1. SBASBA EXPORT FINANCE PROGRAMS SBA EXPORT FINANCE PROGRAMS

2. U.S. SMALL BUSINESS ADMINISTRATION F Approximately 94% of all US businesses are classified as “small businesses’. [NAICS] F SBA assists small businesses by guaranteeing bank loans up to 90% for export financing. SBA also provides complimentary loan application assistance and technical assistance. F Houston’s Assets: “Energy Capital of the World”, Texas Medical Center, NASA’s Space Center, the Port of Houston [#1 US port in foreign tonnage], the Houston Airport etc. have created a ripple effect promoting global markets for area businesses.

3. 1 ] INTERNATIONAL TRADE (IT) 2 ] EXPORT WORKING CAPITAL (EWC) 3 ] EXPORTEXPRESS (EE) THREE EXPORT LOAN PROGRAMS: http://www.sba.gov/oit http://www.sba.gov/oithttp://www.sba.gov/oit

4. S.B.A. offers 75% Guaranty: 1] INTERNATIONAL TRADE LOAN GUARANTY (IT 75%). Loan for Business-Related Real Estate, Equipment, and Working Capital [COLLATERAL MUST BE LOCATED IN THE U.S.]

5. INTERNATIONAL TRADE PROGRAM (IT 75%): F For a business: 1] engaged or preparing to engage in export or 2] adversely affected by imports. F Loan Proceeds: To purchase, construct, renovate fixed assets: such as office building, factory, warehouse, export storage, and/or equipment. F Not for refinancing or debt payment. F Unique Requirement: Applicant must provide a business plan supporting projected export sales.

6. INTERNATIONAL TRADE PROGRAM (IT 75%): F SBA’s maximum guaranty exposure for a fixed asset International Trade export loan is F SBA’s maximum guaranty exposure for a fixed asset International Trade export loan is : F $ 1 Millionfor an International Trade bank loan. The maximum allowable loan amount is $ 2MM. F $ 1 Million for an International Trade bank loan. The maximum allowable loan amount is $ 2MM. F SBA loan guaranty is up to 75%. F Maximum loan term may be up to 25 years for real estate and 10 years for equipment. F All fees are controlled by SBA Regulations. F Collateral securing the loan must be located and used in the U.S.

7. U.S.S.B.A. 2] EXPORT WORKING CAPITAL LOAN GUARANTY PROGRAM (EWC 90%). 2] EXPORT WORKING CAPITAL LOAN GUARANTY PROGRAM (EWC 90%). Collateral items purchased with loan funds are exported out of the U.S.

8. EXPORT WORKING CAPITAL PROGRAM (EWC 90%): The #1 need of exporters:FINANCING. IEWC relieves bankers from risk exposure: SBA may guaranty a bank loan up to $1,000,000.00 or 90% of the loan amount, whichever is less. Maximum bank loan amount for this program is also $ 2 Million. ISBA can help exporters cash-in on the global market by providing a Government guaranty for a bank loan.

9. EWC (90%): What is it? An Export Loan Program which: F Provides short-term loan or a revolving line of credit financing to exporters. F Encourages lenders to make export loans almost risk free.

10. EX-IM BANK COUNTRY LIMITATION SCHEDULE: 1) Schedule highlights those foreign markets the US Govt. supports or restricts. www.exim.gov/country/cntlimit.html 2) Refer to Schedule for any export restrictions on buyer’s country. 3) Restrictions imposed for Political, Economic or Legislative reasons. EX-IM BANK COUNTRY LIMITATION SCHEDULE: 1) Schedule highlights those foreign markets the US Govt. supports or restricts. www.exim.gov/country/cntlimit.html 2) Refer to Schedule for any export restrictions on buyer’s country. 3) Restrictions imposed for Political, Economic or Legislative reasons.

11. F Pre-shipment working capital: To purchase raw materials for manufacturing, or finished goods for direct or indirect export. F Indirect Exports: Goods sold to another U.S. company, however, final destination of goods is overseas. EWC (90%): What does it cover?

12. F Post-shipment exposure: extends the loan payment term allowing the seller time to receive sales proceeds from the buyer and/or to complete post shipment operations, such as installation or final assembly, performed by US employee of seller, in the destination country. EWC (90%): What does it cover?

13. F Combination of pre- and post- shipment financing [ for example: manufacture modular housing, allowing for time to assemble overseas, and payment from buyer]. EWC (90%): What does it cover?

14. EWC (90%): what does it EWC (90%): what does it cover ? (continued) cover ? (continued) Services on a Existing Contract : Foreign contract for construction, engineering, architectural etc. [loan proceeds for inventory required to perform on contract, travel, US payroll expenses etc.]. Standby Letter of Credit : Bank guarantees the work performance overseas of the U.S. exporter [similar to a Performance Bond].

15. EWC: Who is eligible? The exporter must: P Must be as U.S. citizen or have a valid “Green Card” [must be verified with INS]. P Meet SBA’s industry size-standards. P Have been in business for at least 12 months [not necessarily in exporting]. P IRS tax returns must be verified.

16. By-Employees: SIZE STANDARDS Manufacturing 500o 1500 employees or less. Manufacturing ---- 500 to 1500 employees or less. Mining ---- 500 employees or less. Wholesale Trade ---- 100 employees or less. By-Annual Gross Receipts: Gen. & Heavy Construction --------------$ 27. 5 million Special Trade ----------------------------$ 11.5 million Retail Trade -------------------$ 5. to $ 21. million Real Estate -------------------$ 5. to $ 18.5. million Services ---------------- $ 2. 5 to $ 21.5 million Agriculture -------------- $ 0.750 to $ 9. million North American Industry Classification System (NAICS). North American Industry Classification System (NAICS).

17. EWC: What collateral will be required to support the loan? F Assignment of proceeds from one or more: Confirmed Letter of Credit. Confirmed Letter of Credit. Foreign receivables. Foreign receivables. Service contract. Service contract. EXIM export credit insurance. EXIM export credit insurance. F Fixed assets ( usually to secure long-term loans [1 year or more] or weak credit). F Personal guarantees by owners:( owners with 20% or more ownership in business).

18. F Is the deal “DO-ABLE” ? F How reliable is the repayment source? F Can the exporter perform ? Does the exporter have the expertise? MAJOR DIFFERENCE: EWC: What Does SBA Look For? The Credit FocusThe transaction, NOT the business. MAJOR DIFFERENCE: EWC: What Does SBA Look For? The Credit Focus: The transaction, NOT the business.

19. EWC: SBA Fees & Interest Rates SBA Guarantee Fees :  Loan term of 12 months or less: 0.25% of guaranteed loan amount.  Loan term over 12 months: regular 7a fee applies (between 1%-4%). Interest Rates & Lender Fees: Interest Rates & Lender Fees: F Negotiable between lender and customer: not controlled by SBA. customer: not controlled by SBA.

20. 3] EXPORTEXPRESS (EE 75-85%) Maximum loan amount : $ 250,000. Maximum loan amount : $ 250,000. SBA guaranty up to 85% for $150,000 or less. For loans from $150,000 to $250,000, SBA guaranty 75%. SBA guaranty up to 85% for $150,000 or less. For loans from $150,000 to $250,000, SBA guaranty 75%. Unique program where loan funds may be used to market your goods/services overseas. In addition, the purchase of fixed assets or working capital. Unique program where loan funds may be used to market your goods/services overseas. In addition, the purchase of fixed assets or working capital. Only SBA Export program where Lender uses its own loan application, credit, and processing procedures. Only one SBA documents is required. Only SBA Export program where Lender uses its own loan application, credit, and processing procedures. Only one SBA documents is required. No criminal activity in personal history. No criminal activity in personal history.

21. F Purchase of American-made equipment and products ”to the greatest extent practicable”. F Limited sales to foreign military (U.S. Munitions List prohibited). F SBA follows EXIM Country Limitation Schedule. EWCP: Some limits

22. F Helpful Websites: Basic Guide to Export:http://www.export.gov; http://www.tradenet.gov;http://www.ita.gov/tic Market research: http://www.usatrade.gov Market Dev.& Links:http://www.usatrade.gov http://www.buyUSA.com;Europages Business directory: http://www.europages.com; Trade Shows Worldwide: http://www.tscentral.com Export Regulations:http://www.bxa.doc.gov; ATA carnet: http://www.usib.org.

23. E. L. A. N. F Export Legal Assistance Network (E.L.A.N.) http://www.fita.org/elan F U. S. Small Business Administration and Federal Bar Association. F Initial consultation is FREE. Contact: Sameer Mohan Esq. Contact: Sameer Mohan Esq. or Jamie Joiner Esq. or Jamie Joiner Esq. Baker & Hostetler LLP Baker & Hostetler LLP (713) 646-1314 (713) 646-1314

24. HSBA-Sponsored FREE Export Resource Assistance H SBA International Trade Officer: Najla Tanous (713) 773-6522/23: To finance existing export orders. H University of Houston S.B.D.C. Roberta Skebo (713) 752-8400 : Free loan packaging for an SBA export loan application. (713) 752-8400 : Free loan packaging for an SBA export loan application. H SCORE - Business Information Center (BIC), (713) 773-6549: Start-up information to export. (713) 773-6549: Start-up information to export. H S.B.D.C. International Trade Center Carlos Lopez, Director, for technical assistance.