Ex-Im Approves Supply Chain Finance Transaction to Support Small-Business Jobs
December 5, 2012
(Ex-Im Bank)
Washington, D.C. – The Export-Import Bank of the United States of America (Ex-Im
Bank) announced today that it has approved its fourth Supply Chain Finance
transaction and will guarantee up to 90 percent of $450 million in liquidity
offered by a JPMorgan Chase loan to suppliers of Caterpillar Inc.
Ex-Im Bank’s guarantee will support small-business suppliers by improving their
liquidity, thereby allowing them to fulfill new orders.
“We are proud to participate in the Caterpillar supply-chain-finance program,
which will support small-business jobs by supporting America’s suppliers,” said
Ex-Im Bank Chairman and President Fred P. Hochberg. “Our role in the program is
to partner with JPMorgan Chase to support U.S. suppliers, which will grow the
American economy.”
The Supply Chain Finance guarantee is intended to enable JPMorgan to increase
its purchases of accounts receivable owned by U.S. suppliers and due from
Caterpillar and that are related to purchases of goods and services by
Caterpillar for its export-related production. This program is designed to help
qualified Caterpillar suppliers obtain cash more quickly and increase liquidity
to fulfill new orders. Exporters have the option to extend payment terms and
obtain a working capital benefit without imposing undue financial hardship on
their suppliers.
“We have a steadfast commitment to supporting small business in the U.S., and
this program is another example of that,” said Dani Cotti, head of Global Trade
for J.P. Morgan. "This supply chain financing partnership between J.P. Morgan
and Caterpillar, supported by Ex-Im, will help dozens of small businesses obtain
the working capital that they need to thrive and create jobs. It’s a win for
everyone involved.”
To participate in the Ex-Im Bank program, approved lenders must have an existing
supply-chain finance program. The Bank requires that at least 50 percent of the
credit provided under the program be extended to suppliers meeting the
small-business definition of the Small Business Administration. Additionally,
the exported products must meet U.S. content requirements.
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