Here’s a quick look at export express loans
Export Express Loans
To help small businesses access international markets, the Small Business Administration offers Export Express loans. To use this financing, your business must have been operating for at least 12 months, though not necessarily in exporting yet. You must show that you would use the SBA loan proceeds for export development activity though. Some ways you could use an SBA Export Express loan include:
- Pay to participate in a foreign trade show
- Translate your product literature for foreign markets
- Finance export orders
- Cover the costs of expanding to a foreign market, including buying real estate, equipment and inventory needed for the expansion
Export Express loans follow a similar approval process and rules as regular Express loans. The maximum loan amount is $500,000. Term loans and lines of credit are available.
Approval Process
The SBA responds to Export Express loan applications within 24 hours. The lender handles most of the work checking your eligibility and approving your loan. The SBA does not set any collateral requirements for these loans and it’s up to the lender to decide. To apply, you would primarily fill out forms from your lender along with SBA Form 1919.
One notable difference for Export Express loans is that the SBA will guarantee up to 90% of loans up to $350,000 and up to 75% of loans over $350,000. The SBA offers a more generous guarantee compared to the Standard 7a and Express Loan Programs to help small business exporters qualify for better loan rates. Ultimately, the lender will set the interest rate, up to the SBA limits. However, the high guarantee gives lenders an incentive to offer more generous terms.
Besides financing support, the SBA also provides export training for both lenders and small business owners. SBA Senior International Credit Officers teach interested lenders the rules for this program so they can become more proficient in offering these loans.
Small business owners can receive educational materials and training for accessing foreign markets through programs organized by SBA-supported organizations like their local U.S. Export Assistance Centers, the SBA's Office of International Trade and the SBA’s International Trade Hotline.
If you think you’re eligible for an SBA Express loan and want to apply, reach out to one of our lending specialists. Our experts can help you get your documents in-order and match you with a quality local lender to get your loan funded as soon as possible.
