SBA Loan Program for International Trade Businesses: Benefits

The SBA loan program for international trade businesses, also known as the SBA International Trade Loan program, is a loan program sponsored by the Small Business Administration (SBA) to help small businesses compete in the increasingly globalized market. Getting a loan for international trade businesses is not a necessarily simple task but there are definite advantages to taking out an SBA guarantied loan, you just need to know the workings of the loan program to understand the implicit as well as the explicit benefits.

How the Program Works

The SBA International Trade Loan program provides loans from third-party lenders. These third-party lenders are encouraged to lend because the loans are guarantied by the SBA, meaning they carry much less risk than loans of this type that are not SBA-guarantied. Taking a small business international can be a risky and difficult venture, putting a great strain on lenders as they worry that the borrowing business will not make it in the international market and thereby fall behind on their loan payments, in turn causing damage to the lender. This is one definite advantage of taking out a loan that is SBA guarantied - the lender has fewer inhibitions about lending because they know the SBA is backing the loan.

Where to Start

Like with non-SBA guarantied loans, you should start you search for an SBA guarantied loan at any bank that participates in SBA loan programs. Talk to several different banks to get the best service and interest rates. You should stand a better chance of finding good interest rates because you are applying for an SBA guarantied loan.

Loan Amounts

A loan that is part of the SBA International Trade Loan program may be offered for as much as $2 million. Of this, $1.75 million will be SBA guarantied. It is good to keep in mind how much you actually need before accepting a loan and to remember that you will need to repay the loan eventually, even though you may be able to secure a good deal because it is SBA guarantied.

Loan Uses

One benefit of a loan that is part of this specific SBA international trade loan program is that you have some flexibility regarding how to spend the money from the loan. You can put the money towards buying goods including machinery and other equipment, fixing existing structures or building new ones, or even to refinance an existing loan that was used for these same purposes.

Other Benefits to Consider

The goal of the SBA is to help small businesses in America. For this reason SBA loans are only available to small businesses, possibly making your competition pool smaller and your chances of obtaining a loan better. If you can present yourself as a competent small business owner, you will stand a good chance of obtaining an SBA loan.