Ex-Im Approves Supply Chain Finance Transaction to Support Small-Business Jobs
December 5, 2012
(Ex-Im Bank)
Washington, D.C. – The Export-Import Bank of
the United States of America (Ex-Im Bank)
announced today that it has approved its fourth
Supply Chain Finance transaction and will
guarantee up to 90 percent of $450 million in
liquidity offered by a JPMorgan Chase loan to
suppliers of Caterpillar Inc.
Ex-Im Bank’s guarantee will support
small-business suppliers by improving their
liquidity, thereby allowing them to fulfill new
orders.
“We are proud to participate in the Caterpillar
supply-chain-finance program, which will
support small-business jobs by supporting
America’s suppliers,” said Ex-Im Bank Chairman
and President Fred P. Hochberg. “Our role in
the program is to partner with JPMorgan Chase
to support U.S. suppliers, which will grow the
American economy.”
The Supply Chain Finance guarantee is intended
to enable JPMorgan to increase its purchases of
accounts receivable owned by U.S. suppliers and
due from Caterpillar and that are related to
purchases of goods and services by Caterpillar
for its export-related production. This program
is designed to help qualified Caterpillar
suppliers obtain cash more quickly and increase
liquidity to fulfill new orders. Exporters have
the option to extend payment terms and obtain a
working capital benefit without imposing undue
financial hardship on their suppliers.
“We have a steadfast commitment to supporting
small business in the U.S., and this program is
another example of that,” said Dani Cotti, head
of Global Trade for J.P. Morgan. "This supply
chain financing partnership between J.P. Morgan
and Caterpillar, supported by Ex-Im, will help
dozens of small businesses obtain the working
capital that they need to thrive and create
jobs. It’s a win for everyone involved.”
To participate in the Ex-Im Bank program,
approved lenders must have an existing
supply-chain finance program. The Bank requires
that at least 50 percent of the credit provided
under the program be extended to suppliers
meeting the small-business definition of the
Small Business Administration. Additionally,
the exported products must meet U.S. content
requirements.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.