FOR IMMEDIATE RELEASE January 10, 2005
Marianna Ohe (202) 565-3200
WASHINGTON, D.C. - Penn Anderson Equipment Co. of Oakmont, Penn., a small business manufacturer of equipment that tests the efficiency of fuel, air and lube filters on gas automobile engines, had been experiencing a very slow business period until it received a $417,000 order from a buyer in China.
But although Penn Anderson had a letter of credit from the Bank of China and had a proven capability to perform under foreign contracts, the three-employee company did not have the working capital needed to build the machinery for Pingyuan Machine Factory in China.
Enter the Export-Import Bank of the United States (Ex-Im Bank)!
Penn Anderson owner Carl Michael had worked with Ex-Im Bank successfully in the past on exports to Saudi Arabia, Egypt and China. So he approached PNC Bank to apply for an Ex-Im Bank-guaranteed working capital loan that would enable him to build the test equipment. Given the contract in place, Michael's successful history as an exporter, and the support Ex-Im Bank would provide under its Working Capital Guarantee Program, PNC agreed to a $315,000 short-term working capital line of credit.
We're still in business because of Ex-Im Bank, says Michael, who expanded Penn Anderson's workforce by two to build the machinery, which was shipped in June, 2004.
Small businesses represent the greatest export growth potential in this country, said Ex-Im Bank Chairman Philip Merrill. Ex-Im Bank is committed to reaching out to smaller firms to enable them to compete in foreign markets and create and sustain U.S. jobs.
In addition to guaranteeing working capital loans from commercial lenders, which gives companies greater access to capital for pre-export costs and cash flow, Ex-Im Bank provides short-term export credit insurance to protect companies' foreign receivables from the risk of buyer nonpayment. The insurance also helps small firms access more working capital because banks are more likely to lend when foreign receivables are insured. Ex-Im Bank also offers insurance or loan guarantees on terms of one year or more to help international buyers access the financing to buy U.S. products and services.
Ex-Im Bank this year marks its 71st year of helping finance 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 2004, Ex-Im Bank, an independent federal agency, authorized financing to support approximately $17.8 billion of U.S. exports worldwide. For more information on Ex-Im Bank visit //www.exim.gov.