Import/export businesses use the SBA International Trade Loan (a specific 7(a) variant up to $5M), EXIM Bank guarantee programs, letter of credit financing for trade transactions, and AR/inventory lines tied to international trade cycles. The Export-Import Bank of the United States is the primary federal export credit agency for this sector.
The SBA International Trade Loan (ITL) is a specific variant of the 7(a) program designed for businesses that are expanding due to export opportunities or adversely affected by import competition. Maximum: $5 million. Eligible uses include facilities, equipment, and working capital directly tied to international trade activity. SBA guarantees up to 90% — a higher guarantee percentage than standard 7(a) — reflecting the additional complexity of international trade financing. Details at https://www.sba.gov/funding-programs/loans/7a-loans.
The Export-Import Bank of the United States (EXIM Bank) is the official export credit agency of the federal government. It does not compete with commercial lenders — it fills financing gaps where commercial lenders won't go (high-risk markets, long-tenor transactions, large transactions exceeding commercial appetite). Programs: Export Working Capital Program (EWCP — revolving lines up to $5M for export inventory + AR), Export Credit Insurance (protects against foreign buyer non-payment), and Loan Guarantees (medium/long-term financing for large export transactions). https://www.exim.gov/.
Letters of credit (LCs) are the backbone of international trade settlement — the importer's bank issues a documentary LC, the exporter ships against it, and the bank pays on document presentation. For businesses that issue or receive LCs frequently, a bank LC facility (a committed credit line for issuing LCs) is essential. LC-secured loans are available where a standby or documentary LC serves as collateral. EXIM Bank also issues standby LCs on behalf of U.S. exporters when foreign buyers require performance security.
International trade AR is more complex to finance than domestic AR — foreign receivables are generally excluded from domestic bank borrowing bases unless covered by EXIM credit insurance or a documentary LC. EXIM Export Working Capital Program explicitly includes foreign AR tied to EXIM-insured transactions. Import businesses (buying overseas, selling domestically) use domestic AR lines and inventory lines as described in wholesale financing — the international component adds lead time and currency risk that lenders factor into borrowing base availability.
Businesses operating in U.S. Foreign Trade Zones (FTZs) — bonded warehouses where goods can be stored, processed, and re-exported without standard import duties until entering U.S. commerce — have specific inventory financing considerations. FTZ inventory has different customs status and collateral treatment; lenders with trade finance experience can structure borrowing bases that properly account for FTZ inventory versus duty-paid domestic inventory.
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