U.S. SBA EXPORT LOAN PROGRAMS Robert L. Elsas, Regional Manager SBA Export Solutions Group U.S. Export Assistance Center 601 Walnut Street Suite 580W Philadelphia, PA

Small Business Jobs Act of 2010 Signed into law on Sept. 27, 2010 New legislation helps exporters by providing higher loan limits Export-related loans to small businesses approved under the Jobs Act provisions have reached nearly $110 million as of Dec. 31, 2010

U.S. SBA Export Loan Products Export Working Capital Program – Up to $5 Million; 90% guaranty for short-term loans and lines of credit for export purposes – with lender coverage of up to $4,500,000. Export Express – Up to $500,000. Short-term loans and lines of credit – far better than the 50% guaranty for normal Express Loans – processed through normal Express procedures but now with 90% and 75% guaranty’s International Trade Loan – Up to $5 Million: now with a 90% guaranty. Term loan facilities, used for: capital equipment, permanent working capital and now the ability to consolidate and refinance existing debt to lower rates.

Export Express Loans and Lines of Credit up to $500,000. All Express Lenders are authorized to process Export Express. Approved banks make their own credit decision, use their own forms and receive a 90% SBA guaranty up to $350,000 and 75% on loans over $350,000 to $500,000, far better than the normal 50% Express loan guaranty.

Export Express The maximum loan amount under SBA Export Express is $500,000. Processed using the existing SBAExpress processing procedures Eligibility: – applicant in business for at least 12 months – proceeds are to be used to develop or expand their export markets – Borrower can provide estimate of exports for next 12 months.

Export Express Proceeds may be used for any of the following purposes: – transaction-specific financing of export deals, including standby letters of credit – general lines of credit for export purposes – export development activities such as brochure translation or participation in a trade mission – term loans for permanent working capital, machinery and equipment, or real estate

Export Working Capital Program 90% Guarantee, low fees (1/4 of 1%) and flexible terms $5 Million is maximum loan SBA guaranteed portion to Lenders is $4.500 Million Asset based or transaction based financing No pre-determined minimum ratios Single Project or Revolver Quick turnaround time PLP Processing Available

EWCP Use of Proceeds Asset Based and Transaction Based Working Capital for production of export goods and services Financing of existing export receivables and export inventory Portions of the EWCP loan may be used to fund standby “Letters of Credit” when required as:  Bid Bonds  Performance Bonds or Standby Letters of Credit  Advance Payment Guaranty’s

Open Account - No Insurance No Insurance is required if: Receivables are from financially sound corporations, multinationals or highly-rated governmental entities in countries with minimal political risk (or) Exporter can provide favorable Ledger Experience with specific accounts over a significant period of time.

EWCP - Collateral Self-liquidating loan First lien on all assets being financed – Typically inventory, WIP and A/R Personal guarantees of all owners of 20% or more Other collateral on a case-by-case basis

International Trade Loan (ITL) Jobs Act changes: The maximum loan is $5 million with a maximum SBA guarantee portion of $4.5 million. Lender gets a 90% guaranty – Look at these Benefits to the Borrower:  The applicant business has been adversely affected by import competition (Who Can Not Claim This?)  The loan proceeds will significantly expand an existing export market or develop new export markets; or  Upgrading facilities or equipment will improve the applicant ’ s competitive position

International Trade Loans (ITL) Use of Proceeds : – Facilities – Equipment – Working Capital – Debt refinancing is allowed. Business plan/application must document eligibility requirements (i.e. export projections or evidence of adverse impact). ITL can be combined with a separate EWCP loan. Maximum working capital allowed is $4 million

Thank You! Robert L. Elsas, Regional Manager SBA Export Solutions Group U.S. Export Assistance Center 601 Walnut Street, Suite 580W Philadelphia, PA