A VARIETY OF U.S. GOVERNMENT AGENCIES, state government units, and multilateral lenders offer trade finance programs that are used by smaller and mid-size U.S. exporters. In recent years, small business has become a major focus of the Export-Import Bank and the Overseas Private Investment Corporation.

Key U.S. Agencies

EXPORT-IMPORT BANK
The Ex-Im Bank, largest of these U.S. agencies, is required to deliver at least 20% of its annual financing to smaller exporters. In 2009, the Bank approved $21 billion worth of transactions, with a small business share of $4.4 billion (nearly 21%). Small business transactions numbered 2,540, 88% of the total.

Smaller firms are major users of Ex-Im Bank’s working capital guarantee and short-term credit insurance programs, make some use of the Bank’s medium-term programs, and occasionally work with its long-term guarantees.

THE WORKING CAPITAL FACILITY supports loans by private lenders that help exporters pay for, and fabricate, products sold to foreign buyers.

THE SHORT-TERM EXPORT CREDIT INSURANCE PROGRAMS provide protection against non-payment by foreign buyers. Small firms are especially active in the “multi-buyer” program that covers the payment risk, usually, of 5-10, or perhaps 15-20, customers.

THE MEDIUM-TERM FACILITIES (in guarantee and insurance formats) support equipment financing with payments typically of five years.

Small business accounted for 81%, or $1.2 billion, of the $1.5 billion in working capital guarantees approved in 2009. In short-term insurance, smaller firms accounted for 2,052 policies issued, or 91 percent of the total.

EX-IM BANK'S PROGRAM DELIVERY SYSTEM includes working with about 130 private lenders (banks and finance companies), as well as with specialty credit insurance brokers (who place most of the business), and state and local government units that serve as facilitators.

The Bank’s small business strategy is led by a Senior VP, who manages staff specialists in each Ex-Im division, has input in program design, performs as an advocate within the Bank, and leads an outreach effort.

ACCESSING EX-IM PROGRAMS has become easier through its ExIm OnLine facility (on the web at www.exim.gov), which automates short-term insurance applications, helps manage short & medium-term program usage.

MOST WORKING CAPITAL AND MEDIUM-TERM FACILITIES (guarantees and insurance) are accessed through the private lenders whose financing is supported, and most insurance usage is handled with the support of specialty insurance brokers. State and local units actively facilitate smaller exporter applications.

The Bank has a regional office network, which serves as a main contact point for smaller exporters to work with its short-term insurance programs. The offices include: New York, Miami, Chicago, Houston, Dallas, San Diego, San Francisco, and Orange County (CA). Phone numbers are available on the Ex-Im web site. See the Shortcuts section (left hand column), Contact Us.