Financial Support Enabling U.S. Small and Medium-Sized Exporters to Increase Their Sales

1. Financial Support Enabling U.S. Small and Medium-Sized Exporters to Increase Their Sales

2. Almost 90% of transactions support small business No transaction is too small Small Business ISOur Business

3. The official Export Credit Agency (ECA) of the U.S. Government Self-sustaining and independent Established in 1934 Headquarters in D.C. Twelve Regional Offices 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 – Exports Through Jobs

4. No Cost to Taxpayers $1.05 Billion returned to U.S. Treasury in 2013

5. Where are those Regional Offices ?

6. U.S. Content Policy Military Policy Restricted Countries (CLS) Just A Few Restrictions

7. Short-term: Must exceed 50% U.S. content to support the entire transaction Products must be manufactured in and shipped from the U.S. (for pre-export, companies must be located in the U.S.) Services must be performed by U.S.- based personnel Medium-term: If contract has no more than 15% foreign content, Bank supports 85% of the contract price Otherwise, the Bank will limit support to the U.S. content U.S. Content Policies

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

9. EX-IM Bank is 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, and underCountry/Fee info. Restricted Countries

10. Country Limitation Schedule (CLS)

11. Working Capital Guarantee I need working capital to support my rapidly growing export sales and I don’t know where to turn…Can EX-IM help ? • 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

12. Our Guarantee Increases Your Borrowing Power!

13. My foreign distributors/buyers are asking for open account terms like my foreign competition but I want to sleep @ night…Can EX-IM help? Risk Mitigation Allows exporters to safely extend credit terms to foreign buyers Competitiveness/Marketing Extend terms to existing customers Attract new customers and enter new markets Financing Tool: Ability to assign foreign receivables Accelerate cash flow Export Credit Insurance – Exporter Benefits

14. Commercial Risks Insolvency Bankruptcy Protracted default Political Risks War, revolution, insurrection Cancellation of import and export license Currency transfer risk Covered Risks

15. Express Insurance Policy New policy (introduced 3/30/2011) for small businesses with up to 20 debtors Streamlined application EX-IM Bank will secure information on the first couple of debtors and provide quote and debtor approval within 5 business days for amounts up to $300,000 Must Meet SBA Small Business Guidelines Short-Term Export Credit Insurance

16. Small Business Multi-Buyer Policy For exporters with annual export credit sales of less than $7.5 million, and which meet the SBA definition of “small business.” Special rates with no country risk factor $500 deposit and NO deductible Must Meet SBA Small Business Guidelines Short-Term Export Credit Insurance

17. Pricing: Small Business Multi-buyer Policy Pricing per $100 of insured shipments

18. Standard Multi-Buyer Policy For exporters not defined as a small business, or have annual export credit sales of more than $7.5 million Premiums based on term, country, and buyer type Varied deposits and deductibles apply Short-Term Export Credit Insurance

19. Single-Buyer Policy For exporters wishing to insure single or multiple shipments to one buyers Premiums based on term, country and buyer type NO deductible, but minimum advanced premium and deductibles apply Short-Term Export Credit Insurance

20. Example Premiums by Country of Single Buyer • *The Premium is applied to insured invoice amount: e.g.: Brazil/60 days/$100,000.00 invoice = $650.00 premium. • Premiums will be lower if the Buyer is a Financial Institution or a Sovereign entity of the Country. • see: http://www.exim.gov/tools/exposurefees/shorttermelcessfinancing/index.cfm

21. Short Term Premium Calculator

22. I manufacture capital equipment products and my typical export invoice is over USD 250,000 and my buyers are asking me to arrange financing for them…Can EX-IM help? Used to finance foreign buyers purchasing U.S. capital equipment: 85% financed, 15% cash down payment Repayment up to 5 years, exceptionally 7 years Amounts of $10 million or less Buyer Financing (Medium-Term)

23. One Final Tool/Resource…

24. Success Story – Auburn Leather; Auburn, KY

25. Mark E. Klein Regional Director Central Region Mark.Klein@exim.gov Phone: 312.353.8073 Cell: 312.375.1883 Contact Information