International Trade Loans

Is Your Business Involved in International Trade?

International Trade loans can provide the essential financing to develop and penetrate foreign markets, as well as offer working capital for export transactions.

Small businesses play a significant role in U.S. exports, contributing a substantial portion of the $2 trillion in goods and services exported annually.

What are SBA International Trade Loans?

The Small Business Administration (SBA) International Trade Loan (ITL) program is a valuable resource for small businesses, including franchises, expanding into international markets. The program aims to aid small businesses in establishing a foothold in global markets and staying competitive against importers. It offers a blend of fixed asset, working capital financing, and debt refinancing.

Under the 7(a) International Trade Loan program, the SBA provides guaranteed term loans to strengthen the competitive standing of small businesses that are either current exporters or are developing new export markets. This guarantee also extends to businesses adversely affected by import competition.

The ITL can be used for numerous purposes, such as acquiring, constructing, renovating, modernizing, improving, or expanding facilities and equipment used in the United States for producing goods or services involved in international trade. It can also help develop and penetrate foreign markets and provide working capital for export transactions.

Lenders and the ITL Program

While not every lending institution specifically focuses on international trade, many are already engaged with exporters or indirect exporters. This is corroborated by the fact that more than half of the SBA loans made to exporters do not employ the export loan programs (ITL, Export Working Capital, or Export Express). Top leading International Trade Loan lenders are available to review your loan package today on LoanBox.

About International Trade

Percentage of Total U.S. Exports
While definitive figures vary, estimates suggest small businesses contribute between 20% and 30% of total U.S. exports. This translates to an impressive $400-600 billion annually.

Industries
Top sectors for small business exporters include manufactured goods, services, wholesale trade, and agriculture. Specific examples include machinery, chemicals, electronics, IT services, and agricultural products.

Challenges
Despite their substantial contribution, small businesses face unique challenges in exporting, such as limited resources, access to financing, navigating complex regulations, and competition from larger companies.

First Lien Importance
An Export Business Plan outlining the strategy for export trade is crucial. This plan, coupled with the lender's underwriting process, ensures the loan is utilized to support export trade. All SBA lenders will require an Export Business Plan, and LoanBox platform accounts for this by populating the Export Business Plan in the portal from your loan package answers. The ITL program mandates the loan to be in the first lien position with the SBA lender, a requirement most lenders typically pursue anyway.

FINANCE
YOUR WAY 

DO-IT-YOURSELF BUSINESS LOANS

  1. Complete application and loan package

  2. See matching lenders

  3. Select one or all matching lenders to access your loan package

  4. Receive loan proposals from interested lenders

  5. Select the winning lender and e-sign their loan proposal

Use the tools and intel available, follow the process, receive alerts at every stage along the way, and utilize LoanBox human support as needed.

LOANBOX ADVISOR SUPPORTED LOANS

  1. Complete applicant summary form

  2. Have consultation

  3. Upload the docs requested

  4. Receive, discuss, and approve your LoanBox Advisor plan

  5. Provide needed docs as requested as your Advisor navigates everything for you

Your loan is still managed on the LoanBox platform, so you still have access to the same lenders and receives the same alerts.