Small Business: Resources help small firms with global trade

Sam Jones is the Region VII SBA Administrator.

Many of you might have the opportunity to take a vacation beyond the borders of our great nation this summer, but now is a great time to also consider what these foreign countries offer for your small business.

The benefits are simply too great to overlook. Over the past year, U.S. exports jumped 13.7 percent compared to this time last year. Even more importantly, the 250,000 small businesses that have already made the decision to export sell a remarkable $1 billion in goods every single day.

The U.S. Small Business Administration is dedicated to helping small business owners realize their potential in accessing these international markets. An array of resources are available to guide a business through every step of the process. The starting point for anyone interested in becoming an exporter is the SBA's Office of International Trade located at www.sba.gov/oit/.

Our site includes links to essential information any small business might need as it considers the benefits of tapping into the global marketplace, as well as the SBA's guide to exporting.

Another resource is the U.S. Export Assistance Centers located throughout the country. These one-stop shops offer free technical assistance, education, and advice with personalized assistance from professionals from the SBA, U.S. Department of Commerce, the U.S. Export-Import Bank and other public and private organizations. Region VII has a center located in St. Louis that can be reached by calling 314-425-3304.

The SBA understands that access to capital is another hurdle for small businesses interested in taking advantage of international opportunities. Through the SBA and Export-Import Bank loan guaranty, companies have export working capital loans available to them.

This might help to finance a single transaction, or it can also be established as a 12-month revolving line of credit to finance multiple transactions. Additionally, the SBA has a new Export Express program for companies that can demonstrate the loan will help their firm enter a new export market or expand into an existing export market.

These loans of under $250,000 can be used for equipment, transaction costs, foreign trade show participation, or translation services.

Beyond these current resources available to small businesses, the SBA is going even farther to open up opportunities for trade. The recent work of SBA Administrator Hector Barreto and SBA Deputy Administrator Melanie Sabelhaus give small businesses further optimism as they seek out these international markets.

Some of the most important work is to open up new markets for America's small business owners. Chile and Singapore became participants in a free trade agreement with the United States at the beginning of 2004, joining Canada, Mexico, Israel and Jordan. SBA Administrator Barreto just returned from a trip to China with Commerce Secretary Don Evans and Labor Secretary Elaine Chao where he focused on opening up the Chinese market to U.S. small businesses. He also participated in late June at the Partnership for Prosperity in Mexico, in an effort to strengthen the trade ties between our two countries.

In June, Deputy Administrator Sabelhaus signed a statement of collaboration with the Republic of Ecuador as it joined the Small and Medium Enterprise Congress of the Americas. This follows a similar agreement recently reached with Columbia.

The SME Congress offers a network of micro, small and medium enterprise providers the ability to participate and benefit from international trade opportunities and facilitate opportunities for trade linkages throughout the Americas. Sabelhaus also was on hand to sign a cooperative agreement between the SBA and the American and African Business Women's Alliance to jointly participate in international trade opportunities, particularly on the African continent.

Exporting opportunities are abundant, and I hope that you will choose to use SBA's resources to help propel you into the global market. Meanwhile, we will continue to work to make international trade a more welcoming environment for small businesses.

I urge you not to miss out, as these foreign countries offer much more than an exciting destination for a summer trip.