Small Businesses Nationwide Benefit From Streamlined Export-Credit Insurance Policy; Nearly 400 Express Policies Issued Totaling $182.6 Million
FOR IMMEDIATE RELEASE September 25, 2012
Linda Formella, (202) 565-3200
WASHINGTON, D.C.: The Express Insurance policy of the Export-Import Bank of the United States (Ex-Im Bank) has been recognized with a Bright Ideas in Government award from the Ash Center for Democratic Governance and Innovation at Harvard University's John F. Kennedy School of Government. Express Insurance is a streamlined policy provided by Ex-Im Bank to increase small-business exports.
The Ash Center announced today in Cambridge, Mass., that it is presenting Bright Ideas awards to 111 recipients from all levels of government - from school districts to federal agencies and public-private partnerships - that are demonstrating creative solutions to address important national and local issues such as economic development.
Express Insurance is a valuable tool for small businesses across the country, and Ex-Im Bank is honored that it has been recognized by Harvard University's Kennedy School of Government. This policy provides the timely payment-risk protection needed by small businesses to begin or expand sales to foreign markets, enabling them to grow and add jobs in their communities, said Ex-Im Bank Chairman and President Fred P. Hochberg.
The Bank's Express Insurance helps small businesses compete with global suppliers, enter new markets, add foreign buyers and improve cash flow while extending more attractive payment terms. Since the policy was launched in April 2011, it has become a popular and reliable financing tool for small businesses. The Bank has issued 388 express policies that are currently operative, with a risk portfolio totaling $182.6 million.
Express Insurance provides small businesses with a user-friendly and cost-effective option to protect against foreign-buyer nonpayment and enhance access to working capital financing because banks are more likely to lend to companies if their foreign accounts receivable are insured. The policy features a streamlined application, complimentary policy quotation, foreign-buyer credit reports and buyer credit-limit pre-approvals often in five working days. Companies may apply through Ex-Im Online, the Bank's Internet-based application system. Additional information on the policy is available on the Express Insurance page on the Bank's Web site.
In fiscal year 2011, Ex-Im Bank's small business financing rose over 70 percent from $3.3 billion in FY 2008 to $6 billion in FY 2011.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers nearly $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 - an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales - also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.