International Trade Loan Eligibility

The applicant must establish that the loan will significantly expand or develop an export market, is currently adversely affected by import competition, will upgrade equipment or facilities to improve competitive position, or be able to provide a business plan that reasonably projects export sales sufficient to cover the loan.

Although most small businesses are eligible for SBA loans, some types of businesses are ineligible and a case-by-case determination must be made by the agency. Eligibility is generally determined by four factors:

Type of Businesses Available
Size
Use of Loan Proceeds
Availability of Funds from Other Sources

Use of Proceeds

The proceeds of a SBA International Trade loan may be used 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, as well as to develop and penetrate foreign markets.

Proceeds of an SBA International Trade Loan cannot be used for debt payment.

The applicant must establish that the loan will significantly expand or develop an export market, is currently adversely affected by import competition, will upgrade equipment or facilities to improve competitive position, or be able to provide a business plan that reasonably projects export sales sufficient to cover the loan .

International Trade Loan Maturities

Loans for facilities or equipment can have maturities of up to 25 years.

Interest Rates

Fees

International Trade Loan Guarantee Percent

For the International trade Loan, the SBA can guarantee up to 85 percent of loans of $150,000 or less and up to 75 percent of loans above $150,000. The maximum guaranteed amount is $1,250,000.

Loan Program Collateral

Only collateral located in the United States and its territories and possessions is acceptable as collateral under this program. The lender must take a first lien position (or first mortgage) on items financed under an international trade loan. Additional collateral may be required, including personal guarantees, subordinate liens, or items that are not financed by the loan proceeds.