The Export-Import Bank of the United States (US Ex-Im) has combined the financing limits of two of its programmes in order to further support US small and medium-sized businesses (SMEs).
Lenders will have greater flexibility to serve the needs of SMEs under the US Ex-Im’s super delegated authority and fast track programmes, now that the two programmes' aggregate financing limits have been combined.
The bank has combined the US$150mn aggregate limit per bank of the super delegated authority programme with the US$300mn aggregate limit per bank of the fast track programme. The change now provides lenders under the two programmes with one overall aggregate limit of US$450mn each.
"US Ex-Im looks forward to using this new feature to help our lending partners increase support of US exports by small and medium-sized companies," says the bank’s chairman and president, Fred Hochberg. "Enhancing financing flexibility is important at a time when credit is tightening around the world."
Under the delegated authority programme, lenders can provide US Ex-Im-guaranteed working capital loans to US exporters without prior approval from the bank. Super delegated authority is the highest of six delegated authority levels under which lenders may commit a maximum of US$10mn per borrower/transaction. It is used by the bank’s most active and experienced lending partners.
The fast track system is an expedited process for lenders to obtain US Ex-Im approval for working capital guarantee transactions, with a maximum of US$25mn per borrower/transaction. The same lenders that belong to US Ex-Im’s super delegated authority programme are members of the fast track system.
US Ex-Im’s working capital loan guarantees help small and medium-sized US companies build inventory to fill foreign orders. Pre-export costs can include purchase of raw materials or finished products, export production, and coverage of standby letters of credit serving as bid bonds, performance bonds, or advance payment guarantees.
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