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Orange County Business Council Economic Development Committee Meeting:

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Presentation on theme: "Orange County Business Council Economic Development Committee Meeting:"— Presentation transcript:

1 Orange County Business Council Economic Development Committee Meeting:

2 Export-Import Bank of the United States What is Ex-Im Bank? The official Export Credit Agency (ECA) of the U.S. Government 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

3 Export-Import Bank of the United States $1.1 Billion returned to U.S. Treasury in 2013 No Cost to Taxpayers

4 Export-Import Bank of the United States 4 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

5 Export-Import Bank of the United States 5 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.

6 Export-Import Bank of the United States 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 ( ) ▪ 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

7 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

8 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

9 Export-Import Bank of the United States We Support a Variety of Industries ▪Manufacturing ▪Construction Equipment ▪Medical Equipment ▪Mining ▪Power-generation ▪Aircraft and Avionics ▪Services ▪Renewable Energy ▪Agribusiness ▪Wholesale/Retail ▪Oil ▪Mining

10 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

11 Export-Import Bank of the United States NEED SOLUTION Extension of Credit Working Capital GuaranteeFunds to Fulfill Orders Buyer Financing Medium- and Long-Term Insurance & Loan Guarantee Receivables Insurance How Can Export Import Bank Products Assist You?

12 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 ▪3 rd source of collateral to lender behind assets & A/R

13 Export-Import Bank of the United States Working Capital Guarantee (cont.)

14 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

15 Export-Import Bank of the United States Short-Term, Accounts Receivable Insurance (cont.)  Single or Multi-buyer Policies  Small Business Policy

16 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

17 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

18 Export-Import Bank of the United States Public Policy (Charter) Restrictions ▪Military Exports (exceptions apply) ▪Foreign Content ▪Restricted Countries (CLS) ▪Economic Impact ▪Shipping ▪Additionality

19 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

20 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.

21 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.

22 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) under Country/Fee info

23 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?

24 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 ▪City / State Partners (see list on ▪Delegated Lenders (see list on ▪US Export Assistance Centers (USDOC and SBA)

25 Export-Import Bank of the United States For Information and Assistance to Apply: CITYCONTACTTELEPHONE AtlantaSusan Kintanar ChicagoMichael Howard DallasKelly Kemp DetroitJohn Toles HoustonPatrick Crilley Southern CaliforniaDavid Josephson MiamiSharyn Koenig x.17 MinneapolisDenis Griffin New YorkTom Cummings San FranciscoJim Lucchesi SeattleJohn Brislin


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