Export-Import Bank of the United States Sean Mulvaney, Member of Board of Directors

1. Export-Import Bank of the United StatesSean Mulvaney, Member of Board of Directors

2. What is the United States Ex-Im Bank? • The official Export Credit Agency (ECA) of the U.S. Government Self-sustaining and independent • Established in 1934 • Headquartered in D.C. • Field team operating in three US regions with various service centers embedded in US Export Assistance Centers. Mission: To support US exporters and US jobs. Two-Fold Purpose: 2. Assume credit and country risks that the private sector is unable or unwilling to accept 1. Level the playing field for US exporters.

3. Support in Over 150 Countries 1. Brazil 2. Colombia 3. India 4. Indonesia 5. Mexico 6. Nigeria 7. South Africa 8. Turkey 9. Vietnam

4. Manufacturing Construction Equipment Medical Equipment Mining Power-generation Aircraft and Avionics Services Renewable Energy Agribusiness Wholesale/Retail Oil Mining Ex-Im Support Available To Variety of Industries

5. Stakeholder Framework Ex-Im Bank of US Exporter Bank of Foreign Buyer Insurance Broker $ Payment US Exporter Foreign Buyer Service or Good Export

6. Ex-Im Bank Financing Covers the Spectrumfor US Exporters Pre-Export Financing Post-Export Financing InsuranceGuaranteesDirect Loans Working Capital Guarantee

7. US Business Export Finance Challenges You? Exim Product SOLUTION NEED Funds to Fulfill Orders Working Capital Guarantee Receivables Insurance Extension of Credit Medium- and Long-Term Insurance & Loan Guarantee Buyer Financing

8. US Working Capital Guarantee • Funds to pay for raw materials, labor, supplies, etc. • 90% guarantee to lenders for export-related working capital loans • Transaction specific or revolving loans • No minimum or maximum amount

9. Working Capital Guarantee (cont.) • Advances are supported by export-related: • Inventory up to 75% • Receivables up to 90% • Term is generally one year (renewable) and may be up to three years.

10. Exporter Working Capital Product Ex-Im Working Capital Guarantee Facility Fee US Exporter Bank Benefits to Exporter: 1. Resources to purchase intermediate inputs 2. Ability to post Standby Letter of Credit with reduced collateral requirements WC Loan Facility Fees, Principal, and Interest $ Payment US Exporter Foreign Buyer Service or Good Export

11. Exporter Accounts Example Exporter Accounts

12. Exporter Accounts Example Exporter Accounts

13. Borrowing Base With Ex-Im Guarantee Exporter Accounts +$890,000

14. Short-Term, Accounts Receivable Insurance Protects U.S. exporters against nonpayment 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 360 day terms • Provides additional financing

15. Short-Term, Accounts Receivable Insurance (cont.) • Single or Multi-buyer Policies • Small Business Policy

16. Roles of Broker: • Helps exporter understand and fulfill Ex-Im requirements and business processes • Agent/Representation of the exporter to Ex-Im • Earns a commission from Ex-Im for use of authorized policies. • Obligated to act in the best interests of client Trade Credit Insurance Ex-Im Commissions • Benefits for Exporter: • Reduces nonpayment risk • Enables the extension of competitive credit terms to buyers • Opens new markets • Increases cash flow Representation of Exporter Insurance Broker Trade Credit Insurance Policy Premiums Insurance Policy Guidance $ Payment US Exporter Foreign Buyer Service or Good Export

17. Receivables Insurance Ex-Im Bank Success Story Holmatro, Inc. Glen Burnie, Maryland • Makes hydraulic rescue equipment that is often used to save lives. • Primary Export Markets: Peru, Brazil, and Canada • Ex-Im Product: Multi-Buyer Export Insurance Policy supporting $1.8 million in sales. Results: • Exporting sales process is now less costly and more efficient . • Extending credit allowed Holmatro to sell more and enter new markets with confidence.

18. Buyer Financing (beyond 1 year) • Used to finance foreign buyers purchasing U.S. capital equipment and services: • 85% financed, 15% cash down payment • Medium Term: insurance or guarantee products enabling repayment up to 5 years, exceptionally 7 years, amounts of $10 million or less. • Long Term: Loan guarantees available for long term financing of more than 7 years. (Note: few direct loans).

19. Buyer Financing Product (Insurance or Guarantee) Ex-Im Guarantee or Insurance • Benefits: • Obtain competitive term financing from lenders when: • financing is otherwise not available or • there are no economically viable interest rates on terms over 1-2 years • Receive payment at the time of shipment • Increased confidence to compete for sales in new markets Exposure Fee Private Bank Financing Facility Fees, Principal, and Interest $ Payment US Exporter Foreign Buyer Service or Good Export

20. Buyer Financing Ex-Im Bank Success Story Maxson Automatic Machinery Company Westerly, Rhode Island "The loan guarantee made the commercial process more straightforward and easier." – Nick Datson, International Sales Manager

21. Global Credit Express Product (Pilot Program for Small Business) Ex-Im Referral Fee Customer Referral US Exporter Bank • Benefits for Small Businesses: • Direct, fixed-rate financing with relatively low interest cost • Working Capital for export related expansion efforts, including marketing or sales related activities Direct Loan Fees, Interest, and Principal $ Payment US Exporter Foreign Buyer Service or Good Export

22. Policy Considerations • Non-competition with private sector lending. • U.S. content requirements • U.S. Flag shipping rules • Effect on the environment (Ex-Im Guidelines) • Military transactions not eligible with some exceptions.

23. Next Steps • Packet contains additional information • Product brochures, foreign buyer information. • PoC Info: Sean Mulvaney 811 Vermont Ave NW, Washington DC 20571 (202) 565 3530 Sean.Mulvaney@exim.gov