SBA SOP 50 10 8.1, App17.B.7 — Export Working Capital Program (EWCP) Loans

SOP 50 10 8.1 App17.B.7

Effective 2026-10-01 · publisher's stamp for this provision

7. Export Working Capital Program (EWCP) Loans a. The EWCP loan term represents the period for which the 7(a) loan commitment has been issued. The Lender may set independent loan maturities (typically on an annual basis) to take place during the loan term. b. General: The maximum maturity of an EWCP loan is 36 months. The maturity date is set in terms of the number of months from the date of the Note. SBA’s guaranty remains in effect for disbursements made through the maturity date. With the exception of a disbursement made to fund a draw against a Standby Letter(s) of Credit that was issued under the EWCP before the maturity date, disbursements made after the maturity date are not covered under the guaranty. The maturity of the loan is: i. The date specified in the SBA Loan System. Such date will not be longer than 36 months from the Note date. If the loan is not reissued, or extended, all outstanding amounts are due and payable on that day. ii. Standby Letters of Credit. Unless SBA provides prior written consent, Standby Letters of Credit supported by an EWCP loan must expire before the loan maturity date. If the Lender receives SBA’s prior written consent and makes a disbursement after the maturity date because there has been a draw on a standby letter of credit which was issued under the EWCP prior to the maturity date, such disbursement will be covered by the guaranty. a) Loan maturity must not exceed the period of the guaranty. iii. Specific Types of EWCP loans: a) Transaction-Based Loan: A line of credit that can support a single or multiple transactions during the term of the loan. A Transaction-Based EWCP may be established on a revolving or non-revolving basis based on the needs of the business. b) Asset-Based Loans (ABLs): ABLs are revolving lines of credit supported by a monthly Borrowing Base Certificate (BBC) that reports levels of assets, typically accounts receivable and inventory, supporting the loan amount. ABLs are typically committed for 12 months and then renewed or re-issued annually. c. Annual and Renewal Credit Review Requirements for Transaction-Based and Asset-Based (ABLs) EWCP loans i. On no less than an annual basis, and as part of any renewal of the loan, the Lender must obtain updated year end and interim financial statements and perform a full review of the credit and collateral securing the EWCP loan. The Lender’s analysis must document that the Applicant: ii. Is creditworthy. iii. Has the reasonable assurance of repayment in a timely manner from the conversion of sales into cash; and iv. Is in compliance with EWCP program requirements. v. If the Lender’s analysis does not document that all three of the above requirements are met, no further disbursements may be made, and the loan may not be renewed until the Applicant is able to demonstrate that it meets the above three requirements.

Source: SBA SOP 50 10 8.1, App17.B.7 — Export Working Capital Program (EWCP) Loans · source URL · snapshot 0fb0c4692cf52938