SBA SBA Export Assistance & International Trade 1 — Questions and Answers
Question 1: What is the maximum loan amount available under the SBA Export Express program?
- $250,000
- $350,000
- $500,000 (Correct answer)
- $750,000
Correct answer: $500,000
The SBA Export Express program provides fast access to export financing with a maximum loan amount of $500,000 for eligible small businesses.
Question 2: Under the SBA Export Express program, what guarantee percentage does SBA provide for loans exceeding $350,000?
- 90%
- 85%
- 80%
- 75% (Correct answer)
Correct answer: 75%
SBA Export Express loans above $350,000 (up to $500,000) carry a 75% SBA guarantee, while loans of $350,000 or less receive a 90% guarantee.
Question 3: What is the maximum loan amount under the SBA International Trade Loan (ITL) program?
- $2 million
- $3.5 million
- $5 million (Correct answer)
- $7.5 million
Correct answer: $5 million
The SBA International Trade Loan program supports exporters with a maximum loan amount of $5 million for facilities, equipment, and working capital needs.
Question 4: The Export Working Capital Program (EWCP) is primarily designed to provide small business exporters with:
- Long-term fixed asset financing for export equipment
- Short-term working capital to finance export transactions from purchase order through receivables collection (Correct answer)
- Grants to offset the cost of entering foreign markets
- Insurance coverage against losses from foreign buyer default
Correct answer: Short-term working capital to finance export transactions from purchase order through receivables collection
The EWCP provides short-term revolving credit or transaction-specific loans so exporters can finance the cycle from receiving a purchase order through collecting payment from the foreign buyer.
Question 5: Which SBA program awards grants to state and territory governments to help eligible small businesses develop export capabilities?
- Export Express Program
- International Trade Loan (ITL)
- State Trade Expansion Program (STEP) (Correct answer)
- Export Working Capital Program (EWCP)
Correct answer: State Trade Expansion Program (STEP)
STEP provides grants to state and territory governments, which then use the funds to help local small businesses participate in foreign trade shows, missions, and export training activities.
Question 6: The SBA Export Working Capital Program (EWCP) provides a government guarantee of what percentage on qualifying loans?
- 75%
- 80%
- 85%
- 90% (Correct answer)
Correct answer: 90%
The EWCP provides a 90% SBA guarantee on qualifying export working capital loans or lines of credit, reducing lender risk and making export financing more accessible.
Question 7: A small business receives a large purchase order from an overseas buyer and needs funding to produce and ship the goods before receiving payment. Which SBA export program best addresses this need?
- SBA 504 Loan Program
- Export Working Capital Program (EWCP) (Correct answer)
- International Trade Loan (ITL)
- SBA Export Express
Correct answer: Export Working Capital Program (EWCP)
The EWCP specifically finances the transaction cycle from purchase order through collection of foreign receivables, making it ideal for funding production and shipping costs before payment arrives.
SBA SBA Export Assistance & International Trade 1
What is the maximum loan amount available under the SBA Export Express program?