More Options Available to Small Firms for Exports

October 03 00:00 2011

New York, October 3 (RainbowNewsLine.com) – An increasing number of small firms are finding fertile markets abroad and are exploring possibilities of sustaining and expanding their overseas businesses in an effort to survive and grow in the face of sluggish demand at home. The federal government is helping such enterprises with greater financing options by increasing funding. More and more banks are also offering export loans.

According to the Bureau of Economic Analysis, exports by small- and medium-size businesses account for nearly 33 percent of all US exports. The total volume of US exports has grown by 15.1 percent to $178 billion in July, as compared to last year.

Export-Import Bank and the Small Business Administration (SBA) are both helping mom-and-pop shops by offering guidance on how to enter the international trade for exporting their goods. They are also providing working capital loan guarantees to safeguard their interests and offset their risks while doing export business.

More than 2,828 small-business transactions through August have been approved by the Export-Import Bank which has forecast a 10 percent increase in this figure from 2010 for the year. Its target is to add 5,000 new small firms to its portfolio and to achieve an annual small-business export financing figure of $9 billion within the next four years.
Fred Hochberg, bank chairman and president said “This is a record year for small-business loans at Ex-Im. The small businesses I’ve talked to that are exporting are having a good year, and are pretty optimistic in spite of a tough economy here and around the world.”

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