Shenzhen, China (July 9, 2014) — As the Export-Import Bank of the U.S. (Ex-Im Bank) Chairman and President Fred Hochberg tours China to encourage the purchase of Made-in-America goods and services and participates in the U.S.-China Strategic and Economic Dialogue, new statistics reveal that Ex-Im Bank is on track to hit a new record for transactions supporting U.S. exports to China in fiscal year 2014.
Already totaling more than $1.8 billion, Ex-Im Bank financing contributes to a more balanced trade relationship with China, where exports from American companies have nearly doubled since 2009.
”As the world’s second largest economy, and the third largest importer of U.S. goods, China represents an incredible opportunity for U.S small businesses,” said Chairman Hochberg. “Both through direct sales to China and supplying larger U.S. exporters, American small businesses, with the help of Ex-Im Bank are competing on a more level playing field while expanding their exports to China and creating jobs in the United States.”
Ex-Im Bank does not compete with private banks or lenders, but still continues to play a vital role in opening China’s vast market to U.S. small businesses through its loan-guarantee and trade-credit-insurance programs. That’s because, often times, small business exporters have shipments that are too small for commercial banks to deem worth their time. With just over 400 employees, Ex-Im Bank is nimble enough that there is no American small business exporter that is too small for Ex-Im to support.
“We are finding that the ability to talk about and offer a loan is critical to our success for fire apparatus and equipment sales in many parts of China,” said Peter Darley, vice president of W.S. Darley of Itasca, Illinois. “Due to the Ex-Im framework agreement, interested Fire Departments are able to purchase products from the U.S. and can spread out their payments, affording them the opportunity to purchase the right amount of equipment with the desired quality and technology. We have a lot of good people working for us that are employed because we are able to offer project financing that is backed by Ex-Im Bank.”
As a result of Ex-Im support, small businesses across the U.S. have been able to directly export to China in FY 2014, including:
• Bassett’s Ice Cream – Philadelphia, PA. Bassett’s is a fifth-generation frozen dessert distributor and a Philadelphia tradition since 1861.
• Cypress Creek Hardwoods – Austin, TX. Cypress Creek Hardwoods sells hardwood lumber to China.
• Lions Gate Inc. – Honaunau, HI. Lions Gate exports Kona Coffee.
• South Coast Products – Houston, TX. South Coast produces lubricants, greases, thread compound, sealants, lubrication equipment, and laboratory equipment and accessories used for testing/analysis of greases and lubricants.
• Teledynamics LLC – Towaco, NJ. Teledynamics manufactures and supplies mail and material monorail systems for hospitals, libraries, and law firms.
• W.S. Darley – Itasca, IL. Darley is a leading provider of firefighting equipment, rescue gear, tools and supplies.
To learn more about how your small business can export to China and markets around the world, visit www.exim.gov/smallbusiness.
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working-capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services. In the past fiscal year alone, Ex-Im Bank earned for U.S. taxpayers more than $1 billion above the cost of operations.
In FY 2013, Ex-Im Bank approved more than $27 billion in total authorizations to support an estimated $37.4 billion in U.S. export sales and approximately 205,000 American jobs in communities across the country. For the year, the Bank approved a record 3,413 transactions– or 89 percent–for small-businesses. Small business exporters can learn about how Ex-Im Bank products can help them increase foreign sales at http://go.usa.gov/ZVTd. For other information about Ex-Im, visit www.exim.gov.