JP Morgan Chase Bank is the first US bank to arrange working capital finance under the Fast Track Lender Program of US Exim Bank. The new programme helps banks expedite loans to US-based companies that produce goods or services for export.
JP Morgan Chase now can provide exporters with larger Exim Bank-guaranteed loans after executing a new Master Guarantee and Fast Track Lender Agreement with the Ex-Im Bank for its Working Capital Guarantee Program.
Specifically, JP Morgan Chase can now quickly approve up to US$25mn per borrower – and an aggregate of US$300mn for all clients – to a trade client with a 90% guarantee by Exim Bank. Under its standing delegated authority arrangement with Exim, JP Morgan Chase continues to make the credit decision and issue Ex-Im guarantees for loans up to US$10mn.
In January, JPMorgan Chase completed a Fast Track lending transaction for one of the bank’s corporate clients – the first participating lender to close a deal under the new programme.
The Fast Track Lending Program provides exporters with:
- Financing to support international growth.
- Ability to compete more effectively in the international marketplace.
- Extension of favourable terms to their foreign customers.
“Fast Track Lending is groundbreaking for the world of trade finance,” says Lori Hricik, head of JP Morgan Chase Treasury Services. “Exim Bank has now given us new capability as a funding source for American business, along with a strengthened position in the market as a leading provider of credit and liquidity solutions.”
JP Morgan Chase has a longstanding relationship with Exim Bank. With loan specialists positioned in several of its commercial lending businesses to provide expert access to appropriate Ex-Im Bank programmes, JP Morgan Chase works to provide US customers with structured finance solutions that help them better manage working capital and mitigate risk as they expand their businesses globally.
As the US government’s official export credit agency, US Exim has been promoting trade in developing markets since 1934. “JP Morgan Chase and its predecessor banks have made extensive use of our Working Capital Guarantee program,” says John McAdams, senior vice-president, export finance at Ex-Im.
“Their lending team is to be congratulated on being the first to close a Fast Track financing transaction. JP Morgan Chase’s participation throughout our relationship has helped Exim Bank achieve record lending authorizations, and their continued use of our Working Capital programme will ensure that Exim Bank achieves its mission of supporting US exporters and helping create and sustain US jobs.”