FOR IMMEDIATE RELEASE September 14, 2010
Maura Policelli, (202) 565-3200
WASHINGTON, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today approved the first transaction under its new Supply-Chain Finance Guarantee Program - a 90 percent guarantee to support up to $100 million of liquidity from Citibank N.A. (Citi) to small and medium-sized suppliers of CNH America LLC, a subsidiary of CNH Global NV (CNH), in Burr Ridge, Ill.
The new program is part of President Obama's National Export Initiative goal to double exports in five years.
Ex-Im Bank's Supply-Chain Finance Guarantee Program will provide competitively priced working capital finance to suppliers of U.S. exporters, particularly small and medium-sized enterprises.
The transaction approved by Ex-Im Bank's board of directors today enables Citi to purchase accounts receivable owned by U.S. suppliers and due from CNH. These accounts receivable are related to purchases of goods and services by CNH for its export-related production.
Our supply-chain finance guarantee is an innovative product that provides liquidity and strengthens the U.S. export supply chain to help create and maintain jobs, especially for small-business suppliers. We're pleased to approve the first transaction under this program supporting U.S. suppliers of CNH, Ex-Im Bank Chairman and President Fred P. Hochberg said.
Ex-Im Bank's guarantee will provide CNH's suppliers in the United States with the opportunity for increased cash flow to ensure their ongoing growth and financial health, said CNH President and CEO Harold Boyanovsky.
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 by the end of the 12-month term. The end-use products to be exported must meet U.S. content requirements.
Ex-Im Bank, an independent, self-sustaining federal-government agency, helps create and maintain U.S. jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations.
In the first 11 months of fiscal 2010 (through August 2010), Ex-Im Bank authorized $21.5 billion in loans, guarantees and insurance. For more information, including how to access the Bank's export financing, see Ex-Im Bank's Web site at www.exim.gov.