The SBA's aim for the Export Working Capital Program (EWCP) is to ensure that qualified small business exporters do not lose viable export sales due to a lack of working capital.  SBA provides incentives to banks so that they will make export loans to companies who would otherwise lack the funds.  EWCP loans are used for transaction financing. For example, EWCP loans will support 100% of supplier costs for an export transaction. The EWCP loans can also be used to even out cash flow when exporters have negotiated longer sales terms and cannot carry the resulting receivables with their own working capital. The EWCP loan can be a short-term loan for a single contract or in the form of a line of credit that supports ongoing export sales for a period of 12 months.  

SBA’s Role in Export Financing

Most banks in the U.S. do not lend against export orders, export receivables or letters of credit.  Because of that, some small businesses that export may lack necessary export working capital to support their export sales. That is where an SBA program can make the difference. SBA provides lenders with up to a 90% guaranty on export loans as a credit enhancement, so that participating banks will make export loans that make the necessary export financing available. 

Exporters can apply for EWCP loans in advance of finalizing an export sale or contract.  With an approved EWCP loan in place, exporters have greater flexibility in negotiating export payment terms - secure in the assurance that adequate financing will be in place when the export order is won.

Key Benefits

• Financing for suppliers, inventory or production of export goods
• Export working capital during long payment cycles
• Financing for stand-by letters of credit used as bid or performance bonds or down payment guarantees
• Reserves domestic working capital for the company’s sales within the US
• Permits increased global competitiveness through allowing more liberal sales terms
• Increases sales prospects in under-developed markets which have high capital costs for importers
• Contributes to the growth of export sales
• Low fees and quick processing times

Loan Amount

The maximum EWCP line of credit/loan amount is $2 million.  Participating banks receive a 90% SBA guaranty provided that the total SBA guaranteed portion to the borrower does not exceed $1.5 million.  In those instances where the SBA guaranteed portion reaches the $1.5 million cap, banks can still get a 90% guaranty thanks to a co-guaranty program between SBA and the Export-Import Bank of the United States (EXIM).  Under this program, the bank still submits only one loan application to the SBA and receives a 90% U.S. government guaranty that is backed by both agencies.  For the EXIM Bank guaranteed portion, a higher fee may apply.

Please complete our consultation form for additional assistance!  Or, contact your local trade specialists to learn more about the benefits of the Export Working Capital Program (EWCP) and whether your business might qualify for EWCP financing.