Ex-Im Bank Announces New Loans and Guarantees for Exporters

By Jim Ryan, International Trade Specialist
Illinois SBDC International Trade Center

The Export-Import Bank of the United States (Ex-Im) has entered into a new marketing partnership with the State of Illinois to help small and medium-size businesses increase exports and jobs. The partnership is expected to accelerate export business and job growth by connecting Ex-Im products and services to the statewide network of Illinois SBDC International Trade Centers (ITCs), including Bradley University’s ITC.

In a recent press release, Ex-Im President, Fred Hochberg explained, “Owners of small and medium-size businesses already come to Illinois export centers to improve their understanding of export trade; now they will find Ex-Im Bank resources in the same place…. We trust this new connection will support increased sales and job growth in Illinois.” As part of this approach, the ITC at Bradley is counseling clients on new Ex-Im products, such as the Global Credit Express and Express Insurance programs.

The Global Credit Express program offers a 6- or 12-month revolving line of credit of up to $500,000 to provide working capital to fund higher risk export activities at affordable rates. The interest rate is fixed at 2.6 percent and costs of the program include an exposure fee of 2.5 percent of the maximum loan amount. A fee calculator can be found on Ex-Im’s website (www.exim.gov).

The Express Insurance program offers short-term policies to help small businesses expand into new foreign markets at an economical cost. This versatile tool allows exporters to not only cover the risk of nonpayment by foreign buyers but can reduce the costs of a letter of credit or eliminate the need for one altogether. It can also be utilized in offering payment terms to customers and makes it easier for exporters to obtain financing on those receivables involved. A streamlined online application provides a policy quote and credit decisions up to $300,000 on foreign buyers within five workdays. Premium rates are determined by a rate schedule based on the credit term. There are no application fees, and there is an option to insure pre-existing foreign buyers. A $500 advance deposit is required to issue the policy. This deposit is refundable if the exporter decides to cancel the policy.

To learn more about these programs or to apply for a loan, please contact Jim Ryan at (309) 677-3075 or jryan@bradley.edu.