Export-Import Bank of the United States

1. Export-Import Bank of the United States Financing Clean Energy Exports Rob Guthrie, Regional Director San Francisco Branch Office

2. 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 • 1.4 million jobs supported in 2015

3. Export-Import Bank of the U.S. • Exports are Our Business: • 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

4. 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

5. 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.

6. Working Capital Loan Guarantee: Windstream Windstream-inc.com

7. Working Capital Loan Guarantee: Windstream 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.

8. 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: • 75% on ALL export-bound inventory • 90% on foreign accounts receivable

9. Expand Your Borrowing Base

10. 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-in-advance, 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.

11. Export Credit Insurance: Coolerado Coolerado.com

12. Export Credit Insurance: ForeverPure ForeverPure.com

13. Export Credit Insurance: Coolerado, ForeverPure • Coolerado of Denver, CO and ForeverPure of Santa Clara, CA use Ex-Im Bank’s multi-buyer credit insurance to extend open account terms to their foreign buyers. Alternatives: • Cash in advance: Expensive and risky from buyer perspective. • Foreign letters of credit fees or local interest rates are frequently higher than in the US. • Private-sector insurance: available, but may be more expensive and may not cater to smaller businesses.

14. 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%

15. Service Exports • Ex-ImBank 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.

16. 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

17. Buyer Loan Guarantee: SolarWorld USA Solarworld-usa.com

18. Example: SolarWorld USA SolarWorld 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.

19. 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.

20. Process • 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 • Work with U.S. Commercial Service to identify potential buyers & develop relations: www.export.gov • Contact Ex-Im Bank to discuss potential transactions and the application process: contact information below • Ex-Im application time varies from one week to six months, depending on program and amount financed.

21. Conclusion • Ex-Im Bank is interested in projects of ANY SIZE. • Ex-Im Bank supports short, medium, and long-term financing to creditworthy U.S. Exporters and/or their international customers. • Ex-Im Bank will work with you to create bankable projects.

22. Contacts: • San Francisco • Rob Guthrie • rob.guthrie@exim.gov • 415-987-2285 • Craig Schumann craig.schumann@exim.gov • 415-654-3013 • www.EXIM.GOV