Export working capital can be obtained through the Small Business Administration (SBA) and the United States’ Export-Import Bank. There are a number of companies operating in the US today that export goods overseas, and the SBA and Export-Import Bank jointly have available a number of different ways to aid these businesses, large or small. Some of these ways include Export Credit Insurance, the Export Working Capital Program (EWCP), and loans directly from these organizations or their partners and associates.
The Export Working Capital provided through these two agencies is federally backed. Lenders are at times hesitant to fund businesses, especially small ones that don’t have a proven track record. To help these businesses out, the SBA and Export-Import Bank have both combined their efforts in order to provide government-backed loans. Since some businesses that receive loans end up declaring bankruptcy and defaulting on their loans, the EWCP agrees to pay for up to 90% of the loan value, or $1.5 million, whichever is less, in case of default. This makes a lender much more likely to provide loans to such businesses.
Applying for Export Working Capital is a relatively quick and easy process compared to many other programs. Applicants fill out a single page of information and then can expect a response in about ten days, as to whether they’re accepted. Applicants are usually required to have been exporting goods for at least a year prior to application, need to show with reasonable likelihood that they are viable, and the size of the business can also factor in. Not all these are absolute requirements, but a business that fits these parameters is certainly more likely to get funding.
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