Presented by Dennis R. Chrisbaum Director, International Trade Finance Office of International Trade U.S. Small Business Administration 409 – 3rd Street, S.W. Washington, D.C. 20416 Tel: 202.205.6885 E-mail: dennis.chrisbaum@sba.gov Web: www.sba.gov/international

1. U.S. Global Business Solutions (GBS)
6th Annual SBA Export Lenders Roundtable
Washington, D.C.
April 3, 2013

2. Na#onal
Export
Ini#a#ve
“Because the more products we make and sell to other
countries, the more jobs we support right here in America…
Tonight we set a new goal: We will double our exports over the
next five years, an increase that will support two million jobs
in America. To help meet this goal, we're launching a National
Export Initiative that will help farmers and small businesses
increase their exports…”
President Barack Obama
State of the Union Address
January 27, 2010
2

3. It’s
About
Jobs
and
GDP
Growth!
Jobs Supported by U.S. Exports, 2009-2012
9.8
9.7
9.1
Millions
8.5
2009 2010 2011 2012 3

4. Role
of
Exports
to
a
Country’s
GDP
Exports
as
a
Percent
of
GDP
Germany
42%
China
40%
Canada
36%
India
22%
Japan
16%
USA
13.9%
4

5. Number
of
Exporters
is
Expanding
400,000.00
Number
of
U.S.
Companies
ExporCng,
2002-­‐2010
98%
or
287,000
are
Small
Businesses
293,131
289,711
276,643
268,526
247,985
300,000.00
240,376
232,828
227,300
223,933
200,000.00
100,000.00
0.00
2002
2003
2004
2005
2006
2007
2008
2009
2010
5

6. SMEs
Increasing
Share
of
U.S.
Exports
Figure
3.
Small-­‐
and
Medium-­‐Sized
Enterprise
Share
of
Total
U.S.
Goods
Exports,
2000
-­‐
2010
35
33
percentage
of
total
31
29
27
25
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source:
U.S.
Department
of
Commerce,
U.S.
Census
Bureau,
a
Profile
of
U.S.
Impor#ng
and
Expor#ng
Companies,
2009-­‐2010
6

7. We
SCll
Have
a
Ways
to
Go!
7

8.
The
Export
PromoCon
Cabinet,
July
2012
To
Maximize
the
EffecCveness
of
Federal
Programs,
the
Federal
Government
will:
(1) increase
the
na#onal
base
of
small-­‐
and
medium-­‐
sized
enterprise
exporters
by
50,000
by
2017,
(2)
expand
the
reach
of
federal
export
assistance
and
counseling
to
small
businesses,
and
(3)
ensure
beYer
delivery
of
export
promo#on
services
domes#cally
and
overseas.
8

9. U.S.
Global
Business
SoluCons
Export
Promo#on
Cabinet,
Objec#ve
#2:
Expand
Access
to
Small
Business
Trade
Financing
1)
trade
financing
perceived
as
too
complex
Problem
by
many
lenders
2)
not
high
volume
nor
profitable
for
lenders
SoluCon
1)
reduce
the
complexity
and
present
a
streamlined
package
of
financing
op#ons,
2)
focus
only
on
mainstream
products
with
greater
volume
poten#al
9

10. One-­‐Stop
Shop
for
Business
Export
Needs
Goals
• Grow
revenues
and
jobs
through
exports
and
the
number
of
SB
exporters—add
50,000
by
Dec.
2017
• Expand
the
base
of
financial
ins#tu#ons
and
service
providers
who
facilitate
exports—add
250
trade
financing
originators
by
Dec.
2015
SoluCon
• Reduce
complexity
by
packaging
trade
financing
and
marke#ng
op#ons
that
seamlessly
meet
exporter
needs
• Simplify
marke#ng
materials
and
increase
outreach
and
training
to
meet
the
needs
of
their
financial
ins#tu#ons
• Streamline
access
to
interna#onal
experts,
credit
products,
and
business
services
for
exporters—increase
volume
10

11. One-­‐Stop
Shop
for
Business
Export
Needs
Strategy
• Combine
key
trade
and
commercial
finance
products
and
services
in
a
single
menu
of
op#ons
made
for
mainstream
use:
U.S.
Global
Business
SoluCons
• Tailor
the
op#ons
to
the
stage
of
exporter
development
and
capacity
of
the
financial
ins#tu#on
or
service
provider
• Offer
a
seamless,
low-­‐cost
transi#on
among
op#ons
• Provide
a
menu
of
customized
financing
solu#ons
for
more
advanced
exporter
needs:
The
Specialized
Global
SoluCons
(SGS)
program
11

12. How
Do
We
Get
More
SMEs
Here?
Source:
hYp://www.medica-­‐tradefair.com/cgi-­‐bin/md_medica/custom/pub/content.cgi?lang=2&oid=28126&#cket=g_u_e_s_t&ca_page=en%2Facquisi#on_brochure.html

13. How
Do
We
Get
More
SMEs
Here?

14. U.S.
Government
Help
for
U.S.
Exporters
Trade
Services
Trade
Finance
InternaConal
Trade
Specialists
Trade
Finance
Specialists
• 110
Offices
across
the
U.S.
• 40
Trade
Finance
Specialists
in
22
• Embassies
in
70
countries,
hundreds
of
loca#ons
consulates
Trade
Services
Trade
Finance
Programs
• Export
Business
Counseling
• Purchase
Order
Financing
• Foreign
Market
Research
and
Buyer
• General
Export
Expenses
Intelligence
• Receivables
and
Inventory
Financing
• Finding
Foreign
Buyers
• Country
and
Buyer
Credit
Insurance
• Mee#ng
with
Visi#ng
Foreign
Buyers
• Equipment
and
Real
Estate
Financing
• Trade
Shows
and
Trade
Missions
14

15. What
Might
a
SME
Need?
Working
Capital
for
Export
Development:
• AYend
trade
shows
• Secure
CE
mark,
interna#onal
patent
or
trademark
• Meet
poten#al
business
partners
• Vet
poten#al
buyers,
agents
or
distributors
and
purchase
foreign
credit
reports
• In-­‐country
promo#ons
• Transla#on
of
website/product
literature
and
other
marke#ng
costs
15

16. What
Might
a
SME
Exporter
Need?
Working
Capital
and
Credit
Insurance
for
Export
Orders:
• Inventory,
materials,
labor,
other
produc#on
costs
• Foreign
accounts
receivable
insurance
• Insurance
and
freight
costs
• Bank
fees
related
to
the
transac#ons
• Standby-­‐leYers
of
credit
to
guarantee
bid,
performance,
or
advance
payments
16

17. What
Might
an
Experienced
SME
Exporter
Need?
Term
Loan
for
fixed
assets:
• Machinery
or
equipment
to
expand
produc#on
in
order
to
meet
foreign
demand
• Retooling
expenses
necessary
for
metric
produc#on
or
to
meet
other
standards
• Permanent
working
capital
• Real
estate
needed
as
a
result
of
expanding
export
sales
17

18. New
Market
and
Buyer
Development
Products
Export
Finance
Products
Export
Strategy
USEAC
Counseling
Express
Trade
Credit
Insurance
LOW
LOW
Development
Against
Non-­‐
ProtecCon
-­‐ Consult
with
a
trade
specialist
who
knows
your
-­‐ Covers
non-­‐payment
risks
of
foreign
buyers
Payment
industry.
-­‐ Coverage
is
up
to
95%
of
invoiced
amount
of
foreign
-­‐ Target
key
markets
and
develop
entry
strategy.
receivable.
-­‐ (Refer
non-­‐export
ready
firms
to
SBA
local
-­‐ Pay-­‐as-­‐you-­‐ship
premiums
resource
partners.)
InternaConal
Buyer
Program
Export
Express
Guarantee
-­‐ Exhibit
at
major
domes#c
industry
trade
show
-­‐ Export
development
and
transac#onal
$500,000
and
less
Loan
-­‐ Sign
up
to
meet
foreign
buyers
at
the
show
costs
Export
Matchmaking
-­‐ Inexpensive
way
to
meet
foreign
buyers/partners
-­‐ Working
capital
to
7
years
-­‐ Equipment
and
real
estate
to
25
years
Export
Collateral
Collateral
Only
to
Exporter
DomesCc
and
Export
Related
Direct
Loan
InternaConal
Partner
Search
Global
Credit
Express
WORKING
CAPITAL
LOANS
-­‐ Find
a
business
partner
in
targeted
country
-­‐ 6
or
12
month
maturity
Exporter
SophisCcaCon
-­‐ Send
product
literature
and
US
gov’t
staff
-­‐ Supports
general
expenses
and
working
Finding
Partners
and
Buyers
overseas
iden#fies
poten#al
foreign
buyers
capital
needs
Reverse
Trade
Missions
Export
Working
Capital
Guarantee
-­‐ Meet
delega#ons
of
foreign
buyers
with
funded
-­‐ Transac#onal
(purchase
order)
or
asset-­‐
$500,000
to
$5
Million
infrastructure
projects
based
-­‐ Learn
more
about
overseas
projects
and
sales
-­‐ 90%
guarantee
poten#al
-­‐ 1-­‐yr.
term
typically;
3-­‐yr.
max
maturity
GOLD
KEY
CAP
Line
7(a)
Loan
Guarantee
-­‐ Travel
overseas
to
meet
poten#al
business
-­‐ Supports
both
domes#c
and
foreign
sales
partners
cycles
-­‐ Have
U.S.
government
staff
screen
poten#al
-­‐ Includes
insured
foreign
A/R
in
borrowing
partners
base
-­‐ Assistance
at
on
the
ground
mee#ngs
-­‐ 75%
guaranty;
10
year
max.
Major
Overseas
TERM
LOANS
Int’l
Trade
Shows/
Trade
Missions
InternaConal
Trade
Loans
-­‐ USG
hosts
USA
pavilions
at
major
interna#onal
-­‐ Insourcing
or
expanding
produc#on
facili#es
shows
-­‐ Up
to
$5M
with
90%
guarantee
-­‐ USG
organizes
trade
missions
to
introduce
US
-­‐ Max
maturi#es
of
10
for
working
capital
and
25
years
companies
to
pre-­‐screened
partners
for
real
estate
HIGH
HIGH
InternaConal
Company
Profile
Bid
and
Performance
Bonds
Customers
Help
With
-­‐ Background
checks
on
poten#al
business
partners
-­‐ Supports
standby
leYers
of
credit
to
guarantee
Projects
Vecng
-­‐ Customized
report
on
ac#vity
and
reputa#on
of
advance
payments
firm
-­‐ Supports
standby
L/C
s
serving
as
bid
and
/or
performance
guarantees
18
-­‐ Requires
only
25%
cash
collateral

19. Early
Stage
Exporter
Trade
Counseling
Guides U.S. companies through the export process from beginning to end, helping to develop an
effective international sales strategy, identify and comply with laws and regulations, fulfill
(CS)
documentation requirements, and overcome trade problems.
InternaConal
Provides export counseling to U.S. companies and connects them with pre-screened potential buyers,
sales representatives, and business partners at major U.S. International Buyer Program-designed
Buyer
Program
domestic industry trade shows.
(CS)
InternaConal
Provides U.S. companies with a report that helps determine the marketability of their products or
services, identifies pre-screened potential export partners, and includes detailed overseas company
Partner
Search
(CS)
information.
Reverse
Trade
Organizes visits to the United States for foreign delegates to observe the design, manufacture,
demonstration, and operation of U.S. goods and services that may help them achieve their
Missions
(USTDA)
development goals.
Trade
Missions
or
Enables U.S. companies to exhibit products at overseas Certified Trade Fairs or participate in US-
organized trade missions, receive customized market briefings, and meet potential business partners.
Trade
Shows
(CS)
Express
Insurance
Covers non-payment risks, allowing firms to extend competitive credit terms to foreign buyers and
increase cash flows. Coverage is up to 95% of invoiced amount of foreign receivable.
(Ex-­‐Im)
Export
Express
Finances the exports of new exporters and businesses that are expanding their current foreign
markets. Up to $500k, 75-90% guarantee, 25 year max. term financing for any export development
(SBA)
activity, including trade show attendance, equipment and export sales; 7 year max. term for working
capital. Under a general line of credit, 30% of the line can be used to support domestic activity.
CapLines
(SBA)
Provides businesses with a line of credit that supports both domestic and foreign sales cycles
(including insured foreign A/R) and cyclical working capital needs.
19

20. Experienced
Exporters
Gold
Key
(CS)
Organizes one-on-one meetings with pre-screened potential buyers, sales representatives, and
business partners when visiting overseas markets or at overseas trade shows.
InternaConal
To assess potential export partners, these reports contain available sales, profit figures, potential
liabilities, and other financial information, and are prepared by trade professionals working in target
Company
Profiles
(CS)
markets.
Global
Credit
Express
Provides businesses with short-term, direct working capital loans of up to $500,000. Six or twelve
month revolving line of credit that supports general expenses of exporting as well as the full range
(Ex-­‐Im)
of working capital needs.
Export
Working
Transactional or asset-based lines of credit up to $5MM with 90% guarantee, typically for a 1 year
term with 3 year maximum maturity, to support export transactions from purchase order to
Capital
(SBA)
collections.
InternaConal
Trade
Insourcing or expanding facilities for firms growing their exports or adversely impacted by imports.
Up to $5MM with 90% guarantee; maximum maturities of 10 years for working capital or 25 years
Loan
(SBA)
for real estate.
Trade
Credit
Covers non-payment risks, allowing firms to extend competitive credit terms to foreign buyers and
increase cash flows. Coverage is up to 95% of invoiced amount of foreign receivable.
Insurance
(Ex-­‐Im)
CapLines
(SBA)
Provides businesses with a line of credit that supports both domestic and foreign sales cycles
(including insured foreign A/R), and cyclical working capital needs.
Bid/Performance
Provides a guarantee of performance under contracts with foreign buyers or guarantee on advance
payments, currently through the use of standby letters of credit which both the Export Express and
Bonding
(SBA)
Export Working Capital loan programs can support.
20

21. Specialized
Global
Solu#ons
Agricultural
and
Forest
USDA’s
Export
Credit
Guarantee
Program
(GSM-­‐102)
guarantees
Products
credit
extended
by
the
U.S.
private
banking
sector
to
approved
foreign
banks
to
encourage
financing
of
commercial
exports
of
U.S.
agricultural
products.
Feasibility
Studies
USTDA
Feasibility
Studies
link
foreign
project
sponsors
with
U.S.
businesses
at
the
early
stage
of
project
development
when
technology
op#ons
and
requirements
are
being
defined.
These
studies
evaluate
the
technical,
financial,
environmental
and
other
cri#cal
aspects
of
infrastructure
development
projects.
Medium-­‐Term
Buyer
Ex-­‐Im’s
Medium-­‐Term
Credit
Insurance
protects
sale
of
capital
Finance
equipment
or
related
services
to
a
single
foreign
buyer
against
the
buyer's
failure
to
pay
due
to
unforeseen
commercial
or
poli#cal
reasons.
Export
Working
Capital
Working
Capital
Guarantee
provides
commercial
lenders
with
a
90%
Guarantee
loan
guarantee
to
facilitate
mul#ple
export
sales
or
individual
contracts
for
goods
or
services
Foreign
Direct
OPIC
provides
financial
products,
such
as
loans
and
guaran#es;
Investment
Assistance
poli#cal
risk
insurance;
and
support
for
investment
funds,
all
of
which
help
American
businesses
expand
into
emerging
markets.
21

22. USDA
GSM-­‐102
Export
Credit
Guarantee
Program
• Guarantees
against
non-­‐payment
• U.S.
agricultural
commodi#es
only
• LeYer
of
credit
required
• Covers
non-­‐bulk
commodi#es
in
addi#on
to
bulk
commodi#es
• Up
to
2
year
tenor
Jonathan
Doster
202.720.2074
jonathan.doster@fas.usda.gov
www.fas.usda.gov/excredits/ecgp.asp
22

23. U.S.
Trade
Development
Agency
Feasibility
Study
Program
• USTDA
provides
grants
to
foreign
project
sponsors
to
select
U.S.
companies
to
complete
project
development/prepara#on
ac#vi#es
required
for
major
infrastructure
investments.
• The
Feasibility
Study
Program
links
foreign
project
sponsors
with
U.S.
businesses
at
the
cri#cal
early
stage
of
project
development.
• Feasibility
Study
Analysis
includes:
o
Technical
o
Financial
o
Legal
o
Environmental
o
Life
Cycle
Cos#ng
Andrea
M.
Lupo
Assistant
Director
for
Policy
and
Program,
USTDA
703-­‐875-­‐4357
alupo@ustda.gov
23

24. Export-­‐Import
Bank—Medium-­‐Term
Guarantee
Program
• DESCRIPTION:
A
loan
guarantee
to
a
lender
that
finances
a
foreign
buyer’s
purchases
of
U.S
–
made
capital
equipment
and
any
related
services.
• BENEFITS:
Enables
an
exporter
to
sell
large
#cket
capital
equipment
to
a
foreign
buyer
on
credit
terms
generally
between
1
and
5
years
and
be
cashed-­‐out
up
front
by
a
lender.
The
buyer
is
able
to
access
credit
at
U.S.
interest
rates.
• HOW
IT
WORKS:
Applica#ons
are
submiYed
by
par#cipa#ng
lenders,
generally
providing
the
buyer’s
most
recent
3
years’
financial
statements
and
their
own
credit
memo.
If
approved,
the
guaranteed
amount
is
100%
of
the
financed
por#on
(less
the
down-­‐payment).
• ELIGIBILITY:
Products
must
be
of
U.S.
origin.
Buyer
must
make
a
minimum
15%
cash
down-­‐payment.
• COST/FEES/TERMS:
There
is
a
variable
exposure
fee
based
on
the
risk
of
the
transac#on
and
a
commitment
fee
of
0.125%.
The
interest
rate
is
nego#ated
between
the
lender
and
the
foreign
borrower.
• RESTRICTIONS:
Lenders
must
have
a
Master
Guarantee
Agreement
in
place
to
par#cipate.
Goods
and
/or
services
exported
must
be
of
U.S.
origin.
Military
and
/
or
defense
related
items
or
buyers
may
be
ineligible.
Eligible
countries
are
listed
on
the
Country
Limita#on
Schedule.
24

25. Export-­‐Import
Bank—Working
Capital
Program
• DESCRIPTION:
A
loan
guarantee
for
an
exporter
to
purchase
finished
goods,
raw
materials,
labor
and
fund
overhead
costs
to
fulfill
export
sales
orders
or
to
post
a
bid
or
performance
bond.
Exporter
may
sell
to
goods
directly
to
a
foreign
buyer
or
to
a
company
in
the
U.S.
which
will
then
export
the
products
(“indirect
exports”).
• BENEFITS:
The
guarantee
encourages
a
lender
to
make
a
loan
when
they
might
not
otherwise
do
so.
Offers
generous
advance
rates
(up
to
75%
on
inventory,
which
includes
work-­‐in-­‐process,
and
up
to
90%
on
foreign
accounts
receivable).
• HOW
IT
WORKS:
Applica#ons
from
exporters
are
reviewed
by
the
lender
and
either
approved
under
their
own
“delegated
authority”
or
sent
to
an
underwri#ng
unit
for
concurrence.
Loans
may
be
revolving
lines
of
credit
or
transac#on-­‐specific.
The
guarantee
is
90%
of
the
loan
amount.
• ELIGIBILITY:
Company
must
be
in
business
for
at
least
one
year
with
financial
statements
available
on
its
opera#ons.
Goods
and
/or
services
exported
must
be
of
U.S.
origin.
• COST/FEES/TERMS:
$100
processing
fee.
1.75%
annually,
1.25%
available
on
a
case-­‐by-­‐
case
basis
for
lower-­‐risk
transac#ons.
Interest
rate
on
the
loan
and
any
other
fees
are
set
by
the
lender.
• RESTRICTIONS:
Goods
and
/or
services
exported
must
be
of
U.S.
origin.
Military
and
/
or
defense
related
items
or
buyers
may
be
ineligible.
Eligible
countries
are
listed
on
the
Country
Limita#on
Schedule.
25

26. Overseas
Private
Investment
Corpora#on
• Financial
products
to
facilitate
direct
foreign
investment.
• Long-­‐term
project
financing
,
if
there
is:
a)
meaningful
US
ownership
in
the
enterprise,
or
b)
a
long-­‐term
contractual
agreement
between
a
US
firm
and
the
foreign
enterprise.
• Insurance
to
protect
against
losses
on
overseas
assets
from
poli#cal
violence,
government
interference
and
currency
conversion
and
transfer.
• As
the
U.S.
Government’s
Development
Finance
Ins#tu#on,
OPIC
focuses
on
emerging
markets
and
offers
its
programs
in
over
150
countries.
Alison
Germak
Gatchev
Director,
Corporate
Development
Small
&
Medium
Enterprise
Finance
OVERSEAS
PRIVATE
INVESTMENT
CORPORATION
1100
New
York
Ave,
NW
|
Washington
DC
20527
+1
202.336.8651|Alison.Gatchev@opic.gov|
26

27. You
Can
Help
Your
Clients
Who
Export
or
Want
to
Export
Don’t
let
them
go
to
another
bank!
• With
U.S.
Global
Business
Solu=ons
(U.S.
GBS),
you
can
provide
the
full
range
of
trade
finance
products
and
export
services
to
your
customers–
backed
by
the
federal
government.
• Market
U.S.
GBS
with
the
U.S.
Government
or
use
your
own
brand.
• Get
a
single
Trade
Specialist
as
point
of
contact
for
all
U.S.
GBS
programs,
elimina#ng
the
need
to
have
contacts
in
each
agency
• Easily
integrate
export
credit
facili#es
with
client’s
domes#c
credit
facili#es
27

28. You
Can
Help
Your
Clients
Who
Export
or
Want
to
Export
•
Use
sales
materials
designed
by
U.S.
GBS,
combined
with
a
decision
tree,
that
lets
you
customize
a
menu
of
programs
to
each
client’s
needs
• Access
a
unique,
Web
landing
page
for
addi#onal
informa#on
on
each
program
to
use
for
quick
reference
•
Benefit
from
addi#onal
sources
of
client
originaCon,
because
of
the
training
provided
to
a
wide
range
of
agency
resource
partners
on
US-­‐GBS
• Become
a
U.S.
GBS
partner:
in-­‐depth
training
can
be
provided
on
the
programs
of
your
choice
along
with
the
delivery
of
tailored
marke#ng
materials
28

29. What
we
will
provide
to
Partners
1.
services
under
the
U.S.
Global
Training
in
all
the
products
and
Business
Solu#ons
program.
2. Template
for
marke#ng
materials
to
be
used
in
promo#ng
U.S.
GBS
products
and
services
to
your
customers.
3. Use
of
the
U.S.
GBS
brand
(as
long
as
you
are
is
ac#vely
promo#ng
the
Program).
4. Provide
one
primary
U.S.
government
contact
for
follow-­‐up
ques#ons
and
support
in
promo#ng
the
Program.
29

30. What
We
Expect
from
Our
Partners
1. Receive
training
on
all
the
products
and
services
under
the
U.S.
Global
Business
Solu#ons
program.
2. Offer
financing
solu#ons
to
small
business
exporters
on:
• Export
working
capital
• Term
loans
for
facili#es
expansion
• Referrals
for
credit
insurance
3. U#lize
marke#ng
materials
designed
for
the
Program
4.
Execute
all
necessary
guaranty
agreements
5. Make
referrals
of
businesses
for
Global
Credit
Express
and
Credit
Insurance
30

31. U.S.
Global
Business
Solu#ons
Timeline
Apr.
-­‐
Nov.
• Iden#fy
pilot
lenders
and
2013
launch
pilot
April-­‐Nov.
• Provide
training
to
lenders,
CS,
intermediaries,
SBDC,
MEPs,
etc.—
2013
soy
launch,
then
ongoing.
• Refine
product
and
marke#ng
Dec.
2013
materials
§ Finalize
training
and
marke#ng
Jan.
2014
materials
for
early
2014
na#onal
launch
December
• Sign
250
new
lenders
to
provide
trade
2015
financing
to
SMEs
31

32. Ques#ons
Primary
Contacts:
Dennis
R.
Chrisbaum,
SBA
Dennis.Chrisbaum@sba.gov;
202.205.6885
Charles
D.
Tansey,
Ex-­‐Im
Bank
Charles.Tansey@exim.gov;
202.565.3701
32