SBA rules · SOP 50 10 8.1

What is the SBA Export Working Capital Program?

The Export Working Capital Program (EWCP) provides SBA-guaranteed short-term working capital loans of up to $5,000,000 to support small business exporters engaged in export transactions, carrying a 90% guaranty up to a maximum SBA guaranty amount of $4,500,000.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Eligibility: Borrowers must have at least 12 full months of operating history unless the lender demonstrates sufficient management experience, and businesses operating in accommodation, gasoline stations, or food services and drinking places are ineligible.
Use of proceeds: Loan proceeds may only fund export transactions, such as acquiring inventory, direct manufacturing costs, foreign receivables, and supporting standby letters of credit, but cannot support domestic sales or acquire fixed assets.
Loan terms and maturity: Loans have a maximum maturity of 36 months, interest rates are negotiated between lender and borrower rather than prescribed by SBA, and repayment occurs through cash collections applied to principal and interest or via interest-only payments.
Collateral and advance rates: Lenders must secure a first lien on all export transaction collateral and maintain the facility in margin, with maximum advance rates of 90% on purchase orders or contracts, 90% on eligible foreign receivables, 75% on eligible inventory, and generally 80% on uninsured foreign accounts.
Guaranties: Unlimited personal guaranties are required for all owners of 20% or more, unless a waiver is granted by the Director of International Trade Finance.

The source

What the SOP says

“Under the EWCP, SBA guarantees short-term working capital loans made by participating lenders to small business Exporters engaged in Export Transactions.

SOP 50 10 8.1, Chapter 5: 7(a) Export Trade Finance > Export Working Capital Program (EWCP) (lines 2551-2554)✓ Verified

“The maximum loan amount is $5,000,000.

SOP 50 10 8.1, Chapter 5: 7(a) Export Trade Finance > Loan Terms and Conditions for EWCP (lines 2587-2589)✓ Verified

“The maximum guaranty amount is $4,500,000. The guaranty percentage is 90 percent.

SOP 50 10 8.1, Appendix 16: 7(a) Maximum Guaranty Amounts and Percentages > Export Working Capital Program (EWCP) and International Trade (IT) Loans (lines 5369-5374)✓ Verified

“The maximum maturity of an EWCP loan is 36 months.

SOP 50 10 8.1, Appendix 17: 7(a) Loan Maturity Requirements > General (lines 5434-5437)✓ Verified

“Proceeds can be used only to finance Export Transactions. Loans can be for single or multiple Export Transactions.

SOP 50 10 8.1, Chapter 5: 7(a) Export Trade Finance > NAICS Industry Subsector Code 722 (Food Services and Drinking Places) (lines 2565-2567)✓ Verified

“The Lender must obtain a first security interest in all collateral associated with the financed export transaction or transactions, including export-related inventory, receivables, credit insurance assignments, letters of credit proceeds, and contract proceeds, to the extent required by program rules.

SOP 50 10 8.1, Appendix 19: 7(a) Collateral Requirements > Export Working Capital Program (EWCP) Loans (lines 5713-5721)✓ Verified

“SBA does not prescribe the interest rates for the EWCP but will monitor these rates for reasonableness.

SOP 50 10 8.1, Appendix 18: 7(a) Interest Rate Requirements > Export Working Capital Program (EWCP) Loans (lines 5565-5572)✓ Verified

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