Monday, June 22, 2015

Export Finance Programs

Posted by Corby Myers, Intern

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 StatesRegina Gordin, Regional Director (Eastern Region)
United States Small Business AdministrationBob Elsas, Regional Manager (Export Solutions Group)
Pennsylvania Department of Community & Economic DevelopmentJoan Wallett, Economic Development Analyst

Export Import Bank of the United States (Ex-Im Bank)

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)

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

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. 

Friday, June 12, 2015

New PA Transactions Act

Contributed by Josh Cohen, Hartman Underhill & Brubaker, LLC

Beginning July 1, 2015, Pennsylvania's business laws will be on the leading edge of statutory flexibility for business transactions.  For existing or new PA-based businesses with international operations, this presents a significant opportunity to adjust their legal structure to take advantage of tax rules, governance structures, ownership requirements, wealth planning or market-risk protection. 

The new Act not only modernizes Pennsylvania law governing all types of business entities (e.g., corporations, LLCs and limited partnerships), but it also creates new statutory flexibility to engage in transactions involving mergers, conversions (from one type of entity into another), divisions (splitting one entity into multiple other entities, of the same or different types), ownership interests exchanges, and domestication (moving the home jurisdiction to/from Pennsylvania).  The new law creates opportunities for a Pennsylvania business with international operations to more efficiently and effectively organize or re-organize its legal structure to implement its business plans.  Consult with experienced legal and financial advisors to see if the new law is advantageous for you.

Joshua D. Cohen, Esquire
Hartman Underhill & Brubaker, LLC
221 E Chestnut St  
Lancaster, PA 17602  

Monday, June 1, 2015

15th Annual International Trade Conference Event Recap

Posted by Hannah Copenheaver 
On May 28, 2015, we hosted our 15th Annual International Trade Conference at the Wyndham Garden Hotel in York. Over 80 people attended the conference. The conference was sponsored by UPS (silver), Foreign Trade Zone 147 (bronze), Core PA Global (bronze), Susquehanna Bank (bronze) and with the support of our partners MANTEC and World Trade PA... Thank you!

We kicked off the conference with "US Businesses at Risk: Protecting your Interests in a Hostile World" that was presented by two speakers from the Counterintelligence Division of the FBI. The presenters spoke about common elicitation techniques and measures that you can take to protect your company from economic espionage. 

Amy Groff
Lou Dejoie and Abe Koser
In the first breakout session, Louis Dejoie, Chair, International Law, McNees Wallace & Nurick LLC and Abram Koser, Vice President and Director, Global Trade, Susquehanna Bank, discussed emerging opportunities in Cuba. They provided an overview of the legal and financial aspects of doing business with Cuba and gave their recommendations on potential risks and opportunities with the new market. In the other session, Amy Groff, Partner, K&L Gates, talked about labor and employment laws present an array of challenges for employers in the United States. Amy also identified unique employment law requirements in a variety of countries. 
David Clark
Jeff Peyton and Laura Stocker
The second track offered a session on managing your online reputation, which was presented by Tin Cans Unlimited. Jeff Peyton and Laura Stocker, Partners, spoke about the importance of professional social media usage on the business and personal levels. The other session offered a panel of speakers on global banking fraud. David Clark, FSA Litigation Financial Analyst Contractor, United States Attorney’s Office, Amy Sahm, Senior VP and Manager, International Group, Fulton Financial Corporation, and Cindy Wessner-Schaeffer, CFE, CFCI, Vice President, Fraud Risk Group Manager, Fulton Financial Corporation discussed how the banking industry is responding to fraudulent transactions, scams and money laundering. The panel also talked about the connection banks have with law enforcement agencies to tackle this problem together.
Joe D'Antonio
Christa Mummau
For the luncheon program, called You Export WHAT?! To WHERE?!, Christa Mummau, Export Sales Director, Advanced Food Products and Joe D’Antonio, VP International Sales and Business Development, Oakworks, both shared their incredible export success stories. 

Conference Exhibitors Included:

Core PA Global
Embassy of Romania
Embassy of Ukraine
Fulton Bank
Invest in Macedonia
Susquehanna Bank
Tin Cans Unlimited
Stambaugh Ness
World Trade PA
World Trade Center Harrisburg
Wells Fargo

Packed room at the Cuba session
Romanian Embassy
Thank you to all who attended, exhibited, and sponsored this event! We hope you are looking forward to coming to our conference again next year! For more event pictures, please click here. 

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