Orange County Business Council Economic Development Committee Meeting:

1. Orange County Business CouncilEconomic Development Committee Meeting:

2. The official Export Credit Agency (ECA) of the U.S. Government Self-sustaining and independent Established in 1934 Headquarters in D.C. Eleven regional offices with Export Finance Managers Mission: To create and sustain jobs by increasing U.S. export sales What is Ex-Im Bank?

3. No Cost to Taxpayers $1.1 Billion returned to U.S. Treasury in 2013

4. Commerce assists businesses in developing foreign contacts, market strategies, and customer solicitation SBA assists small businesses in developing the capacity to export and the business strategies SBA is the lead for financing working capital for small business exporters, particularly at the entry level. Ex-Im target for working capital finance: exporters with at least 3 years of experience and a year of exporting Ex-Im is the lead for insuring foreign receivables and financing foreign buyers for companies of all sizes Ex-Im Bank and the other Trade Agencies Work Together

5. Ex-Im Bank Supports Small Business! • 85% plus of Ex-Im transactions are for small businesses USA. • Authorized $6B in 2012 to support U.S. small businesses. • Record year in working capital guarantees, at $2.0 Billion for small business • Authorized $3.2 B in trade credit insurance for small business • Authorized $813 million loan guarantees and insurance to foreign buyers of capital goods and services from U.S. small business exporters.

6. Number of Small Business Exporters 27 million small businesses in the US 260,000 export (less than1%) 60% of these export to only one country National Export Initiative Double Exports from the US in five years (2009-2014) Exports: Smartest, best way to get the economy into high gear Ex-Im Bank’s Small Business Global Access Initiative $9.0B in authorizations and 5,000 customers per year by 2014 Up from $3.0B and 2,000 customers in 2008 Budget neutral: no increase in budget Global Access: Public/Private Export Campaign

7. Support in Over 150 Countries 1. Brazil 2. Colombia 3. India 4. Indonesia 5. Mexico 6. Nigeria 7. South Africa 8. Turkey 9. Vietnam

8. Minimize risk Level the playing field Supplement commercial financing Ex-Im Bank bridges a gap with transactional finance

9. Manufacturing Construction Equipment Medical Equipment Mining Power-generation Aircraft and Avionics Services Renewable Energy Agribusiness Wholesale/Retail Oil Mining We Support a Variety of Industries

10. Ex-Im Bank Financing Covers the Spectrum Pre-Export Financing Post-Export Financing InsuranceGuaranteesDirect Loans Working Capital Guarantee

11. How Can Export Import Bank Products Assist You? SOLUTION NEED Funds to Fulfill Orders Working Capital Guarantee Receivables Insurance Extension of Credit Medium- and Long-Term Insurance & Loan Guarantee Buyer Financing

12. Working Capital Guarantee • Funds to pay for raw materials, labor, supplies, etc. • 90% guarantee to lenders for export-related working capital lender loans • Transaction specific or revolving loans • No minimum or maximum amount • 3rd source of collateral to lender behind assets & A/R

13. Working Capital Guarantee (cont.)

14. Protects U.S. exporters against nonpayment by foreign buyers due to: Commercial Risks Political Risks Allows exporters to offer competitive credit terms to foreign buyers Generally up to 180 days, some 360 day terms Provides additional financing Short-Term, Accounts Receivable Insurance

15. Single or Multi-buyer Policies Small Business Policy Short-Term, Accounts Receivable Insurance (cont.)

16. Used to finance foreign buyers purchasing U.S. capital equipment: 85% financed, 15% cash down payment Repayment up to 5 years, exceptionally 7 years Foreign Buyer Financing (Customer Finance for U.S. Exporters)

17. Financing can be accomplished through the following Ex-Im products: Loan Guarantees Export Credit Insurance Direct Loans Buyer Financing (cont.)

18. Military Exports (exceptions apply) Foreign Content Restricted Countries (CLS) Economic Impact Shipping Additionality Public Policy (Charter) Restrictions

19. No Defense Articles or Services, or Military buyers Three Exceptions Humanitarian purposes Drug interdiction Dual use items Military Policy

20. For Short-Term products, the product must have at least 50.1% US content to support the entire transaction Products must be manufactured in and shipped from the U.S., if exporter is a large business. Products may be started in another country, if exporter is a small business, and adds 50.1% value to the final cost, and ships from U.S.A. U.S. Content Policy—ST products

21. Ex-Im Bank will support the following amounts: If contract has no more than 15% foreign content, we will support 85% of the contract price Otherwise, we will limit our support to the U.S. content Note: the contract value and foreign content must exclude amounts not shipped from the U.S. Foreign Content Policy for MT and LT Financing

22. We are open in all continents, with the exception of some countries Country restrictions for political or economic conditions and Default Issues Refer to the Country Limitation Schedule (CLS) www.exim.gov, under Country/Fee info Restricted Countries

23. …have a foreign buyer that wants credit terms… ….export routinely but your growth in foreign sales is limited because of risks of non-payment? …are losing export opportunities because you will only accept a L/C or cash pre-pay? ….can’t find a lender to finance your overseas purchase orders? … are encountering cash flow problems due to increased foreign sales? …couldn’t get your lender to confirm a L/C from your buyer’s bank? …have a buyer that needs several years to pay for capital equipment? Call Ex-Im, If You...

24. Additional resources and assistance in applying for Ex-Im Bank products are available from: Insurance Brokers (see list on www.exim.gov) City / State Partners (see list on www.exim.gov) Delegated Lenders (see list on www.exim.gov) US Export Assistance Centers (USDOC and SBA) Ex-Im Bank Partners

25. For Information and Assistance to Apply: