If you are a small business owner looking to grow your export business, the Small Business Administration’s (SBA’s) Export Working Capital Program (EWCP) Loans could be perfect for you!
If some of your revenue already comes from international sales, or you want to grow in that direction, this type of SBA loan could be a smart way to access funding with better terms and a government guarantee.
SBA’s Loan Program Specifically Designed for Exports
EWCP loans are a part of the SBA’s 7(a) loan program and are specifically designed to support export-related business expenses. Lenders take on less risk, allowing business owners to borrow more than they may have with a conventional loan.
EWCP loans could help businesses that are already exporting successfully and want to scale up. They could also help small, profitable companies that are preparing to expand into international markets.
The U.S. wants more exports because they bring money into the country. Export loans are seen as reinvesting in the U.S. economy. This is why the SBA offers stronger guarantees and more flexible use of proceeds when exports are involved. To receive a loan, a business owner must demonstrate that the funding will support export activities.
Similar to the SBA 7(a) loan program, the maximum loan amount for the EWCP loans is $5 million. Longer repayment terms and competitive interest rates make these loans a great opportunity for those in the exporting business.
Small Business Eligibility for an EWCP Loan
Eligibility for an EWCP loan is just like other SBA 7(a) loans. A business must:
- Demonstrate an ability to repay the loan
- Have a good credit score and credit history
- Be U.S.-based and for-profit
- Have been in business for at least two years
- Have no defaults on government debt
An Export Working Capital Program Loan is ideal for businesses that are already exporting. You do not have to be a major exporter, but having some existing revenue from exports helps. Some examples of businesses that would be a great fit for this type of loan include:
- An e-commerce business selling products abroad
- A law firm assisting international clients
- A manufacturer fulfilling orders overseas
It would be harder to secure a loan if your business has no current export activity or revenue. Lenders and the SBA want to see evidence of successful and profitable exporting potential.
How EWCP Loan Funds Can Be Used
The SBA backs these EWCP loans with a 90% guarantee, which is higher than the standard 75%. This could mean being able to get a larger loan because lenders have more protection. However, the loan must directly support export activities.
Small businesses could utilize the EWCP loan proceeds for:
- Purchasing inventory for export
- Marketing and hiring
- Paying suppliers tied to export sales
- Pursuing mergers and acquisitions
- Financing international accounts receivable
- Working capital to manage foreign orders
Real estate purchases are also possible, but the SBA will want to know how the property supports the export aspect of the business.
Contact Our SBA Experts To Apply for an EWCP Loan
Applying for and securing an SBA loan is not always straightforward. Our team at Business Funding Group LLC comprises experts in the field with decades of experience helping small businesses just like yours.
We understand what it takes to qualify for SBA loans, including Export Working Capital Program (EWCP) Loans. When you work with us, we offer:
- No fee unless you close on a loan
- Guidance and support through the entire SBA loan process
- Expert loan packaging assistance
If you are growing your international business and need financing, the SBA’s loan program could be a smart financial move. Contact us today for a no-obligation call, or fill out our online application.
(917) 593-5013