DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 23

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN
Finance, Investment and

Procurement Programs

export working capital loans by guaranteeing repayment of up to $1.5 million or 90 percent of a loan amount,
whichever is less. A loan can support a single transaction or multiple sales on a revolving basis.
Designed to provide short-term working capital to exporters, the EWCP is a combined effort of the SBA and
the Export-Import Bank. The two agencies have joined their working capital programs to offer a unified
approach to the government's support of export financing. The EWCP uses a one-page application form and
streamlined documentation with turnaround usually 10 days or less. A letter of prequalification is also
available from the SBA.
Export Working Capital Program Eligibility (EWCP)
In addition to the eligibility standards listed below, an applicant must be in business for a full year (not
necessarily in exporting) at the time of application. SBA may waive this requirement if the applicant has
sufficient export trade experience. Export management companies or export trading companies my use this
program; however, title must be taken in the goods being exported to be eligible.
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Most small businesses are eligible for SBA loans; some types of businesses are ineligible and a case-by-case rmati
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determination must be made by the Agency. Eligibility is generally determined Business Type, Use of Pro- in
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ceeds, Size of Business, and Availability of Funds from other sources. The following links provide more
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detailed information about each of these areas.
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The proceeds of an EWCP loan must be used to finance the working capital needs associated
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multiple transactions of the exporter.
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Proceeds may not be used to finance professional export marketing advice or services, foreign business
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travel, participating in trade shows or U.S. support staff in overseas, except to Info@ extent it relates directly to
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the transaction being financed. In addition, “proceeds may not be used” ton
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delinquent withholding taxes, or to pay existing debt.
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The applicant must establish that the loan will significantly expand .or develop an export market, is currently
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adversely affected by import competition, will upgrade equipment or facilities to improve competitive
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position, or must be able to provide a business plan thatMreasonably projects export sales sufficient to cover
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the loan.
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Maturities
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Export Working Capital Program (EWCP)
SBA guarantees the short-term workingitycapital loans made by participating Lenders to exporters. An export
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loan can be for a single or multipleDtransactions. If the loan is for a single transaction, the maturity should
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correspond to the length of the ttransaction cycle with a maximum maturity of 18 months. If the loan is for a
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revolving line of credit, entity maturity is typically twelve (12) months, with annual re-issuances allowed two
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times, for a maximum nmaturity of three years.
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www.sba.gov/financing/loanprog/ewcp.html
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Export repr
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t Export Express combines the SBA's small business
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lending assistance with its technical assistance prohad difficulty in obtaining adequate export financing.
The pilot program is available throughout the country and is expected to run through September 30, 2005.
SBA Export Express helps small businesses that have exporting potential, but need funds to buy or produce goods, and/or to provide services, for export. Loan proceeds may be used to finance export development activities such as:
• Participation in a foreign trade show;
• Translation of product brochures or catalogues for use in overseas markets;
• General lines of credit for export purposes;
• Service contracts from buyers located outside the United States;
• Transaction-specific financing needs associated with completing actual export orders; and/or expansion,
• Provide term loans and other financing to enable small business concerns, including export trading
companies and export management companies, to develop foreign markets; and
• Acquire, construct, renovate, modernize, improve or expand productive facilities or equipment to be
used in the United State in the production of goods and services involved in international trade.
2012 Supplier Diversity Information Resource Guide

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