Census Issues Newsletter on Exporter Outreach, SBA Loan for Exporters, Etc.

(When Census originally announced its new TradeSource publication in 2010, it stated that it would be issued twice a year, provide the latest international trade information and resources, and supplement the latest news on the Automated Export System (AES), the export process, and regulations.

Highlights of the January 2011 issue include:

Census Outreach Includes Compliance Seminars, Webinars, Compliance Review Program

Census discusses its efforts to provide the trade with tools and resources to maintain export compliance, including, but not limited to, the following outreach efforts:

AES Compliance Seminars -- seminars where Census discusses AES, the Foreign Trade Regulations, commodity classifications, enforcement, and other topics.

Webinars - online training, and an alternative to attending a Census compliance seminar.

Best Practices Manual - a Census document that provides resources and recommendations to help improve an exporting business and maintain compliance.

Call Center - Census Foreign Trade Division (FTD) staff that can assist with the AES, commodity classification, and regulatory questions.

Compliance Review Program - company visits by FTD staff to help improve a company’s compliance levels by providing specific company and process guidance.

(See ITT’s Online Archives or 12/07/09 news, 09120720, for BP summary discussing Census discussion of compliance with mandatory AES, including its AES Compliance Review Program.)

Small Business Jobs Bill Increases Size of SBA Loans for Exporters

According to an article by the Small Business Administration, the Small Business Jobs Act (H.R. 5297, Public Law 111-240), made several changes to SBA’s Export Loan Programs.

Alternative size standard allowed. A temporary alternative size standard will allow several thousand additional small firms to qualify for SBA programs. Now, instead of only using North American Industry Classification System (NAICS) codes and the number of employees or gross revenues to determine if a company is small, another method may be used.

Export Express loan limits increased. The size of allowable Export Express loans has been increased from $250,000 to $500,000. (Proceeds from this lender-expedited loan program can be used for market development expenses, such as foreign trade show participation, translation services, and travel; export transaction costs and other working capital needs; or equipment, fixed assets, and real estate. Some proceeds can be used for domestic operations.)

Export Working Capital Program limit increased. The limit for loans under SBA’s Export Working Capital Program has been increased from $2 million to $5 million. (Loans under this program can be setup to finance a single export transaction - one that might be larger than the firm’s normal order - or on a revolving line-of-credit basis to finance multiple transactions.)

International Trade Loan limits increased. For companies that would like to expand their business because of growing export sales, or for those businesses that have been adversely affected by imports and need to retool to be competitive, the SBA’s International Trade Loan can now go up to $5 million as well. Loans combine both fixed asset financing—which could be used for a building or equipment—and working capital (which can go as high as $4 million).

(See ITT’s Online Archives or 09/28/10 news, 10092813, for BP summary of the enactment of H.R. 5297. See ITT’s Online Archives or 09/27/10 news, 10092712, for BP summary of H.R. 5297’s provisions.)

BIS’ Best Practices to Prevent Diversion

The January 2011 issue of TradeSource includes a BIS article summarizing its September 2010 notice of inquiry (NOI) seeking public comments on a proposed updated list of “best practices” for industry regarding the transit, transshipment, and reexport of dual-use items. (See ITT’s Online Archives or 09/01/10 news, 10090120, for BP summary of BIS’ NOI.)