Loans for Export

Loans for Export
SBA 7(a)l 6 Export Loan If the purpose of the loan can be shown to be for the acquisition or modernization of facilities for the production of goods or services for export, SBA's 7(a)l6 program applies and the Omnibus Trade Bill increased the loan limit to $1 million for export support. The firm must prove it will expand exports or it is being adversely affected by imports. No more than $250,000 of the eligibility under 7(a) 16 may be for working capital in contrast to facilities.
Export Revolving Line of Credit Loan (ERLC) The Export Revolving Line of Credit (ERLC) program is called the 7(a) 14 loan and is available for pre-export financing purposes to develop foreign markets or to finance production primarily the latter. Insured foreign accounts receivable may be financed and used for collateral as well. The maximum guarantee is for $750,000 and a term of 12 months with opportunity for annual renewals up to 36 months.
In whichever combination of these or other SBA guarantees, the total of all SBA guarantees must not exceed $1.25 million for any one borrower.
Small Business Investment Company (SBIC) Financing For larger loans or riskier and more entrepreneurial situations, there is the possibility of obtaining a loan, whether for export or domestic purposes, through an SBIC, which is licensed and supported by SBA. For more on this export loan programs see Exporters-sources.com - index page - 35 on "Money—and How to Get It."

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