How do I obtain export financing assistance?
Recent Regulations and Resources
Numerous export-financing sources are available. Business seeking financing assistance should first check with local or regional banks. In many cases these banks have international financing services.
In addition to local and regional lenders, exporters can obtain information from the following funding sources:
- New Jersey Economic Development Authority (EDA) works with New Jersey banks to provide revolving lines of credit to finance confirmed foreign orders. The EDA also has other bond financing and loan programs.
- Export-Import Bank of the U.S. helps exporters make sales when other exporters make sales when other sources of assistance are unavailable or inadequate. There are four available programs: Working Capital Guarantees; Export Credit Insurance; Loan Guarantees to Lenders; and Direct Loans. Exported goods must contain 50 percent of U.S. made material.
- Working Capital Guarantees are offered to lenders so they can provide exporters with working capital needed to buy, build or assemble U.S. products for export sales. The guarantees cover 90 percent of interest and principle.
- The U. S. Small Business Administration (SBA) offers loan guarantees through its Export Working Capital Program to help small businesses export by providing financing for loans up to $1 million.
- SBA Export Express is a loan program to help small businesses with exporting potential that need funds to buy or produce goods and/or services for export. Loans may be used for most business purposes including expansion, equipment purchases, working capital, inventory to real estate acquisition, and trade shows. Loans range up to $300,000.
- The SBA offers financial assistance and business development services to exporters. To be eligible for these programs, firms must meet SBA size standards for the industry in which they are principally engaged.
- Through the Export Revolving Line of Credit program, the SBA can guarantee up to 85% of a bank line of credit to a small business exporter, not to exceed $750,000 for SBA’s share. In addition, the SBA and the Export-Import Bank of the U.S. (Ex-Im Bank) can co-guarantee up to 85 % of the loan amount of loans in amounts ranging from $200,000 to $1 million extended by private lenders.
Export-Import Bank of the U.S. (Ex-Im Bank) has a number of programs including:
- Export Credit Insurance that protects exporters and lenders against both commercial and political risks of a foreign buyer defaulting on payment.
- A variety of policies that establish short- term and medium-term sales, either on a single-buyerormulti-buyer basis and special programs that address the needs of small businesses and environmental exporters.
- Loan Guarantees to Lenders that encourage sales of U.S. – made capital equipment to creditworthy foreign buyers by having Ex- Im Bank assume all of the political and commercial risks of non-payment.
For more information about Export Financing, call 866-534-7789 or go to www.NewJerseyBusiness.gov.
New Jersey Banks with International Departments
Many banks have international departments that provide specialized services which are required for international trade transactions.
These services may include assistance in remittance and collection, currency exchange, commercial letters of credit, financing exports, establishing payment terms, collecting export receivables and providing necessary financial documentation.
Banks can also serve as a channel for trade leads and a source of credit information on potential customers through their contacts with their correspondent banks or through inquiries submitted by foreign entities.
- Credit Information on Potential Foreign Customers
- Funds Transfer
- International Money Orders
- Foreign Exchange
- Foreign Currency Loans
- Acceptance Financing
- FCIA/Ex-Im Bank Financing Import Lines of Credit/Loans
- Import/Export Letters of Credit
- Pre-Export Financing
- Export Insurance
U.S. Commercial Services also has offices at:
Export Assistance Center 744 Broad Street
Newark, NJ 08102
The International Trade Administration serves as a comprehensive resource for information on all U.S. federal government export assistance programs. Country-specific export counseling and customs procedures are among the available services.
The U.S. Agency for International Development, Global Technology Network (GTN) consists of a network of domestic and international partners that assist U.S. small and medium-sized firms seeking access to emerging overseas markets. GTN operates as an Internet-based communications and trade lead system, with a primary focus on agribusiness, communications and information technology, environment and energy, and health technology.
New Jersey’s District Export Council is an affiliate of the U.S. Department of Commerce and is an association of successful business leaders who provide guidance and assistance to companies seeking to sell or expand in foreign markets.