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Eileen SanchezAssociate Administrator of the Office of International TradeSmall Business Administration - Office of International Trade
FY 14-15: Agency Priority Goal
Expand the base of lenders for small business exporters
Priority Goal
Goal Overview
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Strategies
Implementation Strategy Overview:
- U.S. Global Business Solutions: This initiative has been designed to reduce the complexity of trade financing for smaller lenders and provide a “whole-of-government” solution to small business exporters seeking market expansion and financing solutions.
- Lender Counseling and Training: This is a core element for expanding the base of lenders providing export financing solutions to small business exporters.
- Small Business Counseling and Training: Demand for SBA export loans will depend on small businesses being aware of the U.S. government financing solutions available to help them expand their export sales.
Additionally, the planned activities listed below will help in the implementation of the NEI, the EPC, and OIT’s Priority Goal.
- SBA will work closely with the Export-Import Bank on the introduction and expansion of a new multi-agency initiative to combine trade finance programs into a one-stop platform: U.S. Global Business Solutions (USGBS).
- USGBS will reduce the level of complexity associated with meeting the finance needs of small business exporters and will combine the trade financing programs of both SBA and Exim Bank into a suite of options, demonstrating their complementary functions. Exim Bank and SBA field staff will be cross-trained in each other’s programs and will be prepared to promote the financing solutions offered by both agencies to lenders and businesses.
- SBA has a nationwide field network of trade financing specialists in 19 U.S. Export Assistance Centers, which are offices shared by Department of Commerce trade specialists and, at some locations, Exim Bank trade finance specialists. As a result, the network of trade financing specialists promoting SBA trade financing programs will expand from 19 to 38 in 20 locations. (Exim Bank has 19 trade finance specialists in 11 locations, with only one not overlapping with SBA.)
Progress Update
Expanding the base of small business exporters and increasing the number of lenders providing financing solutions to small exporters are key goals with the National Export Strategy and the National Export Initiative/NEXT. To accomplish these goals, the SBA has partnered with the U.S. Department of Commerce, Export-Import Bank and others members of the Trade Promotion Coordination Committee to promote exporting opportunities and export financing options at conferences, on webinars, and at trade shows, as well as training business counselors and lenders on USG international marketing services and export financing programs.
In FY 2015, the SBA continued to target new lenders to support small business exporters in their communities by hosting the 8th Annual SBA Export Lenders Roundtable in Washington, D.C. and the 2nd Annual West Coast SBA Export Lenders Roundtable in Los Angeles, and by providing a webinar for members of the National Association of Credit Unions, as well as other outreach and training events with national and state lender associations. During the same period, the SBA provided consultation services to 3,938 lenders and trained 4,329 lenders on SBA export loan guaranty programs. SBA also provided consultation services to 4,515 small businesses and trained 8,120 small businesses on export finance. These initiatives supported SBA’s progress toward its FY 2014-2015 Agency Priority Goal and helped the Agency to enlist 514 lenders to provide financing to 1,513 small business exporters.
Performance results were affected by staffing shortages in the field during the year. Fifteen percent of field trade finance positions were vacant for almost 9 months, impacting SBA's ablility to increase the number of lenders active in supporting small business exporters with SBA finacing. Also, the total number of active lenders is decreasing across the county each year due to bank consolidation, which means that there are few lenders to make exports loans. The SBA exceeded its target for small businesses receiving export financing despite only meeting 93% of its target for lenders providing export financing solutions. While staffing continues to be a challenge in terms of meeting the Congressional mandate of having 30 export finance specialists in the field, the SBA was able to hire new export finance specialists to fill key vacancies in the U.S. Export Assistance Centers to promote exports and SBA’s export financing programs.
The SBA continued to use its small business counselor training certification program in partnership with the U.S. Department of Commerce and the Trade Promotion Coordinating Committee. The certification program includes an extensive training track on international trade, which the SBA offers at the annual Association of Small Business Development Centers conference and a training and certification website (export.gov/sbcounselors). In September 2011, fewer than 100 small business development center counselors had been certified in international trade counseling. Now more than 600 international trade-certified counselors within the SBDC network have credentials to provide training.
The SBA also partnered with the U.S. Department of Commerce to provide trade financing experts at domestic and overseas trade shows to counsel U.S. small business exhibitors about various financing options. International trade shows take the U.S. exhibitors to foreign locations where they need to conduct business. Having trade finance expertise “on the ground” supports businesses at events where U.S. exhibitors meet to negotiate sales terms with foreign buyers who attend these shows. SBA export finance specialists provided counseling and training at 19 of the Department of Commerce International Buyer program (IBP) industrial shows and three international trade shows. At IBP events, small business exporters meet pre-screened prospective buyers from around the world in one domestic venue.
Next Steps
No Data Available
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Performance Indicators
Number of lenders providing export loans
Number of small business exporters receiving SBA financing
Other Indicators
Dollar amount of export loans approved
Contributing Programs & Other Factors
The Office of International Trade’s U.S. Export Assistance Centers (USEACs) and the Office of Field Operations’ District Offices (District International Trade Officers and Lender Relations Specialists) will provide export training, counseling, and financing to both small businesses and to lenders seeking to enhance their lending portfolio by providing SBA financing solutions that meet the needs of small business exporters. In addition, the Office of Entrepreneurial Development and the Office of Capital Access will provide support, respectively, for leveraging outreach and training efforts and for delivering the export loan programs.
SBA will work closely with the Export-Import Bank on the introduction and expansion of a new multi-agency initiative to combine trade finance programs into a one-stop platform: U.S. Global Business Solutions (USGBS). Additional partners in this initiative include the U.S. Department of Commerce (Commercial Service), U.S. Department of Agriculture (Foreign Agriculture Services), U.S. Trade and Development Agency, and the Overseas Private Investment Corporation. These federal partners will work in concert to demystify export finance for lenders, especially smaller community banks.
In addition, resource partners and multiplier groups, such as Small Business Development Centers, Manufacturing Extension Partnership offices, Minority Business Development Agency business centers, and state trade offices, will be trained on this “whole-of-government” approach to providing trade financing to small business exporters in order to leverage outreach to the business community.
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Strategic Goals
Strategic Goal:
Growing businesses and creating jobs
Statement:
Growing businesses and creating jobs
Strategic Objectives
Statement:
Expand access to capital through SBA's extensive lending network
Description:
Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses. As the economy continues to improve, the SBA is working to ensure that remaining gaps in the commercial markets are filled and that small businesses across the country are well positioned to take advantage of opportunities. The SBA also continues to streamline and simplify its loan programs to make its products more attractive to lenders and borrowers.
Statement:
Ensure federal contracting goals are me and/or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses grow and create jobs. The federal government gets to work with the most innovative small businesses in America today, and small businesses get critical revenue to build and scale their operations. SBA’s goal is to make sure that all federal agencies meet or exceed their targets for federal prime contracting dollars awarded to small businesses. The SBA is improving coordination and communication across the federal government, facilitating matchmaking events, increasing online trainings and holding senior officials accountable for meeting their agencies’ small business goals. SBA continues to simplify access to federal contracting opportunities and educate small businesses on the contracting opportunities available to them. The SBA is also streamlining the certification process and data for federal contracting and continues to aggressively root out fraud, waste and abuse in small business contracting to ensure that contracting dollars go to deserving small businesses.
Statement:
Strengthen entrepreneurial ecosystems through a variety of strategic partnerships to provide tailored training, mentoring and counseling services that support entrepreneurs during every phase of their business growth
Description:
Entrepreneurs and small business owners who receive training, mentoring and/or advising services increase sales, create more jobs, and have greater economic impact on their communities. SBA’s resource partner network, including 63 SBDCs with over 900 outreach locations, over 100 WBCs, and 11,000 SCORE volunteers nationwide, along with online training, assists more than one million business owners and entrepreneurs each year. The SBA also leads and builds partnerships with other agencies and private sector partners to support robust entrepreneurial ecosystems across the country. For instance, regional innovation clusters bring together small businesses and entrepreneurs with venture capitalists, universities and regional industry leaders who can help leverage a region’s unique assets to turn entrepreneurial ideas into high-growth small businesses.
Statement:
Enhance the ability of current and future small business exporters to succeed in global markets by expanding access to financing, counseling, training and other export tools
Description:
Export sales contribute to a strong middle class by fueling economic opportunity and jobs in communities across the United States, while the countries buying American products gain access to some of the highest-quality products and services in the world. Today, nearly 96 percent of consumers and over two-thirds of the world's purchasing power reside outside the United States. Small businesses that can tap into this global market have the potential for vast expansion and growth, with small businesses now constituting 34 percent of total export dollars and comprising approximately 97.8 percent of all exporters.
Statement:
Fuel high-growth entrepreneurship, innovation and job creation by providing the tools small businesses need to start and grow their businesses.
Description:
High-growth businesses create almost all of the net new jobs in the economy today. Through longer-term “patient” capital, growth accelerators and regional innovation clusters, federal research and development (R&D) grants, and export assistance, the SBA plays a critical role in the ongoing success of high-growth small businesses. These high-growth investments provide opportunities for small businesses to create jobs and sustain the cycle of American entrepreneurship and innovation.
Statement:
Ensure that SBA’s disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
Description:
Returning small business operations to normal after a disaster is critical to ensuring that local economies regain traction as quickly as possible and are once again able to contribute to the economy and create jobs. The SBA, in coordination with the U.S. Federal Emergency Management Agency (FEMA), other federal agencies, the American Red Cross and array of state and local entities, helps small businesses prepare for disaster and provides timely and accessible low-cost, low-interest loans to small business owners, non-profits, homeowners, and renters who are survivors of disaster.
Statement:
Ensure the competitiveness and innovation of American manufacturing and supply chains by building capacity and supporting integrated networks of small business suppliers that encourage insourcing and the expansion of U.S. operations
Description:
Across the country, manufacturing and production are coming back to the United States. The reality is that large manufacturers need a diverse and nimble network of small suppliers. These suppliers make large companies more efficient, more productive and more globally competitive. A strong supply chain of small businesses can be a determining factor for locating production in a particular area. To build capacity and depth in America’s small business supply chain, the SBA continues its leadership role in the American Supplier Initiative, an Administration-wide effort focused on investing in — and building capacity throughout — the nation’s small business supply chain through: increased market access for small businesses; counseling and mentoring services to assist small suppliers; ready sources of capital to support sales, and; addressing the skills gap facing many small manufacturers and suppliers.
Agency Priority Goals
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Strategic Objectives
Strategic Objective:
Statement:
Expand access to capital through SBA's extensive lending network
Description:
Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses. As the economy continues to improve, the SBA is working to ensure that remaining gaps in the commercial markets are filled and that small businesses across the country are well positioned to take advantage of opportunities. The SBA also continues to streamline and simplify its loan programs to make its products more attractive to lenders and borrowers.
Agency Priority Goals
Statement: By September 30, 2017, expand access to capital for small businesses by increasing the number of lenders in SBA's 7(a) loan program from 2,244 (FY 2014) to 2,500.
Description: Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth, and economic expansion particularly in underserved markets since the Agency’s creation in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups that often cannot easily obtain credit in the conventional market. SBA loan programs are necessary to ensure that small businesses are not only surviving but also leading the way toward US economic expansion and growth. The 7(a) Loan program is the federal government’s primary small business loan program, assisting small businesses to obtain financing when they do not qualify for or otherwise have access to traditional credit. The SBA guarantees a portion of each loan (typically 50 to 90%) that participating lenders make by using the adjusted credit standards of the 7(a) loan program. SBA's FY 2014-2015 Priority Goal to increase new and returning 7(a) lenders has reduced the decline from FY 2012 to FY 2014. SBA will continue to support small business access to capital by increasing the number of lenders participating in the flagship 7(a) loan program (including the Community Advantage pilot program). Lender participation is essential to growth in the quantity of loans approved and small businesses assisted. Attaining a high volume of lender participation will create a consistent pipeline of SBA loans to small businesses. This Priority Goal directly supports SBA’s Strategic Objective 1.1 – Expand access to capital through SBA’s extensive lending network. Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses. Key barriers and challenges:
Statement: Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description: Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history. SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business. There are barriers and challenges to the SBA in achieving its priority goals:
Strategic Objective:
Statement:
Strengthen entrepreneurial ecosystems through a variety of strategic partnerships to provide tailored training, mentoring and counseling services that support entrepreneurs during every phase of their business growth
Description:
Entrepreneurs and small business owners who receive training, mentoring and/or advising services increase sales, create more jobs, and have greater economic impact on their communities. SBA’s resource partner network, including 63 SBDCs with over 900 outreach locations, over 100 WBCs, and 11,000 SCORE volunteers nationwide, along with online training, assists more than one million business owners and entrepreneurs each year. The SBA also leads and builds partnerships with other agencies and private sector partners to support robust entrepreneurial ecosystems across the country. For instance, regional innovation clusters bring together small businesses and entrepreneurs with venture capitalists, universities and regional industry leaders who can help leverage a region’s unique assets to turn entrepreneurial ideas into high-growth small businesses.
Agency Priority Goals
Statement: Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description: The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports. There are barriers and challenges to the SBA in achieving its priority goals: Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Strategic Objective:
Statement:
Enhance the ability of current and future small business exporters to succeed in global markets by expanding access to financing, counseling, training and other export tools
Description:
Export sales contribute to a strong middle class by fueling economic opportunity and jobs in communities across the United States, while the countries buying American products gain access to some of the highest-quality products and services in the world. Today, nearly 96 percent of consumers and over two-thirds of the world's purchasing power reside outside the United States. Small businesses that can tap into this global market have the potential for vast expansion and growth, with small businesses now constituting 34 percent of total export dollars and comprising approximately 97.8 percent of all exporters.
Agency Priority Goals
Statement: Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description: The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports. There are barriers and challenges to the SBA in achieving its priority goals: Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
