International Trade Loans

Is Your Business Involved in International Trade?

Ready to expand your small business or franchise into global markets or compete against imports? International Trade Loans provide the financing to develop foreign markets, fund export transactions, or strengthen your domestic operations. With U.S. small businesses driving 20–30% of the nation’s $2 trillion in annual exports, these loans are a vital tool for growth. LoanBox connects you with SBA and conventional lenders across states to deliver diverse loan proposals. Explore how International Trade Loans work, their SBA and bank financing options, and how LoanBox empowers your global ambitions with clear, actionable insights.

What Is an International Trade Loan?

An International Trade Loan finances small businesses and franchises engaged in exporting, developing new export markets, or competing against import competition, supporting facilities, equipment, or working capital needs.

Purpose: Fund the acquisition, construction, or expansion of U.S.-based facilities/equipment for export production, develop foreign markets, provide working capital for export transactions, or refinance debt to boost competitiveness.

Use Cases:

  • Purchase machinery to produce goods for export.

  • Finance export orders with working capital.

  • Refinance debt to compete against low-cost imports.

Benefits:

  • Global Reach: Access funds to penetrate international markets or strengthen domestic operations.

  • Flexible Financing: SBA ITL offers low rates and long terms; conventional loans provide quick access.

  • Competitive Edge: Counter import competition with strategic investments.

How It Works

Securing an International Trade Loan through LoanBox is a streamlined process that delivers tailored financing options from lenders nationwide.

  1. Define Your Export Strategy: Identify your trade goal (e.g., $1M for export facility upgrades, $500,000 for working capital) and prepare an Export Business Plan outlining your market strategy, as required by SBA lenders.

  2. Complete Questionnaires: Use LoanBox’s portal to input financial details, export plans, and business data, generating a loan package with a standardized application, Personal Financial Statement (PFS), Export Business Plan, and supporting documents (e.g., tax returns, export contracts).

  3. Lender Matching: LoanBox analyzes your profile (e.g., DSCR 1.15+, SBSS 155+ or FICO 650–680, debt-to-worth ratio ≤9:1) to match you with SBA or conventional lenders, including those specializing in international trade, offering diverse proposals.

  4. Review Proposals: Compare lender proposals within the secure LoanBox platform, detailing rates, terms, and collateral requirements.

  5. Finalize the Loan: Accept a proposal with an e-signature, and LoanBox Manager tracks required documents (e.g., export plan, first lien agreements) and deadlines to close the loan.

  6. Grow Globally: Use funds to expand export capabilities, fulfill international orders, or compete against imports, driving your business forward.

SBA Aspects

The SBA 7(a) International Trade Loan (ITL) is a cornerstone for small businesses and franchises engaged in exporting or impacted by imports, per SOP 50 10 8. Related programs like Export Working Capital and Export Express offer additional export support.

SBA 7(a) International Trade Loan (ITL):

Structure: Term loans up to $5M for fixed assets (e.g., facilities, equipment), working capital, or debt refinancing to support export activities or counter import competition. Rates are 8.5–10.5% (prime 7.5% + 1–3% spread), with terms up to 25 years for real estate, 10 years for equipment, or 7 years for working capital.

Eligibility: Businesses must be for-profit, U.S.-based, meet SBA size standards, and have 51%+ U.S. citizen or lawful permanent resident ownership. Must demonstrate export activity (current or planned) or adverse import impact, with a DSCR of 1.15+ (lenders may require 1.25–1.50), SBSS 155+ for loans under $500,000, or FICO 650–680 for larger loans.

Other SBA Export Programs:

Export Working Capital Program (EWCP): Up to $5M for short-term working capital (e.g., export orders, inventory), with 8.5–10.5% rates and terms up to 3 years. Requires export transaction documentation.

Export Express: Up to $500,000 for export development (e.g., trade shows, marketing), with 8.5–10.5% rates and terms up to 7 years. Offers faster approvals (2–5 days).

Requirements:

Export Business Plan: Mandatory, detailing export markets, strategies, and financial projections. LoanBox auto-populates this plan from your portal inputs.

First Lien Position: The SBA lender must hold the first lien on financed assets (e.g., equipment, property).

Guaranties: Owners with 20%+ ownership provide unlimited personal guaranties.

Collateral: Financed assets (e.g., equipment, real estate) are primary; for loans over $350,000, real estate with 25%+ equity may be required if assets are insufficient. A HELOC can avoid home liens.

Equity Injection: Typically 10% (cash or subordinated financing), waivable with a 9:1 debt-to-worth ratio.

Use Cases: Upgrade U.S. facilities for export production, finance export orders, or refinance debt to compete with imports.

SBA Benefits:

  • Competitive Rates: 9.5–11.5% vs. 8–11%+ for conventional loans.

  • Longer Terms: Up to 25 years for ITL real estate, easing payments.

  • Higher Limits: Up to $5M for ITL/EWCP, supporting significant export growth.

  • Veteran Perks: Fee waivers for loans $1,000,000 or less for veteran-owned businesses.