EXIM Bank Launches New Services for Exporters Due to the COVID-19 Outbreak

Posted by: Doug Bruhnke - Global Chamber on Thursday, March 26, 2020

The Export-Import Bank of the US (EXIM Bank) has refined their resources in light of the COVID-19 outbreak, and a summary explanation is shown below.

Global Chamber® is pleased to be part of the Association Alliance Program created by EXIM Bank to help exporters grow. Read more.

EXIM Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers.

The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Almost 90 percent of its transactions directly serve American small businesses.

  • Bridge Financing Program
    • What is it?   International customers need temporary, short-term bridge financing to enable them to acquire U.S. goods and services.  The Bridge Financing Program enables exporters to go forward through short-term (e.g., one year) financing of these U.S. exports until private sector liquidity returns.
    • Who is eligible?  Foreign buyers of capital equipment that need longer term repayment terms.
    • How to apply?  Contact Sandra Donzella (sandra.donzella@exim.gov)
    • More details: HERE
  • Pre-Delivery / Pre-Export Financing Program
    • What is it?  American manufacturers of large-scale items (aircraft, satellites, etc.) often rely on partial, advance payments, or "progress delivery payments," during production. However, their international customers may be unable to finance pre-export payments due to temporary liquidity problems caused by the COVID-19 crisis. EXIM will temporarily expand its Pre-Export Payment Policy for a one-year term for transactions in which EXIM is not providing the long-term financing (such as turbines, locomotives and aircraft) to the buyer and to manufacturing sectors whose international buyers have traditionally not participated but may be interested now due to a lack of commercial financing.
    • Who is eligible?  US entities with Medium or Long Term payment terms with international buyers under contract.
    • How to apply?  Contact Sandra Donzella
    • More details: HERE
  • Supply Chain Financing Guarantee Program
    • What is it?  EXIM Bank's existing Supply Chain Financing Guarantee Program enables suppliers to sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate, while EXIM guarantees the lender's purchase of the accounts receivable. This helps suppliers obtain cash quickly (often at lower rates that reflect the credit of the buyer) and increase liquidity to fulfill new orders. However, the availability of existing commercial options combined with certain program features suppresses demand for the offering. In light of expected liquidity constraints in exporter supply chains, EXIM will expand the program by relaxing its criteria and increasing its guarantee level.
    • Who is eligible?  Exporters of USA Goods (and their foreign affiliates).
    • How to apply?  Contact Sandra Donzella
    • More details: HERE
  • Working Capital Guarantee Program
    • What is it?  EXIM's Working Capital Guarantee Program facilitates loans from commercial lenders, typically through Designated Authority (DA) lenders, to creditworthy U.S. businesses that export over the term of the loan. Recently many DA lenders expressed to EXIM the need for greater working capital financing support given the significant and growing liquidity pressure on suppliers and exporters.  In response, EXIM will temporarily modify the program to make it more flexible. Specifically, the agency will expand program eligibility to cover all inventory that could potentially be exported, reduce the program's fee structure, and temporarily increase the guarantee level.
    • Who is eligible?  Exporters (both direct AND indirect) of USA Goods and services.
    • How to apply?  Contact Sandra Donzella
    • More details: HERE

Please contact Sandra or your regional EXIM Bank Director.

You may also alternatively contact the U.S. Commercial Service, like Eric Nielsen, Regional Director, Southwest.

Doug Bruhnke - Global Chamber®

ps... also link to our COVID-19 resources page HERE.

 

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