Ex-Im Bank Programs
California Bank & Trust (CB&T) is a participant in government-sponsored credit support programs which exist to create more U.S. jobs. Government export programs generally fall into two categories as described below:
1. Guaranteed working capital loans to Exporters. This program assists exporters obtain necessary working capital to finance export sales.
Some characteristics of this program are as follows:
- Proceeds of the facility must exclusively be used to finance the export cycle.
- Goods or services produced by Exporter must be > 51% made in the U.S.
- Goods must be purchased by buyers in countries acceptable to the U.S. Government.
- Disbursement of proceeds is made against eligible inventory or receivables, on a formula basis.
- Requires that owner(s) provide a personal guarantee.
more2. Guaranteed or insured medium term loans to foreign buyers. Proceeds from the bank's loan to the buyer pays the exporter, at shipment. The buyer can take up to five years to repay the bank in semiannual installments. If the buyer fails to repay, Ex-Im's insurance or guarantee covers the bank for up to 100% of principal and interest.
The U.S. Exporter benefits because it receives prompt payment for goods at shipment, which improves cash flow. This Program lets and Exporter enhance the terms of sale offered to foreign customers, for whom quantities of dollar exchange may be difficult to obtain at one time or whose cash flow is limited.
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If any of the above programs piques your interest, please call your International Trade Finance Officer in your region, or CB&Ts Ex-Im Bank Program Coordinator at (213) 593-2122 for further information.