Ex-Im Bank Enhances Small Business Insurance Policies, Lender Benefits
November 18, 2009The Export-Import Bank of the United States (Ex-Im Bank) has raised the upper limit of its small business multibuyer export credit insurance policy to allow more small businesses to export their goods and services more easily.
U.S. exporters designated as small businesses under Small Business Administration (SBA) standards, and with annual export credit sales of $7,500,000 or less, now are eligible for enhanced coverage under Ex-Im Bank’s short-term, small-business multibuyer insurance policy. Previously the eligibility ceiling was $5,000,000.
The policy enhancements include no first loss deductibles, discounted insurance premiums, and the receipt of cost-free, exporter performance risk protection for lenders financing receivables for qualified exporters.
“This change is designed to increase U.S. small business exports by expanding the availability of financing to them,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Exporting is critical to creating and preserving American jobs, especially while the current global financial crisis is being resolved.”
The broadened program eligibility will be effective December 1, 2009, for new small business multibuyer policy applicants. Current Ex-Im Bank multibuyer policy holders who previously were ineligible for coverage enhancements but are eligible under the new ceiling will be offered conversions to the enhanced policy.
Ex-Im Bank’s short-term multibuyer insurance policies protect the exporter’s portfolio of export credit risks. These policies are effective tools in helping U.S. exporters to mitigate foreign credit risk, expand their marketing through extension of liberalized selling terms, and promote access to foreign receivable financing.
