SBA SOP 50 10 8.1, B.Ch5.C.1 — Eligibility for International Trade Loans

SOP 50 10 8.1 B.Ch5.C.1

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

C. International Trade (IT) 13 CFR § 120.345 - 120.349 Lenders must always start by reviewing the contents of Section A, Core Requirements for all 7(a) and 504 Loans. 1. Eligibility for International Trade Loans SBA is authorized to guarantee International Trade Loans to small businesses that are engaged in or preparing to engage in international trade (i.e., in a position to expand existing export markets or develop new export markets) or are adversely affected by import competition to improve the small business’s competitive position. In addition to the core requirements identified in Section A, to be eligible for these loans, the Applicant must either 1) be expanding existing or developing new export markets, OR the Applicant 2) be adversely affected by import competition. Within the credit memorandum and the SBA Loan System, the Lender must state which category described in subparagraphs a. and b. below applies to the Applicant. In addition, the SBA Lender must demonstrate how the loan will help the Applicant improve its competitive position, as described in subparagraph c. below. a. Development or Expansion of Export Markets: The loan proceeds will expand existing export markets or develop new export markets. To establish this, the Applicant must submit an export business plan, including both a projection and narrative rationale that contains enough information to reasonably support the likelihood of expanded export sales. i. The plan should identify the amount of expected export sales. ii. In such cases, the Applicant must provide documentation to the Lender from the Applicant’s domestic customer (typically in the form of a letter, invoice, order, or contract) that the goods or services are in fact being exported. iii. For all of the Applicant’s exports, the Lender must determine if U.S. companies are authorized to conduct business with the country to which the goods or services will be shipped, pursuant to the Ex-Im Bank Country Limitation Schedule. A loan may not be made to a business that directly or indirectly exports to a foreign country which is listed as a prohibited country (Note #7) on the Country Limitation Schedule without approval from the federal government to export products to those countries; or b. Adversely Affected by Import Competition: The Applicant must demonstrate injury attributable to increased competition from foreign firms in the relevant market and submit an explanation and financial statements showing that imported products or services which are directly competitive with those produced or provided by the Applicant have contributed significantly to a decline in competitive position are required. SBA, upon review of U.S. government data, has determined, pursuant to the authority set forth in 15 U.S.C. § 636(a)(16)(D), that small businesses in the following industries meet the threshold eligibility criteria of 15 U.S.C. § 636(a)(16)(D)(i & ii) of having been adversely affected and injured by international trade and increased import competition: i. Manufacturing NAICS:  Sectors 31, 32, 33 ii. Mining, Quarrying, and Oil and Gas Extraction – NAICS:  Sector 21  Subsectors:  211 – Oil and gas extraction  212 – Mining (Except Oil and Gas)  213 – Support Activities for Mining iii. Food Supply Chain – NAICS Groups and National Industry Codes:  1111 - Oilseed and Grain Farming  1112 - Vegetable and Melon Farming  1113 - Fruit and Tree Nut Farming  1121 - Cattle Ranching and Farming  1122 - Hog and Pig Farming  1123 - Poultry and Egg Production  1124 - Sheep and Goat Farming  1125 - Aquaculture  1129 - Other Animal Production  1141 - Fishing  1151 - Support Activities for Crop Production  1152 - Support Activities for Animal Production  423820 - Farm and Garden Machinery and Equipment Merchant Wholesalers  4244 – Grocery and Related Product Merchant Wholesalers  4245 – Farm Product Raw Material Merchant Wholesalers  424910 – Farm Supplies Merchant Wholesalers  445110 – Supermarkets and Other Grocery Retailers  484220 –Specialized Freight Trucking, Local – Food Only  484230 – Specialized Freight Trucking, Long Distance – Food Only  493120 – Refrigerated Warehousing and Storage  493130 – Farm Warehousing and Storage *Note: NAICS 484220 and 484230 are limited to refrigerated and frozen trucking, farm products, grain products, and livestock. Loans made to small businesses in the abovementioned industries do not require any additional documentation demonstrating how the Applicant was adversely affected and injured by international trade and increased import competition c. Improve Competitive Position: In addition to satisfying the criteria in either paragraph 1.a. or 1.b above, the loan must satisfy the statutory requirement that it will improve the Applicant’s competitive position. To satisfy this requirement, the SBA Lender must document in its credit memorandum how the loan will have a positive impact on the business. This is commonly accomplished by the Lender when summarizing the transaction and reason for the loan request in the credit memorandum. d. Ineligible Industries: The following NAICS Industry Subsectors are ineligible for International Trade Loans, but may be financed using other SBA 7(a) financial assistance: i. NAICS Industry Subsector Code 721 (Accommodation) ii. NAICS Industry Subsector Code 457 (Gasoline Stations).

Source: SBA SOP 50 10 8.1, B.Ch5.C.1 — Eligibility for International Trade Loans · source URL · snapshot 0fb0c4692cf52938