FOR IMMEDIATE RELEASE October 7, 2008
Marianna Ohe (202-565-3200)
WASHINGTON, D.C. - U.S. small businesses now receive a 15 percent premium rate reduction on two types of Export-Import Bank of the United States (Ex-Im Bank) export credit insurance: short-term small business multibuyer policies (designated as ENB), and short-term small business environmental multibuyer policies (designated as ENV).
We hope this change will make it easier on small businesses in this difficult credit environment, said Ex-Im Bank Chairman and President James H. Lambright.
The premium rate reduction, effective Oct. 1, 2008, affects approximately half of all Ex-Im Bank insurance policy holders. It does not apply to Ex-Im Bank policy types other than the two noted above.
Holders of the Ex-Im Bank ENB and ENV insurance policies have received updated policy declarations reflecting the changes. The new rates are effective on all shipments made on and after Oct. 1. Similar pricing benefits are available to any new customers who request these policy types. The premium reduction also applies to policy holders who at the same time are receiving discounts for either an Ex-Im Bank or Small Business Administration working capital guarantee.
The ENB and ENV policies are available to financially viable businesses that are designated as small by the U.S. Small Business Administration's standards and that are either new to export or seeking to expand overseas sales. The short-term small business multibuyer policy protects the exporter's entire portfolio of foreign buyer credit risks on total annual shipments of $5,000,000 or less. The short-term small business environmental multibuyer policy offers similar protection, without any annual shipment limit, to exporters of environmentally beneficial products and services only.
Since 2001, Ex-Im Bank has enjoyed consistent net underwriting surpluses for both the ENB and ENV policies.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th 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 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide.