 Export
Working Capital Lines of Credit
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Centinel provides Export Working Capital
lines of credit (EWCP) through several of its affiliated lenders. Funds may be used
to purchase raw material inventory and pay for labor involved in manufacturing products
which are destined for export. The program is designed to improve the United States
balance of trade payments. The EWCP is a combined effort of the SBA and the
Export-Import Bank (EXIM Bank). The two agencies have joined their working capital
programs to offer a unified approach to the government's support of export financing.
The EWCP uses a one-page application form and streamlined documentation with turnaround
usually within 10 days. A letter of prequalification is also available from the SBA.
Loan amounts up to $833,333 or less are processed by the SBA, while loan requests
over $833,333 are processed through the EXIM Bank. Loans are 90% guaranteed
($750,000) by the SBA. When combined with an International Trade Loan (see below),
the SBA's guaranty can go up to $1,250,000.
Loan terms are based on the ability to repay and the useful lives of the assets financed.
Collateral must be located within the United States. Terms of up to 3 years
are available.
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International Trade Loans |
Centinel provides International Trade Loans
(IT) through several of its affiliated lenders. If your business is preparing to
engage in or is already engaged in international trade, or is adversely affected by
competition from imports, this program is designed for you. The SBA can guarantee as
much as $1,250,000 in combined working capital and facilities and equipment loans.
The working capital loan is ordinarily made under the EWCP.
An applicant must establish that the loan will significantly expand or develop an export
market, is currently affected by import competition, will upgrade equipment or facilities
to improve competitive position, or must be able to provide a business plan that
reasonably projects export sales sufficient to cover the loan.
Loan terms are based on the ability to repay and the useful lives of the assets financed.
Collateral must be located within the United States. Loans for facilities and
equipment can have maturities of up to 25 years.Example
Shown below is a scenario showing the use of both the Export Working Capital Line and
the International Trade Loan. The combination of these two loan programs yields
total financing of $1,500,000. The respective amounts financed under each program
will vary depending on the specific needs of the company.
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| Use of Funds |
Loan
Amount |
SBA
Program |
SBA %
Guaranty |
Guaranty
Amount |
| Finance Accounts Receivable |
$500,000 |
EWCP |
90.0% |
$450,000 |
| Purchase Inventory |
$300,000 |
EWCP |
90.0% |
$270,000 |
| Finance Manufacturing Labor |
$33,333 |
EWCP |
90.0% |
$30,000 |
|
Total EWCP Loan |
$833,333 |
EWCP |
90.9% |
$750,000 |
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| Purchase Equipment |
$100,000 |
IT |
75.0% |
$75,000 |
| Purchase Manufacturing Facility |
$566,667 |
IT |
75.0% |
$425,000 |
|
Total International Trade Loan |
$666,667 |
IT |
75.0% |
$500,000 |
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| Total Financing Available |
$1,500,000 |
Combined |
83.3% |
$1,250,000 |
Let a Centinel loan officer show you how these forms of export financing can help your
company grow and prosper. Call (972) 985-3225 for more information.
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