Small Business Finance News
SBA Increases Loans To Exporters
Written by Tim Morral
Published: 10/31/2012
Small Business Administration promotes exporting with guarantees supporting $1.7 billion in small business exports.
Exporting has always been a priority for the federal government and for the U.S. economy in general. It's also been a priority for startups and small business entrepreneurs, many of which are taking advantage of a boost in loan guarantees to small exporters.
According to the Small Business Administration, loans to exporters grew to more than $923 million in FY 2012, supporting $1.7 billion in exports originating from small companies that routinely engage in shipping products abroad.
"Giving small businesses the tools they need to export their goods and services and create jobs is an important part of our core mission," said SBA Administrator Karen Mills. "Exporting is creating opportunities for small businesses to create good-paying jobs and provide economic benefits to local communities nationwide."
The uptick in lending to small business exporters comes on the heels of an SBA overhaul of the International Trade Loan program, an initiative that has resulted in a 106% increase in the number of loan guarantees and a 207% increase in guaranteed dollar volume.
The International Trade Loan program guidelines enables small manufacturers to make capital improvements or purchases that facilitate the production of goods sold abroad. Although the goods can be sold directly or indirectly through an export trading company or export managing company, the SBA prefers the indirect approach and encourages small exporters to enlist the assistance of an export intermediary.
The SBA also offers a wealth of information and services for entrepreneurs interested in learning how to start exporting including conferences, events and other resources.
For more information, visit the SBA's Office of International Trade's website.
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