Export-Import Bank of the

United States

Working Capital Guarantee Program

Presented by:

Walt Trask

Vice President

International Trade Finance

March 23, 2011

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Official U.S. Export Credit Agency (“ECA”)

Founded 1934

Purpose: Facilitate financing of U.S. exports of

goods/services and thereby create jobs

No minimum or maximum transaction size

In FY 2010 export financing surged to $24.5B supporting

$34.4B of exports and 277,000 jobs

Overview of Ex-Im Bank

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A reasonable source of repayment

“On cover” in the buyer’s country

Goods must have U.S. content (labor, materials and mark-

up) of at least 50%

Goods must be shipped from the U.S.

Ex-Im Bank Working Capital Guarantee

Basic Requirements

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Short-term export credit insurance covering extended

payment terms out to 180 (exceptionally 360) days

Medium and long-term programs covering exports of capital

equipment on extended payment terms out to five years or

longer

Working capital guarantee for pre-shipment finance

Main Products

Ex-Im Bank Working Capital Guarantee

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Supports companies of all sizes but mainly small and

medium-size firms

Provides a guarantee to lenders for an exporter’s working

capital needs

Can be either transaction specific or revolving

Can also support establishment of standby letters of credit

and indirect exports

Ex-Im Bank Working Capital Guarantee

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Provides needed cash to finance exports

Increases lenders appetite for financing exports by receiving

a 90% government guarantee

Provides financing for foreign account receivables

Allows exporters to fill large or seasonal orders

Allows exporters to expand collateral base Export-related inventory, including P.O.s, raw materials and WIP

Foreign Account Receivables included in Borrowing Base

Ex-Im Bank Working Capital Guarantee

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Ex-Im Bank guarantees 90% of principal and interest on a

loan facility made to an exporter.

Loan is fully collateralized by export-related inventory and

A/R.

Generally one year but up to three years.

Covers exporter performance risk.

Basic Parameters

Note: Provides no protection to exporter against foreign buyer non-payment.

Ex-Im Bank Working Capital Guarantee

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Transaction Specific

Transaction Specific

Revolving

Revolving Multiple transactions or

specifically identified ones

May be committed for up to

three years with annual reviews

Lines of Credit

Ex-Im Bank Working Capital Guarantee

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Manufacturers

Trading companies

Wholesalers/distributors

Service companies

Types of Exporters

Ex-Im Bank Working Capital Guarantee

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An Ex-Im Bank guarantee facility can support the following

types of LCs: Commercial or standby (domestic and foreign)

Collateralized at 10% - 25%

Term cannot exceed loan term

Warranty letters of credit

Lender extends other credit

100% collateralized, 25% in cash

Maximum: 20% of loan or $500,000

Term cannot exceed loan term

Letters of Credit

Ex-Im Bank Working Capital Guarantee

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Risk mitigation

Competitiveness/marketing Move existing customers to terms

Financing tool Ability to assign foreign receivables

Accurate cash flow

Trade Finance “Export Solutions” Notes

Ex-Im Bank Export Credit InsuranceExporter Benefits

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Line of Business U.S. company that designs, engineers, manufactures and sells control instruments for the abatement of air pollution. Source domestically and globally. Primarily exports to China and select countries in Asia, Middle East and South America.

Requirements Working capital to support international sales (financing for foreign A/R and export destined inventory)

Risk mitigation for emerging market sales

Efficiency in trade process

Solution Optimize Working Capital:• $7MM working capital loan backed by Ex-Im Bank guarantee

Mitigate Risk:• Letters of credit (export, import, standby)

• Ex-Im Bank short term insurance for China

• Private credit insurance

Reduce Costs/Simplify Trade Process:• Comerica GlobalTRADE Web

Solutions That Work

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Line of Business Fortune 200 energy, grains and foods company that sells internationally

Requirements Risk mitigation for international sales

Working capital to support large sales to Asia (accelerate collection of accounts receivable)

Solution Mitigate Risk:• Export letters of credit

Optimize Working Capital:• Financing under export letters of credit (discounted drafts)

Solutions That Work

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Line of Business Small Business company that designs and manufactures machine tools used in wheel manufacturing, roll forming, dies, metal processing systems, and exhaust technology. Sources and manufactures domestically. Sells into China, India, Mexico, South America, and Europe.

Requirements Working capital to support international sales (financing for foreign A/R and export destined inventory)

Risk mitigation for international sales

Solution Optimize Working Capital:• $25MM working capital loan backed by Ex-Im Bank guarantee including

standby letters of credit to support advance payments and progress billings.

Mitigate Risk:• Letters of credit (export, standby)

• Ex-Im Bank support of open account terms with Chinese buyers

Solutions That Work

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MIDWEST MARKET

Richard J. Barney 313-222-6228 Detroit, MI

Cheyenne N. Carson 313-222-3735 Detroit, MI

Scott K. Hibbard 616-776-7888 Grand Rapids, MI

Gary K. Luxon 313-222-4903 Detroit, MI

Anita L. March 630-645-7383 Oak Brook, IL

Lisa F. Sasaki 313-222-6131 Detroit, MI

TEXAS MARKET

Anita L. March 630-645-7383 Oak Brook, IL

Jean Ortiz 713-220-5611 Houston, TX

WESTERN MARKET

Caroline V. Brown 562-590-2525 Long Beach, CA

Saul Del Real 310-297-2871 El Segundo, CA

Tim Murphy 562-463-6530 City of Industry, CA

Walt Trask 415-477-3366 San Francisco, CA

International Trade Finance Contacts