Small Business Association (SBA) Export Loan Program

Small Business Association (SBA) Export Loan Program

To: You

From: Your Manager

Date: July 3, 2022

Subject: Trade Finance

Below are some questions that clients have posed recently. Gwen had to travel abroad again so these questions are now yours. She did leave some of her initial sources.

1. A pickle producer in YOUR STATE gave a customer in YOUR COUNTRY a price quote US$ 25,000 (CIF) on April 5, 2022. The pickle producer expects to be paid in USD on July 5, 2022. The foreign exchange rate between the currencies of these two countries has changed over this time. Calculate the foreign exchange rates on the dates below. How much more (or less) of their domestic currency is the buyer in YOUR COUNTRY going to have to covert on July 5 than if they had paid the full amount of USD on April 5?

Indicate the exchange rate between the USD and YOUR COUNTRY’s currency on April 5, 2022.

USD __1_____ = __________ USD _25,000_ = __________

Indicate the exchange rate between the US$ and YOUR COUNTRY’s currency on July 5, 2022.

USD __1_____ = __________ USD _25,000_ = __________

This website will give you current exchange rates as well as historical exchange rates for many currencies HERE.

2. The firm needs some information with regard to export financing options.
3. Export-Import (Ex-Im) Bank of The United States has Bank Loan & Guarantee Programs, Export Credit Insurance, and a Working Capital Guarantee Program available for US exporters. Verify the programs that are available for US companies exporting to YOUR COUNTRY?

Check the Ex-Im Bank’s Country Limitation Schedule to see if these programs are available for YOUR COUNTRY at https://www.exim.gov/tools-for-exporters/country-limitation-schedule

1. If the pickle producer in YOUR STATE is eligible for a Small Business Association (SBA) export loan program, identify an SBA approved lender in YOUR STATE (or a neighboring state) that participates in the SBA’s export loan programs. Include an image of that financial institution’s website.

https://www.sba.gov/document/report–participating-export-lenders

3. Identify one financial institution in YOUR STATE (or a neighboring state) and one in YOUR COUNTRY that handles global trade finance. Export letters of credit are the payment method of specific interest. A client is considering this option and would like to know what institution(s) to consider. Include an image of each financial institution’s website. Also, please include contact information for the appropriate department in that institution.

A useful resource may be trade finance award winners – https://www.gfmag.com/magazine/february-2020/2020-worlds-best-trade-finance-providers

4. A client is considering the use of a Free Trade Zone (FTZ) or Special Economic Zone (SEZ) in YOUR COUNTRY. Identify the names of options that are available. If there are multiple options, the one closest to the capital would be preferred. Discuss the benefits this specific zone offers. Include a map that shows the location of the FTZ/SEZ and the capital of YOUR COUNTRY. Include the contact information.

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!