Orange County Business Council Economic Development Committee Meeting:

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

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 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!  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 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 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 ▪Construction Equipment ▪Medical Equipment ▪Mining ▪Power-generation ▪Aircraft and Avionics ▪Services ▪Renewable Energy ▪Agribusiness ▪Wholesale/Retail ▪Oil ▪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 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 lender loans ▪Transaction specific or revolving loans ▪No minimum or maximum amount ▪3 rd 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) 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 ▪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 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