John A. Emens, Executive Director – Partner Development CFS International Capital Corp April 14 th, 2010 UPS Headquarters 16 th Annual Georgia Tech Global Business Forum

“A yawning gap has opened in the early stages of the economic recovery between big companies and small businesses with the former enjoying access to credit and growing global markets and the latter hurting badly on both fronts.” Wall Street Journal March 11, 2010

..have a foreign buyer that wants credit terms  …export routinely, but your growth in foreign sales is limited because of non-payment fears  …are losing export opportunities because you will only accept an L/C or cash upfront  …can’t find a lender to finance your overseas purchase orders  …are encountering cash flow problems due to increased foreign sales  …have a buyer that needs several years to pay for capital equipment 16 th Annual Georgia Tech Global Business Forum

 First “Port of Call” – your existing commercial banking relationship * Your balance sheet is key to credit access * Show some profit success * Is there a limit to your banker’s “love”?  Help for Your Banker – And You * Federal government programs SBA or Ex-Im Bank supported working capital guarantee programs  16 th Annual Georgia Tech Global Business Forum

 Export Express * Up to $150k with guarantee of 85% * Up to $250k with guarantee of 75% * Use of proceeds: working capital, inventory, equipment, buildings, trade show participation, translation of literature, website design, etc. * Working capital: 7 years * Fixed assets: up to 25 years * Guaranty fee: 2-3% 16 th Annual Georgia Tech Global Business Forum

 Export Express Requirements/Four Questions 1) have you been in business at least 1 year? 2) are you entering a new or expanding in an existing market? 3) are you selling to an “approved” country? 4) is credit for onshore (U.S.) operations? Add: Your anticipated export sales for 1 st year 16 th Annual Georgia Tech Global Business Forum

> SBA Export Working Capital Guarantee Program * Up to $2 million w/ 90% guarantee for lender * Guarantee fee.25% of guaranteed amount, if 12 months or less (typical) > Ex-Im Bank Working Capital Guarantee Program * No minimum or maximum (less than $250k is unusual) – w/ 90% guarantee for lender * Guarantee fee.75% (up to 6 months); 1.5% for 7-12 months > Single transactions or revolving line of credit

Use of proceeds: * to acquire inventory for export or to be used to manufacture goods for export * to pay the manufacturing costs of goods for export * to purchase goods or services for export * to support standby L/Cs related to exports * for pre-shipment working capital directly related to export orders * For post-shipment foreign a/r financing 16 th Annual Georgia Tech Global Business Forum

 75% against inventory and work-in-progress  85% against insured, foreign accounts receivable  90% against Letter of Credit Advance Rates – Both Programs

>Ex-Im does not have a dollar value limit >Ex-Im has over 50 lenders with delegated authority that can immediately commit the transaction > Ex-Im does not require the debtor to be a small business > SBA does not have U.S. content or military restrictions > SBA has lower fees 16 th Annual Georgia Tech Global Business Forum

>Export credit insurance can convince a lender to back you >Use your insured a/r to access credit >Insured receivables can be financed through assignment of the policy to the lender – without losing control of your client relationship or the receivable (this is not factoring) >Ex-Im small business insurance costs $.55/$100 of shipments, w/ premium paid the month after shipment, no deductible >Insurance costs can be passed on to the buyer What if your banker doesn’t work with the Feds? Or feels that your requested credit is “too small” for their bank? What if your banker doesn’t work with the Feds? Or feels that your requested credit is “too small” for their bank?

 Advance rates of 90% for all of your eligible insured foreign accounts receivable  Receive 90% of your invoiced amount the day after shipment  Receive the balance of invoice, less accrued interest, upon payment by your customer  Pricing – Prime +3% (Prime is currently 3.25%)  Facility fee – 1.25%  Example: A $100K invoice, paid in 60 days, would net $98,972 – w/ $90k paid right away “Virtual” Cash Sales

 Generally used for buyer financing of capital equipment: * 1 to 5 year repayment, exceptionally 7 years and < $10 million * 15% advance payment, 85% financed amount * Cash sale for you, term financing for your buyer, 100% U.S government guaranteed loan for the lender Medium-Term Capital Equipment Financing for Your Foreign Buyers

> SBA International Office – Atlanta Ray Gibeau, Regional Manager Export Solutions Group > Ex-Im Bank - Southeast Regional Office Maria Gutierrez, Business Development Officer x24 > CFS International Capital Corp – Atlanta John A. Emens, Executive Director – Partner Development Contact Information

 Preferred Lenders for the SBA Export Working Capital Guarantee Program doing transactions in the Southeast: BB&T Bank, SunTrust Bank, Regions Bank, Mercantile Bank, Fifth Third Bank, First American Bank and World Trade Finance. Check with Ray Gibeau, SBA, for contact information  Delegated Authority Lenders for Ex-Im Bank’s Working Capital Guarantee Program: Go to The list is organized alphabetically by state.  CFS International Capital Corp – short-term working capital lines of credit ($100k-$500k+) secured by assignment of Ex-Im Bank short-term Ex-Im Bank export credit insurance policy: Resource Access