Connecticut Development Authority Joins Forces With Export-Import Bank
FOR IMMEDIATE RELEASE October 24, 2010
Marianna Ohe (202-565-3200)
WASHINGTON, D.C. - Governor M. Jodi Rell has announced that Connecticut employers will benefit from a new financing partnership that will help them strengthen and grow their export business.
The Governor said the Connecticut Development Authority (CDA), the state's quasi-public business financing arm, will now be able to provide international trade financing to small businesses thanks to a partnership with the Ex-Im Bank of the United States.
This is tremendous news for our small exporters in need of lines of credit to sustain and grow their businesses, Governor Rell said. Connecticut exports have been a traditional bright spot in our economy and this will allow us to build on that success. Connecticut companies are some of the most innovative in the world. Increasing our exports and giving employers more access to export financing will strengthen our hold in the global marketplace while creating jobs at home.
Connecticut exports totaled over $10.3 billion through August 2010, a 17.8 % increase over the same time period last year. Currently, the state's top exports are: (1) Aircraft, spacecraft, parts; (2) Industrial machinery, including computers; (3) Electric machinery; sound equipment, TV equipment, parts; (4) Optic, photo, medical or surgical instruments and (5) Cereals, because of state-based hedge funds that buy and sell grains on international markets.
CDA's new service builds on our high level of finance expertise and provides more advantages to the state's small banks, manufacturers, wholesalers, distributors and service companies as they compete internationally, said CDA President Marie O'Brien.
This City-State Partnership - Ex-Im Bank's first in Connecticut - will give us the opportunity to provide many more Connecticut small businesses with the competitive financing tools they need to successfully compete in the global marketplace, and create Connecticut jobs, said Diane Farrell, a member of Ex-Im Bank's Board of Directors. Farrell has previously served as first selectwoman in the town of Westport, Conn., as well as chairwoman of the Southwestern Connecticut Regional Planning Agency Metropolitan Planning that was responsible for federally funded transportation infrastructure in a vital commercial corridor.
Designated a Delegated Authority Lender by Ex-Im Bank, the CDA may now make credit decisions and provide up to $1 million in international trade financing to eligible exporters. The lender is guaranteed for 90 percent of its principal and interest under each line of credit under Ex-Im Bank's working capital guarantee.
Leading CDA's team of Delegated Authority Lenders is John P. Kearney, vice president, Commercial Lending Group. Kearney brings more than 25 years of local, regional and international financial services experience to the CDA commercial lending team.
CDA's designation as a Delegated Authority Lender builds upon its existing relation with Ex-Im Bank. Earlier this year, both parties announced a City/State Partnership Agreement that markets the services of Ex-Im Bank to small businesses throughout Connecticut.
Our City/State partnership brings Connecticut's small businesses and community banks face-to-face with international trade experts as a first step in understanding and assessing overseas markets, said Kearney. CDA remains committed to helping Connecticut businesses compete and prosper in the global economy.
The Connecticut Development Authority is a member of the state's economic development team, stimulating investment in commercial and industrial businesses and retaining and creating jobs that contribute to the state's economy, technology base, intellectual capital and infrastructure. To learn more about the CDA, Please visit www.ctcda.com or call 860-258-7800.
Ex-Im Bank, an independent, self-sustaining federal-government agency, helps create and maintain U.S. jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank provides a variety of financing mechanisms, including working capital loan guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services. To learn more about Ex-Im Bank, please visit www.exim.gov.