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EXIM Announces Relief Measures in Response to COVID-19 to Support U.S. Exporters and Jobs |
EXIM is committed to supporting the U.S. exporting community during the COVID-19 pandemic. EXIM announced extension of initial relief measures, which include waivers, deadline extensions, streamlined processing, and flexibility, through August 31, 2020. EXIM's new initiatives will provide relief to U.S. businesses, their buyers, financial institutions, and American workers negatively impacted by COVID-19:
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Bridge Financing Program - International customers are having difficulty obtaining financing from the commercial markets, due to economic stresses of COVID-19. The Bridge Financing Program will enable exports to go forward through short-term financing of these U.S. exports until private sector liquidity returns.
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Pre-Delivery / Pre-Export Financing Program - International customers may be unable to finance pre-export payments due to temporary liquidity problems caused by COVID-19. To help meet this challenge EXIM will temporarily expand its Pre-Export Payment Policy for a one-year term for transactions in which EXIM is not providing the long-term financing to the buyer and to manufacturing sectors whose international buyers have traditionally not participated but may be interested now due to a lack of commercial financing.
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Supply Chain Financing Guarantee Program - EXIM’s existing Supply Chain Financing Guarantee Program enables suppliers to sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate, while EXIM guarantees the lender’s purchase of the accounts receivable. In light of expected liquidity constraints in exporter supply chains due to COVID-19, EXIM will expand the program by relaxing its criteria and increasing its guarantee level.
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Working Capital Guarantee Program - EXIM’s Working Capital Guarantee Program facilitates loans from commercial lenders, typically through Designated Authority (DA) lenders, to creditworthy U.S. businesses that export over the term of the loan. EXIM will temporarily modify the program to make it more flexible. Specifically, the agency will expand program eligibility to cover all inventory that could potentially be exported, reduce the program’s fee structure, and temporarily increase the guarantee level.
For additional updates on EXIM's COVID-19 response activities, Click Here.
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