Report: SBA-backed loans to Small Exporters have Increased

The U.S. Small Business Administration’s (SBA) loans offered to small exporters has continuously increased for four straight years, according to a report. In 2012, the loan volume is over $923 million, up from last’s year’s $918 million and $583 million in 2009.

However, a report shows that while the amount of money lent to small exporters is steadily increasing, the revenue generated by these small businesses receiving SBA-backed loans has significantly decreased this year. This fiscal year, the revenue seen is only $1.7 billion, from $1.81 billion revenue in the fiscal year 2011.

Overall, SBA-backed loans offered to small businesses has decreased slightly in the fiscal years 2011 and 2012, from $30.5 billion of 2011 to $30.25 billion for this year.

The SBA offers three loan programs designed for small business exporters. These are Export Working Capital loan programs for finalizing an export contract; Export Express offering up to $500,000 to finance small exporters; and International Trade Loan program designed to help modernize and expand small exporter’s business. Both the International Trade Loan and the Export Working Capital programs offer a 90 percent guarantee on loans up to $5 million.

To date, the SBA has granted over 6,000 loans, which totals to $3.1, to small business exporters.

Other Borrowing Opportunities for Businesses

While SBA loans are increasing, reports also show that borrowing opportunities for businesses have also increased significantly, with the emergence of online loan lenders. Online loan lenders offer all types of loans even to people with bad credit. But, if your financial need is for business, you can also sign up for business loans online. There is also bad credit loans that lenders offer to people with bad credit. However, although these loans are processed fast and only minimal requirements are needed to obtain such loans, these loans may not be the most ideal option for business purposes because the interest rates charged for these loans are generally high.