Small-business owners lacking the financing to enter the global market now have fast access to export loans, thanks to a boost from 14 New Jersey lenders under the Small Business Administration’s export financing program.
According to the SBA, 70 percent of all U.S. exporters have fewer than 20 employees, and New Jersey alone generated $32 billion in exports in 2010 — up from $27 billion in 2009. With the Export Express program’s financial backing from lenders, small-business export revenue is projected to increase exponentially for 2012, according to the state’s SBA district director, Alfred Titone. He said it usually takes 10 months after the start of a program like this to impact the export revenue.
Under the Small Business Jobs Act of 2010, the SBA’s Export Express pilot loan program became permanent, and lenders who sign onto the program — which now include Community First Bank and Financial Resources Federal Credit Union, among 12 others — receive 90 percent guarantees for loans up to $350,000, and 75 percent guarantees for loans between $350,000 and $500,000.
According to the SBA, Export Express allows lenders to use their own forms, procedures and financial analyses, providing a 36-hour turnaround on applications from borrowers and lenders. Titone said the program also offers small-business exporters a revolving line of credit, which is vital to businesses fulfilling customer orders.