SBA Site to Aid Small Banks Fearful of Trade Finance

By Kline, Alan | American Banker, October 1, 1999 | Go to article overview

SBA Site to Aid Small Banks Fearful of Trade Finance


Kline, Alan, American Banker


WASHINGTON -

The U.S. Small Business Administration is counting on the Internet to change community bankers' views about international trade.

Recognizing that most small banks consider trade financing to be more trouble than it is worth, the agency has developed an on-line rating service that, in a few keystrokes, can help a bank determine the creditworthiness of foreign companies that trade with its small-business customers. SBA officials hope the quick-response system -- to be launched today in New England -- will ease bankers' fears and encourage them to finance more imports and exports.

"The beauty of this is that a bank is not going to have to create an international lending division just to do loans for these folks," said Jean Smith, deputy assistant administrator at the SBA's Office of International Trade.

Dubbed EXR Online, for Export Risk Analysis, the program is free and available to all small-business lenders through a password issued by the SBA. If it catches on in New England, it will be offered to West Coast lenders by early next year. Plans for further expansion have not been set.

Trade finance is not a new business for the SBA; it has offered loan guarantees on overseas transactions for about five years. But the program, which handles just a few hundred transactions each year, has not come close to meeting expectations, partly due to a lack of interest among small banks, Ms. Smith said.

"A lot of banks don't get into this business because it takes time and effort," she said.

The community banks doing well in this market have hired specialists in international lending. Most others either refer loan requests to their larger correspondent banks -- which typically have sophisticated international divisions -- or have chosen to stay out of the game entirely

"You can't really justify ramping up for it for the few occasions that business customers ask for this type of thing," said Robert Daigle, president of $582 million-asset Camden (Maine) National Bank. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

SBA Site to Aid Small Banks Fearful of Trade Finance
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.