International Trade Loan

Small business owners with an interest in important and exporting should take a look at the International Trade Loan offered by the U.S. Small Business Administration. This loan gives small businesses the opportunity to export their products with various financing options. Also, the program helps the business owner properly invest to offset competition from importers. This loan combines working capital financing, debt refinancing and fixed assets. The maximum you can borrow is $5,000,000 total with a guaranteed portion of 90 percent to the borrower.

The term of this loan is normally ten years, however for real estate terms can be as long as 25 years. For equipment, the term is 10 years unless the life of the equipment exceeds this amount of time. If the loan has fixed asset and working capital financing, the maturity will be averaged. Interest rates are reasonable, ranging between approximately 2.25 and 2.75 percent above prime rates depending on the amount and term of the loan.

There are requirements that must be met by the potential exporter before an International Trade Loan can be granted. Each applicant must meet the standard 7(a) Loan program requirements, and show how the loan will help grow the business through exporting. The money from the loan must be used to create, acquire, expand or improve equipment and facilities in the United States which are to be traded internationally.

Collateral requirements for an International Trade Loan must also be met by the borrower. The collateral must be located in the United States. It must be the first lien unless the Small Business Association determines otherwise. To apply for an International Trade Loan, the first step is to complete an SBA Form 4 with all necessary documentation to the Small Business Administration. If the exporter wishes to qualify as a borrower who has been negatively impacted by competition from importers, this must be proven through documentation along with a projection plan to show the improvement that the loan will help provide.

Exporting is a big step for all businesses, whether they are big or small. However, small businesses face special challenges and the SBA knows this. They work in many ways to help small business owners succeed. In addition to the International Trade Loan they have a wide variety of other programs to help business owners. You can visit their website for comprehensive information about the administration and all the programs and services they offer.