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The International Trade Loan is designed to increase presence in the export market or international trade, or increase local efficiency on markets effected by import competition. Check the business eligibility requirements for 7(a) loans for further information on acceptable types of businesses. Applicants should state that the loan would expand an export market, improve competitiveness effected by importing, or improve equipment and facilities to increase its competitive position.

Use of International Trade Loan Proceeds
The applicant can use ITL funds for the following:

• Expand, construct, or modernize facilities and equipment that will produce goods for international trade.
• Refinance existing debt that is not structured and is at reasonable conditions (no working capital should be generated as part of the refinancing).
• Increase presence in foreign markets.

Loan Maturities, Interest Rates, and Fees for ITL Loans
For facilities and equipment, the loan can have maturities of up to 25 years.

Interest Rates
These rates are charged on top of the prime rate and are subject to maximums.

For Fixed-Rate Loans:

• If the loan is for $50,000 or more, the rate cannot exceed prime plus 2.25% for a term of seven years. For a term longer than seven years, the loan cannot exceed prime plus 2.75%.
• If the loan is between $25,000 and $50,000 or more, the rate cannot exceed prime plus 3.25% for a term of seven years. For a term longer than seven years, the loan cannot exceed prime plus 3.75%.
• If the loan is for $25,000 or less, the rate cannot exceed prime plus 4.25% for a term of seven years. For a term longer than seven years, the loan cannot exceed prime plus 4.75%.

For Variable Loans:

The interest rate can be pegged to the lowest prime rate or the SBA peg rate, available in the Federal Register. The lender and the borrower negotiate the amount of the spread to add to the base rate, as well as the frequency at which the rate will be revised. The revisions cannot be done more than once a month, and must be consistent—monthly, quarterly, or some other pre-determined timeframe.
Fees

The fees refer to the guaranteed portion of the loan. The lender can charge the upfront fee to the borrower after the lender has disbursed the loan. The lender cannot charge the borrower the annual service fee, which is:

• 2% for loans of $150,000 or less.
• 3% for loans of $150,000 to $700,000.
• 3.5% for loans of more than $700,000.
• For loans of more than $1,000,000, a 3.5% fee will be charged for the amount up to $1,000,000. For the amount over $1,000,000, a fee of 3.75% will apply.

International Trade Loan Guarantee Percent

• For amounts under $150,000, the SBA guarantees up to 85%.
• For amounts over $150,000, the SBA guarantees up to 75%.

Maximum Loan Disbursement Amount and Maximum SBA Guarantee

• The maximum disbursement is $2 million, with a maximum SBA guarantee of $1.5 million. However, the maximum guarantee can go up to $1.75 million if:
• The applicant has been approved for the International Trade Loan.
• The business has applied for a separate working capital loan, either an Export Working Capital Program (EWCP) loan or other 7(a) program.
• The combined guarantee for both loans (IT and EWCP or other) can be up to $1.75 million, but the maximum SBA guarantee on the Export Working Capital Loan cannot exceed $1.25 million.

(Some of this information about the International Trade Loan may be out of date, please check the SBA website www.sba.gov, for the most updated information)