Ex-Im Bank Approves $2.4 Billion for Small Biz
The Export-Import Bank of the U.S. (Ex-Im Bank) recently announced growth in financing for small- and mid-sized exporters. Launched Jan. 2010 by Ex-Im Chairman & President Fred P. Hochberg, the Global Access for Small Business Program has played a critical role in the growth of Ex-Im’s small-business lending portfolio.
According to Ex-Im Bank’s announcement, they have provided financial backing to more than 1,700 small businesses thus far in FY 2011 totaling more than $2.4 billion have been completed. More than 900 American small businesses have worked with Ex-Im Bank for the first time since FY 2010. In total, Ex-Im Bank, for the first half of FY 2011, has completed $13.4 billion in total authorizations, supporting $15.9 billion in U.S. exports and more than 115,000 American jobs.
In order to reach President Barack Obama’s established goal of doubling U.S. exports by 2014, Ex-Im Bank plans to reach $9 billion in annual small-business export financing, add a total of 5,000 small businesses to its portfolio, and approve at least $30 billion in transactions. To reach these benchmarks, the Bank also is offering new financing and insurance products as well as streamlining product delivery.
Chairman Hochberg stated that he is “optimistic that we can reach the President’s goal of doubling U.S. exports by 2014.”
The two Ex-Im Bank products most used by U.S. small business exporters are export-credit insurance and working capital loan guarantees. Export-Credit insurance protects exporters and lenders from the risk of buyer nonpayment for commercial or political reasons, and it enables exporters to extend credit to international customers. Working capital guarantees cover 90 percent of the outstanding balance of working capital loans to exporters supported by export-related inventory and accounts receivable.