Executive Summary

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.  Eight regional offices* Mission: To create and sustain jobs by increasing U.S. export sales

Export-Import Bank of the United States $3.4 BILLION No Cost to Taxpayers

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

Export-Import Bank of the United States 5 Ex-Im Bank Supports Small Business!  On average, 85% of Ex-Im Bank’s transactions  Authorized $6B (20%) to support small business  Record in working capital guarantees $1.6B for small business  Authorized $1.7B in trade credit insurance for small business

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

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 Products Make a 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

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 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?

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

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 –$0.50 per $100 to $1.50 per $100  Obtain additional financing  Multi-Buyer or Single-Buyer. With experience, exporter is given authority to set Discretionary Credit Limits for buyers

Export-Import Bank of the United States Buyer Financing at Competitive Terms For international buyers purchasing U.S. capital equipment and services: ▪85% financed, 15% cash down payment ▪Medium-term –Repayment typically up to 5 years and amounts up to $10 million ▪Long-term –Greater than 5 years and over $10 million

Export-Import Bank of the United States Global Credit Express (GCE) ▪Newly launched product for small businesses ▪Financing for business of exporting, not just specific export ▪Revolving credit line ▪Up to $500,000 for 6-12 months ▪On-line application for easy access and short turn- around

Export-Import Bank of the United States Just A Few 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 51% US content to support the entire transaction ▪Products must be manufactured in and shipped from the U.S. (For pre-export, companies must be located in 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) under Country/Fee info

Export-Import Bank of the United States Call Ex-Im, If Your Clients... …have a foreign buyer that wants credit terms… ….export routinely but their growth in foreign sales is limited because of risks of non-payment? …are losing export opportunities because they will only accept a L/C or cash pre-pay? ….can’t find a lender to finance their overseas purchase orders? … are encountering cash flow problems due to increased foreign sales? …couldn’t get their lender to confirm a L/C from their buyer’s bank? …have a buyer that needs several years to pay for capital equipment?

Export-Import Bank of the United States For More Information Call the Ex-Im Bank Regional Office near you: ▪New York: (Northeast / Mid-Atlantic) ▪Chicago: (Midwest) ▪Miami: (Southeast) ▪Houston: (Southwest) ▪Newport Beach: (West) –San Francisco: –San Diego: WEBSITE:

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 For More Information Michael K. Jackson, MBA, CGBP Director, City/State & Trade Association Partners Export-Import Bank of the United States 811 Vermont Avenue, N.W. Washington, D.C Phone: Fax:

Export-Import Bank of the United States THANK YOU! Questions?