FOR IMMEDIATE RELEASE December 5, 2012
Lawton King (202-565-3200)
Washington, D.C. - The Export-Import Bank of the United States of America (Ex-Im Bank) announced today that it has approved its fourth Supply Chain Finance transaction and will guarantee up to 90 percent of $450 million in liquidity offered by a JPMorgan Chase loan to suppliers of Caterpillar Inc.
Ex-Im Bank's guarantee will support small-business suppliers by improving their liquidity, thereby allowing them to fulfill new orders.
“We are proud to participate in the Caterpillar supply-chain-finance program, which will support small-business jobs by supporting America's suppliers,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Our role in the program is to partner with JPMorgan Chase to support U.S. suppliers, which will grow the American economy.”
The Supply Chain Finance guarantee is intended to enable JPMorgan to increase its purchases of accounts receivable owned by U.S. suppliers and due from Caterpillar and that are related to purchases of goods and services by Caterpillar for its export-related production. This program is designed to help qualified Caterpillar suppliers obtain cash more quickly and increase liquidity to fulfill new orders. Exporters have the option to extend payment terms and obtain a working capital benefit without imposing undue financial hardship on their suppliers.
“We have a steadfast commitment to supporting small business in the U.S., and this program is another example of that,” said Dani Cotti, head of Global Trade for J.P. Morgan. This supply chain financing partnership between J.P. Morgan and Caterpillar, supported by Ex-Im, will help dozens of small businesses obtain the working capital that they need to thrive and create jobs. It's a win for everyone involved.”
To participate in the Ex-Im Bank program, approved lenders must have an existing supply-chain finance program. The Bank requires that at least 50 percent of the credit provided under the program be extended to suppliers meeting the small-business definition of the Small Business Administration. Additionally, the exported products must meet U.S. content requirements.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to assist foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 - an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales - also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.