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					                          Ex-Im Bank
EXPORT-IMPORT BANK
 of the UNITED STATES

   Jobs Through Exports
                            U.S. Exporter
                            Product Overview
                          Video Presentation
                          Ex-Im Bank 101:
EXPORT-IMPORT BANK
 of the UNITED STATES

   Jobs Through Exports
                          The Basics
Who We Are — What We Do

 Ex-Im Bank is an independent agency of the
  United States government
    Established in 1934
    Headquartered in Washington, DC
    5 regional business development offices plus 2
     satellite locations in CA (San Diego and San
     Francisco)

 Mission: Support US exports in order to
  create and sustain US jobs
    Ex-Im Bank Regional Offices




                                    New York
   San
Francisco                Chicago

  Newport
   Beach
     San Diego
                    Houston

                                   Miami
Eligibility Criteria

No Defense Articles or Services, or
 Military Buyers
Exceptions may be made for
 humanitarian purposes, drug interdiction,
 dual-use items
Eligibility Criteria
 US Content
 51% for short-term transactions
 85% for medium-term transactions
 Services must be performed by US-based
  personnel, either in the US or in the “host”
  country
Eligibility Criteria
 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 on the homepage
  under “Shortcuts”
How We Help Increase
Your Export Sales
Minimize risks
Level the playing field
Supplement commercial financing
Foreign Export Credit Agencies
Your foreign competitors have similar support

 EDC                    Canada
 ECGD                   UK
 Coface                 France
 EulerHermes            Germany
 JBIC                   Japan
 Sace                   Italy
 KEIC, Keximbank        S. Korea
 OeKB                   Austria
 Efic                   Australia
Small Business IS Our Business

 86% of all Ex-Im Bank transactions supported
  small business exports!
 90% of total working capital guarantees --
 ($990 million)
 90% of total short-term insurance policies --
 ($2.1 billion)
 MT loans and guarantees -- $275 million
 $525 million in working capital guarantees
 and export credit insurance supported
 exports by minority or woman-owned
 businesses
FY 2008 at a Glance

 Total Authorizations: $12.6 billion
 Major Sectors:
    Transportation: $4.7 billion
    Environmental: $82 million
    Energy: $2.0 billion
    Agriculture: supported $1 billion in export value
    Services: supported $1.6 billion in export value
   Trade Terms as a Spectrum of Risk

Seller Risk          Trade Terms                Buyer Risk

   High                                             Low
                      Open Account
                 Cash Against Documents
                   Sight Letters of Credit
              Usance / Deferred Letters of Credit
                     Payment in Advance


    Low                                             High
Ex-Im Bank Support
Covers the Spectrum


 Pre-Export           Post-Export
 Financing             Financing


   Working             Insurance
   Capital            Guarantees
  Guarantee           Direct Loans
EXPORT-IMPORT BANK
 of the UNITED STATES
                          Pre-Export Financing:
   Jobs Through Exports
                          Export Working Capital
                          Guarantee Program
Working Capital Guarantee (WCG)

Assists small and mid-size companies in
 obtaining working capital to produce or
 purchase US goods and services for
 export
Provides a 90% guarantee of repayment
 (principal and interest) on loans to
 exporters
May be set up as “Transaction-Specific”
 or a “Revolving” Line of Credit
Working Capital Guarantee

No minimum or maximum amounts
Loan supports advances made against
 export-related inventory (including WIP)
 and foreign receivables:
   Up to 75% advance rate on inventory, and
    up to 90% on foreign receivables
Working Capital Guarantee

Transportation Freight Financing (TFF) Program

Assists US-based transportation logistics
 providers in obtaining working capital to
 facilitate the export of commercial
 cargo on US-flag ships
Uses accounts receivable as collateral
 for the loan
Working Capital Guarantee

Transportation Freight Financing (TFF) Program

 Funds may be used to provide services
  directly related to the logistics involved in the
  export of commercial cargo such as:
    Ocean, air, rail and truck freight
    Cargo and marine insurance
    Crating and packing
    Port drayage; warehousing
    Terminal, forwarder and broker fees
Working Capital Guarantee

 Asset-Based: fully collateralized
    Personal guarantees are required of owner(s)
 Cost:
    $100 application fee
    Up to 1.5% facility fee – Reduced fee if:
      Exports sales structured under L/Cs and/or secured by
       export credit insurance; exporter’s financial ratios are
       within its industry median
      A lower fee may be negotiated with a “Delegated
       Authority” Lender (see list on www.exim.gov)
    Interest rate is determined by the lender
WCG Increases Borrowing Power
Success Story:
Callidus Technologies LLC
 Challenge: Small business, environmental
  engineering firm needed cash to open stand-
  by L/C’s (performance bonds) with the buyer
  as beneficiary during production of the
  equipment.
 Solution: Lender funded a $5mm Ex-Im Bank
  guaranteed working capital line of credit, with
  the exporter collateralizing only 25% of the
  stand-by L/C amount.
 Result: The firm was able to accept one of
  the largest orders ($16 million) in its history,
  and added 70 new employees.
EXPORT-IMPORT BANK
 of the UNITED STATES
                          Post-Export Financing:
   Jobs Through Exports
                          Short-Term
                          Export Credit Insurance
Short-Term
Export Credit Insurance
 Protects U.S. exporters against non-payment 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 products may qualify for 360
     day terms
 Obtain additional financing
    Insured foreign receivables may be added to your borrowing
     base by assignment of policy proceeds (claim payments) to
     lender
 Risks Covered

Commercial Risks        Political Risks
   Insolvency               Transfer risk
   Bankruptcy               War, revolution,
                              insurrection,
   Protracted default        expropriation
                             Cancellation of an
                              import or export
                              license
Short-Term
Export Credit Insurance

Coverage:
   Up to 180 days, exceptionally 360 days (for
    capital equipment and bulk, unprocessed
    agricultural products)
   Commercial and political risks
Short-Term
Export Credit Insurance

 Lender Policies:
    Bank Letter of Credit
    Financial Institution Buyer Credit
    Financial Institution Supplier Credit
    Foreign Dealer Insurance Policy (may roll to MT)

 Exporter Policies: Multi-Buyer or Single-Buyer
Small Business Multi-Buyer Policy

Coverage:
   No 95% commercial and 95% political
Exporter must qualify as “small
 business” by SBA definition, and:
   No more than $5 million in export credit
    sales over the past 2 years
1 year successful operating history
Small Business Multi-Buyer Policy

Must insure ALL export credit sales
 (L/C, CIA, CAD, SDDP sales may
 excluded)
Refundable advance premium: $500
No deductible, no application fee, “pay-
 as-you-ship”, no minimum premium
 requirement
   Small Business Multi-Buyer
   Premium Rates (example)

                                        Financial
       Term          Sovereign        Institutions         Private
   Sight L/Cs           $0.04             $0.04             N/A
   1-60 days            $0. 19            $0. 24            $0.65
   61-120               $0. 32            $0. 39            $1.06
   121-180              $0. 41            $0. 50            $1.35
   181-270              $0. 51            $0. 63            $1.70
   271-360              $0. 62            $0. 77            $2.08

            Per $100. of the gross invoice amount
25% rate reduction if used with Ex-Im/SBA Working Capital Guarantee product!
Standard Multi-Buyer Policy

 For experienced exporters with over 500
  employees and /or $5mm in annual export
  credit sales
 Must insure ALL export credit sales
  (L/C, CIA, CAD, SDDP may be excluded)
   On a case-by-case basis, exporter may
    request to exclude certain buyers
    (“Reasonable Spread of Risk”)
Standard Multi-Buyer Policy

 Coverage:
    95% for both commercial and political risks
 Buyer credit limits endorsed to policy (requires
  minimal pre-approvals by Ex-Im Bank)
 No minimum premium, “pay-as-you-ship”
Success Story:
Pharmaceutical Trade Services, Inc.
 Challenge: Exporter of specialized
  prescription drugs needed to extend
  competitive credit terms to get larger orders
 Solution: The company used the small
  business multi-buyer policy as a marketing
  tool to extend net 45 day terms and increase
  sales
 Result: The company’s export sales volume
  increased over a 7 year period from $713,000
  to nearly $6 million, and the staff grew to 15
  employees
Single Buyer Insurance Policy

Buyer-specific policy
Insures a single sale or multiple sales to
 one buyer
90% coverage, both commercial and
 political; 95% for letters of credit
Maximum policy period: 1 year
No deductible, No application fee
Single Buyer Insurance Policy
(con’t.)
 Premium based on country and length of credit
  terms (see rates on www.exim.gov)
 Charged on sales volume (not credit limit)
 Pay-as-you-ship
 Reduced minimum premium for “small
  business” exporters
Single-Buyer Rates (private sector)
(example)

              Sight   Up to 60   61-120    121-180
Country        L/C     days       days      days
Mexico        $0.03     $0.48     $0.79     $1.00
Brazil        $0.07     $0.84     $1.38     $1.76
U.A.E.        $0.03     $0.48     $0.79     $1.00
Turkey        $0.09     $1.05     $1.72     $2.20
Thailand      $0.04     $0.65     $1.06     $1.35
         Per $100 of the gross invoice amount
EXPORT-IMPORT BANK
 of the UNITED STATES
                          Post-Export
   Jobs Through Exports
                          Financing Solutions:
                          When a Foreign Buyer Needs
                          Medium-Term or Long-Term
                          Financing
Medium-Term Insurance and
Guarantees
 Capital equipment sales and related services
 Lease transactions
    Finance Lease: Insurance or Guarantee
    Operating Lease: Insurance only
 Used equipment OK up to 3 year terms
 Buyer criteria per Medium-Term Credit
  Standards
    Minimum 3 year history
    Reliable financial statements (audited if credit
     exceeds $1 million)
    Buyer must meet certain financial ratios
Medium-Term Insurance and
Guarantees
 15% downpayment required (may be financed
  by the lender)
 100% coverage of the remaining 85% on both
  principal and interest on loans made by lenders
  directly to foreign buyers or on credit terms
  extended to foreign buyers by exporters
 1 to 5 year repayment, exceptionally 7 years
  and < $10 million
 Generally limited to buyers in developing
  markets
 Medium-Term Insurance & Guarantees:
 Pricing Indications (example)
  Private-sector, corporate borrowers, 5 year tenor, for
     transactions under $10 million

      Country          Insurance          Guarantee
                       Premium            Exposure
                                            Fee
        Mexico            1.92 %           1.94 %
        Brazil            4.69%            4.76 %
        Russia            3.14%            3.19%
 Refer to “Fee Calculator” on www.exim.gov
 One-time (flat) fee (may be financed)
 Under Guarantee program, a 0.125% p.a. commitment fee
applies
  (accrues 60-days from approval date)
Long-Term Financing Support
 Generally used for buyer financing in amounts
  over $10 million and 7 to12 year repayment
  terms
 Generally, large-ticket items (aircraft) and
 project finance receive long-term support
 15% down payment / Ex-Im Bank supports
  100% of the remaining 85% (the financed
  amount)
       Loan Guarantees
       Direct Loans
Success Story:
PowerLight Corporation
 Challenge: Designer/operator of grid-
  connected solar power systems needed to
  provide equipment and services for a Korean
  project, and arrange attractive financing for
  the buyer
 Solution: A $7.8 million Ex-Im Bank medium-
  term loan guarantee was put in place. The
  lender was City National Bank of Los Angeles
 Result: PowerLight was the first exporter to
  benefit from the new 15-year repayment
  terms available to support U.S. exports for
  renewable energy, water and hydroelectric
  power projects
Success Story:
Le Tourneau Technologies, Inc.

 Challenge: To provide competitive financing
  to construct a mobile offshore oil and gas
  exploration and drilling rig in Mexico
 Solution: A $54 million long-term Ex-Im Bank
  guarantee (8.5 years) was issued to the
  lender, BBVA Bancomer of Mexico City. Such
  a loan was not available without Ex-Im Bank’s
  support
 Result: With the guarantee in place, Le
  Tourneau won this $129 million contract
  over its competitors
Ex-Im Bank OnLine

 Our new, web-based application and
  transaction management system makes it
  easier for exporters and lenders to use Ex-Im
  Bank products
 Automation of our primary business
  processes, particularly for those most used by
  small businesses:
    All exporter insurance policies (ST and MT)
    Lender policies for ST and MT buyer credits,
     letters of credit, foreign dealer policy
    MT guarantees under $10 million
“How Can We Help YOU?”
Expand international sales
Boost borrowing power
Speed cash flow
Enter new markets
Mitigate risks and losses
Ex-Im Bank Partners

 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)
For More Information

 Call the Ex-Im Bank Regional Office near you:
    New York: 212-809-2650            (Northeast / Mid-Atlantic)
    Chicago: 312-353-8081             (Midwest)
    Miami: 305-526-7436               (Southeast)
    Houston: 281-721-0470             (Southwest)
    Newport Beach: 562-980-4580       (West)
        San Francisco: 415-705-2285
        San Diego: 619-557-7091

 800-565-3946 [exim]
 Web Site: www.exim.gov

				
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