[Federal Register Volume 60, Number 195 (Tuesday, October 10, 1995)]
[Notices]
[Pages 52721-52722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25065]



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SMALL BUSINESS ADMINISTRATION

Pilot Export Working Capital Program

AGENCY: Small Business Administration.

ACTION: Notice of Continuation of Pilot.

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SUMMARY: On September 21, 1994, the Small Business Administration (SBA) 
published a notice in the Federal Register (59 FR 48460) to advise the 
public of a pilot for its Export Working Capital Program (EWCP). The 
pilot is scheduled to end on September 30, 1995, but SBA is continuing 
the pilot until April 1, 1996. This notice is issued pursuant to 
Sec. 120.1-2 of SBA's regulations (13 CFR 120.1-2).

EFFECTIVE DATE: October 1, 1995.

FOR FURTHER INFORMATION CONTACT:
Jean Z. Smith, Export Development Specialist, Office of International 
Trade, 202/205-7262.

SUPPLEMENTARY INFORMATION: Under EWCP, SBA guarantees short-term 
working capital loans made by participating lenders to exporters for 
the purpose of financing export transactions. EWCP is intended to 
replace SBA's Export Revolving Line of Credit (ERLC) Program. 
Accordingly, SBA's regulations for the ERLC Program (13 CFR 122.54) 
will not apply to EWCP loans.
    The SBA and the Export-Import Bank of the United States (Exim Bank) 
are working to harmonize their export financing programs to facilitate 
small business access to either program. Accordingly, many features of 
SBA's EWCP will focus on assisting smaller businesses that need a 
guaranty of $750,000 or less and Exim Bank's Export Working Capital 
Guaranty Program (EWCG) will serve the credit needs of larger 
businesses and small businesses with credit needs beyond $750,000.
    The details of SBA's EWCP pilot were spelled out in the earlier 
notice to which reference has been given. Under the harmonization 
program, SBA and Exim Bank have coordinated their programs to increase 
access and reduce redundancies in the delivery systems. Among the 
harmonization efforts undertaken to date are a common application, 
similar documentation requirements for application, greater 
standardization of interest rate and fee 

[[Page 52722]]
policies, more direct involvement of the lending institutions through 
delegated authorities, and a coordinated promotion of the programs. 
These and other efforts enable small businesses and small business 
lenders to select the program best suited to their needs and to access 
either program without the need to meet differing documentation and 
application requirements. SBA's experience with the pilot has been 
excellent. During the first ten months of the program, 145 EWCP loans 
have been made, exceeding the last year's annual production for the 
ERLC program by 167%. However, the harmonization effort continues and 
is scheduled to be reviewed and assessed during Fiscal Year 96. For 
this reason SBA is extending the pilot for an additional six months 
during which time the Agency will evaluate which aspects of the program 
should be incorporated into permanent regulations.
    During the continuation of the pilot, EWCP loans will not be 
eligible for sale in the secondary market that exists for 7(a) loans.

    Dated: October 3, 1995.
Philip Lader,
Administrator.
[FR Doc. 95-25065 Filed 10-6-95; 8:45 am]
BILLING CODE 8025-01-P