The FINANCIAL -- The Export-Import Bank of the United States announced that The Boeing Company is participating in the Bank's
Supply-Chain Finance Guarantee program, which provides competitively
priced working capital financing to suppliers of goods or services to
U.S. exporters.
Ex-Im Bank approved the Boeing supplier program in September 2011 with an initial capacity of $740 million. Ex-Im Bank can guarantee up to 90 percent of that capacity. Citibank N.A. will serve as the lender operating the program for Boeing's suppliers. Boeing joins Caterpillar and Case New Holland as exporters currently participating in Ex-Im's program.
According to Ex-Im Bank, the announcement was made today at an event at Boeing's manufacturing facility in Everett, Wash., where President Barack Obama called for congressional reauthorization of Ex-Im Bank and announced executive branch initiatives to improve the competitive position of U.S. companies, particularly small businesses.
Ex-Im Bank's Supply-Chain Finance Guarantee Program enables suppliers to receive early payment of their accounts receivable that are due from participating exporters, such as Boeing, in exchange for a small discount fee that is paid to the lender. Ex-Im Bank provides a 90 percent guarantee of the invoices while the lender bears 10 percent of the risk.
Under the Ex-Im program, approved lenders must have an existing supply-chain finance program. Ex-Im Bank has set a target that at least 50 percent of the credit be extended to suppliers that meet the definition of a small business as defined by the U.S. Small Business Administration by the end of the 12-month term. The end products must be for export and must meet Ex-Im Bank's requirements for U.S. content.
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