# What is a transaction-based versus an asset-based EWCP loan?

**Short answer:** A transaction-based Export Working Capital Program (EWCP) loan advances against specific foreign orders or contracts, up to 90%. An asset-based loan is a revolving line against foreign receivables and export inventory, reported on a Borrowing Base Certificate (SOP 50 10 8.1, Sec. B, Ch. 5, Paras. B.5 and B.8).

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Last checked: 2026-11-08

A transaction-based EWCP loan finances specific export orders. An asset-based EWCP loan is a revolving line against foreign receivables and export inventory (SOP 50 10 8.1, Sec. B, Ch. 5, Para. B.5.a).

## Transaction-based

- Supports one or several transactions during the loan term, revolving or non-revolving.
- Maximum advance: 90% of the purchase order or contract, or your costs including overhead, whichever is less (Para. B.8).
- The lender sets up a control account and applies foreign receipts against the balance.
- No field examination is required.

## Asset-based

- Supported by a Borrowing Base Certificate, typically committed for 12 months and renewed annually.
- Maximum advance: 90% of eligible foreign receivables and 75% of eligible export inventory in the United States.
- A field examination is required before the first disbursement on loans of $1,000,000 or more. Loans of $2,000,000 or more need one at least annually.
- The section requires monthly certificates in one place and quarterly certificates for loans of $1,000,000 or less in another. Ask your lender which it follows.

## Open-account sales

Without credit insurance or a letter of credit, the advance rate may not exceed 80%. A PLP-EWCP lender may go to 90% on uninsured receivables from creditworthy buyers or governments, with documentation (Para. B.8).

## Receivable terms

Credit-insured and uninsured open-account receivables must not exceed 180 days from invoice. Those backed by acceptable letters of credit must not exceed 364 days (Para. B.8).

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 5, Paras. B.5 and B.8 (Para. B begins p. 175)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)