NCACC Economic Development Symposium April 29, 2014

Export-Import Bank of the United States Who We Are - What We Do Ex-Im Bank is an independent agency of the U.S. Government ▪ Established in 1934 ▪ Headquartered in Washington, DC ▪ Twelve Regional offices: –East: Miami, New York, Atlanta –Central: Chicago, Detroit, Minneapolis, Houston, Dallas –West: Orange County CA, San Diego, San Francisco, Seattle Mission: To create and sustain jobs by increasing U.S. export sales

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

Export-Import Bank of the United States 4 Ex-Im Bank Supports Small Business! FY2013  Authorized over $5B to support U.S. small businesses.  Over 3400 small business transactions  89% of Ex-Im transactions were for U.S. small businesses

Export-Import Bank of the United States 5 Ex-Im Bank and the other Trade Agencies Work Together  Commerce/ITA assists businesses in developing foreign contacts, market strategies, and customer solicitation  SBA assists small businesses in developing the capacity to export.  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 U.S. Global Business Solutions U.S. Global Business Solutions (USGBS) is a suite of products and services from a group of U.S. federal government agencies to assist companies in growing their export business: - Export-Import Bank of the United States (Ex-Im Bank) - U.S. Small Business Administration (SBA) - U.S. Department of Commerce/ Commercial Service - U.S. Department of Agriculture/Foreign Agricultural Service - U.S. Trade and Development Agency - Overseas Private Investment Corporation (OPIC)

Export-Import Bank of the United States Strategy Tailor the options to the stage of exporter development and capacity of the financial institution or service provider Combine key trade and commercial finance products and services in a single menu of options made for mainstream use: U.S. Global Business Solutions Offer a seamless, low-cost transition among options Provide a menu of customized financing solutions for more advanced exporter needs: The Specialized Global Solutions (SGS) program

Export-Import Bank of the United States

Taking the Fear Out of Exporting ▪Should I enter that new market? ▪When and will I get paid? ▪How will I get cash to make the product? ▪I made the big sale, but will my buyer be able to obtain financing?

Export-Import Bank of the United States Our Financing Makes the Difference ▪Minimize risk ▪Level the playing field ▪Supplement commercial financing

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 & Gas

Export-Import Bank of the United States 5% 1 BILLION Immense Opportunity to Sell High-in-Demand U.S. Goods

Export-Import Bank of the United States Ex-Im Bank Financing Covers the Spectrum Pre-Export Financing Post-Export Financing Working Capital Guarantee Global Credit Express (GCE) Insurance Guarantees Direct Loans

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

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 loans ▪Advances are supported by export-related: –Inventory up to 75% –Receivables up to 90% ▪Transaction specific or revolving loans ▪Term is generally one year (renewable) and may be up to three years. ▪No minimum or maximum amount

Export-Import Bank of the United States Global Credit Express (GCE) Pilot Program ▪Pilot program for small businesses ▪A direct loan from Ex-Im Bank to an exporter for pre-export working capital ▪Financing for business of exporting, not just specific export transaction ▪Revolving credit line ▪Up to $500,000 ▪6 or 12 month term

Export-Import Bank of the United States Short-Term, Accounts Receivable Insurance  Protects U.S. exporters up to 95% against non-payment 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 ▪Obtain additional financing  Single-Buyer or Multi-Buyer Policies - Small Business / Express Insurance

Export-Import Bank of the United States Foreign Buyer Financing (Customer Finance for U.S. Exporters) – Medium Term Generally used for buyer financing of capital equipment: ▪85% financed, 15% cash down payment ▪Repayment up to 5 years, exceptionally 7 years ▪Amounts of $10 million or less Financing can be accomplished through the following Ex-Im products: ▪Lender guarantees ▪Credit Insurance ▪Direct Loans (few)

Export-Import Bank of the United States Public Policy (Charter) Restrictions No Military or Defense-related products or obligors (exceptions apply) U.S. Content (ST: 50+%; MT: 85% U.S.) Restricted Countries (CLS) Economic Impact Shipping Additionality

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? … are encountering cash flow problems due to increased foreign sales? …have a buyer that needs several years to pay for capital equipment?

Export-Import Bank of the United States

Consult with an Ex-Im Bank Regional Director Call and press 2 at the prompt. finance-centers.cfm

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)

Export-Import Bank of the United States THANK YOU! Questions? Michael K. Jackson, MBA, CGBP Director, City/State Partners & Small Business Training Phone: