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Loans & Financing
by Greg Balanko-Dickson on March 2, 2007

Under the EWCP, SBA guarantees short-term working capital loans made by participating lenders to exporters.
Loan maturities may be for up to three years with annual renewals. Proceeds can be used only to finance export transactions. Loans can be for single or multiple export transactions. An export transaction is the production and payment associated with a sale of goods or services to a foreign buyer.
In addition to the eligibility criteria applicable to all 7(a) loans, an applicant must be in business for one full year at the time of application, but not necessarily in the exporting business. SBA may waive this requirement if the applicant has sufficient export trade experience or other managerial experience.
Loan proceeds may be used: to acquire inventory; to pay the manufacturing costs of goods for export; to purchase goods or services for export; to support standby letters of credit; for pre-shipment working capital; and for post-shipment foreign accounts receivable financing.
A borrower must give SBA a first security interest sufficient to cover 100 percent of the EWCP loan amount (such as insured accounts receivable or letters of credit). Collateral must be located in the United States, its territories or possessions.
EWCP applicants must submit cash flow projections to support the need for the loan and the ability to repay. After the loan is made, the loan recipient must submit continual progress reports. SBA does not limit the amount of extraordinary servicing fees under the EWCP. SBA does not prescribe the interest rates for the EWCP, but will monitor these rates for reasonableness.
Financing Options: Combination International trade and EWCP Loans
Combination International Trade and EWCP Loans
Borrowers needing both fixed assets and revolving working capital for exporting, can get both an IT and an EWCP loan. When done, the maximum SBA share can be no higher than $1.25 million providing the fixed asset portion is no more than $1.0 million and the non-fixed portion is not more than $750,000.
Permalink: SBA Export Working Capital Program (EWCP)
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/56090
Mr Wong
Vote for SBA Export Working Capital Program (EWCP):
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Rating: 10.00 out of 4 vote(s) cast.
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Response from:
Susan
(03/05/07 6:26pm)
SMEs, first-time exporters, companies coming out of R&D, etc., sometimes cannot qualify for EWCP loans, or the loans take too long to process. In which case -- if you are the beneficiary of a documentary letter of credit -- you may qualify for a pre-shipment short-term Export Transaction Financing loan from InterNetLC.com. Our back office coaches novice exporters on the use of our utility software, and the money can be available in working five days. Loans go from $10,000 to $10,000,000 practically anywhere in the world ... and because we are not a bank, ETF loans can finance off-shore manufacturing for shipment to a third country, etc.
Response from:
Mr. Rehab
(05/15/07 10:35am)
That is an interesting name. Maybe you should consider changing it since on a Google search you can also find Extreme Weather Conditions Programme, that is in no way related to your service that is very good, by-the-way. I have been using it for quite a while for one of my businesses and so far all is ok.
Response from:
plavix generic
(05/29/07 5:56am)
I just checked out the official website and I found that 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).
Response from:
SBA Loans
(10/17/07 12:57pm)
That's a very suggestive picture, it says it all if you are a small entrepreneur and know how to read it. International business are the fuel for many nations and facilitating them should be a priority.
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