SBA - Small Business Administration

The SBA finances the short-term and cyclical working-capital needs of small businesses and administers business loan programs to help qualified small businesses obtain financing. The financing programs and appropriate contacts listed below can help exporters.

SBA - Programs

Business Loan Guarantee Program/Small Business Administration (SBA)
The SBA’s 7(a) program assists qualified small businesses to obtain financial assistance from banks. The Business Loan Guarantee Program provides the lender with a guarantee that if the borrower cannot repay the loan, the federal government will repay the loan up to the percentage of the SBA guarantee. Therefore, when a business applies for an SBA loan, it is applying for a commercial loan with an SBA guarantee.

Export Working Capital Program (EWCP)/Small Business Administration (SBA)
The EWCP provides short-term, transaction-specific financing for small business exporters. Exporters may use this program for pre-export financing of labor and materials, financing receivables generated from these sales, and standby letters of credit used as performance bonds or payment guarantees to foreign buyers. The EWCP provides 90 percent guarantees up to $1 million to commercial lenders and offers exporters preliminary commitments that encourage lenders to provide credit to small business exporters. To qualify for the EWCP, the small business must be established for at least one year, though not necessarily engaged in exporting. Interest rates and fees are negotiable between the lender and the small business exporter.

International Trade Loan Guarantee Program/Small Business Administration (SBA)
The International Trade Loan Guarantee Program helps small businesses that are either new to export, already engaged in exporting and seeking to expand their operation, or adversely affected by competition from imports. The SBA guarantees up to $1.25 million, less the amount of the SBA’s guaranteed portion of other loans outstanding, to the borrower under the SBA’s regular lending program. Loans are made by lending institutions backed by the SBA guarantee of a portion of the loan. Proceeds may be used for working capital and facilities or equipment. Maturities of loans for facilities or equipment may extend to the 25-year maximum.

Export Express/Small Business Administration (SBA)
Export Express is the newest and easiest SBA export loan program. Export Express provides lenders with a repayment guaranty on their small business export loans up to a maximum loan amount of $250,000. Export Express lenders use their own loan analyses, loan procedures, and loan documentation and streamlined loan review and approval procedures to process SBA guaranteed loans.

Small Business Investment Companies (SBICs)/Small Business Administration (SBA)
SBICs, licensed by the SBA, are privately owned and managed investment firms. SBICs with investment strategies that include export activities may receive equity capital or term working capital in excess of the SBA’s $750,000 statutory limit.

SBA Local Contact Information
Jim O’Neal, District Director
Sacramento District Office
650 Capitol Mall, suite 7-500
Sacramento, CA 95814
(916) 930-3700 Phone
(916) 930-3737 Fax
Email: [mailto:darphus.o’neal@sba.gov]
Website: http://www.sba.gov/ca/sacr/

Jerry Avila
Northern California Regional Manager and Senior International Trade specialist for the
U.S Small Business Administration’s (SBA), Office of International Trade
6501 Sylvan Rd.
Citrus Heights, CA 95610
(916) 735-1515 ext 4379
jerry.avila@N0SPAM.sba.gov

EXIM Bank – Export Import Bank of America

The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. They assume credit and country risks that the private sector is unable or unwilling to accept. They also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.

Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance (post-export financing); and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of their transactions directly benefit U.S. small businesses.

Programs

Working Capital Guarantee Program/Export-Import Bank
The Working Capital Guarantee Program helps small and medium-sized businesses obtain critical pre-export financing from commercial lenders. The Ex-Im Bank guarantees 90 percent of the principal and interest on transaction-specific loans or revolving lines of credit that are extended to eligible exporters. The funds may be used for pre-export activities, which include the purchase of raw materials, labor, overhead, performance bonds, retainers, and warranties. The Ex-Im Bank processes loan amounts of over $833,333, while lower amounts go to the Small Business Administration.

Export Credit Insurance/Export-Import Bank
The Ex-Im Bank offers insurance policies that cover political and commercial risks on export receivables: Small Business Policy, Bank Letter of Credit Policy, Multi-Buyer Policy, Financial Institution Buyer Credit Policy, Short-Term Single-Buyer Policy and the Medium-Term Single-Buyer Policy, and Lease Insurance Policies.

Direct Loans and Guarantees/Export-Import Bank
This program extends direct loans to foreign buyers or guarantees to financing intermediaries for creditworthy entities that purchase U.S. capital goods or services. The loans and guarantees offered are for 85 percent of the U.S. export value. Direct loans provide competitive fixed-rate financing to the foreign buyer. The guarantee coverage provides protection to the finance source against payment default for either political or commercial reasons. Interest rates for the guarantees are negotiated between the finance source and the seller and are typically floating rates.

Limited Recourse Project Finance Program/Export-Import Bank
The Limited Recourse Project Finance Program provides financing for projects that are dependent on the cash flows of the project for repayment, not on recourse to a foreign government, financial institution, or established corporation. Combinations of direct loans, political risk only coverage, or comprehensive guarantees for commercial bank loans are available. The Ex-Im Bank now offers pre-completion comprehensive coverage for select projects. Ex-Im Bank offerings include financing up to 85 percent of the U.S. export value, financing of interest during construction, and financing of host country local costs of up to 15 percent of the U.S. contract value and up to the maximum repayment terms consistent with the guidelines of the Organization for Economic Cooperation and Development.

Ex-Im Local Bank Contact Information
Jim Lucchesi, Senior Business Development Officer
Northern California Ex-Im Bank
250 Montgomery Street, Suite 1400
San Francisco, CA 94104
(415) 705-2285 Phone
(415) 705-1156 Fax
Email: Jim.Lucchesi@N0SPAM.exim.gov
Website: http://www.exim.gov

OPIC - Overseas Private Investment Corporation

OPIC helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. OPIC promotes U.S. best practices by requiring projects to adhere to international standards on the environment, workers rights, and human rights.

Programs

Small Business Center
Recognizing the financing needs facing many small businesses, the Center is committed to considering all applications within a 60-day period. The SBC is made up of experienced OPIC personnel who are dedicated to working with small businesses.

Loan amounts for overseas investments range from $100,000 to $10 million with terms from 3-15 years. Interest rates will be capped at 7 percent above the Direct Loan Discount Rate which is set by the U.S. Treasury. In addition, there may be a one-time facility fee of up to 2 percent and an annual maintenance fee not to exceed 1 percent of the outstanding balance of the loan. While the eligible U.S. small business must own at least 25 percent of the overseas project, OPIC may be able to finance up to 65 percent of the total project costs.

Investment Insurance/Overseas Private Investment Corporation
OPIC offers several programs to insure U.S. investments in emerging markets and developing countries against the risks of: (1) currency inconvertibility-the inability to convert profits, debt service, and other investment remittances from local currency into U.S. dollars or the inability to transfer funds; (2) expropriation-loss of an investment due to expropriation, nationalization, or confiscation by the host government; and (3) political violence-loss of assets or income due to war, revolution, insurrection, or politically motivated civil strife, terrorism, or sabotage. Coverage is available for new ventures, expansion of existing enterprises, privatizations, and acquisitions with positive developmental benefits. Coverage is available for equity investments, parent company and third-party loans and loan guarantees, technical assistance agreements, leases, consigned inventory or equipment, and other forms of investment. OPIC has several insurance programs offering coverage tailored to meet the special insurance needs of certain types of international investments.

Finance Programs/Overseas Private Investment Corporation
OPIC provides financing through direct loans and loan guarantees for medium and long-term private investment. Loans range from $100,000 to $250 million for projects sponsored by U.S. companies, and financing can be provided on a project finance or corporate finance basis. In most cases, the U.S. sponsor is expected to contribute at least 25 percent of the project equity, have a track record in the industry, and have the means to contribute to the financial success of the project. OPIC will not lend to projects that can secure adequate financing from commercial sources. Additionally, to address the lack of sufficient equity investment in emerging markets, OPIC has supported the creation of privately owned and managed investment funds that make direct equity and equity-related investments in new, expanding, or privatizing companies.

OPIC Contact Information
Alison Germak, Public Information Officer
Overseas Private Investment Corporation
1100 New York Avenue, N.W.
Washington, D.C. 20527
(202) 336-8799 Phone
(202) 336-8400 General Line
(202) 366-7949 Fax
Email: info@N0SPAM.opic.gov
Website: http://www.opic.gov

USDA - United States Department of Agriculture

Export Credit Guarantee Programs

The Commodity Credit Corporation (CCC), U.S. Department of Agriculture, administers export credit guarantee programs for commercial financing of U.S. agricultural exports. The 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 CCC guarantees. Under all CCC programs:

• Exporters must apply to be qualified to participate in CCC programs
• Exporters must use qualified U.S. and foreign banks
• Exporters must have a firm export sale before submitting an application
• The product must meet the definition of a U.S. agricultural commodity
• The guarantee fee paid at the time of application is non-refundable

Two programs underwrite 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. The Export Credit Guarantee Program (GSM-102) covers credit terms up to three years. The Intermediate Export Credit Guarantee Program (GSM-103) covers longer credit terms up to 10 years. These programs are designed to expand and maintain foreign markets for U.S. agricultural commodities, and can help developing nations make the transition from concessional financing to cash purchases. The Supplier Credit Guarantee Program (SCGP) guarantees payments on promissory notes from importers for a percentage of the face value up to 180 days. The Facility Guarantee Program (FGP) provides payment guarantees to facilitate the financing of U.S. goods and services exported to improve or establish agriculture-related facilities in emerging markets. Under these programs, which are administered by the Foreign Agricultural Service (FAS), the CCC does not provide financing, but guarantees payments due from foreign banks. Typically, 98 percent of principal and a portion of interest at an adjustable rate are covered. Because payment is guaranteed, financial institutions in the United States can offer competitive credit terms to the foreign banks, usually with interest rates based on the London Inter-Bank Offered Rate (LIBOR). Any follow-on credit arrangements between the foreign bank and the importer are negotiated separately and are not covered by the CCC guarantee.

USDA Contact Information
Deputy Administrator, Export Credits; FAS, USDA
Stop 1031, 1400 Independence Avenue, SW
Washington, DC 20250-1031
(202) 720-6301 Phone
(202) 690-0727 Fax
Email: askec@N0SPAM.fas.usda.gov
Website: http://www.fas.usda.gov

WUSATA - Western USA Trade Association

WUSATA's integrated marketing services are designed to help exporters of Western U.S. agricultural products to develop and expand their international markets. By utilizing a combination of WUSATA services companies can achieve maximum marketing impact.

WUSATA Local Contact Information
Shelly Caldwell, Outreach Coordinator
4601 North East 77th Ave, Suite 120
Vancouver, WA 98662
(360) 693-3373 Phone
(360) 693-3464 Fax
Email: shelly@N0SPAM.wusata.org
Website: http://www.wusata.org