The SBA Export Working Capital Loan

A quick look at the SBA's choice financing product for businesses in the export industry.

The Small Business Administration’s Export Working Capital Program (EWCP) is a type of SBA 7(a) Loan that’s specifically designed for businesses that generate sales through exports and require upfront assistance in order to support these sales. 

The program entails the SBA guaranteeing up to 90% of the loan as a credit enhancement, and the loan maturity is usually for a period of up to 12 months. The maximum loan amount for export working capital is $5 million.

The Export Working Capital Loan can be used for:

  • Paying the costs of manufacturing export goods

  • Buying services or goods for export

  • Supporting standby letters of credit (SLOCs) that act as bid/performance bonds

  • Financing foreign accounts receivable

For collateral, the SBA considers the inventory related to exports to be sufficient. It also claims any receivables arising from the export sales that were funded by the loan. Additionally, the SBA needs a personal guarantee from the business owners (any individual with a share of 20% or more) for qualification purposes.