The FINANCIAL — Fred P. Hochberg, the chairman and president of the Export-Import Bank of the United States, and Governor Rick Snyder outlined to Michigan small business owners why it is critical to export at a Global Access forum in Novi.
The event, which drew more than 100 local business representatives, was hosted by Ex-Im Bank and the Michigan Economic Development Corporation.
In Fiscal Year 2011, Ex-Im Bank authorized more than $147 million for Michigan businesses, 52% of the funding going to small businesses. However, nearly half of all Michigan's exports are only to Canada, and it is vital for these businesses to reach more markets. "Michigan exports – both manufacturing and agricultural products – are expanding rapidly, bringing new business and job opportunities to Michiganders," Governor Rick Snyder said. "The Export-Import Bank's commitment to increasing its deals here and spreading the word about new opportunities should help deliver the benefits of exporting to a growing number of Michigan companies."
Attendees heard from a panel of Michigan small businesses that have successfully boosted their exports. Companies featured were American Broach and Machine Co. in Ypsilanti, Acme Manufacturing in Auburn Hills, B&P Equipment and Systems in Saginaw, and Tooling and Equipment International in Livonia. They also had the opportunity to engage in one-on-one consultations with representatives from the U.S. Small Business Administration and the U.S. Department of Commerce.TEI recently was approved for a $20 million single-buyer insurance policy by Ex-Im Bank's board of directors. TEI is a manufacturer of molds and core boxes used to produce castings.
The financing is in support of a purchase from Nemak, S.A., a Mexican company based in Villa de García, Nuevo León. TEI has received financing from Ex-Im Bank for previous transactions between the two companies supporting 48 jobs since 2009 and increasing export sales to 80% of the company's overall sales.TEI was in need of Ex-Im support financing to compete with foreign companies and be able to offer longer repayment terms to international buyers.
The insurance policy enabled the company to offer terms up to 270 days to Nemak, eliminating concerns of European company competition. Currently, TEI employs 143 people. With the reapproved $20 million insurance policy, TEI expects to increase sales by 10%-15% and support an additional 2 jobs. The recent transaction was brokered by Johnstone Downey Klein, Inc./dba/International Risk Consultants of Columbus, Ohio.
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