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| Presentation Room |
Are you curious about the various export finance programs
available to you in the state of Pennsylvania?
On June 16, 2015, the World Trade Center hosted an Export
Finance program. This event discussed the various export finance
programs that are available to small businesses.
Presenters included:
Export Import Bank of the United States, Regina Gordin, Regional Director (Eastern Region)
United States Small Business Administration, Bob Elsas, Regional Manager (Export Solutions Group)
Pennsylvania Department of Community & Economic Development, Joan Wallett, Economic Development Analyst
Export Import Bank of the United States (Ex-Im Bank)
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| Regina Gordin |
The Ex-Im Bank is an
independent federal agency that provides private export finance in order to sustain
U.S. job growth, which is at no cost to American taxpayers. The Ex-Im Bank is
the official export credit agency (ECA) of the United States Government. Ex-Im
Bank provides financing services and solutions to empower exporters of U.S.
goods and services. These services and
solutions are available to small businesses.
Ex-Im Bank offers the following programs and assistance:
- Export Credit Insurance
- Working Capital Guarantees
- Guarantees of Commercial Loans to Foreign Buyers
Data
and facts of Ex-Im Bank:
- In the fiscal year of 2014 Ex-Im approved more than $20.5 billion in total assistance to support an estimated $27 billion in U.S. export sales
- 3,746 small business transactions
- Almost 90 percent of Ex-Im Bank transactions are small business transactions
Other programs and services offered by the Ex-Im bank are
Global Credit Express, Short term Account Receivable Insurance, Express
Insurance, Medium-Term Financing, and Long-Term Financing.
U.S. Small Business
Administration (SBA)
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| Bob Elsas |
The
SBA has several trade finance services that are specifically designed to assist
small and medium-sized enterprises expand or enter export markets. Exporter
benefits include increased working capital, ability to enter new markets,
ability to offer competitive terms, and to close more export sales.
The
SBA offers the following programs and services:
- Export Working Capital Loan Guarantees
- International Trade Loans
- Export Express
The Export
Working Capital Program (EWCP) eligibility funds can offer up to $5 million in loans. SBA services can also finance existing
export inventory with advance rates up to 75 percent. Last, there are personal guarantees
of all owners of 20 percent or more of the business.
International
Trade Loans can be combined with a separate EWCP loan. The maximum loan is $5 million.
The loan is eligible for expanding an existing export market or developing new
export markets or the applicant business must be adversely affected by the
import competition and upgrading facilities or equipment will improve the
applicant's competitive position in the market.
Export
Express offers lines of Credit and Term loans up to $500,000 and these loans are
SBA approved, 90 percent is guaranteed by SBA
with a maximum of $350,000 and 75 percent on loans between $350,000 and
$500,000.
Pennsylvania
Department of Community & Economic Development
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| Joan Wallett |
Pennsylvania
Industrial Development Authority Program (PIDA) is offered by Pennsylvania Department
of Community & Economic Development and provides working capital and accounts
receivables lines of credits to PA businesses with the maximum of 250 full time
employees and exporting products manufactured or assembled in Pennsylvania.
Exporters
who are supported are the following:
- Manufacturers
- Wholesalers/Distributors
- Service Companies
- Trading Companies
Exports
that are supported are component parts, manufactured goods, agricultural
products, service, and lumber. There are two ways to meet financing needs:
Working Capital Line of Credit for pre-export expenses and Accounts Receivable
Line of Credit for post export cash. This funding is up to $350,000 and has a
fixed rate for Line of Credit of 12 months for eligible businesses.
Should
you wish to learn more about the programs or have questions regarding
requirements, documentation, or services please feel free to give us a call at
(717) 843-1090. Our team at the World Trade Center Harrisburg will be glad to
provide assistance and answer questions you may have.
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| Networking |
