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International Trade Loan Program

Financial Resources For Northwest & West Central Ohio Entrepreneurs

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Purpose of Program

The International Trade Loan Program offers term loans to businesses that plan to start or continue exporting or that have been adversely affected by competition from imports. The proceeds of the loan must enable the borrower to be in a better position to compete.

Eligible Businesses

International Trade loans are available to small businesses that are in a position to expand existing export markets or develop new export markets, or small businesses that have been adversely affected by international trade and can demonstrate that the loan proceeds will improve their competitive position.

Eligible Use of Funds

Funds may be used for the acquisition, construction, renovation, modernization, improvement or expansion of long-term fixed assets or the refinancing of an existing loan used for these same purposes.

Loan Amounts

The maximum gross amount ($2 million) and SBA-guaranteed amount ($1.5 million) for an International Trade loan are the same as the basic 7(a) loan. However, there is an exception to the maximum guaranty amount for one borrower. When the borrower has an International Trade loan and a separate working capital loan, the maximum SBA guaranty on the combined loans can be up to $1.75 million as long as the SBA guaranty on the working capital loan does not exceed $1.25 million.

Repayment Term

The maturity of an International Trade Loan is usually 10 to 15 years for machinery and equipment (not to exceed the useful life of the equipment), and up to 25 years for real estate. 

Interest Rates

SBA does not establish or subsidize interest rates on loans.  Interest rates are negotiated between the borrower and the lender, subject to SBA caps. Rates can either be fixed or variable, and are tied to the prime rate as published in The Wall Street Journal, the one-month LIBOR rate, or the optional peg rate that is published quarterly in the Federal Register. For loans greater than $50,000 and maturity in excess of seven years, lenders may charge up to 2.75 percent over prime rate.

Fees

The SBA guaranty fee is normally between 2 percent and 3.75 percent, depending on the size of the loan.

Prepayment

Collateral, Security

International Trade loans must be secured by a first lien position or first mortgage on the property or equipment financed by the loan. Additional collateral (to the extent it is available) may be accepted to ensure that the loan is fully collateralized.

Assignment

Participation Requirements

Additional Considerations

Program Funding Source

How to Apply

Interested businesses should apply through a participating lender. For more information, contact your local U.S. Export Assistance Center to learn more about the benefits of an International Trade Loan and whether your business might qualify for this financing. 

Links to Loan Application and/or Specific Information

Small Business Administration
Columbus District Office
401 N. Front Street, Suite 200
Columbus, Ohio 43215
614-469-6860

Go here for West Central Ohio SBA Participating Lenders

Useful Information

Interest Rate Links

Business Management Links

Glossary of Important Financial Terms You Should Understand

How To Prepare A Business Plan to Obtain Money

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