[Federal Register Volume 65, Number 197 (Wednesday, October 11, 2000)]
[Notices]
[Page 60491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25992]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION


Announcement of SBA Export Express--a New Pilot Loan Guaranty 
Program for Exporters

    Department of Commerce statistics indicate that small businesses 
with fewer than 20 employees represent approximately 65 percent of all 
exporters in the U.S. The SBA recognizes that many of these exporters 
have financing needs that are too small to be met profitably by 
traditional lending sources. SBA is mandated under the Small Business 
Act to increase the access of small businesses to capital for the 
purpose of fostering international trade. To that end, the Agency has 
developed a pilot loan guaranty program called SBA Export Express. This 
pilot will streamline the processing of small export loans by allowing 
a lender to use its own documents based on its use of established and 
proven credit review and analysis procedures for loans of similar size 
and type. SBA Export Express is a sub-program of SBAExpress, conforming 
to its already established policies and procedures. Its difference from 
SBAExpress lies in its exclusive focus on existing and potential small 
business exporters.
    To be eligible for this pilot loan guaranty program, an applicant 
must demonstrate that loan proceeds will enable their company to enter 
a new export market or expand an existing export market. To fulfill 
this requirement, a business plan must be submitted to the lender with 
information provided to establish a reasonable likelihood of expanded 
export sales. In addition, applicants must have been in operation, 
though not necessarily in exporting, for at least 12 months.
    SBA Export Express proceeds are to be used by small businesses to 
develop or expand their export markets. SBA Export Express proceeds may 
be used to finance: standby letters of credit that are used as bid or 
performance bonds; revolving lines of credit for export purposes; term 
loans; and other financing to enable small business concerns, including 
small business export trading companies and export management 
companies, to develop foreign markets. Proceeds may also be used for 
the acquisition, construction, renovation, modernization, improvement 
or expansion of productive facilities or equipment to be used in the 
United States in the production of goods or services involved in 
international trade.
    To encourage participating lenders to address more aggressively the 
needs of small business exporters, SBA's percent of loan guaranty under 
SBAExpress will be the same as that for the regular 7(a) loans, or 
currently 75 percent (80 percent if the loan amount is $100,000 or 
less). The maximum loan amount eligible for SBA Export Express will be 
$150,000.
    Recognizing that technical assistance can be crucial to the success 
of small business exporters, the SBA Export Express program requires a 
technical assistance component, delivered through the SBA personnel at 
U.S. Export Assistance Centers (USEACs). This assistance may include 
training offered by: the Export Trade Assistance Partnership (ETAP) 
Program; International Trade Centers (located at Small Business 
Development Centers); Service Corps of Retired Executives; District 
Export Councils; or the Export Legal Assistance Network (E-LAN).
    Participation in the SBA Export Express program will be granted to 
any lender that has been approved for participation in SBAExpress. SBA 
Export Express will adopt the abbreviated SBAExpress loan application, 
which will be submitted to the Agency's centralized processing center 
in Sacramento. The processing center will determine the borrower's 
eligibility and issue a SBA loan number.

FOR FURTHER INFORMATION CONTACT: Paul Kirwin of SBA at 202-205-7261.

    Dated: July 17, 2000.
Jeanne Sclater,
Associate Deputy Administrator for Capital Access.
[FR Doc. 00-25992 Filed 10-10-00; 8:45 am]
BILLING CODE 8025-01-P