The SBA and ITFA Join Forces to Boost Global Trade
June 23, 2023
The US Small Business Administration (SBA) has recently signed a Strategic Alliance Memorandum (SAM) with the International Trading and Forfaiting Association (ITFA) to facilitate and promote global trade. As part of this collaboration, the SBA will work closely with ITFA to provide education on financing strategies and risk management solutions for exporters and lenders.
With ITFA being a globally recognized trade association representing banks, financial institutions, and service providers involved in business risk and asset allocation, this partnership solidifies the existing relationship between the SBA and ITFA.
Encouraging Export Capacity Building
The strategic agreement between the SBA and ITFA aims to enhance export capacity by focusing on education and technical training for lenders and small businesses alike. According to the SBA’s Total Addressable Market Study, there are currently over 1.3 million small businesses involved in exporting, with a potential export market of 2.6 million. By leveraging thought leaders from both organizations, the SBA and ITFA can bolster support for export finance and contribute to the Biden-Harris Administration’s commitment to foster small business growth and strengthen the economy.
The SBA Office of International Trade Associate Administrator, Gabriel Esparza, highlighted the significance of partnerships like the one with ITFA in supporting globally-minded small businesses. Esparza explained, “Our joint efforts will leverage thought leaders from both the SBA and ITFA to increase support for export finance. In doing so, this partnership helps fulfill the Biden-Harris Administration’s commitment to create opportunities for small businesses and strengthen our economy for all of us.”
Expanding Opportunities for SMEs
This collaborative effort by the SBA and ITFA opens up immense opportunities for small and medium-sized businesses (SMBs) in the US. Many of these businesses may not be aware of alternative financing options or risk management strategies available to them. By tapping into the vast global resources and expertise of ITFA members, SMBs can better manage their credit risks and explore new avenues for growth.
Sean Edwards, President of ITFA, emphasized the potential for economic growth resulting from this partnership. Edwards stated, “By leveraging our combined efforts, we are fueling economic growth and creating a thriving ecosystem that benefits both our members and the SMEs they serve. Together, we will forge new paths, unlock new avenues for collaboration, and usher in a new perspective for SMEs looking to expand globally.”
The SBA’s Commitment to Small and Medium Exporters
Through its Office of International Trade, the SBA is dedicated to supporting small and medium-sized exporters by increasing the number of businesses that engage in exporting and boosting the dollar value of those exports. The agency accomplishes this through various means such as providing access to education and technical assistance, facilitating access to capital, and shaping trade policies to support market access for small businesses.
Unlocking the Potential of Global Trade: An In-Depth Look
Global trade plays a pivotal role in the economic growth and development of nations. It offers businesses the opportunity to expand their customer base beyond domestic borders, tap into new markets, and diversify revenue streams. However, engaging in international trade comes with its own set of challenges, especially for small and medium-sized businesses.
The Benefits and Challenges of Exporting
Exporting presents a plethora of benefits for businesses, including increased revenue, access to new customers, and reduced dependence on a single market. However, venturing into global trade also entails various challenges, such as navigating complex international regulations, managing currency fluctuations, and mitigating risks associated with non-payment or delivery issues.
By partnering with organizations like ITFA, the SBA aims to address these challenges and equip small businesses with the knowledge and resources they need to thrive in the global marketplace. Through education and technical training, exporters can learn about financing methods, risk mitigation strategies, and other essential aspects of international trade.
Expanding Global Trade Opportunities
The collaboration between the SBA and ITFA paves the way for greater access to education and global resources for SMBs in the US. By leveraging ITFA’s extensive network of members and their expertise in business risk and asset creation, small businesses can gain valuable insights and support to effectively manage credit risks, explore financing options, and expand their global reach.
It is crucial for SMBs to be aware of alternatives to traditional financing, such as forfaiting and factoring, which can provide them with greater liquidity and help them overcome financing barriers. Moreover, understanding risk mitigation solutions and having access to trade credit insurance can protect exporters from potential financial losses and ensure the smooth execution of transactions.
The Role of Technology in Streamlining Global Trade
Advancements in technology have revolutionized global trade, making it more accessible and efficient than ever before. Online platforms and digital marketplaces connect buyers and sellers from across the globe, reducing barriers to entry and simplifying the export process.
Additionally, digital solutions such as blockchain technology offer increased transparency, security, and efficiency in international transactions. Blockchain enables parties involved in a trade to have a shared and immutable record of transactions, eliminating the need for intermediary verification and reducing the risk of fraud or disputes.
Conclusion
The collaboration between the SBA and ITFA marks a significant step towards supporting small businesses in their global expansion efforts. By providing education, technical training, and access to global resources, this partnership aims to equip SMBs with the necessary tools to navigate the complexities of international trade successfully.
In Summary
The US Small Business Administration (SBA) has partnered with the International Trading and Forfaiting Association (ITFA) to promote global trade and provide education on financing methods and risk mitigation strategies. The alliance seeks to boost export capacity and support small businesses’ growth in the international marketplace.
With over 1.3 million small businesses involved in exporting in the US, the collaboration between the SBA and ITFA aims to leverage their combined expertise to address challenges and provide valuable resources to exporters. By unlocking new avenues for collaboration and offering access to global resources, SMBs can expand their reach and thrive in the global marketplace.
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Small business
June 23, 2023
The US Small Business Administration (SBA) has signed the Strategic Alliance Memorandum (SAM) with the International Trading and Forfaiting Association (ITFA). The two organizations will work to educate exporters and lenders on financing methods and risk mitigation solutions needed to facilitate global trade.
ITFA is a global trade association representing the interests of banks, financial institutions and service providers involved in business risk and asset creation and allocation, formalizing the SBA’s existing relationship with the association.
“SBA’s new agreement with ITFA aims to build export capacity through education and technical training for both lenders and small businesses. Based on the findings of the SBA’s Total Addressable Market Study released earlier this year, we know there are more than 1.3 million small exporting businesses with a potential export market of 2.6 million. Partnerships with organizations like ITFA play a key role in supporting these globally-minded businesses, said SBA Office of International Trade Associate Administrator Gabriel Esparza. “Our joint efforts will leverage thought leaders from both the SBA and ITFA to increase support for export finance. In doing so, this partnership helps fulfill the Biden-Harris Administration’s commitment to create opportunities for small businesses and strengthen our economy for all of us.”
“This important joint effort opens the doors to immense opportunities, offering greater access to education and global resources for Small and Medium Businesses (SMBs) in the US, who may be unaware of alternatives to better manage their credit risks and meet their needs with the help of our members around the world,” said Sean Edwards, ITFA President. “By leveraging our combined efforts, we are fueling economic growth and creating a thriving ecosystem that benefits both our members and the SMEs they serve. Together, we will forge new paths, unlock new avenues for collaboration, and usher in a new perspective for SMEs looking to expand globally.”
Through its Office of International Trade, the SBA works to support small and medium-sized exporters with the goal of increasing both the number of businesses exporting and the dollar value of those exports. This work is done agency-wide by offering access to education and technical assistance, access to capital, and trade policy to support market access for small businesses.
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