# What collateral does an EWCP loan require?

**Short answer:** A first security interest in the export collateral: inventory, foreign receivables, credit insurance and letter of credit proceeds. It must be located in the United States (SOP 50 10 8.1, Appendix 19, Para. B.7; 13 CFR 120.343).

Canonical page: https://www.sbaexpress.loans/answers/ewcp-collateral/
Last checked: 2026-11-08

An Export Working Capital Program (EWCP) lender must obtain a first security interest in all collateral tied to the financed export transactions. SOP 50 10 8.1, Appendix 19, Para. B.7 and 13 CFR 120.343 require it. Collateral must be located in the United States, its territories or possessions.

## What usually serves as collateral

Export inventory, receivables, credit insurance assignments, letter of credit proceeds and contract proceeds. SBA generally treats the export inventory and foreign receivables a business generates as adequate coverage. Receivables from foreign buyers are not treated as foreign assets and may be taken as collateral (Para. B.7).

## Staying in margin

The lender must take active steps to keep the loan in margin, meaning availability is at least equal to the principal balance. SBA, or a PLP-EWCP lender, may require a lien on other business assets.

## Personal guaranties

Personal guaranties of all owners of 20% or more are generally required. SBA's Director of International Trade Finance may waive them (Para. B.7).

## Standby letters of credit

On a transaction-based loan, you must deposit cash equal to at least 25% of the standby letter, for its full term. On an asset-based loan, export inventory, foreign receivables or other acceptable collateral may replace the cash. The lender must also reserve 100% of the issued amount against the loan, or 75% where cash backs a performance letter (Para. B.7).

## Sources

- [SOP 50 10 8.1, Appendix 19, Para. B.7 (Para. B begins p. 408)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.343](https://www.ecfr.gov/current/title-13/section-120.343)