The International Trade Loan Program

The International Trade Loan Program helps small businesses that are:

• engaged in international trade
• preparing to engage in international trade
• adversely affected by competition from imports

The SBA can guarantee as much as $1.25 million in combined working-capital and fixed-asset loans. The working-capital portion of the loan may be made according to the provisions of the Export Working Capital Program or other SBA working-capital programs.

Use of Proceeds

Proceeds may be used for:

• working capital; and/or
• purchasing land and buildings, building new facilities, renovating, improving or expanding existing facilities; purchasing or reconditioning machinery, equipment and fixtures; and making other improvements that will be used within the United States to produce goods or services for export.

Proceeds may not be used to repay existing debt.

Terms, Interest Rates and Fees

Loans for facilities or equipment can have maturities of up to 25 years. The working capital portion of a loan under Export Working Capital Program provisions has a maximum maturity of three years. Rates and fees are the same as for the general 7(a) loan.

Collateral

The lender must take a first-lien position (or first mortgage) on items financed under an international trade loan. Only collateral located in the United States, its territories and possessions is acceptable as collateral under this program. Additional collateral may be required, including personal guaranties, subordinate liens or items that are not financed by the loan proceeds.

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