FOR IMMEDIATE RELEASE June 7, 2009
Marianna Ohe (202-565-3200)
WASHINGTON, D.C. -- Lenders will have greater flexibility to serve the needs of small and medium-sized businesses under the Export-Import Bank of the United States (Ex-Im Bank) Super Delegated Authority and Fast Track programs, now that the two programs' aggregate financing limits have been combined.
The Bank combined the $150 million aggregate limit per bank of the Super Delegated Authority Program with the $300 million aggregate limit per bank of the Fast Track Program. The change now provides lenders under the two programs with one overall aggregate limit of $450 million each.
Ex-Im Bank looks forward to using this new feature to help our lending partners increase support of U.S. exports by small and medium-sized companies, said Ex-Im Bank Chairman and President Fred P. Hochberg. Enhancing financing flexibility is important at a time when credit is tightening around the world.
Under Ex-Im Bank's Delegated Authority Program, lenders can provide Ex-Im Bank-guaranteed working capital loans to U.S. exporters without prior approval from the Bank. Super Delegated Authority is the highest of six Delegated Authority levels, under which lenders may commit a maximum of $10 million per borrower/transaction. It is used by Ex-Im Bank's most active and experienced lending partners.
The Fast Track System is an expedited process for lenders to obtain Ex-Im Bank approval for working capital guarantee transactions, with a maximum of $25 million per borrower/transaction. The same lenders that belong to Ex-Im Bank's Super Delegated Authority program are members of the Fast Track system.
A lender who previously could commit a maximum overall amount of only $150 million under Super Delegated Authority now can commit up to $300 million, and still will have $150 million available to commit under Fast Track. And a lender who could commit a maximum overall amount of $300 million under Fast Track now will have an additional $150 million to commit under Super Delegated Authority.
Ex-Im Bank's working capital loan guarantees help small and medium-sized U.S. companies build inventory to fill foreign orders. Pre-export costs can include purchase of raw materials or finished products, export production, and coverage of standby letters of credit serving as bid bonds, performance bonds, or advance payment guarantees.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. In fiscal year 2008, Ex-Im Bank authorized $14.4 billion in financing to support an estimated $19.6 billion of U.S. exports worldwide. Eighty-six percent of nearly 2,328 transactions directly benefited small-business exporters.