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EDC of Southest California Quarterly LuncheonCategory: News & General Info Published: Friday, January 29, 2010 January 29, 2010 By: Morris Myers with excerpts from the Ex-Im Bank website On January 28th the EDC of Southwest California held its Quarterly Luncheon at Temecula Creek Inn. Directions Sixty local business leaders gathered to hear a presentation by Sandra Donzella of the Export-Import Bank of the United States (Ex-Im Bank). Ms. Donzella is the Senior Business Development Officer at Ex-Im Bank’s Western Regional Office - San Diego Branch. The Export-Import Bank of the United States is the official export credit agency of the United States. Ex-Im Bank's mission is to assist in financing the export of U.S. goods and services to international markets. The agency enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. It assumes credit and country risks that the private sector is unable or unwilling to accept. The agency also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of our transactions directly benefit U.S. small businesses. With more than 70 years of experience, Ex-Im Bank has supported more than $400 billion of U.S. exports, primarily to developing markets worldwide. Ex-Im Bank is committed to providing export financing for socially and economically disadvantaged small businesses, including those that are minority-owned and woman-owned, and small businesses employing fewer than 100 employees. The Bank continued to coordinate outreach efforts to minority- and woman-owned businesses by building partnerships with small-business development councils, minority-business councils, trade associations and chambers of commerce throughout the United States. Ex-Im Bank is committed to support small business exporters. In fact, about 85% of the Bank’s transactions support small businesses. Small businesses can access all Ex-Im Bank products, including specialized small business financing tools such as our working capital guarantee and export credit insurance. Ex-Im Bank’s working capital guarantee and insurance products enable small businesses to increase sales by entering new markets, expand their borrowing base, and offer buyers financing while carrying less risk. Often, small-sized exporters do not have adequate cash flow or cannot get a loan to fulfill an export sales order. The Ex-Im Bank working capital guarantee assumes up to 90% of the lender's risk so exporters can access the necessary funds to purchase or produce US-made goods and services for export. Their short-term insurance policies protect an exporter against non-payment by their foreign buyers due to both commercial (insolvency, bankruptcy and default) and political risks (war, revolution, transfer risk) and also allows exporters to extend competitive credit terms to their foreign buyers. To qualify as a small business, the U.S. exporter (together with affiliates) must meet the U.S. Small Business Administration's definition of a small business and have annual export credit sales of less than $5 million (excluding confirmed letters of credit and cash in advance) for the last two years (including those of their affiliates). There are two types of short-term insurance policies - single buyer, which covers single or multiple shipments to one buyer, and multi-buyer, which covers an exporter's entire export portfolio. Features of the multi-buyer insurance policy include: • No first-loss deductible • Simplified premium-rate schedule • Enhanced assignment (for qualified exporters), an attractive financing feature that allows a lender to add foreign receivables into the borrowing base or advance funds on the insured receivables with limited risk. Ex-Im Bank works with small businesses at the local level through its five regional offices that provide assistance to companies in their territories. We also work through a nationwide network of over 50 City/State Partners - state and local organizations that provide information and assistance on the Ex-Im Bank's products. We also work with 120 delegated authority lenders in 48 states and the District of Columbia that can directly commit Ex-Im Bank's guarantee on working capital loans. In addition to our regional office staff, insurance brokers in every state can assist with Ex-Im Bank's export credit insurance applications. The Medical Equipment Initiative (MEI) offers solutions to increase the export of medical equipment from U.S. companies to foreign borrowers that would not go forward without Ex-Im Bank support. The MEI includes creative financing structures and enhanced coverage. Borrowers will be: 1) established companies that represent unacceptable credit risk; and 2) companies that are newly formed and do not have historical credit data that can be analyzed. To help determine if you are a candidate for the MEI, please refer to the guidelines for submitting applications for the Medical Equipment Initiative. Coverage under the MEI will be issued via a standard insurance policy or loan guarantee, and all standard terms and conditions will apply. Support will include consideration of the following enhanced features: 1. Automatic Local Cost Cover. Local cost financing will be made available on an automatic basis for local costs (including import and similar duties) related to the exporter's scope of work and documented as such up to 15 percent of the U.S. contract value. 2. Repayment terms will be offered up to seven years. Terms of up to seven years will be offered for medium term transactions when consistent with the expected life of the product, subject to a minimum contract value of $350,000. 3. Capitalization of interest. Interest may be capitalized when there is an extended installation and/or construction period. 4. Flexibility. All avenues can be explored to insure that any buyer with the ability to repay can be financed. Ex-Im Bank has many other programs and Ms. Donzella is available to assist any business with information. She can be contacted at 9449 Balboa Avenue, Suite 111, San Diego, CA 92123 - (858) 467-7035 or (858) 467-7043 (Fax). You may also visit the website at this link Export-Import Bank of the United States Other Recent ArticlesAn update on the progress EDC committees are making on populating the Southwest California Portal of the Connectory.Category: News & General Info Published: Friday, June 18, 2010 The Connectory.com™ is a database containing detailed capabilities profiles of US industrial and technology companies across all industries at every level of the supply chain. The goal is to link United States businesses to each other and to provide information about the industrial and technology base of the economy. It also includes profiles of other critical assets in addition to companies including federal labs, university and private research centers. Tuesday, June 15th, 10 members of the EDC Resource Team travelled to El Cajon....to read more go to our blog at www,edcsouthwestcalifornia.com EDC is hosting a Five Chamber Ribbon Cutting and Open House July 29, 2010Category: Events Published: Tuesday, June 15, 2010 The Economic Development Corporation (EDC) of Southwest California is hosting a Five Chamber Ribbon Cutting and Open House to celebrate their move inside the Southwest Traders facility on Diaz Road in Temecula. Regional businesses are invited to join the EDC and Lake Elsinore Valley, Menifee Valley, Murrieta, Temecula Valley, and Wildomar Chambers of Commerce for an evening of food, beverage, and entertainment on Thursday, July 29, 2010, 5:30 p.m. to 8:00 p.m. The Ribbon Cutting will commence promptly at 5:30 p.m. EDC to present the Second Annual Southwest California Business SummitCategory: News & General Info Published: Friday, March 26, 2010 Southwest California Business Summit, South Coast Winery, Southern California Wine Country, MSJC, SCE, the Gas Co., Verizon, EMWD, Pechanga, Lake Elsinore, Menifee, Murrieta, Temecula, Wildomar |
