These lenders would use their own application package, loan documentation, servicing documentation, and liquidation procedures. The borrower s interest rate must be within the existing SBA maximum rate. This is a pilot program through 18 lenders. Proceeds from the export sales are the primary source of repayment. Typically, maturities match a single transaction cycled with a term of up to 18 months or support a line of credit with a term of up to 12 months.
Entrepreneurial training is also available.
In addition to SBA's size and eligibility requirements, the small business must have been in operation for the last twelve calendar months preceding the date of application and must have established a definite pattern of seasonal activity. The amount of the loan is determined by the increased working capital needs created by the seasonal upswing in business. The duration of the seasonal line runs from the date of first disbursement and cannot exceed twelve months . These restrictions do not apply to agricultural enterprises. SBA's collateral position primarily will consist of liens on all accounts receivable and inventory.