1-Get Paid and Finance Your Export Transaction: Export FinancingExport Financing
U.S. Exporting Loans
There are four different types of U.S. government programs to help in financing export transactions:
U.S. Export Financing Programs
- Export development and working capital financing
- Facilities development financing
- Financing for your international buyers
- Investment project financing
Export Development and Working Capital Financing enables U.S. businesses to obtain loans that facilitate the export of goods or services by providing the liquidity needed to accept new business, grow international sales and compete more effectively in the international marketplace.
- Small Business Administration — Export Working Capital Program: Provides up to $5 million in short-term, transaction-specific working capital loans to U.S. small business exporters. Uses of this financing include: pre-export financing of labor and materials; and post-shipment financing of the accounts receivable generated from transaction-specific overseas sales.
- Export-Import Bank — Working Capital Guarantee Program: Provides transaction-specific working capital loans to U.S. exporters, made by commercial lenders and backed by Ex-Im Bank’s guarantee. Uses of this financing include: purchasing finished products for export; paying for raw materials, equipment, supplies, labor and overhead to produce goods and/or provide services for export; covering standby letters of credit serving as bid bonds, performance bonds, or payment guarantees; and financing foreign receivables.
- Small Business Administration — Export Express Program: Provides small businesses that have exporting potential, but need funds to cover the initial costs of entering an export market with up to $500,000 in export development financing to buy or produce goods or to provide services for export. The loan proceeds can be used for most business purposes, including expansion, equipment purchases, working capital, inventory or real estate acquisitions.
Facilities Development Financing enables U.S. businesses to acquire, construct, renovate, modernize, improve or expand facilities and equipment to be used in the United States to produce goods or services involved in international trade.
- Small Business Administration — International Trade Loan Program: Provides U.S. businesses that are preparing to engage in or are already engaged in international trade, or are adversely affected by competition from imports with up to $5 million in financing to upgrade equipment and facilities. Although this loan program can also be used to refinance existing indebtedness that is not structured with reasonable terms and conditions, it cannot be used to purchase a business.
Financing for your International Buyers enables U.S. businesses to assist their international buyers in locating financing to purchase U.S. goods and services when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years. This type of financing is generally used for financing purchases of U.S. capital equipment and services. Financing may also be available for refurbished equipment, software, certain banking and legal fees and certain local costs and expenses.
- Export-Import Bank — Loan Guarantee Program: Provides term financing to your creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services.
- Export-Import Bank — Direct Loan Program: Provides fixed-rate loans to your creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services.
- Export-Import Bank — Finance Lease Guarantee Program: Provides lease financing to your creditworthy international buyers as an alternative to traditional installment loans.
- Ex-Im Bank Export Credit Insurance: Export Credit Insurance allows exporters to offer competitive open account terms to foreign buyers while minimizing the risk of non-payment. When foreign accounts receivable are insured, lenders are more willing to increase the exporter’s borrowing capacity and offer more attractive financing terms.
- USDA, Foreign Agricultural Service Export Credit Guarantees: Underwrites credit extended by the private banking sector in the United States to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers. These programs encourage exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without the guarantees.
Investment Project Financing enables U.S. businesses to acquire financing for large-scale projects that require large amounts of capital, such as infrastructure, telecommunications, power, water, housing, airports, hotels, high-tech, financial services, and natural resource extraction industries.
- Overseas Private Investment Corporation Small and Medium-Enterprise Financing: Provides medium- to long-term funding through direct loans and loan guarantees to eligible investment projects in developing countries and emerging markets.
Export.gov, the U.S. federal government’s export assistance portal, offers many resources, including the following:
- The Trade Finance Guide provides guidance on how to get paid from foreign customers in the most effective manner.
- “Export Planning and Strategy” webinars highlight Ex-Im Bank and SBA export financing resources.
- Country Commercial Guides provide the latest market intelligence on more than 140 countries from U.S. embassies abroad.
- Locate a trade expert and learn about the services of the U.S. Commercial Service’s global office network.
- A Basic Guide to Exporting is an excellent resource. See Chapter 15: Financing Export Transactions
- View the most active SBA 7(a) loan lenders by lending volume, and find a participating SBA-approved lender
- View a listing of bank locations that can assist you in securing EXIM-backed Working Capital, and other financing (EXIM delegated authority lenders). .