Are you curious about the various export finance programs available to you in the state of Pennsylvania?
On June 16, 2015, the World Trade Center hosted an Export Finance program. This event discussed the various export finance programs that are available to small businesses.
Export Import Bank of the United States, Regina Gordin, Regional Director (Eastern Region)
United States Small Business Administration, Bob Elsas, Regional Manager (Export Solutions Group)
Pennsylvania Department of Community & Economic Development, Joan Wallett, Economic Development Analyst
Export Import Bank of the United States (Ex-Im Bank)
The Ex-Im Bank is an independent federal agency that provides private export finance in order to sustain U.S. job growth, which is at no cost to American taxpayers. The Ex-Im Bank is the official export credit agency (ECA) of the United States Government. Ex-Im Bank provides financing services and solutions to empower exporters of U.S. goods and services. These services and solutions are available to small businesses.
Ex-Im Bank offers the following programs and assistance:
- Export Credit Insurance
- Working Capital Guarantees
- Guarantees of Commercial Loans to Foreign Buyers
Data and facts of Ex-Im Bank:
- In the fiscal year of 2014 Ex-Im approved more than $20.5 billion in total assistance to support an estimated $27 billion in U.S. export sales
- 3,746 small business transactions
- Almost 90 percent of Ex-Im Bank transactions are small business transactions
Other programs and services offered by the Ex-Im bank are Global Credit Express, Short term Account Receivable Insurance, Express Insurance, Medium-Term Financing, and Long-Term Financing.
U.S. Small Business Administration (SBA)
The SBA has several trade finance services that are specifically designed to assist small and medium-sized enterprises expand or enter export markets. Exporter benefits include increased working capital, ability to enter new markets, ability to offer competitive terms, and to close more export sales.
The SBA offers the following programs and services:
- Export Working Capital Loan Guarantees
- International Trade Loans
- Export Express
The Export Working Capital Program (EWCP) eligibility funds can offer up to $5 million in loans. SBA services can also finance existing export inventory with advance rates up to 75 percent. Last, there are personal guarantees of all owners of 20 percent or more of the business.
International Trade Loans can be combined with a separate EWCP loan. The maximum loan is $5 million. The loan is eligible for expanding an existing export market or developing new export markets or the applicant business must be adversely affected by the import competition and upgrading facilities or equipment will improve the applicant's competitive position in the market.
Export Express offers lines of Credit and Term loans up to $500,000 and these loans are SBA approved, 90 percent is guaranteed by SBA with a maximum of $350,000 and 75 percent on loans between $350,000 and $500,000.
Pennsylvania Department of Community & Economic Development
Pennsylvania Industrial Development Authority Program (PIDA) is offered by Pennsylvania Department of Community & Economic Development and provides working capital and accounts receivables lines of credits to PA businesses with the maximum of 250 full time employees and exporting products manufactured or assembled in Pennsylvania.
Exporters who are supported are the following:
- Service Companies
- Trading Companies
Exports that are supported are component parts, manufactured goods, agricultural products, service, and lumber. There are two ways to meet financing needs: Working Capital Line of Credit for pre-export expenses and Accounts Receivable Line of Credit for post export cash. This funding is up to $350,000 and has a fixed rate for Line of Credit of 12 months for eligible businesses.
Should you wish to learn more about the programs or have questions regarding requirements, documentation, or services please feel free to give us a call at (717) 843-1090. Our team at the World Trade Center Harrisburg will be glad to provide assistance and answer questions you may have.