The Export Working Capital Program (EWCP) was designed to provide short-term working capital to exporters.

The SBA's Export Working Capital Program (EWCP) supports export financing to small businesses when that financing is not otherwise available on reasonable terms. The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1.5 million or 90 percent of a loan amount, whichever is less. A loan can support a single transaction or multiple sales on a revolving basis.

The EWCP is a harmonized effort of the SBA and the Export-Import Bank. The two Agencies have harmonized their working capital applications to offer a unified approach to the government's support of export financing. The application is the same for SBA and the Exoprt-Import Bank.  The SBA provides a ten-day turnaround on all EWCP applications.  A letter of prequalification is also available from the SBA

Export Working Capital Program Eligibility (EWCP)

In addition to the eligibility standards listed below, an applicant must be in business for a full year (not necessarily in exporting) at the time of application. SBA may waive this requirement if the applicant has sufficient export trade experience. Export management companies or export-trading companies my use this program; however, title must be taken in the goods being exported to be eligible.

Most small businesses are eligible for SBA loans; some types of businesses are ineligible and a case-by-case determination must be made by the Agency. Eligibility is generally determined Business Type, Use of Proceeds, Size of Business, and Availability of Funds from other sources. 

The proceeds of an EWCP loan must be used to finance the working capital needs associated with a single or multiple transactions of the exporter.  The EWCP program will allow funds to finance 100% of the direct costs associated with the export transactions.  Proceeds can also be used to support Standby Letters of Credit when used as a bid bond, performance bond or advance payment guarantee.

Proceeds may not be used to finance professional export marketing advice or services, foreign business travel, or participation in foreign trade shows (Export Express [hyperlinked} can fund these costs). The costs of U.S. support staff overseas that relates directly to the transaction being financed are eligible use of proceeds.  Proceeds may not be used to make payments to owners, to pay delinquent withholding taxes, or to pay existing debt.

Export Working Capital Program Maturities

SBA guarantees the short-term working capital loans made by participating Lenders to exporters. An export loan can be for a single or multiple transactions. If the loan is for a single transaction, the maturity should correspond to the length of the transaction cycle with a maximum maturity of 18 months. If the loan is for a revolving line of credit, the maturity is typically twelve (12) months, with annual reissuances allowed two times.

Unique Requirements of an EWCP Loan

1)  An applicant must submit cash flow projections to support the need for the loan and the ability to repay.
2)  After the loan is made, the loan recipient must submit continual progress reports.
3)  SBA does not prescribe the Lender's fee or the interest rate for the EWCP.
4)  SBA guarantees up to ninety (90) percent of an EWCP loan amount up to $1.5 million.

Guaranty Percents

For those applicants that meet the SBA's credit and eligibility standards, the Agency can guaranty up to ninety (90%) percent of loans (generally up to a maximum guaranty amount of $1.5 million).

Export Working Capital Program Loans (EWCP) Collateral A borrower must give SBA a first security interest equal to 100% of the EWCP guaranty amount. Collateral must be located in the United States

For more information on the Export Working Capital Program, please click here.