The Florida Export Finance Corporation

Assisting Community Banks

    This is one of a series of articles about the Florida Export Finance Corporation (FEFC), its programs and how it benefits and assists community banks in supporting the financial needs of their customers. The FEFC was created by the State of Florida as a not-for profit corporation, with a mandate to expand employment and income opportunities by supporting the export of goods and services from the state by small and medium sized Florida companies.  

    Access to FEFC loan guarantees of up to $500,000 per borrower is available to support Florida businesses. Information, technical, and consulting assistance is also offered, however, financial assistance is the primary service offered by FEFC. FEFC loan guarantees are transaction specific but normally issued as a revolving line of credit. This program, operating in partnership with Florida's banking community, is designed to assist the State's smaller exporters by giving them improved access to affordable working capital, and to assist community banks by giving them better access to federal and state loan guarantee programs.  

    The FEFC is a member of the City/State Partnership Program of the Export-Import Bank of the United States (a U.S. Government Agency) and offers Florida exporters and bankers, easy access to U.S. Government export assistance programs. Services include packaging of Ex-Im Bank and SBA export working capital guarantees, and other loan, insurance and guarantee programs offered by these agencies. The FEFC is the administrator/holder of an Ex-Im Bank Umbrella Policy which allows Florida exporters to obtain export political and credit risk insurance, and also has an agreement with Ex-Im Bank for Delegated Authority specifically to help community banks. Using FEFC's co-guarantee delegated authority agreement with Ex-Im Bank the size of the loan guarantee can be increased to $1,000,000 per borrower.  

    Under the Ex-Im Bank/FEFC co-guarantee delegated authority agreement community banks sign a Master Guarantee Agreement with FEFC. There is no cost or obligation in signing this Master Guarantee Agreement. It puts into place a guarantee that will apply if the community bank ever needs the guarantee on a future working capital loan related to export sales by a customer of the bank.  

    By having the Master Guarantee Agreement in place the bank, in advance, eliminates a large portion of the process and time for obtaining such guarantee. The Master Guarantee, at no cost or obligation, then can be used for transactions as needed. The guarantee covers 90% of the loan value ($1,000,000 maximum guarantee value / $1,111,111 maximum loan value) plus interest. The bank interacts only with the FEFC but has a guarantee from the federal government for 45% and a guarantee from the FEFC for 45% of the loan. The guarantee may be for working capital needed to complete a single export order or it may be for a revolving working capital line of credit to cover a multiple of expected or projected export orders.  

    If a community bank is interested it should contact the FEFC and request the Master Guarantee Delegated Authority package.  

P. O. Box 526524 Miami, FL 33152-6524 

Phone 305/870-5027 Fax 305/870-5017

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