SBA rules · SOP 50 10 8.1
What is an SBA Export Express loan?
SBA Export Express provides expedited financing up to $500,000 processed exclusively under delegated authority to support small business export development activities.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- Eligibility: The business must have operated for at least 12 full months (waivable if key personnel demonstrate export expertise and successful business experience), cannot be in NAICS 721 (Accommodations) or 457 (Gas Stations), cannot fund changes of ownership, and cannot export to prohibited countries under the Ex-Im Bank Country Limitation Schedule or OFAC sanctions.
- Uses of proceeds: Proceeds must finance export development activities (such as transaction-specific export financing, export production facilities or equipment in the U.S., or lines of credit where at least 70% is used for export purposes) and cannot fund operations outside the U.S. except for marketing and distribution.
- Loan terms and guaranty: Loans are capped at $500,000, with a maximum guaranty of 90% for loans up to $350,000 and 75% for loans over $350,000 up to $500,000. Lines of credit cannot exceed a 7-year maturity, while term loan maturities follow general 7(a) rules up to 10 years for working capital and equipment (up to 15 years if useful life supports) and 25 years for real estate.
- Interest rates and fees: Maximum variable interest rates range from Prime or Peg + 3.0% to + 6.5% depending on loan size, and default interest rates are permitted.
- Underwriting and collateral: Loans are approved exclusively under delegated authority using the lender's commercial underwriting and collateral policies for loans over $50,000 (no collateral required for $50,000 or less), though 20% or greater owners must guarantee and commercial real estate over $500,000 requires an appraisal.
The source
What the SOP says
“eligibility for Export Express is limited to businesses that have been in operation, although not necessarily as Exporters, for at least 12 full months.
“The maximum loan amount is $500,000 (gross).
“90% for loans of $350,000 or less; and
“75% for loans over $350,000 up to $500,000.
“Export Express loans are only processed via an Export Express Lender’s delegated authority.
“Lines of credit must not exceed 7 years.
“For Export Express Loans of $50,000 or less, collateral is not required.
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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.