Exporting and Trading info

Shipping long-term financing programs In the case of long-term financing programs, Eximbank supported sales are subject to the American flag shipping requirements in "P.R. 17" (i.e., must be shipped in a vessel of U.S. registry unless the foreign buyer obtains a waiver from the U.S. Maritime Administration). Relative  shipping requirements  maritime administration  financing programs  american flag  

Eligible exports Eligible exports is primarily a question of American content. Loans or guarantees are available for 100 percent of the financeable value of the American content if the total percentage of such content exceeds 50 percent of the export price. Financeable value is limited to 85 percent of the export price, presuming a 15 percent down payment. Classified as ineligible are exports of military goods and services, just as in the case of FCIA. Relative  export price  military goods  guarantees  loans  

Eligible markets Eximbank is now willing to support exports to many foreign countries it would not consider before. The reason is its new risk rating procedures that conpensateEximbank for the risk assumed in place of the prior policy of considering most foreign risks as equal for fee establishment purposes—an obvious contrivance adopted for reasons of state and politics, as opposed to sound underwriting policies. However, there will always be some countries ineligible for credit reasons, as well as for national interest reasons. Relative  eligible markets  risk rating  contrivance  national interest  foreign countries  

Loans Fees A nonrefundable processing fee of $ 100 must be submitted with the application for a preliminary commitment. In addition, a commitment fee of 1h percent per annum on the undisbursed balance of direct loans and on certain guaranteed loans is charged. An exposure fee is charged as a flat fee per $ 100 of loan or guarantee and varies according to the repayment term (1 to 10 years), country risk category (A through E) and category of buyer (I, II, III). This fee can range from as little as V2 percent or .50 per $100, to highs of $6 to $8, depending on perceived risks, and is paid at the time of each disbursement. "A" is for the most sound and politically stable countries, "E" for the least stable, some of which would be uninsurable. "I" stands for sovereign borrowers or buyers (lowest risk and therefore rate); "II" for creditworthy, nonsovereign public institutions, banks, or exceptional private buyers; and "III" is for other c...

Loans Interest rates Government supported loans or credits are controlled by the minimum consensus rates and maximum maturity terms set by OECD. These rates are equal among all OECD countries and vary by three categories based on per capita national income: I-Rich countries (a little used, and soon to be discontinued category), II-Intermediate countries, Ill-Poor countries (currently below $680 per capita GNP). The category most frequently involved in Eximbank loans or guarantees is category II, and in 1990 the rate in that category was 10.05 percent for medium-term loans, slightly higher for long-term loans. The rates are reviewed every six months, but are changed as little as possible. Eximbank consistently utilizes the lowest allowable OECD rate for all direct loans and long-term loans to intermediary lenders. These two loans are almost always negotiated at fixed rates, which is typically the most sought after condition for this type financing. In the case of the guarantee progra...

Loans Repayment terms For capital goods the maximum repayment terms by contract value are: • Up to $50,000—2 years • $50,000 to $100,000—3 years • $100,000 to $200,000—4 years • More than $200,000—5 to 10 years Some products, such as aircraft, might have longer terms and lower unit value items might be assigned shorter terms. In exceptional circumstances, the maximum length of long-term loans can be extended beyond 10 years, depending on the nature of the product or project and OECD rules. The new definition as between medium- and long-term is important because it changes certain loan or guarantee conditions. Long-term is now defined as a repayment period longer than 7 years or is arbitrarily classified as long-term whenever the loan value exceeds $ 10 million, whatever the term. It is also a question of purpose; medium-term for trucks and equipment, and so forth, and long-term for heavy industrial equipment or projects. Relative  long term loans  guarantee condition...

General criteria for loan and guarantee programs Eximbank has certain fundamental policies and criteria an exporter and a transaction must meet before it can be utilized. The working capital guarantee is an exception to this statement, and its criteria have already been discussed. go ahead and apply. If you have any questions about the application form or need help in filling it out, please call and ask for a meeting with a SHARE board member. General Criteria: 1. Loans should be for productive purposes to help you or your business provide goods or services more efficiently or economically to the community. 2. The business receiving the loan should be regionally based, that is as much as possible the goods should be locally produced, using local materials, employing local people and selling to a local market. 3. The goods or services offered should be needed by the regional community. Priority will be given to basic necessities such as food, clothing, shelter, alternative...