Political Quotes

“Mr. Speaker, H.R. 4944 makes a technical correction to the Export Working Capital Guarantee Program of the Small Business Administration. The export working capital program provides a 90 percent guarantee for revolving capital needs covering up to $750,000 for small business exporters. However, this is a very underused program. Only 429 international trade loans were facilitated by this program in 1999. The problem is that the SBA would like to be able to sell these loans on the secondary market. However, secondary market sales of guaranteed loans are conducted infrequently. Current law requires that all 7(a) loans, including export working capital loans, must be fully disbursed to the borrower prior to becoming included in the secondary market sale. Export working capital loans are often approved, disbursed, and repaid so quickly that they miss the window of opportunity for inclusion in a secondary market sale. The purpose of the Export Working Capital Loan Improvement Act of 2000 is to exempt export working capital loans from the disbursement requirement under the SBA's 7(a) loan program. This change will allow export working capital loans to be sold to the secondary market. Passage of H.R. 4944 hopefully will free up more trade financing for small business exporters.”