$512 million in export credit boosts sales for Lone Star State companies
FOR IMMEDIATE RELEASE October 18, 2011
Jamie Radice (202-565-3200)
Washington, DC --- Today, the Export-Import Bank of the United States (Ex-Im Bank) announced that in its preliminary Fiscal Year 2011 (FY'11) figures, more than $512 million in export credit was authorized for Texas small businesses, making Texas the top state in the country for all Ex-Im small business financing.
Ex-Im Bank financing is supporting local jobs in cities across the Lone Star State, said Fred P. Hochberg, Ex-Im Bank chairman and president. Small businesses are the backbone of our economy, and we will continue to provide our small and-medium sized business owners with the tools they need to compete in today's brutally competitive global marketplace.
The Export-Import Bank plays a leading role in our efforts to increase U.S. exports and enhance U.S. competitiveness, which is one of the most effective ways to create jobs for the millions of Americans who are currently unemployed, said U.S. Rep. Rubén Hinojosa. Ex-Im Bank levels the playing field for U.S. exporters and workers so U.S. jobs are not lost to foreign competitors. It is clearly working for my district, Congressional District 15 of Texas, the Texas-Mexico border region, our state, and America.
Ex-Im Bank recently reported that it has hit historic levels exceeding $32 billion in transactions, which are supporting $40.6 billion in export sales and approximately 290,000 American jobs at over 3,600 U.S. companies. The Bank authorized more than $4.5 billion in export credit financing for Texas companies.
U.S. exports are contributing to our economic recovery and the record-setting growth of Ex-Im export financing is helping to support that trend, said Gene Sperling, the director of the National Economic Council. American exporters and Ex-Im remain on track to achieve President Obama's goal of doubling U.S. exports by the end of 2014.
Featured Texas Small Business Transaction
Air Tractor, Inc., a 200-employee manufacturer of agricultural and forest fire-bombing airplanes, has used Ex-Im Bank's medium-term insurance for 15 years to export an estimated $40 million of its aircraft, primarily to small private-sector buyers in Argentina and Brazil. The company uses the Bank's medium-term policies to provide supplier credits, which are loans to international buyers that the company originates and then sells to a commercial lender. About 25 planes are expected to be financed annually. In 2009, Air Tractor also obtained an Ex-Im Bank-guaranteed working capital loan.
This company has been able to enter new markets, with exports now accounting for approximately 60 percent of the company's total sales. Ex-Im Bank-supported exports have helped the company smooth out the effects of fluctuations in demand.
Ex-Im Bank's financing helped us establish long-term relationships with customers in Latin America and greatly expand our sales, stated David Icker, Air Tractor's Vice President of Finance.
Small business financing rose over 70 percent from $3.3 billion in FY 2008 to $6 billion in FY 2011 and is up $1 billion from last year. As part of its efforts to increase this portfolio, Ex-Im Bank's Global Access for Small Business initiative has held more than 20 forums across the country this year, reaching 4,000 small business exporters. For information on Ex-Im Bank's small business transactions, please visit Ex-Im Bank Success Stories.
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. The Bank is a self-sustaining agency that receives no net appropriation from the U.S. Congress and charges interest and fees to fund its transactions.
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.