In addition to grants, there are other export financing programs. At the federal level, the Small Business Administration (SBA) and the Export-Import Bank offer programs such as export receivables insurance, loan guarantees to encourage banks to provide working capital for export sales or to finance export business development expenses, and buyer financing (particularly for purchases of capital equipment).
Several states also offer financing programs designed to supplement SBA and Export-Import Bank programs, including Florida and Massachusetts. And state economic development finance organizations offer ExIm Bank finance programs.
For sources and citations see full IERC Final Report, p. 61
- Connect exporters with federal (and state) export finance programs
ExIm Bank develops formal partnerships with regional EDOs and other state and local entities as part of its Regional Export Promotion Program (REPP). This can be a valuable partnership to bring ExIm Bank finance tools to local companies, including credit insurance to reduce risk, (For more information on ExIm Bank programs see the Resources section below.)
The state of Washington has created the The Export Finance Assistance Center of Washington (EFACW) to provide “free export finance advice and counseling assistance to small and medium sized exporters or prospective Washington State-based exporters. They provide consultation services on “payment risk mitigation and export finance including credit insurance, letters of credit, foreign exchange, Export-Import Bank and Small Business Administration export finance guaranty programs.”EFACW offers businesses information on how to finance and get paid for their export sales and also acts as a matchmaker for their banking relationship.” EFACW can be a valuable resource for regional EDOs striving to support exporters in their region.
The following sources of information can be used by a regional EDO to become familiar with trade finance, so it can connect regional exporters to finance programs.
- US Commercial Service Online Trade Finance Guide
- SBA International Trade Finance programs
- SBA finance staff experts at US Export Assistance Centers
- Export Import Bank Learning Resources (educational tools, guides)
- Export Import Bank finance programs
- The end of this article from bankrate.com provides a list of helpful resources for Latino businesses to obtain assistance with financing.