Export Finance Program  (EFP)

As defined, Export Finance is an activity undertaken by a small business enterprise related to the export of goods and services outside of the United States. The term includes manufacturing, assembling and like operations. Many creditworthy, small-sized for-profit businesses do not have access to adequate financing because they either lack a relationship with a financial institution with export financing capabilities or the size of the transaction makes it uneconomical for the private sector to participate even when credit risks are insured. EFP fills this financing gap by lending to such companies. Financing can be used for working capital or accounts receivable financing.

Businesses with facilities located in Pennsylvania that are involved in export activities, that need financing for specific or multiple export transactions, that have 250 employees or less, and that have been in operation, though not necessarily exporting, for at least 12 months.

No start ups.

• acquire inventory, pay for direct or indirect costs used for the manufacture or purchase of goods, or for the provision of services
• support Standby Letters of Credit used as bid bonds, performance bonds or payment guarantees
• finance accounts receivable up to 180 days from the date of arrival at the port of importation

Up to $350,000 or 50% of eligible project costs for working capital, or 85% of total project costs for accounts receivable

At the discretion of the Department, a loan may be required to contain one or both of the following conditions:

• the company is eligible for an Ex-Im Bank Credit insurance policy
• the loan is guaranteed by the Ex-Im Bank or by an export credit sales contract insured by a policy

• 3.75%
• terms for lines of credit are up to 12 months and may be renewed annually. Maximum renewals are two for total line availability of 36 consecutive months. Further renewal will be at the discretion of the Department.

• a non-refundable $150 application fee is charged
• commitment fees range from 1% to 1.5%; line renewals are 1/2%

• for working capital financing, collateral will include export inventory, receivables, and may include assignments of contract and letter-of-credit proceeds. Personal guarantees are usually requited to support the line of credit
• for accounts receivable financing, an assignment of the Export-Import Bank credit insurance policy is required. Personal guarantees and other collateral may also be required.

Please contact Larry Morgan for full details and assistance.