FOR IMMEDIATE RELEASE February 12, 2004
Phil Cogan, 202.565.3200
WASHINGTON, DC --- An Irving, Texas small business today (February 13) secured a preliminary commitment from the Export-Import Bank of the United States (Ex-Im Bank) for a 12-month, $5 million revolving working capital loan guarantee that the company indicates will assist it in maintaining 82 jobs in Irving and as many as 6,600 sub-supplier jobs elsewhere in the United States.
Delta Brands, Inc. (DBI) designs and manufactures metal processing equipment, selling primarily to companies in countries outside the United States. It is one of the last remaining U.S.-owned, manufacturing companies producing equipment used to process steel. In the past 31 years Ex-Im Bank has approved transactions involving DBI totaling more than $116 million.
Preliminary commitments for loan guarantees may be converted to final commitments after the company has finalized its financing package and application.
The Bank took the administrative action to issue the preliminary commitment after determining that a prohibition on Ex-Im Bank financing of certain steel-related U.S. exports had terminated. The prohibition had previously resulted from the October 2001 material injury finding by the International Trade Commission under Section 201 of the Trade Act of 1974. The prohibition had involved exports of U.S. goods and services to foreign steel-makers that produced products that were subject to safeguard measures under Section 201.
While the categorical prohibition is no longer applicable to such transactions, the Bank will continue to carefully review future transactions involving the establishment or expansion of steel production under the Bank's economic impact procedures in light of concerns about global excess steel capacity and subsidized foreign steel producers and in light of other applicable trade measures.
In addition to qualifying as a small business under Small Business Administration guidelines, DBI purchases sub-components from a variety of domestic suppliers that are, in many cases, also small businesses. Those suppliers are located throughout the United States, including the states of Illinois, Indiana, Florida, Michigan, Pennsylvania, Texas, and Wisconsin. The sub-suppliers employ an estimated 6,600 workers.
Ex-Im Bank this year marks its 70th 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 2003, Ex-Im Bank, an independent federal agency, authorized financing to support $14.3 billion of U.S. exports worldwide. For more information on Ex-Im Bank visit //www.exim.gov.