Serving Western & Central Pennsylvania Exporters Since 1980
April 2012 — Vol. 2, Is. 7
I saw on the news this morning that 2012 has already been the hottest year on record. I agree: it’s a hot year for export financing! Read below to learn how new Ex-Im Bank and Small Business Administration programs can help your small business offer better terms to your customers while reducing your risk.
Julia Zorzi, Editor, and the entire U.S. Commercial Service Pittsburgh Staff
Spotlight: New Ex-Im Bank Products for Small Business
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. You may know about their working capital and export credit insurance programs, but did you know they’re offering new products for small and medium sized U.S. businesses? These programs will enable more U.S. small and mid-sized businesses to be competitive internationally and create more jobs by exporting more goods and services to more customers in more countries.
The new products provide a faster, simpler insurance application process; project financing for small-scale renewable projects; increase liquidity for small-business suppliers of goods and services to U.S. exporters; and ensure access to private-sector insurance to cover the risks of nonpayment by foreign buyers.
Global Credit Express
The Global Credit Express program is specially designed to deliver short-term working capital loans directly to creditworthy small business exporters. Through this new program, exporters like you may be eligible for a 6- or 12-month revolving line of credit of up to $500,000. Global Credit Express adds liquidity to the U.S. small business export market by financing the business of exporting rather than specific export transactions. This is a pilot program currently offered through a select number of Originating Financial Institutions (lenders) nationwide.
Express Insurance simplifies small business exporters' access to credit insurance on their short-term export receivables. It also makes it easier for them to obtain financing of those receivables. A streamlined online application provides a policy quote and credit decisions up to $300,000 on foreign buyers within five workdays or less (requests exceeding $300,000 will require additional time).
Renewable Express helps U.S. exporters of solar-energy equipment, technology and services by providing streamlined financing of their exports to small solar-energy projects in international markets. Ex-Im Bank can consider project financing for small renewable-energy producers seeking loans of $3 million to $10 million in as few as 60 days.
Ex-Im Bank's supply-chain guarantee strengthens the supply chain by helping U.S. suppliers to expand their sales to U.S. customers that export. It increases liquidity for small-business suppliers by enabling participating lenders to purchase suppliers' accounts receivable that are due from U.S. exporters. It increases cash flow for small-business suppliers by ensuring the prompt payment of these receivables and lowering the cost of credit.
About Ex-Im Bank
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. They assume credit and country risks that the private sector is unable or unwilling to accept. They also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.
Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of their transactions directly benefit U.S. small businesses. With more than 77 years of experience, Ex-Im Bank has supported more than $456 billion of U.S. exports, primarily to developing markets worldwide. In 2011, the two largest export markets assisted by Ex-Im Bank were India and Mexico.
In addition to Ex-Im Bank, there are export finance options available from the Small Business Administration (SBA). These programs include Facilities Development Financing, the Working Capital Program, and the Export Express loan program.
For more information on how these or other export financing programs can help your company or to schedule an appointment with Ex-Im Bank, visit our website or call us at 412-644-2800.
President Obama, Mexican and Canadian Leaders Pledge Greater Cooperation
On April 2nd, President Obama, Canadian Prime Minister Harper and Mexican President Calderon pledged to increase cooperation between our three countries. Specifically, they pledged to support small businesses by eliminating regulatory differences for vehicle emissions, railroad safety, the Harmonized System, and the Labeling of Workplace Chemicals. The leaders also pledged to secure supply chains while making border crossing more efficient, improve protection and enforcement of intellectual property rights, and increase energy trade in North America. To read more, click here.
2012 Report on Foreign Trade Barriers Released
In April 2012, the Office of the U.S. Trade Representative released a report called “2012 National Trade Estimate Report on Foreign Trade Barriers.” The report is a comprehensive guide for over 80 countries on tariff and non-tariff barriers U.S. companies may face when trying to enter the market. While it doesn’t cover all aspects of doing business abroad, it can help you gauge challenges you’ll face in each market. You can find the report here.
Mexican Ventanilla Unica Documentation System Takes Effect on June 1st
Ventanilla Unica, or “One Window,” is a new tool that will change the way documentation is handled by the Mexican Government. It is a paperless system that allows you to send export documentation once to a single entity to comply with all requirements for trading with Mexico. The objective of Ventanilla Unica is to facilitate and simplify information flows between business and government, reduce costs and increase international competitiveness. It will take effect on June 1, 2012. For more information, visit the Mexican Government’s website or sign up for our webinar.
Want to learn more about how export finance and insurance can help your business manage risks and even increase sales? Visit our webpage on International Finance!
SPOTLIGHT: ACCESS 2012 INTERNATIONAL TRADE FORUM: (Apr. 24-25, Glendale, AZ)
ACCESS 2012 is a unique opportunity to hear directly from U.S. Commercial Service officers serving in Africa, the Middle East and South Asia, obtain the resources necessary to succeed in these markets, and develop market entry strategies. Senior Commercial Officers from the following countries will attend: Algeria, Egypt, Ghana, India, Iraq, Israel, Jordan, Kenya, Kuwait, Libya, Morocco, Nigeria, Pakistan, Qatar, Saudi Arabia, South Africa and United Arab Emirates. For more information and to register, visit our website.
2012 Basic Guide to Exporting Webinar Series
- Europe: Your Gateway to Trade Opportunities (May 7; Orange, CT; $225) The U.S. Commercial Service, Yale University and Congresswomen Rosa DeLauro will co-host Europe: Your Gateway to Trade Opportunities. This one day conference will focus on the European economy and business opportunities for US companies, with a specific focus on the Aerospace/Defense and Medical Sector. During this conference European regional experts will discuss topics that include: Market Entry Strategies, Export Financing, Standards & Regulations, and U.S. Export Controls.
- Expanding Horizons Workshop (May 10 in New Orleans, LA and June 27 in New York, NY; $50) Learn how hundreds of American small businesses have used Overseas Private Investment Corporation (OPIC) finance and insurance products to gain access to emerging markets overseas. Discover how you can take advantage of all the products OPIC has to offer to expand internationally while supporting growth at home. Participants will also hear from other U.S. government agencies that offer programs complementary to OPIC, including market research, international partner search, trade financing and feasibility study funding.
- AES Compliance Seminar and Workshop (Seminar on June 19, $185; Workshop on June 20, $55. Philadelphia, PA.) The U.S. Commercial Service is partnering with the U.S. Census Bureau, U.S. Customs and Border Protection, and Temple University to bring a seminar and workshop on the Automated Export System (AES). During the daylong seminar, Census Bureau and port officers from the U.S. Customs and Border Protection (CBP) will provide a thorough overview of the AES and cover the filing requirements of the FTR, how to classify your commodities with the Schedule B classification requirements, port requirements, and efforts against terrorism and international narcotics trafficking.
DOMESTIC TRADE SHOWS WITH FOREIGN BUYER DELEGATIONS:
Exhibiting at one of these shows? Let us know! We can arrange meetings with foreign buyers, our in-country commercial specialists and more at these shows!
INTERNATIONAL EVENTS AND TRADE SHOWS:
- E-Health Week 2012 (May 7-9; Copenhagen, Denmark)
- Trade Winds: Asia (May 14-22; Singapore, with opportunities for business matchmaking in Indonesia, Malaysia, Thailand, and/or Vietnam)
- Fabtech Mexico—Expo Metalmecanica (May 2-4; Mexico City, Mexico)
- SOFEX 2012 (May 7-10; Amman, Jordan)
- Automechanika Middle East 2012 (May 22-24; Dubai, UAE)
- EUROSATORY 2012 (June 11-15; Paris, France)
- MEDICA 2012 (Nov. 14-17; Dusseldorf, Germany)
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