Marks Another Use of EXIM COVID-19 Economic Recovery Measures to Support American Businesses and Workers
FOR IMMEDIATE RELEASE July 30, 2020
Office of Communications (202-565-3206)
WASHINGTON – The Export-Import Bank of the United States (EXIM) Board of Directors, in another application of EXIM’s COVID-19 economic recovery measures to support U.S. businesses and American jobs during the global pandemic, today unanimously approved a $97.2 million working capital guarantee that will support approximately $211.4 million in export sales and an estimated 800 U.S. jobs.
EXIM’s 90-percent guarantee of a one-year, revolving working capital loan facility from Apple Bank for Savings in New York, New York, to Embraer Executive Aircraft’s manufacturing facility in Melbourne, Florida, is estimated to support 800 jobs, mainly in Florida along with related supply chain jobs located throughout the United States in states such as Arizona, Connecticut, Georgia, Tennessee, and Texas.
“As President Trump noted in a May 19 Executive Order, ‘Just as we continue to battle COVID-19 itself, so too must we now join together to overcome the effects the virus has had on our economy,’” said EXIM President and Chairman Kimberly Reed. “The President asked that all agencies promote economic recovery, and with today’s unanimous board action supporting 800 jobs, many of which are in Florida, EXIM proudly reaffirms our dedication to American businesses and workers in overcoming the economic challenges posed by the unprecedented global pandemic.”
EXIM’s support is needed to sustain Embraer’s “Made In the USA” exports and meet its working capital needs because pandemic-related restrictions have prevented the company’s customers abroad from taking delivery of their pre-ordered aircraft, which has negatively impacted its revenue stream. In addition, the commercial sector is significantly constrained in its lending capacity due to the pandemic and its ability to make new loans has been reduced.
The transaction marks the first use of EXIM’s Working Capital Guarantee Program by Apple Bank for Savings, a longstanding partner of EXIM and lender of EXIM-guaranteed loans to foreign buyers of U.S.-made large commercial aircraft and other exports.
The transaction is also the first participation in an EXIM working capital guarantee financing by AirFinance Leasing LLC, headquartered in Virginia Beach, Virginia, which is the administrative servicer of the loan facility. AirFinance Leasing is an EXIM Qualified Advisor that has originated and serviced numerous EXIM-backed asset financings over the past decade.
“EXIM’s swift action to enhance financing flexibilities in response to COVID-19 liquidity concerns is being put to good use with this working capital financing guarantee in support of American exports and jobs,” said EXIM Board Member Judith D. Pryor.
“By approving this working capital loan guarantee, EXIM is supporting hundreds of jobs in an industry that has been particularly hard hit by COVID-19,” said EXIM Board Member Spencer T. Bachus, III.
Embraer Executive Aircraft, Inc. operates its manufacturing facility on the north side of Florida’s Melbourne International Airport and has approximately 1,100 U.S. employees. The company’s executive jet portfolio consists of the entry-level Phenom 100EV, the light Phenom 300E, the midsize Praetor 500 and the super-midsize Praetor 600. The fleet exceeds 1,400 aircraft in more than 70 countries.
Founded in Harlem in 1863, Apple Bank for Savings delivers a full range of retail banking services to individuals and businesses in greater New York through 79 branches, as well as through online banking and other alternative channels. The bank’s commercial lending activities include government-guaranteed and commercial financing for the commercial aviation sector and other specialty segments.
AirFinance Leasing LLC is a global company focused on the financing of exports of general aviation aircraft. AirFinance is led by a team of structured-finance professionals with extensive industry experience, including aircraft finance, leasing, credit analysis, structuring of cross-border transactions, legal and domicile expertise, and technical knowledge of all aspects of aerospace asset management. As an EXIM Delegated Authority Lender and under EXIM’s Qualified Advisors Program, the private-public partnership leverages private-sector expertise by allowing qualified industry experts to assess credit risks and expedite EXIM-supported financing for aerospace and other large assets.
“I want to thank my fellow EXIM Board Directors and the wonderful EXIM staff for all their hard work on behalf of American exporters and workers,” Reed added. “I am proud of how focused the entire EXIM team is on our mission of supporting American jobs by facilitating U.S. exports.”
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.