Small Business's Exports Support 500 American Companies Throughout its Supply Chain
FOR IMMEDIATE RELEASE January 23, 2015
Office of Communications (202-565-3200)
Washington, D.C. - Reliable Industries Inc. of New Orleans, a small-business supplier of equipment and parts located in Harahan, La., makes 60 percent of its sales internationally with the assistance of export-credit insurance provided by the Export-Import Bank of the United States (Ex-Im Bank).
Reliable Industries supplies mining, marine, construction and power-generation industries domestically and internationally with U.S.-manufactured products from 500 companies, including Donaldson, Parker Hannifin, Stanadyne, and Puradyn. The company exports these and other U.S.-made goods to customers across the globe, from Guatemala to Australia. Reliable Industries is also an active exporter to countries in sub-Saharan Africa, including Burkina Faso, Tanzania and Zambia.
Expanding exports can bring huge benefits to small businesses and the communities they call home, but they need liquidity and risk protection to be competitive in international markets, said Ex-Im Bank Chairman and President Fred P. Hochberg. Ex-Im Bank has the financing solutions to meet these needs so that small businesses like Reliable Industries can boost their sales and create more middle-class jobs in Louisiana and elsewhere.
Ex-Im Bank has leveled the playing field and allowed us to offer terms that are competitive with large companies. With Ex-Im Bank, we have the same tools that they have, said Reliable Industries owner and CEO Michael Rongey.
The company began using Ex-Im's products in 1985 after the CEO learned about the Bank's working capital support from a local lender and maintained an Ex-Im-guaranteed working capital line of credit until 2011. Today, Reliable Industries uses the Bank's multibuyer insurance policy to support the company's present line of credit with a community bank. Ex-Im Bank's insurance can function as a financing tool because lenders are more likely to extend credit against an exporter's foreign receivables (i.e., invoices to be paid) if they are insured.
Longtime broker of Ex-Im Bank insurance policies, J. Maxime Roy in Lafayette, La., has provided Reliable Industries with guidance and assistance in the use of Ex-Im Bank products. A list of brokers facilitating the Bank's insurance policies can be found on Ex-Im's web site at //www.exim.gov/.
Reliable Industries Inc. of New Orleans has served the mining, marine, construction and power-generation industries for the past 32 years. The company supplies engines, filters, components and parts for more than 1,100 customers in 60 countries. Reliable Industries has 40 employees at its warehouse and shipping facility in Harahan, La.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees, direct loans and export-credit insurance, to promote the sale of U.S. goods and services abroad. Ninety percent of its transactions directly serve American small businesses.
In fiscal year 2014, Ex-Im Bank approved $20.5 billion in total authorizations. These authorizations supported an estimated $27.5 billion in U.S. export sales, as well as approximately 164,000 American jobs in communities across the country.