Fred Hochberg, president of the Export-Import Bank of the United States, has a message for Massachusetts employers – companies that export survive economic downturns better than those that do not sell overseas.
But Hochberg is also putting his money where his mouth is. The Export-Import Bank has provided loans to 74 exporting Bay State companies in the past two years and is looking to do more.
Hochberg said on a recent visit to Associated Industries of Massachusetts that the bank’s loans to Massachusetts companies have ranged in amounts from $5500 to $27 Million. The loans are supporting overseas sales of everything from cranberries to bicycles, medical devices to semiconductors, chemicals to coatings, drumsticks to law enforcement badges, and machinery.
The Export-Import Bank provides credit insurance, working capital loans, and buyer financing to US companies that help those companies sell US products and services overseas. Loans can be made in almost any overseas market, though the bank is currently targeting developing markets such as Brazil, Colombia, India, Indonesia, Mexico, Nigeria, So. Africa, Turkey, and Vietnam, because of their growing economies and infrastructure needs.
The US Congress, in a rare bipartisan show of support, recently re-authorized the charter of the Export-Import Bank and increased its lending authority. Last year, the bank financed nearly $40 Billion in exports from 3,600 companies in the US. More than three-quarters of these companies were small businesses.
Export-Import Bank loans are generally approved within 30 days. Terms vary by industry. Fifteen percent cash payment is required. The product to be sold must contain 85 percent US content. Loans range up to $3.5 Billion.
Massachusetts companies may pursue Export-Import financing by contacting their banker, visiting the bank Web site, or contacting the Export-Import branch in New York. The Website also has a list of all firms in the Commonwealth that have used Ex-Im loan products since 2007. Visit http://www.exim/gov.