Ex-Im Bank Announces $740 Million Supply-Chain Program with The Boeing Company
February 17, 2012
(Ex-Im Bank)
Everett, Wash. – The Export-Import Bank of the
United States (Ex-Im Bank) announced today that
The Boeing Company is participating in the
Bank's Supply-Chain Finance Guarantee program,
which provides competitively priced working
capital financing to suppliers of goods or
services to U.S. exporters.
Ex-Im Bank approved the Boeing supplier program
in September 2011 with an initial capacity of
$740 million. Ex-Im Bank can guarantee up to 90
percent of that capacity. Citibank N.A. (Citi)
will serve as the lender operating the program
for Boeing's suppliers. Boeing joins
Caterpillar and Case New Holland (CNH) as
exporters currently participating in Ex-Im's
program.
The announcement was made today at an event at
Boeing's manufacturing facility in Everett,
Wash., where President Barack Obama called for
congressional reauthorization of Ex-Im Bank and
announced executive branch initiatives to
improve the competitive position of U.S.
companies, particularly small businesses.
"Ex-Im is proud to have America's number-one
exporter, Boeing, join with us in supporting
the company's small-business suppliers in the
use of our supply-chain financing product.
Eligible companies will be able to more quickly
turn their accounts receivable into cash,
helping them power more sales and support more
American jobs," Ex-Im Bank Chairman Fred. P.
Hochberg said today.
"Increasingly Boeing has called on small
business to help us in sustaining
export-related jobs. The Supplier Financing
Program is a great tool to encourage this key
growth area to prosper," said Tom Dillon,
Boeing corporate finance director who led the
program's implementation. "Small business can
truly join larger exporters in working together
to grow much needed jobs supported by demand
for American products the world wants."
Ex-Im Bank's Supply-Chain Finance Guarantee
Program enables suppliers to receive early
payment of their accounts receivable that are
due from participating exporters, such as
Boeing, in exchange for a small discount fee
that is paid to the lender. Ex-Im Bank provides
a 90 percent guarantee of the invoices while
the lender (Citi for Boeing suppliers) bears 10
percent of the risk.
Under the Ex-Im program, approved lenders must
have an existing supply-chain finance program.
Ex-Im Bank has set a target that at least 50
percent of the credit be extended to suppliers
that meet the definition of a small business as
defined by the U.S. Small Business
Administration by the end of the 12-month term.
The end products must be for export and must
meet Ex-Im Bank's requirements for U.S.
content.
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