1. The SBTDC is a business advisory service of The North Carolina University System operated in partnership with the US Small Business Administration. sbtdc.org | info@sbtdc.org Mary Romano International Business Counselor

2. About the Small Business and Technology Development Center (SBTDC) Established in 1984 by The University Board of Governors –US Small Business Act – authorized national SBDC Program –Federal funding provided through US Small Business Administration (SBA) –Matching funds provided by the University of North Carolina System Unique Inter-Institutional Program One of 63 Small Business Development Centers in the US –In every US state and territory 2

3. Accredited nationally by the Association of Small Business Development Centers Over 70 staff statewide including business counselors and specialists, and 350+ students engaged each year Provide in-depth business advice/counseling & technical assistance –Available to businesses with under 500 employees –Counseling services available at no cost –Modest fees for specialized products, tools & resources –Registration fees for training programs & conferences 3

4. SBTDC Mission Support the growth and development of North Carolina’s economy by: –encouraging entrepreneurship –assisting in the creation and expansion of small to medium-sized enterprises –facilitating technology development and commercialization –supporting economic development organizations 4

5. Federal Agency Partnerships North Carolina’s representative: –Since 1984, in the SBA’s national Small Business Development Center (SBDC) program –Since 1986, in national Procurement Technical Assistance program (DLA) –Since 1997, in national City-State Partnership program of the US Export-Import Bank 5

6. Statewide Offices State Administrative Office in Raleigh Regional Service Centers in: Asheville, Boone, Chapel Hill, Charlotte, Cullowhee, Durham, Elizabeth City, Fayetteville, Greensboro, Greenville, Hickory, Pembroke, Raleigh, Wilmington, Winston-Salem 6

7. Core Business Services Business counseling Education and training Applied research Publications / Web-based Resources Advocacy 7

8. Business Counseling Addressing such issues as: –Strategic positioning / performance –Access to debt & equity capital –Market growth / development –Human resource management –Operations –Business planning Providing expert referrals 8

9. Statewide Programs & Services Government Procurement (PTAC) Technology Development & Commercialization International Business Development Marketing & Research Services Private Equity Initiatives Strategy & Growth Services 9

10. Publications Business Start-Up and Resource Guide Capital Opportunities Report Guide to Conducting International Market Research Intellectual Property Guide Annual State of Small Business www.sbtdc.org 10

11. International Business Development The NC SBTDC’s International Business Development program is NASBITE accredited. We assist small and mid-sized businesses with export planning and exporting. –Counseling: the business side of export –Training: export business planning and CGBP exam prep Our team is Certified Global Business Professional (CGBP) credentialed. –Our goal is to increase the number of mid-sized businesses that are exporting and to assist existing small business exporters in expanding their foreign market sales. 11

12. International Business Development Global Business Management –Evaluating export readiness for “new-to-export” clients –Developing strategies and tactics for exporting Global Marketing –Identifying potential international export markets –Locating and evaluating potential export sales representatives –Pricing methods and strategies for export products and services

13. International Business Development Supply-Chain Management –Understanding basic agency and distribution agreements –Understanding basic export licensing and trade restrictions –Understanding basic logistics including foreign freight forwarders Trade Finance –Budgeting for exports including financial analysis and forecasting –Understanding payment methods for export sales –Technical assistance with SBA and ExIm financing

14. International Business Development Export planning and financing assistance for successful, domestic companies looking to expand exports Link to US Export-Import Bank loan guarantee and credit insurance services Access to SBA export lines of credit 14

15. International Business Development: Assistance with Access to Capital Pre-export working capital: Ex-Im Bank & SBA Export Working Capital guarantee, Ex-Im Bank Global Credit Express Pilot Loan Letters of Credit, Loans: Commercial Banks Short/Medium/Long-Term Insurance/Loans/Guarantees: Private Credit Insurance, Ex-Im Bank 15

16. Letter of Credit (L/C) A written document issued by a bank (at the request of the bank’s customer) to a specified beneficiary by which the bank substitutes its own credit for that of its customer. The bank undertakes to make payment to the beneficiary under conditions specified in the L/C.

17. AT _SIGHT_____________ ABC CO. XYZ CO. ABC CO. AMOUNT APRIL 24, 1996 Letter of Credit Exporter Importer(Buyer) (Seller) Agreement (1) B/L (6) Merchandise Merchandise (5) (13) (10) (2) (9) Foreign Issuing Bank (12) (4) Docs/Draft (8) (3) Letter of Credit (11) Apply for LC (7) LC/ Docs Draft LC Advised U.S. Bank

18. Another Option – Export Credit Insurance Ship on open account terms with payment insured Be more competitive by offering open account terms rather than CIA or L/C Market to riskier areas Obtain loans based on insured foreign a/r Protection against commercial and political risks

19. The World is Open for North Carolina’s Business: Why should your constituents export? Demand. More than 95 percent of the world’s customers are located outside the US. Job Growth. Nearly 6 million U.S. jobs are linked to exporting. U.S. exporting firms’ annual employment growth rate has traditionally been 2 to 4 percentage points higher than their non-exporting counterparts. Higher Wages. Workers in jobs supported by exporting receive 13 to 18 percent higher wages than workers in non-exporting firms. Stability & Growth. Having a diversified customer base enables exporters to weather economic ups and downs. They also grow 1.3 percent faster and are nearly 8.5 percent more likely to stay in busine ss than companies that do not export. 19

20. SBTDC’s International Business Development Impact In 2013 : –SBTDC counseled 343 clients in International Trade –SBTDC IBD clients created or retained 498 jobs –SBTDC clients received almost $7 million in export capital formation 20

21. Success Story: Slade, Inc. SBTDC’s 1 st Ex-Im Bank Client In 1997: –Export to one country: Spain In 2011: –Exports: 65% of company sales –Representation in 57+ countries –Exports support more than half of company’s 30 employees 21

22. Success Story: Recent Ex-Im Bank Client In 4Q 2013: –Applied for Ex-Im Bank Express Insurance policy and received coverage In 1Q 2014: –Started using policy –6 customers currently covered on policy, new buyers added –Export sales supported YTD: almost $900,000 22

23. International Trade Assistance Available SBTDC Ex-Im Bank SBA USDOC NCDOC NCDA 23

24. What About International Markets for Businesses in your County? According to the US Census Bureau, there are almost 800,000 businesses in North Carolina. In 2013, North Carolina exports grew 1.4%, reaching an all-time high of $29.3 billion. However presently, approximately 11,000 North Carolina companies export; 88 percent are small and medium-sized firms with fewer than 500 employees. Bottom line: There is vast opportunity for NC companies and government resources to provide assistance.

25. Questions/Discussion 25