ExportImport Bank of the United States Financing Clean
Export-Import Bank of the United States Financing Clean Energy Exports Rob Guthrie, Regional Director San Francisco Branch Office
Export-Import Bank of the U. S. Independent U. S. Government agency, founded in 1934 Self-sustaining & profitable! -- $431 million net profit in FY 2015 (9 months) $17 billion in U. S. exports supported in FY 2015 MISSION: U. S. JOBS THROUGH EXPORTS Ø 1. 4 million jobs supported in 2015
Export-Import Bank of the U. S. Exports are Our Business: Ø 86% of all companies supported are small businesses Ex-Im Bank Provides: ▪ Working Capital Loan Guarantees ▪ Export Credit Insurance ▪ Buyer Loan Guarantees ▪ Buyer Direct Loans
Eligibility Criteria U. S. Content ▪ Short-term transactions: 50. 1% of COGS. ▪ Medium / Long-term transactions: only U. S. content including profit margin, up to 85%. No Defense Articles ▪ Exceptions may be made for humanitarian purposes, drug interdiction, & dual-use items. Country Eligibility ▪ Support available in over 155 countries ▪ Restrictions may apply for political or economic reasons ▪ Refer to the Country Limitation Schedule (CLS) at www. exim. gov
Working Capital Loan Guarantee Ex-Im Bank provides 90% repayment guarantees for working capital loans. Revolving OR transaction-based, made by commercial lenders to U. S. companies to finance foreign purchase orders. Enables exporters to use export-bound materials, labor, overhead, and foreign A/R to collateralize their working capital facility. May be used to cover stand-by letters of credit for bid and performance bonds: 25% collateral.
Working Capital Loan Guarantee: Windstream-inc. com
Working Capital Loan Guarantee: Windstream, Inc. of New Albany, IN manufactures low -cost vertical axis wind turbines for rooftop and roadway applications. In May 2012, Ex-Im Bank guaranteed a $500, 000 revolving working capital credit line to help fill Windstream’s foreign purchase orders.
Working Capital Loan Guarantee: Windstream GBC International Bank received the 90% guarantee under Ex-Im Bank’s ‘Delegated Authority' program. KEY: the working capital loan guarantee increases the advance rates that lenders may advance on the primary collateral: Ø 75% on ALL export-bound inventory Ø 90% on foreign accounts receivable
Expand Your Borrowing Base
Export Credit Insurance Enables U. S. exporters to offer short- and medium-term credit directly to their customers. Credit insurance is an attractive substitute to cash-inadvance, local bank financing, and letters of credit. Ex-Im Bank also may insure a letter of credit instead of paying bank confirmation charges; usually more cost-effective.
Export Credit Insurance: Coolerado. com
Export Credit Insurance: Forever. Pure. com
Export Credit Insurance: Coolerado, Forever. Pure Coolerado of Denver, CO and Forever. Pure of Santa Clara, CA use Ex-Im Bank’s multi-buyer credit insurance to extend open account terms to their foreign buyers. Alternatives: 1. Cash in advance: Expensive and risky from buyer perspective. 2. Foreign letters of credit fees or local interest rates are frequently higher than in the US. 3. Private-sector insurance: available, but may be more expensive and may not cater to smaller businesses.
Credit Insurance Premiums (Small Business Exporter Policy) ▪ CAD - 0. 20% ▪ 60 days - 0. 55% ▪ 120 days - 0. 90% ▪ 180 days - 1. 15% ▪ 360 days - 1. 77%
Service Exports Ex-Im Bank supports service exports on short, medium, and long-term financing programs. ▪ Guidelines are more stringent, and support requires additional analysis of the service. ▪ Examples of services supported: - software design - oil and geothermal well drilling - engineering & architectural design ▪ More information available upon request.
Buyer Loan Guarantee Program Guaranteed Loans: made by commercial banks (U. S. or foreign) to a foreign buyer with a 100% unconditional repayment guarantee from Ex-Im Bank. ▪ Coverage: up to 85% of the U. S. export ▪ Negotiated interest rates, usually a floating rate based on spread over 6 -month USD LIBOR rate, currently ~ 1% ▪ 15% required cash payment: banks may finance ▪ Guarantee available in major foreign currencies
Buyer Loan Guarantee: Solar. World USA Solarworld-usa. com
Example: Solar. World USA manufactures CSi solar PV modules in Hillsboro, OR (solarworld-usa. com). Ex-Im Bank provided a 10 -year, $6. 4 million loan guarantee to PNC Bank to finance a 1. 4 MW rooftop solar project in Barbados. Sustainable Recycling Centre, Inc. (Barbados) will use the electricity to power SBRC’s operations. ☼ SBRC is wholly-owned by Williams Industries, making significant savings in electricity costs.
Direct Loan Program ▪ Direct Loans are made by Ex-Im Bank to a foreign buyer. ▪ Current interest rate for a 10 -18 year loan: ≤ 3. 01% ▪ Coverage: up to 85% of the U. S. export. ▪ Ex-Im Bank requires the buyer to make a cash payment to the exporter equal to at least 15% of the U. S. supply contract. ▪ Minimum Direct loan: $10 million, USD only.
Process 1. Consult with the Bureau of Industry and Security (part of the U. S. Dept. of Commerce) to determine if you need an export license: https: //www. bis. doc. gov/index. php/about-bis/contact-bis 2. Work with U. S. Commercial Service to identify potential buyers & develop relations: www. export. gov 3. Contact Ex-Im Bank to discuss potential transactions and the application process: contact information below 4. Ex-Im application time varies from one week to six months, depending on program and amount financed.
Conclusion ü Ex-Im Bank is interested in projects of ANY SIZE. ü Ex-Im Bank supports short, medium, and long-term financing to creditworthy U. S. Exporters and/or their international customers. ü Ex-Im Bank will work with you to create bankable projects.
Contacts: San Francisco Rob Guthrie rob. guthrie@exim. gov 415 -987 -2285 Craig Schumann craig. schumann@exim. gov 415 -654 -3013 www. EXIM. GOV
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