Import and export financing is available through the Export-Import Bank of the United States and the Small Business Administration (SBA) through their joint effort of the Export Working Capital Program (EWCP). The EWCP is able to extend credit, insurance, and other financial products to exporters that are qualified. This can be done directly through the EWCP, but more often occurs through intermediary lenders, in which case the EWCP can guarantee the loans.
Obtaining the backing of the EWCP can be vital to an exporter as a means of actually getting import and export financing. Not all lenders are willing to extend credit to exporters, but by obtaining SBA backing on these loans a lender is much more likely to do so. If a company does end up defaulting on such a loan later on, the SBA will repay the lender up to 90% of the loan, or $1.5 million, which ever amount is less.
In order to qualify for financing through the EWCP a company will have to have been in business at least a year before applying for funding, though it could have been in an industry other than exporting; however, in special instances where the exporter has had prior experience in the industry this requirement may not be necessary.
The SBA is specifically designed to help out small businesses in obtain funding and rendering assistance to them (though the SBA may work case-by-case to determine which companies can receive funding). However, the Export-Import Bank is able to help exporters with import and export financing, insurance, loans, or guarantees, regardless of size.
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