The U.S. Small Business Administration (SBA) has announced the signing of a Strategic Alliance Memorandum (SAM) with the International Trade & Forfaiting Association (ITFA). The partnership aims to reduce global trade barriers for small businesses and provide education on financing methods and risk mitigation solutions to exporters and lenders.
This collaboration is set to make a significant impact on small businesses, particularly those involved in exports. It comes at a time when there are over 1.3 million small business exporters in the U.S., with a potential export market of 2.6 million, according to the SBA’s Total Addressable Market Study.
“SBA’s new agreement with ITFA aims to build capacity for exporting through education and technical training for both lenders and small businesses,” said Gabriel Esparza, Associate Administrator of SBA’s Office of International Trade. “Our joint efforts will leverage the thought leaders in both the SBA and ITFA to grow support for export finance. By doing so, this partnership helps deliver on the Biden-Harris Administration’s commitment to create opportunities for small businesses and strengthen our economy for all of us.”
The ITFA is a global trade association representing the interests of banks, financial institutions, and service providers involved in trade risk and asset origination and distribution. The signing of the SAM formalizes the SBA’s existing relationship with the association, setting the stage for more structured and impactful collaboration in the future.
“This milestone joint effort opens doors to immense opportunities, offering greater access to education and global resources for Small and Medium-Sized Enterprises (SMEs) in the U.S.,” said Sean Edwards, ITFA Chairman. He believes that SMEs, who may not be aware of alternative solutions for managing their credit risks and satisfying their credit needs, will greatly benefit from this international collaboration. “Together, we will forge new paths, unlock fresh avenues of collaboration, and usher in a new perspective for SMEs looking to expand globally.”
Through its Office of International Trade, the SBA supports small and mid-sized exporters with the aim of increasing both the number of businesses exporting and the value of those exports. This work includes offering access to education, technical assistance, capital, and trade policy to support market access for small businesses.
This partnership with ITFA signifies an important move towards enhancing international trade opportunities for small businesses in the U.S., which will inevitably spur economic growth. It also underscores the SBA’s commitment to providing the necessary resources and support to empower small businesses to navigate global markets confidently.
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