If you are already involved in international trade or business or preparing to engage in, or is negatively affected by competition from imports, the Small Business Administration (SBA) in the United States offers an international business loan through their International Trade Loan Program designed for you.
Eligibility for International Trade Loan Applicants
this international business loan must ensure that the loan will be important to expand or develop an export market, will improve the facilities of equipment to improve the competitive position currently is adversely affected by the import competition, or must be able to demonstrate a business plan that reasonably ventures export sales sufficient to cover the loan. While most small businesses are eligible for SBA loans, businesses of any type are not qualified and a case-by-case determination must be made by the agency. Loan Use
Loan from the SBA through this international program business loan can be used to acquire, modernize, renovate, expand or improve facilities and equipment to be used in the US for the manufacture of goods and services involved in international trade; refinance existing debt or unstructured with reasonable terms and conditions. You can not be a working capital loan as part of an IT or as part of any refinancing to penetrate foreign markets.
Maturities for International Trade Loan This loan program
international business has loan facilities or equipment that may have maturities of up to twenty five years. Interest rates are negotiated between the lender and the borrower, but are subject to SBA maximums which are pegged to the Prhyme Rate. Interest rates for loans may be fixed or variable; fixed-rate loans of $ 50,000 or more must not exceed Prhyme Plus 2.25 percent for maturities of less than seven years, and 2.75 percent for seven years or more maturity. Loans between $ 25,000 and $ 50,000 must have a maximum rate not to exceed 3.25 percent Prhyme Plus with less than seven years maturity and 3.75 percent for maturity of seven years or more. Loans of $ 25,000 or less must have a maximum interest rate not exceeding Prhyme Plus 4.25 for less than seven years of maturity and 4.75 percent for seven years or more maturity. Loans with variable rates can be linked to any of the optional parity rate or the rate prhyme SBA lower.
Maximum loan amount for International Trade Loan This loan program
international business has a maximum gross amount of two million dollars and SBA guaranteed amount of $ 1.5 million for an IT loan is the same as a ( a) regular loan 7. However, exceptions may apply to the number 7 (a) Maximum SBA guarantee to a borrower including affiliates.
Percent Loan Guarantee International Trade
SBA can guarantee up to eighty-five percent of the loans of $ 150,000 and less, and up to seventy-five percent of loans above $ 150,000. The maximum amount guaranteed by the SBA for International Trade Loan is $ 1,250,000.
Loan guarantee program
collateral accepted under this loan program are only collaterals located in the US, its territories and possessions. Lien position or first mortgage must first be made by the lender on items financed under the loan and additional guarantees may be required including personal guarantees, subordinate liens or things that are not financed by the loan.