In April, while many U.S. businesses were grappling with the challenges of COVID-19, Gap Engineering in Houston, Texas secured a $4.5 million loan through the Export Working Capital Program (EWCP). This was the largest export deal facilitated by the SBA in the past five years.
The SBA’s EWCP loan offers up to $5 million in short-term, transaction-specific working capital loan guarantees to small U.S. business exporters. These loans can be used for pre-export financing of labor and materials, as well as post-shipment financing of accounts receivable from overseas sales.
Gap Engineering, a small business providing engineering services both domestically and internationally, was founded by Mike Homma with the vision of revolutionizing automation engineering. The company now handles turnkey civil and mechanical construction projects for both private and public sectors.
The EWCP loan enabled Gap Engineering to secure a significant contract with the Government of Ghana for engineering services. They will refurbish four water plants and build two new ones, addressing critical infrastructure needs in Ghana for years to come.
This loan represented a new credit facility for Gap Engineering, allowing them to take on large contracts without waiting for cash flow from different project phases. Previously, they had to wait for cash generation before staffing up and executing contracts, which limited their ability to accept significant jobs. The EWCP loan allows for pre-shipment financing, enabling them to purchase supplies, pay vendors, and staff up immediately upon securing a viable contract.
The benefits of Gap Engineering’s EWCP loan extend beyond the U.S., creating jobs and fostering growth. The contract is expected to create around 200 jobs in Ghana in the short term, with the potential for up to 1,000 jobs in the long term, while also building critical technical skills among Ghanaians.
Loretta Greene, SBA Associate Administrator for International Trade, praised Mike Homma and his team, highlighting the importance of such partnerships in benefiting both the U.S. economy and addressing water sustainability in Ghana.
