New Legislation Helps Exporters by Providing Higher Loan Limits
Also makes counseling and technical assistance more accessible to small businesses
The Small Business Jobs Act, signed into law on Sept. 27, 2010, raises the U.S. Small Business Administration’s export-related loan limit from $2 million to $5 million. According to the SBA, export-related loans to small businesses approved under the Jobs Act had reached nearly $110 million as of Dec. 31, 2010.
“The Jobs Act builds on the efforts already under way through the National Export Initiative by providing SBA with additional tools to help small businesses tap into the global market,” says SBA Administrator Karen Mills.
The National Export Initiative also called for the creation of a new Cabinet-level focus on exports, expanding export financing (which is partly fulfilled by the new SBA loan limits), prioritizing government advocacy on behalf of U.S. exporters, and providing new resources to U.S. businesses seeking to export
“We know that to take that next step to begin exporting or expand into a new market a small business often needs both financial and counseling resources,” says Mills. “The Jobs Act strengthened SBA’s ability to provide assistance in both those areas by enhancing our export loan programs and also making counseling and technical assistance more accessible.”
The Jobs Act includes the following provisions:
Helps provide sufficient capital for small businesses seeking to start or expand their exporting efforts. The law increases the maximum size of SBA International Trade Loans and Export Working Capital Loans to $5 million, up from
$2 million: both with 90% guaranties.
Makes the SBA’s Export Express loan permanent, with a 90% guaranty for loans up to $350,000 and 75% for loans between $350,000 and $500,000. Export Express loans offer a streamlined application process.
Provides $90 million in grants over three years beginning in mid-2011 for states to help small business owners start or expand their exporting efforts.
Makes counseling and technical assistance more accessible by increasing the SBA’s staff and other resources available to small businesses.
For more information on export services for small businesses or to find local counseling and technical assistance resources, visit www.export.gov.
CBIA’s new affiliation with the Connecticut Development Authority provides an expanded line of innovative business financing from $50,000 to $5 million.
For more information, contact Tom Guerra at 860.244.1160 or email@example.com.
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