SBA and ITFA Form Strategic Alliance to Facilitate Global Trade for Small Businesses
The U.S. Small Business Administration (SBA) recently announced a significant development in its efforts to support small businesses engaged in international sales. A Strategic Alliance Memorandum (SAM) has been signed between the SBA and the International Trade & Forfaiting Association (ITFA) with the primary goal of enhancing global trade and trade finance while reducing barriers for small businesses. Through this partnership, exporters and lenders will gain access to valuable education on financing methods and risk management solutions essential for smooth global trade operations.
Formalizing the Relationship with ITFA
ITFA, a prominent trade association representing banks, financial institutions, and service providers involved in trade risk and asset origination and distribution, will formalize its existing relationship with the SBA through this strategic alliance. By joining forces, the SBA and ITFA aim to bolster exporting capabilities and provide vital education and technical training to both lenders and small businesses.
Supporting Small Business Exporters
Gabriel Esparza, Associate Administrator of SBA’s Office of International Trade, highlights that the agreement with ITFA is designed to enhance the exporting capabilities of small businesses through education and training. With over 1.3 million small business exporters and a potential export market of 2.6 million, as identified in the SBA’s Total Addressable Market Study, collaborations with organizations like ITFA play a crucial role in supporting these globally-minded businesses. This partnership aligns with the Biden-Harris Administration’s commitment to fostering opportunities for small businesses and strengthening the overall economy.
Expanding Access to Education and Resources
ITFA Chairman Sean Edwards expresses enthusiasm for this milestone collaboration, emphasizing the wide-ranging opportunities it presents. The partnership will offer Small and Medium-Sized Enterprises (SMEs) in the US improved access to education and global resources, empowering them to better manage credit risks and meet their credit needs with support from ITFA members worldwide. Edwards believes that by combining their efforts, they can drive economic growth and create a thriving ecosystem that benefits both ITFA members and SMEs seeking international expansion.
SBA’s Focus on International Trade Support
The SBA, through its Office of International Trade, is dedicated to supporting small and mid-sized exporters, aiming to increase the number of businesses involved in exporting and boost the dollar value of exports. This objective is achieved by providing access to education, technical assistance, capital, and trade policy expertise to facilitate market access for small businesses across the Agency’s operations.
The collaboration between the SBA and ITFA marks a significant step forward in promoting global trade opportunities for small businesses. By equipping exporters and lenders with the necessary knowledge and resources, this strategic alliance sets the stage for small businesses to thrive in the international marketplace, contributing to economic growth and prosperity.
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