by: Sarah Mote
Many small businesses think they are too small to compete in the world market. In fact, 97 percent of all exporters are small businesses.
There’s help for small businesses ready to move products beyond our borders. The federal government has loans and insurance programs to help you become an exporter or expand your exporting business.
Financing for Exporters
The U.S. Government offers four different types of financing programs.
Export Development and Working Capital Financing:
Enables U.S. businesses to obtain loans that facilitate the export of goods or services by providing the liquidity needed to accept new business, grow international sales and compete more effectively in the international marketplace.
Facilities Development Financing:
Enables U.S. businesses to acquire, construct, renovate, modernize, improve or expand facilities and equipment to be used in the United States to produce goods or services involved in international trade.
Financing for your International Buyers:
Enables U.S. businesses to assist their international buyers in locating financing to purchase U.S. goods and services when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years. This type of financing is generally used for financing purchases of U.S. capital equipment and services. Financing may also be available for refurbished equipment, software, certain banking and legal fees and certain local costs and expenses.
Investment Project Financing:
Enables U.S. businesses to acquire financing for large-scale projects that require large amounts of capital, such as infrastructure, telecommunications, power, water, housing, airports, hotels, high-tech, financial services, and natural resource extraction industries.
Learn more about these programs at Financing Your Small Business Exports.
Insurance and Risk Mitigation
The U.S. Government offers U.S. companies insurance for both export transactions and for the political risk associated with overseas investments.
Ex-Im Bank’s export credit insurance policies enables U.S. exporters to both finance their export activities and mitigate the risk of non-payment. The policies below enable you to offer credit to your international buyers and access working capital funds.
Political risk insurance is available to U.S. investors, contractors, exporters and financial institutions involved in international transactions. Political risk insurance can cover currency inconvertibility, expropriation and political violence, and is available for investments in new ventures, expansions of existing enterprises, privatizations and acquisitions with positive developmental benefits.
Learn more about these programs at Insuring Your Small Business Exports.
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Content contributed by Sarah Mote, KCSourceLink. KCSourceLink is a proud affiliate of U.S.SourceLink, America's largest resource network for entrepreneurs.