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Financial Support for U.S. Exports: Small Business Exporter Programs
Export-Import Bank of the United States
County of Volusia Economic Development Daytona Beach, FL April 2, 2014
What is Ex-Im Bank?
Our Mission – To create and sustain jobs by
increasing U.S. export sales
▪ Official Export Credit Agency (ECA) of the U.S.
Government since 1934
▪ 89% of all transactions are to small businesses
▪ Target 20% of all US$ authorizations to small
businesses
▪ Self-sustaining agency – returned $1 billion
to the U.S. Treasury & taxpayers
What is Ex-Im Bank?
Our Mission – To create and sustain U.S. jobs by
increasing U.S. exports
▪ Official Export Credit Agency (ECA) of the U.S.
Government since 1934
▪ 89% of all transactions are to small businesses
▪ Target 20% of all US$ authorizations to small
businesses
▪ Self-sustaining agency – returned $1 billion
to the U.S. Treasury & taxpayers
Prestigious Recognitions given to Ex-Im Bank:
Trade Finance Magazine Awards for Excellence: “Best Global ECA” (Export Credit Agency) – 2012 & 2013
and “Best ECA in the Americas” - 2010, 2011, 2012, & 2013
Trade and Forfaiting Review (TFR) “World's Best Export Credit Agency" award - 2013 “Bright Ideas in Government” Award, Harvard University’s John F. Kennedy School of Government: Express Insurance Policy (Sept. 2012)
Ex-Im Credit & Finance Makes a Difference!
▪ Minimizes exporter’s risk
▪ Strengthens U.S. competitiveness
▪ Supplements commercial financing
Programs are open in over 155 Countries…
Country Limitation Schedule (“CLS”):
This schedule lists every country in
alphabetical order, with public- and
private-sector risk classifications, each
by tenors ranging from under 1 year,
1-7, and over 7 years.
An “X” indicates CLOSED for Ex-Im
programs.
Link:
http://www.exim.gov/tools/countrylimitationschedule/
Growing Export Sales and Minimizing Risks
Extension of Credit
Working Capital
Guarantee
Funds to Fulfill Orders
Buyer Financing Medium- and Long-Term
Insurance & Loan
Guarantee
Export Credit Insurance
Exporter’s Need: Ex-Im Bank Solution:
Working Capital Guarantee
on Exporter Loans
Medium and Long Term
Insurance & Guarantees on
Buyer Loans
Pre-Export Post-Export
Exporter Supply Chain
Export Credit Insurance on
Buyer Credit
Working Capital Guarantee
▪ Funds to cover the pre-shipment phase of an export
sale: raw materials, labor, supplies, etc.
▪ 90% guarantee to lenders for export-related working
capital loans
▪ Advances are supported by export-related:
o Inventory = up to 75%
oReceivables = up to 90%
▪ Transaction-specific loans or revolving
credit facilities
Short-Term Export Credit Insurance
Protects U.S. exporters against non-payment by
foreign buyers due to:
– Commercial Risks
– Political Risks
Allows exporters to offer competitive credit terms
to foreign buyers
– Payment terms are generally up to 180 days;
capital goods up to 360 days
Obtain additional financing
Ex-Im Bank Programs supporting the National Export Initiative (NEI):
Insurance Express: For new exporters : • Easy qualify, fast turn-around • No standard set-up fee; pay as you ship • No first loss deductible • Up to 20 foreign buyers
Global Credit Express: (pilot program) • Direct loan from Ex-Im Bank up to $500,000 • No monthly borrowing base for A/Rs or inventory • Exporter needs a “referring originator” to complete
loan package
Medium- & Long- Term Buyer Finance at Competitive Terms
For international buyers purchasing U.S.
capital goods (and related services):
85% financed, min. 15% cash down payment
Medium-term:
Repayment tenors typically up to 5-7 years;
and amounts up to $10 million
Long-term:
Greater than 7 years and over $10 million
Ex-Im Eastern Regional Office
Eastern Region Export Finance Center
5835 Blue Lagoon Drive, Suite 203
Miami, FL 33126
Tel: (305) 526-7436
Fax: (305) 526-7435
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Elena Méndez
Regional Director, Eastern Region
(FL, MS, PR, USVI)
(305) 526-7436, Ext. 19