On Wednesday, March 25, the Export-Import Bank of the United States (EXIM) issued its full support for four new, temporary initiatives as a response to COVID-19. These new initiatives support the continuation of the export of US products and services by providing financial relief to those negatively impacted by COVID-19, including US businesses, their buyers, financial institutions, and American workers. Below is an outline of the new initiatives:
- Bridge Financing Program: Provides short term financing for US exports, allowing international customers to accept shipments by meeting their demands for temporary, short-term bridge financing.
- Pre-Delivery / Pre-Export Financing Program: Addresses US manufacturers’ reliance on advance payments from international customers who are currently unable to fulfill their usual “progress delivery payments.” EXIM’s Pre-Export Payment Policy program has temporarily expanded to a one-year term for transactions that qualify.
- Supply Chain Financing Guarantee Program: This existing program is currently in place to support suppliers in receiving early payment of invoices at a discounted rate. The program offers faster access to cash and allows an increase of liquidity to support fulfillment of new orders. As a response to COVID-19, EXIM is increasing the guarantee level and relaxing existing criteria for the program.
- Working Capital Guarantee Program: To address liquidity constraints facing suppliers and exporters, EXIM will temporarily modify this existing program, which currently serves to facilitate loans from commercial lenders through Designated Authority (DA) lenders. Modifications to the program include, reducing the fee structure, temporarily increasing the guarantee level and expanding program eligibility to cover all inventory that has the potential to be exported.
You can read the full press release on the EXIM website.