International Trade Loan Program

Expanding your business into international markets or increasing your global presence could be the perfect way to grow. The solution to securing the funding you need to make it happen could be found in the International Trade Loan (ITL) program. The Small Business Administration (SBA) offers the ITL program as a part of the SBA 7(a) loan program.

It is meant to help small businesses in America increase international exporting, as the United States sees this as an opportunity to bring money back into our country. The program offers businesses advantageous borrowing terms, which make it financially feasible for American small businesses to enter the global business scene.

How Is the ITL Program Different From Other 7(a) Loans?

The U.S. government wants businesses to grow, and they want growth to happen on an international scale. When businesses increase international sales, the U.S. benefits.

The ITL program offers loans at a higher guarantee rate than typical SBA loans. So, the government backs export-related loans at 90% compared to the standard 75% for other 7(a) loans. Lenders are more likely to lend to small businesses with higher guarantees like this because their risk goes down.

To secure a loan with this advantageous government guarantee, the proceeds must be tied to exports in some way. If a business is already operating in international exports and wants a loan to expand those operations, it would likely be a smooth process to get an approved loan. Alternatively, if a business has not had any experience with exports, the application and approval may have some more challenges.

Lenders want to see a demonstrated commitment to international exports. An example of this would be a business showing that international sales make up 10% of the annual revenue with a clear plan to increase that amount by use of the loan.

What Can You Use an ITL For?

Financing from the ITL program can be used flexibly as long as there is a clear connection to exports. Getting an SBA 7(a) loan for working capital is generally the easiest option. A small business may need funding to:

Invest in marketing on an international level
Purchase inventory
Hire more staff to fulfill orders

Loans for working capital are often easy to justify, as the use is directly correlated to exports.

Real estate purchases can be financed through the ITL program, although it is more complicated. If a business is purchasing an office or warehouse based in the U.S., they will need to demonstrate how the property is directly supporting the exports. The SBA wants to know how owning a facility in the U.S. will help with international sales.

Reach Out To Learn How the ITL Program Could Help Your Business

The International Trade Loan program offers clear benefits to small businesses in the U.S. as a part of the SBA 7(a) loan program. Working with professional loan packagers like Business Funding Group (BFG) can help simplify the whole process. At BFG, we have decades of experience helping small businesses get the funding they need through SBA loans. We have helped many business owners get into the international markets through this program, and we can help you, too.

We can start with a free 15-minute phone call where we can discuss your business goals, eligibility, and whether the ITL program could be the right fit for you. We then help with every part of the application process until you get your loan funded.