1. Bill Houck, Regional Manager (DC,VA,WV,MD,DE) Export Solutions Group Office of International Trade william.houck@sba.gov +1 202-557-4063 Export Loan Guarantee Programs william.houck@sba.gov

2. SBA Ex-Im Bank US Commercial Service (USCS) US Export Assistance Center (USEAC) USCS & State EDO - Market analysis -Match making -Buyer due diligence SBA -Export activity working capital -Transaction working capital -Fixed asset and real estate term loans Ex-Im Bank -Export working capital -Credit insurance

3. US Export Assistance Center www.trade.gov and www.export.gov www.trade.govwww.export.gov Start: US Commercial Service and state economic development assists in originating export sales To Finish: SBA and Ex-Im assist in financing export sales, turning purchase orders into a completed export sale

4. Developing an Export Business Plan – www.sba.gov/exportbusinessplanner www.sba.gov/exportbusinessplanner A downloadable tool to save and customize How to determine your export readiness Training and counseling information Worksheets for global market research Financing information and options Customizable Export Business Plan and Marketing Plan templates Helpful resources for exporters Glossary of Export Terms And more! SBA Export Business Planner

5. Background: Incoterms The International Chamber of Commerce ("ICC") created “INCOTERMS” in 1936 to uniform global trade. The ICC periodically revises publications of INCOTERMS. The latest version was released in January 2011. Set of uniform terms applicable to all the various types of purchase agreements and shipping agreements, which also serve as a “global language”. Defines the responsibility of the Buyer and the Seller - conveys “risk” and “responsibility”; which party is to pay which charges, and where delivery takes place. Determines when title of the goods passes from the seller to buyer

6. Movement of Goods: Scope of Seller and Buyer Responsibilities (Ex Works) (Free Alongside Ship) (Free Carrier) (Free On Board) (Cost & Freight) (Cost, Ins, Freight) (Carriage Paid To) (Carriage & Ins. Paid) (Delivered at Frontier) (Delivered Ex Ship) (Delivered Duty Unpaid) (Delivered Ex Quay (Delivered Duty Paid)

7. Costly for importer, most secure for export - Cash in advance - Letter of Credit Middle of the road -Documentary collection Costly/risky for Exporter, most secure for importer - Open account Export Terms of Sales

8. Letters of credit

9. Protect your open account terms from none payment Improve cash flow Increase orders – Simple application process – Only insure buyers you want – Qualify buyers before you go on trade missions and start negotiations – Nominal premium cost – No deductible on small business policies Offering open account terms must be part of your sales strategy Export Credit Insurance

10. To qualify: SBA defined small business with $7.5 mm or less in average export credit sales for 3 years, 95% commercial and political risk a.Small Business Express Policy ( 20 or less foreign buyers ) -select buyer coverage up to $300,000 per buyer b. Small Business multi-buyer policy No deductible, premiums from $0.49to $1.35 per 100 invoice value depending on terms of sale (1 to 180 days open account Small Business Export Credit Insurance

11. SBA Export Financing Programs Export Express – 90% guarantee for amounts up to $350,000 (for up to 7 years) – 75% guarantee for amounts between $350,000 and $500,000 (for up to 7 years) – Lender uses its own loan approval process and documents – For financing of inventory, accounts receivable and export development activities Export Working Capital Program – 90% guarantee for amounts up to $5,000,000 – Use of funds for purchase order financing, accounts receivable and inventory financing International Trade Loan Program – 90% guarantee for amounts up to $5,000,000 – For working capital term loans for financing and refinancing of fixed assets used for exporting (loan tenures up to 10 years for plant & equipment and 25 years for real estate) Developing an Export Business Plan – www.sba.gov/exportbusinessplanner www.sba.gov/exportbusinessplanner

12. Technical Information for the bank AR advance rate is 80% ( 90% for L/Cs or insured AR) Inventory advance rate is 75% Indirect export transactions are eligible Advances against purchase orders allowed No minimum underwriting ratios Military products are eligible Refinancing is allowed ABL and similar monitoring fees allowed under EWCP Robust secondary market (premiums can exceed 10%)

13. Bill Houck, Regional Manager (DC,VA, WV, MD, DE) Export Solutions Group Office of International Trade william.houck@sba.gov +1 202-557-4063 william.houck@sba.gov