SBA says, “Let’s Open New Markets Overseas: Exporting Helps Creates Jobs”

By Yolanda Garcia Olivarez, SBA Regional Administrator

Today's stats show about 1.4 million jobs in the South Central Region are created as a result of exporting.  That number can grow significantly as new trade markets open.

Nationwide, ninety-eight percent of American companies that export are small businesses, but more than half of our exporters are only selling to one foreign market, usually Canada or Mexico. It’s time to take action to help more entrepreneurs reach new markets for their goods and services.

Therefore, it is essential for Congress to renew Trade Promotion Authority early this year to help open doors for small businesses that would otherwise remain closed. New trade agreements are critical to helping level the playing field for our nation’s small business exporters, which have fewer resources to overcome trade barriers and gain market access than larger companies

Last year, the U.S. exported a record $2.3 trillion of goods and services, an all-time high. One out of every five American jobs is tied to exports. These jobs generally pay better, nearly 20 percent better. 

Under President Obama, SBA has supported $6.6 billion in small business export financing – more than any other President. We guarantee 90 percent of export loans (working capital, line of credit, or fixed-asset financing) on amounts up to $5 million. We also have an expedited approval process on export loans under a half-million dollars.

With two thirds of the world’s purchasing power residing outside the U.S., the SBA is acutely aware that trade agreements play an important role in the long-term success of America's small businesses, and SBA is working to help small business owners across the country grow their businesses in this global economy.

Through its network of trade finance specialists located in U.S. Export Assistance Centers throughout the country, SBA provides training and consultation services on trade financing and U.S. government export programs to both lenders and small businesses.

Robert and Sherri Basnett, in San Antonio, elevated their small business Semiconductor Services Inc. through a SBA guaranteed export loan. The company provides used semiconductor equipment as well as parts and retrofits since 2001. They currenlty employ 28; with 23 in the U.S., four in China and one in Singapore. In 2013 Semiconductor Services Inc. was approved for a $1million SBA export loan which was used to increase and support the company’s foreign sales. Sherri said, “The loan is important to allow us to purchase the inventory and fund the build process of the $1 million orders that we are exporting overseas.  Asia, mainly China, has become almost 50% of our total sales each year”.

Semiconductor Services, Inc. works continuously to enhance their integrity and reputation with an experienced staff that pocesses a full understanding of semiconductor equipment, coupled with a commitment to quality and efficiency.

We know that small businesses that export to foreign markets grow faster, create more jobs, and pay higher wages than small businesses that serve purely domestic markets.

While 98% of U.S. exporters are small businesses, only 1% of U.S. businesses export.

If you’re an entrepreneur looking to expand your customer base, there’s never been a better time to think globally before acting locally. Explore to learn how take your company international today.

This article was published by the Small Business Administration and can be found here.