Export Working Capital Guarantees
The Export Working Capital Program (EWCP) provides short-term working capital guarantees to exporters. This program is designed to aid your company in obtaining working capital from lenders to produce goods or provide a service for export. The International Division of the ECIDA will assist you with the application process, coordinate requirements with your local lender, package the application, and follow up with Ex-Im Bank or the SBA until your financing is approved.
The EWCP is offered by both the Ex-Im Bank and the U.S. Small Business Administration and guarantees your lender 90% repayment of their credit exposure. Interest rates and repayment terms are determined by your local lender.
The loan may be used to finance the working capital needs associated with your exporting transactions including the following:
- To acquire inventory for export
- To pay for direct and indirect costs (design and engineering; labor and overhead) used for the manufacture or purchase of export-related goods (including work in progress) or for the provision of export-related services
- To support letters of credit serving as bid or performance bonds or payment guarantees
The loan cannot be used to acquire fixed asset or capital goods, to finance professional export marketing advice or services, foreign business travel, participate in trade shows or to support U.S. staff overseas, except to the extent it relates directly to the transaction being financed. In addition, proceeds may not be used to make payments to owners, to pay delinquent withholding taxes, or to pay existing debt.
There are two main types of loans:
- Transaction-specific - supporting one specific export transaction.
- Revolving - supports multiple transactions throughout the loan term.
Eligibility Requirements include being a commercial entity with a revenue operating history of at least one-year showing positive net worth, and must be domiciled in the U.S.
Working Capital Provided through the SBA
- Loans for less than $1,666,666
- Product must contain at least 50% U.S. content
- Must meet SBA definition of a small business
Working Capital Provided by the Ex-Im Bank
- Loans for more than $1,666,666
- Only U.S. content can be financed
- No defense products or services
Collateral equal to 100% of the EWCP guarantee amount is required. This includes your foreign receivables.
Guaranteed loans must be fully collateralized at all times. Collateral must be located in the United States. Primary collateral typically consist of the product itself or export-related inventory which may be raw materials, work in progress or finished goods. Also considered are export-related accounts receivable due and collectible outside the U.S.
Principals who have significant ownership in a closely-held company will be required to guarantee repayment of the Loan. Parent corporate guarantees or other guarantees may also be required
If you would like to apply for a Working Capital Loan, please complete the U.S. SBA/Ex-IM Bank of the U.S. Joint Application for Working Capital Guarantee.
Please mail completed and signed applications to:
ECIDA International Division
143 Genesee Street
Buffalo, NY 14203
For more information on the EWCP or assistance in completing this application, please contact us.