U.S. Small Business AdministrationInternational Trade Finance ProgramsRiverside CITD Export Seminar Series

Arrowhead Credit UnionSan Bernardino CA

April 6, 2010

Martin Selander International Trade SpecialistU. S. Small Business AdministrationU. S. Export Assistance Center3300 Irvine Ave #307Newport Beach CA 92660

(949) 660-1688 ext 115

Serving exporters of Southern CaliforniaServing exporters of Southern California, Nevada, Arizona and Hawaii

SBA Los Angeles District OfficeSBA Los Angeles District Office330 North Brand Blvd #1200Glendale CA 91203(818) 552 3210(818) 552-3210

SBA Santa Ana District Office200 West Santa Ana Blvd #700Santa Ana CA 92701(714) 550-7420(714) 550-7420

Additional information availableAdditional information available on line

b / itwww.sba.gov/oit

I l di i f ll i dIncluding copies of all required application forms, program info

and national staff directory

SBA Export FinanceSBA Export Finance Assistance Programs:

Export Working Capital ProgramExport Working Capital Program

SBA Export ExpressSBA Export Express

Importers…Importers…

Export Working Capital Program

Pre-Shipment Guarantee Loan proceeds to acquire/produce goods or services for export

Post-Shipment Guarantee Discounting accounts receivable

Export Working Capital Program

Transaction Based

Assignment of payment proceeds fromAssignment of payment proceeds from foreign buyer:

-Letter of CreditLetter of Credit -Open Account

Export Working Capital Program

Si l T ti

Features

Single Transaction or Revolving Credit Line.

Disbursements must be linked to specificDisbursements must be linked to specific export transaction, contract, PO, LC, invoice, etc.

Maximum gross loan limit $2,000,000. (no minimum). Maximum 90% SBA guaranty to the lenderguaranty to the lender

Export Working Capital Program

Negotiable between applicant and lender

Interest Rates & Fees

SBA fee is one quarter of 1.00% of the SBA guaranteed portion for 12 months or less

Example

$100 000 loan$100,000 loan x 90% SBA guaranty

=$90,000 SBA guaranteed portion 0 25%x0.25%

=$225.00 fee due from borrower

Export Working Capital ProgramCollateral

A) UCC lien on raw materials-inventory purchased with SBA fundsinventory purchased with SBA funds

B) Assignment of contract proceeds

C) Personal guarantyC) Personal guaranty

D) Additional collateral may be required on a case-by-case basisrequired on a case-by-case basis.

Export Working Capital Program

Exporter must demonstrate ability to perform / i.e. in

Eligibility & Features

business 12 months (Note other “non-export” SBA loans are available from SBA District Office)

Minimal collateralMinimal collateral

Service & Trading companies are eligible

Country limitation schedule

Credit Insurance

Applications processed at SBA USEAC

SBA Export FinanceSBA Export Finance Assistance Programs:

Export Working Capital ProgramExport Working Capital Program

SBA Export ExpressSBA Export Express

SBA Export Expressp p

Provides financing to small businesses whose borrowing needs are too small to beneeds are too small to be profitably met by traditional SBA programs

“Small” = maximum loan $250 000 (no minimum)$250,000 (no minimum)

Flexible use of proceedsFlexible use of proceeds

SBA Export Express

No SBA application forms

p pIncentives/Advantages

No SBA application forms

No SBA underwriting or credit i ( li ibilit i l )review (eligibility review only)

“Application” faxed or emailed by pp ybank to SBA national processing center in Sacramento

SBA turnaround 24-48 hours

SBA Export Expressp pEligibility

Lender to obtain a brief narrative from applicant to clarify how loan proceeds will be utilized.be utilized.

Applicant in business for at least 12 thmonths.

Proceeds are to be used to develop or e pand applicant’s e port marketsexpand applicant’s export markets.

SBA Export Express

• Finance Export Development activities supported by U.S. Department of Commerce Commercial Service: Gold Key ICP etc

p pUse of Proceeds

Department of Commerce Commercial Service: Gold Key, ICP, etc

• Other marketing costs such as participation in a foreign trade show or translation of product literature for use in foreign marketsshow or translation of product literature for use in foreign markets.

• Real Estate acquisition or construction to support production of goods for export.goods for export.

• Acquisition of machinery or equipment (i.e. computers, forklifts, etc) to be used in the production of goods for export. ) p g p

• Permanent long term working capital infusion

Martin Selander International Trade SpecialistU S Small Business AdministrationU. S. Small Business AdministrationU. S. Export Assistance Center3300 Irvine Ave #307Newport Beach CA 92660Newport Beach CA 92660

(949) 660-1688 ext 115

Serving exporters of Southern California, Nevada, Arizona and Hawaii