Financial assistance

Financial assistance
The SBA offers direct loan and loan guarantee programs to assist small businesses. In recent years Congress has increasingly mandated that SBA provide special attention to business support in the export area as the trade imbalance worsens. As a result, there are now parallel financial programs for export and for domestic business. Since the loan officers in SBA have historically concentrated on longer-term working capital loans and fixed asset loans, it is often difficult for them to adjust to the concept of trade finance and transaction-based collateral. Real efforts are being made by the organization, however, and even though the past usage history of the export-oriented SBA programs is dismal, it now appears their various guarantee programs and especially the ERLC guarantee described below should become an increasingly viable source of financial support for the exporter. Special training is being provided to loan officers handling international loans. To be eligible for a loan or guarantee, you must first attempt to secure funding from the private sector, invest a reasonable amount of capital in the business, and demonstrate that SBA can reasonably expect to be repaid.

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