News for Credit Professionals       NACM-SE



Ex-Im Opens $100 Million Credit Facility for Small Business Exporters

Following its biggest year ever, the Export-Import Bank of the U.S. (Ex-Im) is using its momentum to push new products designed to enhance exporting even further. The most recent new Ex-Im service is a $100 million revolving credit facility, designed for small businesses, called the Global Credit Express (GCE).

"Global Credit Express is an innovative product that will help small business exporters obtain the financing they need to improve their bottom line and succeed in a highly competitive global economy," said Ex-Im Chairman Fred Hochberg. "This new product will provide additional liquidity for eligible American exporters and access to financing at a reasonable cost."

Through GCE, small business exporters may be eligible for a revolving line of credit, up to $500,000 for 6-12 months. The program will begin in a pilot phase, wherein an additional $100 million in financing will be made available through a select number of lenders nationwide. After the pilot period, Ex-Im will evaluate the results of this direct loan program and determine whether to increase the available amount. Potential participants should be aware, however, that the product is specifically designed to finance the business of exporting, rather than individual export transactions, like other forms of financing available from other lenders.

The GCE was first announced at a recent event attended by Hochberg and President Barack Obama at a Boeing assembly facility in Everett, WA, aimed at touting the administration's trade successes while urging officials to go even further in their attempts to support exporting.

First on the list is a reauthorization of Ex-Im altogether, which President Obama urged Congress to approve before it was too late. The bank's authorization was last extended in December 2011 through the end of May 2012, at its current lending ceiling of $100 billion. Due to increased demand, however, Ex-Im predicts that it will reach this ceiling at the end of March. Unless the bank's authorization is renewed and its lending cap raised, Ex-Im would be forced to halt all new transactions.

To find out more about how to grow your company through exporting and international trade, visit FCIB's website at www.fcibglobal.com.

Jacob Barron, CICP, NACM staff writer