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What Businesses Are Eligible for EWCP?
All small businesses that have the need to finance a specific transaction are qualified for EWCP. These businesses have to be established for profit and have their place of business within the U.S. Another part of the requirement is that the business owners should have already tried
To use all other assets, including their own, to make up with the financial requirements of their businesses. EWCP should be considered as their last resort, so to speak.
Also, the business has to be in operation for at least one year at the time the loan application was submitted. If the business is deemed to have funds sufficient enough for their chosen endeavor, then EWCP is not applicable for them.
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EWCP loans should be used as follows:
For the purchase of buildings or lands for the expansion of the business. It can also be used as funds for the construction, expansion, or conversion of owned facilities for the same purpose.
To acquire materials, supplies, fixtures, furniture, machinery, or equipment.
To be used as long-term working capital or to be used as payment for accounts payable of inventory purchase.
For refinancing current business debts that are not structured already.
To be used as a short-term working capital requirement, which includes export production, seasonal financing, construction financing, and contract performance. Loan proceeds can also be used as financing against receivables and existing inventory under certain conditions.
For the purchase of an existing business.
EWCP Unique Loan Requirements
The business applicant needs to submit its cash flow projects so that the both the requirement for the loan and the capability to repay is demonstrated.
When the loan is approved, the business recipient is required to submit progress reports regularly.
The SBA doesn't have the authority to prescribe either the Lender's fees or the interest rate for the Export Working Capital Program.
Ninety percent of the EWCP loan, with a maximum amount of $1.5, million is guaranteed by the SBA.
Benefits of the EWCP Loan
EWCP coverts export-related inventory and accounts receivable into cash.
EWCP expands the access of a business to financing.
EWCP has a delegated authority clause that could expedite the loan process.
EWCP provides business with optimum flexibility.
Export working capital loans can be of momentous help to all existing and aspiring small business export players in the country. This loan has the power to enhance and develop a business into immense proportions. EWCP loan application is up for grabs. If your business is highly eligible, don't pass up the opportunity to avail of it.
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