*From the U.S. Small Business Administration
Fee relief to end for small loans but will be instituted for rural areas and HUBZones
On August 14, 2018, SBA issued Information Notice 5000-180010, announcing the SBA 7a fee structure that will be used in FY2019, i.e. beginning October 1, 2018. SBA lenders will want to take note of the impending fee structure changes and plan accordingly. Highlights of the new fee structure are:
- SBA’s longstanding waiver of the SBA Guaranty Fee on smaller 7(a) loans – loans of $125,000 or less in FY2018 – will end. The standard 2% fee will resume beginning October 1.
- The SBA On-Going Guaranty Fee of 0.55% will continue in FY2019, unchanged from FY2018.
- Veteran’s Advantage will apply only to SBA Express loans in FY2019.
- New fee relief will be given on all 7a loans of $150,000 or less made to businesses located in Census-defined rural areas and HUB (historically underutilized business) Zones. This relief will consist of reducing the SBA Guaranty Fee from 2% to 0.667% and reducing the SBA On-Going Guaranty Fee from 0.55% to zero.
There’s JUST ONE MONTH LEFT in the best FY ever for Export Express lending
Why September 2018 is the best month yet for Export Express lending
You heard it here first. Back on April 19, 2018, a “Special Edition” of this newsletter explained “Why FY2018 is the best year yet for Export Express.” If you missed it, attached is a copy of the detailed article that explained why Export Express offers a perfect “add-on” loan option for your commercial customers who need just a small loan of $125,000 or less to boost their export opportunities.
The multi-faceted utility of Export Express will continue going forward, but one thing is about to change. As noted above, on October 1, 2018, SBA’s Guaranty Fee waiver on loans of $125,000 or less goes away. That means SBA’s “sale price” (zero!) on 90% Export Express loans of $125,000 or less will also come to an end.
It’s not too late to put a no-SBA-fee Export Express loan in place. After all, Export Express authority is fully delegated to the lender. Lenders control the processing, underwriting, and approval of the loan. Export Express is streamlined to facilitate speedy processing. But with less than 40 business days left in FY2018, this unique opportunity won’t last much longer.
SBA seeks borrower feedback on SBA’s loan processes
A unique chance for businesses to offer comments to SBA
SBA’s Office of Capital Access (OCA) is asking your help in obtaining “Feedback on SBA’s Business Loan Application Process” from your FY2018 small business borrowers. SBA would like to get as many responses from small business borrowers as possible to the six questions below. We’d love to see some feedback on not just regular 7a loans, but on International Trade Loans, Export Express, and EWCP loans as well. Information based on the responses will be included in a report to Congress on how SBA plans to address the issues raised by the borrowers and on whether any resources or legislative changes would be necessary to make the loan application process more efficient for applicants. If you have any questions, please feel free to reach out to SBA’s William Briggs or Onica Browne directly. Thank you!
Please forward the following instructions and questions to your SBA borrowers:
Feedback on SBA Business Loan Application Process – Questions for Borrowers (FY2018)
Notice to Borrowers (Recipients) of an SBA 7(a) or 504 Loan.
You are receiving this questionnaire because you received a loan with Small Business Administration’s financial assistance. SBA is interested in getting feedback about your experience with the loan application process. You are not required to respond, but we ask that you reply via email to the following brief questions to tell us how we can streamline and improve the SBA process. SBA will take your suggestions into consideration as we look for ways to make the loan application and approval process simpler and more efficient.
- What can SBA do to improve your overall experience during the loan application and approval process for an SBA business loan?
- What would you do to improve the loan application and approval process for an SBA business loan?
- What can your lender do to improve the loan application process for an SBA business loan?
- What are your views on the amount of time it takes to receive an SBA loan?
- Any other suggestions you have for improving the process?
- What are your views on the information available to the public about SBA’s business loan programs?
Please respond via email to OCAcalltopics@sba.gov by August 30th 2018. Thank you for your input.
What small businesses need to know about tariffs
SBA offers guidance to importers
As trade negotiations continue to garner headlines, small businesses may wonder about how new and proposed tariff levies will affect their businesses. A timely blog by Peter Cazamias, SBA’s Deputy Administrator of the Office of International Trade, offers guidance of how to navigate the impacts of current and proposed tariffs on products a small business may be importing into the United States. His article focuses particularly on steel and aluminum imports and imports from China.
If you have a tariff concern, SBA has a hotline for small business on trade policy issues – firstname.lastname@example.org or 855-722-4877.
UPCOMING EXPORT EVENTS IN THE REGION:
Please! let your business customers know about these upcoming events and opportunities to connect with the global market for US goods:
August 22, September 11, 13, & 18, 2018 – webinar series. Exploring European e-Commerce. The U.S. Commercial Service is pleased to present a webinar series for U.S. SMEs looking to boost exports to the European Union through e-commerce. In 2015, the European Commission unveiled the Digital Single Market strategy, making the growth of the digital economy a priority for Europe. Over the course of the series, experts will provide insight on how to find best markets, getting goods to market and tips on e-commerce VAT. Speakers will offer practical advice to U.S. SMEs looking to do business in Europe.
- August 22 – eCommerce in Russia 2018.
- September 11 – Finding Europe’s Best eCommerce Markets
- September 13 – eCommerce Distribution for Europe
- September 18 – VAP Fulfillment for eCommerce
August 23, 2018, 5:30-7:30pm – Sacramento, CA. Women Changing the World Networking Mixer. The NorCal World Trade Center invites you to a networking mixer, connecting local and international women leaders
August 23, September 11, 13, & 18, 2018, 11am-noon – webinar series. Exploring Brazil’s e-Commerce. The U.S. Commercial Service uncovers the opportunities for U.S. exporters in the Brazilian e-commerce industry. Over the course of the series, experts will provide insights on current market trends, the tax system in Brazil, payment methods, logistics, intellectual property and piracy, and consumer experience & marketplace. Speakers will offer practical advice to U.S. SMEs looking to do business in Brazil.
- August 23 – Payment methods
- September 4 – Logistics
- September 18 – Intellectual property and piracy
- September 27 – Consumer experience and marketplace
September 12, 2018, 8am-5pm – Riverside, CA. Go Global Accelerator Program. The Riverside County Office of Foreign Trade is offering a one-day accelerator program for manufacturers who are ready to export or have recently entered the market but need guidance. You must complete the hyperlinked survey to be considered for participation.
September 28, 2018, 8am-3pm – San Mateo, CA. The Peninsula Capital Summit. This gathering organized by the San Mateo County Small Business Development Center will feature dozens of seasoned lenders representing commercial banks, CDFI’s, certified development companies and other small business investment options. Workshops will offer information on small business lending options, including export financing.
October 12, 2018, 9am-3pm – San Francisco, CA. How to Do Business in the Pacific Rim. The CalAsian Chamber of Commerce is bringing together panels of international trade professionals to discuss emerging trends in global trade and e-commerce.
EXPORT RESOURCES WORTH A LOOK:
Reports and resources that may be of interest to your business customers:
Export Monitor 2018. The Brookings Institute’s annual survey of U.S. export activity, focusing on metro areas. Exports increased in most metro areas in 2017. See “Export Profiles” for communities across the U.S.
StopFakes.gov Roadshow. The US Department of Commerce has launched a roadshow to address the importance of intellectual property protection in international trade. The road show includes an SBA presentation on the value of Export Express as a tool for financing IP protection costs. After successful programs in Seattle and Portland, the road show is moving on to Texas this month, and next month to Arizona. Here are some details on Helping Small Business Owners Identify and Protect their Vital Intellectual Property.
E-commerce in China: Current trends, key players and how to leverage China’s growing trend. E-commerce represents a paradigm shift in international trade. This report offers companies an overview of the Chinese market for e-commerce
And finally, everything in international trade depends on dependable delivery. Here’s a fun behind-the-scenes look at overnight shipping.
Remember: There are a lot of Business opportunities around the global market. US Small Business Administration (SBA) has a suite of programs and resources designed to help commercial lenders and their small business customers succeed in “going global”.