By Dennis R. Chrisbaum
The Small Business Jobs Act of 2010 did several things to improve SBA’s loan programs, among them was making the International Trade Loan worthy of a second look! Originally introduced by the Omnibus Trade and Competitiveness Act of 1988, the International Trade Loan has gone through various iterations of attractiveness, disuse, and a bit of confusion over the past twenty-five years. However, the SBJA changed the ITL to allow a full 90% guarantee on loans up to $5 million. Suddenly there was a significant advantage for lenders to take a second look at the applicant’s export plans—an advantage of up to an additional $750,000 in guarantee coverage when at the maximum loan amount ($4.5 million vs. $3.75 million for a standard 7(a) loan). Several lenders already have shown that they like what they have seen: In the first ten months of FY2013, ITL loans numbers increased 150% to 110 loans, while dollar volume increased 175% to $190 million.
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