HSBC Bank USA, N.A. today announced a $1 billion, 18-month dedicated loan program for small and medium size US businesses looking to export or expand internationally, to help companies find global growth opportunities and to further accelerate global business growth by US enterprises.
“To thrive today, more US-based small and medium size companies are looking for growth opportunities abroad,” said Steve Bottomley, HSBC Group General Manager and Regional Head of Commercial Banking, North America. “HSBC is launching this program to provide financing to businesses with international aspirations or expansion plans. Throughout our history, HSBC has been connecting customers to opportunities. This loan program will foster some exciting new activity for US businesses in the global marketplace, as well as continue to support a US export-led recovery by connecting businesses to international opportunities.”
HSBC research shows that US companies have benefited from global expansion and export trends. HSBC’s Spotlight on US Trade, a series of reports analyzing publicly-traded companies in key regions around the US, showed that global businesses based in Texas had average profit margins five times those of more domestically oriented peers during the years of 2007 to 2012. Similarly, global businesses based in Upstate New York achieved almost three times the growth rates and earned over 10 per cent more in revenue between 2007-2011, than their regional domestic peers.
Additionally, the latest HSBC Global Connections Trade Report shows that US exports will increasingly find their way to rapidly growing consumer markets in developing economies, as growth prospects for industrialized nations remain subdued. For instance, over the medium term, the value of US exports destined for the economies of Asia (excluding Japan) is forecast to rise at an average annual rate of nine percent throughout the period 2021-2030, according to the report.“This loan program provides vital financing and support to help US small and medium size companies grow, especially as many businesses continue to be challenged by sluggish domestic growth and increased competition,” said Mark Luppi, HSBC Executive Vice President and Head of US Business Banking. “Putting financing into the hands of small and medium sized businesses is critical as they make up more than 97 percent of all US exporters.”
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