Ex-Im Bank, MarAd sign agreement on export loans
The U.S. Export-Import Bank and the Maritime Administration Tuesday signed a memorandum of understanding to establish a program to provide Ex-Im Bank-guaranteed working capital loans for shipping, logistics and other companies involved in ocean freight transportation.
Under the agreement, Ex-Im Bank can provide working capital loans to export service providers such as freight forwarders, enabling them to extend credit terms to their export clients. Ex-Im Bank will also increase its working capital guarantee from 90 percent to 95 percent for U.S. companies that ship on U.S.-flag vessels.
“By providing credit terms and more access to working capital for small and medium U.S. exporters and their logistics service providers that ship on U.S.-flag vessels, we will make them more competitive and create more U.S. jobs,” said maritime administrator William G. Schubert.
Under the Export-Import Bank/MarAd agreement, the minimum threshold for Ex-Im Bank-guaranteed U.S. export transactions from which exporters must utilize U.S.-flag vessels will be raised $10 million to $20 million.
“This agreement provides greater flexibility for U.S. exporters seeking Ex-Im Bank financing and also enables Ex-Im Bank to offer expanded working capital support for export service providers and U.S. exporters that ship on U.S.-flag vessels,” a spokesman for the Export-Import Bank said.
In fiscal year 2003, Ex-Im Bank authorized financing to support $14.3 billion of U.S. exports worldwide.
Ex-Im Bank, MarAd sign agreement on export loans
