export Financing Program offers certain advantages. First, it provides guarantees to lenders, making it easier for businesses to access financing without needing as much collateral or credit history. Second, the program focuses specifically on supporting export activities, allowing businesses to access specialized expertise and resources in navigating international trade. Third, the SBA program may offer longer repayment terms and lower interest rates than traditional financing options, making it more favorable for some businesses.
Ultimately, the decision between SBA export financing and commercial bank financing depends on the specific needs and circumstances of the business. The SBA program is limited to businesses which have unique financing needs and situations that do not meet the requirements of traditional financing from a commercial bank or financial institution. Businesses should carefully evaluate their own circumstances, financing needs, and preferences before deciding between the SBA Export Financing Program and standard bank financing.

Consult with First American Bank and explore our different options to understand which program would be the best fit for your specific situation. First American Bank is a long-time SBA partner with full delegated authority to process all SBA Export loans in-house, i.e. EWCP, Export Express, and International Trade Loans. We are proud to share that we have been recognized nationally by the SBA as 2017 SBA Export Lender of the Year and by the U.S. Department of Commerce as 2018 President’s E-Award for Export Service Excellence.

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This information is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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