1. finance

Orange County Business Council
Economic Development Committee Meeting:
What is Ex-Im Bank?
The official Export Credit Agency (ECA) of the
Government
U.S.
Self-sustaining and independent
 Established in 1934
 Headquarters in D.C.
 Eleven regional offices with Export Finance Managers
Mission: To create and sustain jobs by increasing U.S.
export sales
Export-Import Bank of the United States
No Cost to Taxpayers
$1.1 Billion returned to U.S. Treasury
in 2013
Export-Import Bank of the United States
Ex-Im Bank and the other Trade Agencies Work Together
Commerce assists businesses in developing foreign contacts, market
strategies, and customer solicitation
SBA assists small businesses in developing the capacity to export
and the business strategies
SBA is the lead for financing working capital for small business
exporters, particularly at the entry level.
Ex-Im target for working capital finance: exporters with at least 3
years of experience and a year of exporting
Ex-Im is the lead for insuring foreign receivables and financing
foreign buyers for companies of all sizes
Export-Import Bank of the United States
4
Ex-Im Bank Supports Small Business!
 85% plus of Ex-Im transactions are for small businesses USA.
Authorized $6B in 2012 to support U.S. small businesses.
 Record year in working capital guarantees, at $2.0 Billion for
small business
 Authorized $3.2 B in trade credit insurance for small business
 Authorized $813 million loan guarantees and insurance to
foreign buyers of capital goods and services from U.S. small
business exporters.
Export-Import Bank of the United States
5
Global Access: Public/Private Export Campaign
Number of Small Business Exporters
▪ 27 million small businesses in the US
▪ 260,000 export (less than1%)
▪ 60% of these export to only one country
National Export Initiative
▪ Double Exports from the US in five years (2009-2014)
▪ Exports: Smartest, best way to get the economy into high gear
Ex-Im Bank’s Small Business Global Access Initiative
▪ $9.0B in authorizations and 5,000 customers per year by 2014
▪ Up from $3.0B and 2,000 customers in 2008
▪ Budget neutral: no increase in budget
Export-Import Bank of the United States
Support in Over 150 Countries
1. Brazil
2. Colombia
3. India
4. Indonesia
5. Mexico
6. Nigeria
7. South Africa
8. Turkey
9. Vietnam
Export-Import Bank of the United States
Ex-Im Bank bridges a gap with transactional finance
▪ Minimize risk
▪ Level the playing field
▪ Supplement commercial financing
Export-Import Bank of the United States
We Support a Variety of Industries
▪ Manufacturing
▪ Services
▪ Construction Equipment
▪ Renewable Energy
▪ Medical Equipment
▪ Agribusiness
▪ Mining
▪ Wholesale/Retail
▪ Power-generation
▪ Oil
▪ Aircraft and Avionics
▪ Mining
Export-Import Bank of the United States
Ex-Im Bank Financing Covers the Spectrum
Pre-Export
Financing
Post-Export
Financing
Working
Capital
Guarantee
Insurance
Guarantees
Direct Loans
Export-Import Bank of the United States
How Can Export Import Bank Products Assist You?
NEED
SOLUTION
Funds to Fulfill Orders
Working Capital Guarantee
Extension of Credit
Receivables Insurance
Buyer Financing
Medium- and Long-Term
Insurance & Loan Guarantee
Export-Import Bank of the United States
Working Capital Guarantee
▪ Funds to pay for raw materials, labor, supplies, etc.
▪ 90% guarantee to lenders for export-related working
capital lender loans
▪ Transaction specific or revolving loans
▪ No minimum or maximum amount
rd
▪3
source of collateral to lender behind assets & A/R
Export-Import Bank of the United States
Working Capital Guarantee (cont.)
Export-Import Bank of the United States
Short-Term, Accounts Receivable Insurance
 Protects U.S. exporters against nonpayment by
foreign buyers due to:
– Commercial Risks
– Political Risks
 Allows exporters to offer competitive credit terms to
foreign buyers
– Generally up to 180 days, some 360 day terms
 Provides additional financing
Export-Import Bank of the United States
Short-Term, Accounts Receivable Insurance (cont.)
 Single or Multi-buyer Policies
 Small Business Policy
Export-Import Bank of the United States
Foreign Buyer Financing (Customer Finance for U.S. Exporters)
Used to finance foreign buyers purchasing U.S.
capital equipment:
▪ 85% financed, 15% cash down payment
▪ Repayment up to 5 years, exceptionally 7 years
Export-Import Bank of the United States
Buyer Financing (cont.)
Financing can be accomplished through the
following Ex-Im products:
▪ Loan Guarantees
▪ Export Credit Insurance
▪ Direct Loans
Export-Import Bank of the United States
Public Policy (Charter) Restrictions
▪ Military Exports (exceptions apply)
▪ Foreign Content
▪ Restricted Countries (CLS)
▪ Economic Impact
▪ Shipping
▪ Additionality
Export-Import Bank of the United States
Military Policy
No Defense Articles or Services, or Military buyers
Three Exceptions
▪ Humanitarian purposes
▪ Drug interdiction
▪ Dual use items
Export-Import Bank of the United States
U.S. Content Policy—ST products
▪ For Short-Term products, the product must have at
least 50.1% US content to support the entire
transaction
▪ Products must be manufactured in and shipped
from the U.S., if exporter is a large business.
▪ Products may be started in another country, if
exporter is a small business, and adds 50.1% value
to the final cost, and ships from U.S.A.
Export-Import Bank of the United States
Foreign Content Policy for MT and LT Financing
Ex-Im Bank will support the following amounts:
▪ If contract has no more than 15% foreign
content, we will support 85% of the contract price
▪ Otherwise, we will limit our support to the
U.S. content
▪ Note: the contract value and foreign content must
exclude amounts not shipped from the U.S.
Export-Import Bank of the United States
Restricted Countries
▪ We are open in all continents, with the exception of
some countries
▪ Country restrictions for political
or economic conditions and Default Issues
▪ Refer to the Country
Limitation Schedule (CLS)
www.exim.gov,
under Country/Fee info
Export-Import Bank of the United States
Call Ex-Im, If You...
…have a foreign buyer that wants credit terms…
….export routinely but your growth in foreign sales is limited because of
risks of non-payment?
…are losing export opportunities because you will only accept a L/C or
cash pre-pay?
….can’t find a lender to finance your overseas purchase orders?
… are encountering cash flow problems due to increased foreign sales?
…couldn’t get your lender to confirm a L/C from your buyer’s bank?
…have a buyer that needs several years to pay for capital equipment?
Export-Import Bank of the United States
Ex-Im Bank Partners
Additional resources and assistance in applying
for Ex-Im Bank products are available from:
▪ Insurance Brokers (see list on www.exim.gov)
▪ City / State Partners (see list on www.exim.gov)
▪ Delegated Lenders (see list on www.exim.gov)
▪ US Export Assistance Centers (USDOC and SBA)
Export-Import Bank of the United States
For Information and Assistance to Apply:
CITY
CONTACT
TELEPHONE
Atlanta
Susan Kintanar
404-897-6082
Chicago
Michael Howard
312-353-8081
Dallas
Kelly Kemp
214-551-4959
Detroit
John Toles
313-309-4158
Houston
Patrick Crilley
281-721-0470
Southern California
David Josephson
949-660-0726
Miami
Sharyn Koenig
305-526-7436 x.17
Minneapolis
Denis Griffin
612-348-1213
New York
Tom Cummings
212-809-2652
San Francisco
Jim Lucchesi
415-705-2285
Seattle
John Brislin
206-728-2264
Export-Import Bank of the United States