1. International Trade Programs

• 2010 Entrepreneurship

Conference

4/16/10

Helping you start, grow and succeed 2. WHAT IS THE SBA ?

Small Federal Government Agency

Established by Congress in 1953

Aid, counsel and assist Americans start, operate, and expand their businesses

Provide access to capital, counseling and training, and increase federal procurement opportunities

SBA is primarily a guarantor of loans made by private and other institutions.

The SBA does not offer grants to start or grow small businesses.

3. How Important Are Small Businesses to the U.S. Economy?

Represent 99.7 percent of all employers

Employ half of all private-sector employees

Generated 2/3 of net new jobs annually over the last decade

Are employers of 39 percent of high-tech workers (such as scientists, engineers, and computer workers)

4. National Export Initiative

Double Exports in 5 years, create up to 2 million jobs

3 Main components

• Expand trade advocacy

• Increase access to credit (trade finance)

• Remove trade barriers

5. National Export Initiative

SBA will:

Identify SMEs with export potential

• Have you thought about exporting?

Prepare SMEs for exporting

• SCORE, SBDCs, WBCs

Connect SMEs with actual trade opportunities

• Collaborate with other federal agencies on trade missions, etc.

Support SMEs with export financing

• ExportExpress, EWCP/Ex-Im Co-guarantee

6. SBA PARTNERS

U.S. Exporters

Banks:Regional and Local Community

State and City

U.S. Government International Agencies

U.S. Commercial Service

Overseas Private Investment Corporation (OPIC)

U.S. Export-Import Bank (Co-guarantee)

U.S. Department of Agriculture/Commodity Credit Corporation

7. SBA Loan Programs for Exporters

Export Working Capital Program (EWCP)

SBA-EXIM EWCP Co-Guarantee Program

Export Express

8. Export Working Capital Program

90% Guarantee

$1.5 Million is maximum SBA guaranteed portion

Transaction financing

Single Project or Revolver

Quick turnaround time

9.

Company meets SBA size standards

• Based on NAICS

• Manufacturing: under 500 employees

• • • can be as high as 1,500 employees

• Ex-Im has no restrictions for size.

Product is titled and shipped from U.S.

• No U.S. content requirement, Military OK

In business 12 months or proven expertise

Other SBA eligibility provisions

• Criminal History, Previous loss to govt. etc.

Export Working Capital Program Eligibility 10. EWCP - Indirect Exports

Applicants who produce products or services that enter into the export channel but do not directly export their products are eligible for EWCP financing

• Manufacturers using an Export Trading Company

• Suppliers to other domestic manufacturers

Requires certification from domestic customer that goods are in fact being exported.

11. EWCP Use of Proceeds

Loan proceeds to acquire/produce goods or services for export, the accounts receivable of such foreign sales or standby letters of credit.

Pre-shipment Guarantee

• Labor and Material costs

Post-shipment Guarantee

• Foreign Accounts Receivable financing

Combination Guarantee

12. CO-GUARANTEE BETWEEN SBA ANDTHE U.S. EXPORT IMPORT BANK

Max loan amount of $2 million

SBA underwriting rules apply

SBA guarantee fee at 0.25% will apply

• Longer than 12 months fee eliminated (temporarily as a result of Stimulus Package)

ExIm requirement for 51% domestic

content must apply

ExIm ban on military goods will apply

13. EWCP - How to Apply

Apply with a commercial loan officer at your existing bank.The Bank will forward your application to SBA for approval if SBA support is needed for the transaction.

14. EXPORT EXPRESS

Maximum loan amount $250,000

Eligibility

• applicant in business for at least 12 months

• proceeds for developing or expanding export markets

Maximum loan guarantee coverage

• 90% as a result of American Recovery and Reinvestment Act

• normally 85% Up to $150,000 and 75% up to $250,000

15. EXPORT EXPRESS

Minimizes Use of Government Forms and Procedures

Streamlines Processing and Costs of Smaller Loan Transactions

Lenders Granted Expanded Authority and Autonomy

16.

Finance export development activities

• Participation in a foreign trade show

• Translation of product literature for foreign markets

Provide transaction-specific financing for overseas orders

Provide revolving lines of credit for export purposes term may not exceed five years

Finance standby letters of credit used for either bid or performance bonds

EXPORT EXPRESS CAN HELP 17. www.sba.gov/oit A free resource guide that provides a comprehensive guide to exporting. 18. http://www.ita.doc.gov/media/Publications/abstract/trade_finance_guide2008desc.html Trade Finance Guide:A Quick Reference for U.S. Exporters 2008designed to help small and medium-sized enterprises learn the basics of trade finance.Turn export opportunities into actual sales and achieve the ultimate goal of getting paid -especially on time. Concise, two-page chapters offer the basics of numerous financing techniques, from open accounts, to forfaiting, to government assisted foreign-buyer financing.Trade Finance Guide 19. www.sba.gov/oit 20. QUESTIONS?

Patrick Tunison

Office of International Trade

[email_address]

(202) 205-6426

Michael K. Jackson

Baltimore District Office

[email_address]

(410) 962-6195 x303