SBA Working Capital Guarantee Program

SBA Working Capital Guarantee Program Overview

What is the SBA Working Capital Guarantee Program?

The U.S. Small Business Administration (SBA) Working Capital Guarantee Program is a borrowing solution designed to support you via your local bank relationship. FirstMerit is a bank with preferred lender status from the SBA, which allows us to help you obtain or increase working capital to expand your exports.

How the program works

Under this program both work in progress (WIP) and foreign accounts receivable, may be included in your FirstMerit Export Working Capital borrowing base, as well as export-bound inventory and raw materials.

In addition to working capital to support your ongoing export business, the Export Working Capital Program can be used for…

  • Issuance of Standby Letters of Credit to support bid bond requests, cash down payments, and warranty periods
  • Purchase of raw materials, components, participation at foreign trade shows, and general export marketing activities
  • Collection of foreign accounts receivable

What is needed to get started

  • Your business must meet the SBA 7(a) eligibility and size requirements (less than 500 employees for manufacturers, less than 100 employees for wholesalers, or meet the alternative size standards of tangible net worth of no more than $15 million and average net income over the past two years of no more than $5 million)
  • At least one year’s financial statement(s), brief history of your company including senior management biographies and pro-forma business plans
  • Exporters should have at least one-year operating history and a positive net worth
  • Description of your proposed use of the working capital proceeds 
  • Products must be shipped from the United States

Let’s Talk

 

Subject to credit approval. Some restrictions apply.