Money Management

There are several different types of SBA loans for business owners who want to expand internationally. Read on to learn more about one of them. 

If you’re a business owner who has always wanted to break into the international market, the Small Business Administration (SBA) is an excellent place to start. The SBA International Trade Loan (ITL) offers small businesses a chance to compete with the big boys by expanding into the international market. Here’s how it works.

What it’s intended to do

The ITL is intended to cover the cost of inventory, materials, and even advertising. An ITL can be used to acquire, construct, modernize, or expand a facility and equipment used in the U.S. to produce goods or services intended for international trade. It may also be used to bring back production facilities to the U.S., as working capital, and to refinance eligible business debt.

The loan has a term of up to seven years for lines of credit, 10 years for permanent working capital, 10 years for equipment and machinery, and up to 25 years for real estate. The generous term is designed to give businesses enough time to expand and realize a profit.

If you’ve applied with other lenders, but your loan application has been turned down, the SBA may step in to guarantee up to 90% of the loan. SBA-approved lenders are willing to work with you because they know that if you fail to make payments, the SBA will step in and pay back 90% of the loan.

If you decide to apply, it can pay to learn as much as you can about the process.

International Trade Loan details

Eligibility requirements

Only companies that meet these requirements are eligible for an ITL:

Must be a U.S.-based business, whether it’s located in a brick-and-mortar location or onlineMust be a for-profit businessMust have good credit and strong financialsBusiness must be small enough to conform to the SBA definition of a “small business”Must show that your business is capable of expanding into the current export market or can develop new markets

Other types of SBA loans that may work

Before heading to a local bank, it’s good to know that the ITL is not the only SBA loan that can help your business export goods to other countries. The Export Working Capital Program (ECWP) offers loan amounts up to $5 million, with the SBA guaranteeing up to 90%. However, an ECWP loan must be repaid within three years.

The Export Express Loan is designed to be approved in as little as 24 hours and has a maximum loan amount of $500,000. The SBA guarantees 75% of an Export Express Loan and offers the same repayment terms as an ITL.

Perks of an ITL

For a person whose business is ready to expand into international trade, an ITL offers a number of benefits, including:

Loan amounts up to $5 millionSBA guaranty of 90%Repayment terms up to 25 yearsA wide range of approved uses

It’s good to remember that the SBA offers more than business loans. It’s also a great place to work with a mentor, network, ask for advice, and gain knowledge. In short, it’s an often untapped resource that will partner with you to make your business all it can be.

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It’s a good time to review your finances. Read on for some key areas to look at. 

It’s hard to believe that we’re halfway through 2023, but alas, here we are. So far, it’s been an interesting few months. We’ve gone through a banking industry meltdown and seen inflation persist. And we’ve certainly heard our fair share of recession warnings.

You may have different goals you’re trying to meet in 2023, despite the challenging factors above. So now’s a good time to review them all. Here are some specific moves you may want to make.

1. Revisit your budget

If you’re someone who follows a budget, you may be in the habit of setting up a new one at the start of each year. Now’s the time to make sure your budget is realistic.

It may be that some bills of yours have climbed since the start of 2023. Or maybe you got a new job this year that resulted in a new salary.

Comb through your expenses to make sure your budget still works. And also, examine your expenses and make sure they’re still all worth paying for. You may, for example, want to dump a streaming service if you can’t remember the last time you used it.

2. Check your emergency fund balance

It’s important to have money set aside in your savings account in case an unplanned expense pops up. Recent data from SecureSave found that 67% of Americans could not cover a $400 expense with money from savings. If you’re in a similar boat, it’s important to try to ramp up.

But even if you started the year with a more robust emergency fund, it may be that you had to pull from your cash reserves to do things like pay for home or car repairs. Take a look at your emergency savings balance and see if it will still suffice in covering three months of essential bills. If not, you may want to focus on boosting your cash reserves between now and December.

3. Give your portfolio a thorough review

If you’re investing for your future, whether in a taxable brokerage account or an IRA, it’s important to have a nice, balanced mix of stocks and other assets. Take a look at your portfolio to make sure it’s as diversified as you’d like it to be.

Over time, the value of different assets you own can change so that you may end up less diversified than expected. If that’s the case, do some rebalancing. That could mean selling stocks that are part of sectors you’re too heavily invested in and buying stocks in sectors that aren’t well-represented in your portfolio. You can also look at buying S&P 500 ETFs as a means of diversifying.

4. Do some tax planning

Did you owe the IRS a lot of money this past April? If so, it may be time to start strategizing so you end up with a smaller bill next year.

Or maybe you got a giant tax refund this past spring. That might seem like a good thing in theory, but it means you parted with extra money in 2022 for no reason. If that’s the case, talk to your accountant about adjusting your tax withholding.

5. See how you’re doing with your 2023 goals

Maybe one of your objectives this year is to get closer to being able to buy a home. Or maybe you’re hoping to pay off your car or shed a credit card balance.

Now’s a good time to see how much progress you’ve made toward your goals so far. If you’re not happy in that regard, you may want to look at making changes, like cutting back on some expenses or picking up a side hustle to boost your income.

The midpoint of the year is a great time to review your financial picture. Make these moves sooner rather than later so you can close out the year happy with where your finances stand.

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Costco is taking steps to prevent members from allowing others to use their cards at self checkout. Here’s what to do if you can no longer share a membership. 

Costco memberships provide a great value for many people, as the warehouse club’s discounted prices enable you to keep your credit card bills down by taking advantage of the store’s good deals.

Some people have been taking advantage of Costco bargains without their own memberships, though — generally by borrowing a card belonging to a member and using it at self-checkout.

Costco is aiming to put an end to this practice now by asking to see a Costco card with a photo on it at self-checkout registers. For cards without a photo, the warehouse club will be asking for an additional form of photo identification.

With Costco now making sharing memberships impossible, those who have been taking this approach to warehouse shopping will need to explore the other options available to them. Here are a few of them.

1. Share one card with a household member

Although sharing with people outside of your household is a no-no, Costco does allow you to provide account access to one other person. Specifically, both primary and affiliate members are given a single free Household Card that can be used by anyone age 16 and over who lives at their address.

Don’t assume you can give this single card to a friend or loved one who lives elsewhere, though. The Costco website makes clear that the shopper who is using the household card may be required to provide proof that their address is the same as the primary or affiliate account holder’s address.

2. Account sharers can go shopping together

Although Costco members cannot give a card to someone outside of their household, there’s no rule that says they can’t bring a friend with them when they shop. Non-members who were previously sharing cards with Costco members can simply tag along with the member and have the member check them out.

The member does have to pay, though. Fortunately, it’s easy enough for the friend who comes along to send over the money they spend on Costco goods from their checking account using services like Zelle or Venmo.

This is one of the few options for getting around the rule that says only household members can share cards. If you and a friend or loved one were splitting a membership to save money and you want to continue to do so despite living at different addresses, this is likely the approach you will need to take.

3. Each household can purchase their own membership

Finally, the last available option is for each separate household to simply have their own membership. So, if you were getting a card from a friend and can’t do so any longer, you’ll need to decide if getting a Costco membership of your own is worth it for your personal finances.

Costco memberships start at $60 annually for the Gold Star membership or $120 for the Executive membership. And, there are periodic promotions that allow you to get a gift card with membership, which can effectively reduce the annual cost.

If you shop at Costco often with your shared card, this approach may just be your best bet so you can ensure you continue to get access to the products you love at Costco’s affordable prices.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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