SBA SOP 50 10 8.1, B.Ch5.B.3 — Eligible Uses of Proceeds for EWCP
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section B.Ch5.B.3 (Eligible Uses of Proceeds for EWCP). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 6 provision(s) quoted from SBA's .docx.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, B.Ch5.B.3 — Eligible Uses of Proceeds for EWCP — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8.1 B.Ch5.B.3
3. Eligible Uses of Proceeds for EWCP a. Proceeds can be used only to finance Export Transactions. Loans can be for single or multiple Export Transactions. i. Loan proceeds may be used for: a) Acquiring inventory for export or to be used to manufacture goods for export, including eligible direct labor and materials; b) Paying the manufacturing costs of goods for export; c) Purchasing goods or services for export; d) Supporting Performance or Financial standby letters of credit related to export transactions e) For working capital directly related to export orders f) For foreign accounts receivable and inventory financing g) Pre-shipment working capital supporting Export Transactions; h) Post-shipment foreign accounts receivable financing; and i) Lender fees and charges and any packaging fees paid as permitted in this Chapter. j) For refinancing existing short-term export lines of credit with the transfer of collateral in accordance with Appendix 14, Para. A.7. ii. Loan proceeds may not be used to (13 CFR § 120.342): a) Support the Borrower’s domestic sales; b) Acquire fixed assets or capital goods for use in the Borrower’s business; c) Provide floor plan financing on titled vehicles or equipment. d) Finance pre-shipment or purchase order financing under a transaction-specific or transaction-based revolving EWCP facility for Foreign-to-Foreign Export Transactions. e) Acquire, equip, or rent commercial space overseas; or f) Finance professional export marketing advice or services, foreign business travel, participation in trade shows or support staff in overseas offices, except to the extent it relates directly to the transaction being financed. b. Debt Refinancing with Export Working Capital Program (EWCP) Loans: See Appendix 14: 7(a) Debt Refinancing Requirements Para. B.7.
SOP 50 10 8.1 B.Ch5.B.4.a
4. Loan Terms and Conditions for EWCP a. Maximum Loan Amount i. The maximum loan amount is $5,000,000. ii. Maximum Loans to Businesses with Affiliates 13 CFR § 120.151 Lenders must determine whether the Applicant has any affiliates and document the results in their credit analysis. If affiliation exists, SBA’s loan maximums apply to the Applicant, including all affiliates, as if all were a single business.
SOP 50 10 8.1 B.Ch5.B.4.b
b. Maximum Guaranty Amounts and Percentages: See Appendix 16: 7(a) Maximum Guaranty Amounts Para. B.6.
SOP 50 10 8.1 B.Ch5.B.4.c
c. Loan Maturities: See Appendix 17: 7(a) Loan Maturity Requirements Para. B.7.
SOP 50 10 8.1 B.Ch5.B.4.d
d. Interest Rates: See Appendix 18: 7(a) Interest Rate Requirements Para. B.7.a.
SOP 50 10 8.1 B.Ch5.B.4.e
e. Payment Options for EWCP Ongoing Guaranty Fee i. For EWCP loans approved after September 27, 2010, the Lender may choose one of the following options for payment of the EWCP Ongoing Fee only. Either option (monthly or annually) will result in payment of the same total amount of EWCP Ongoing Fee on each EWCP loan. Regardless of which payment option is chosen, the Lender must continue to submit, on a monthly basis, the Lender’s SBA Form 1502 Report on all 7(a) loans in the Lender’s portfolio, including all EWCP loans. a) Option 1 – Monthly Payment of EWCP Ongoing Fee: Option 1 allows Lenders to pay the EWCP Ongoing Fee monthly along with other 7(a) loan ongoing servicing fees to the Fiscal Transfer Agent with the required SBA Form 1502 Report. Because EWCP loans may be a small percentage of the Lender’s 7(a) portfolio, Option 1 allows Lenders to voluntarily pay the EWCP Ongoing Fee on each EWCP loan on a monthly basis along with the rest of their 7(a) portfolio. b) Option 2 – Annual Payment of EWCP Ongoing Fee: Lenders may pay the EWCP Ongoing Fee on each EWCP loan annually by selecting Option 2. Lenders selecting Option 2 will receive an annual invoice on each EWCP loan from SBA’s DFC. The EWCP loan balance reported by the Lender on the monthly SBA Form 1502 Reports for the EWCP loan will allow Denver Finance Center (DFC) to compute the EWCP Ongoing Fee amount to be billed annually. The vast majority of EWCP loans have a maturity of 12 months or less; however, EWCP loans may have a maturity of up to 36 months. For EWCP loans with a maturity of 12 months or less, Lenders will receive one EWCP Ongoing Fee invoice after maturity. For EWCP loans with a maturity in excess of 12 months and not more than 24 months, Lenders will receive an EWCP Ongoing Fee invoice 12 months after closing and again after maturity. For EWCP loans with a maturity greater than 24 months, Lenders will receive an EWCP Ongoing Fee invoice 12 months after closing, 24 months after closing and again after maturity. The DFC will mail the Lender an EWCP Ongoing Fee invoice on each EWCP loan within 60 days of each 12-month interval on the EWCP loan and payment will be due within 30 days of the date of the invoice. The invoice will be for the EWCP Ongoing Fee amount owing for the previous 12 months, or shorter period for loans maturing prior to the end of the 12-month period. Lenders will be given instructions on the invoice to make payment using the Pay.gov online payment process. Fiscal Transfer Agent will send monthly EWCP reports to DFC and SBA’s Office of International Trade (OIT). This report will track information on each EWCP loan by Lender, including but not limited to the following: i) Whether the Lender is submitting SBA Form 1502 Reports on EWCP loans as required; ii) When annual invoices are to be sent; and iii) The accrued amount to be billed for the EWCP Ongoing Fee for each EWCP loan. ii. The DFC will send a monthly report to OIT and SBA’s Office of Credit Risk Management reporting any Lenders that are delinquent on payments of invoiced EWCP Ongoing Fees. OIT will be responsible (through delegation to the Export Finance Manager) for monitoring Lenders in regard to submitting the required SBA Form 1502 Reports and the payment of the required EWCP Ongoing Fees. A Lender’s failure to pay any of the fees (and any interest and penalties that are subsequently charged by SBA due to a lender’s delinquent payment) may result in SBA’s decision to suspend or revoke a lender’s eligibility to participate in SBA’s 7(a) program or to limit a lender’s delegated authority.
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