All of us who offer financial services to businesses in the State of Florida know the unique nature of our market. Many of your clients could be defined as small businesses, and many of those export goods and services to foreign markets. Indeed, small businesses are the major engine of employment, economic growth, and exporting in our State.
Despite their importance to our economy, far too often they lack access to the financing they need. This is especially true of small business which need financing for their export transactions. The Florida Export Finance Corporation (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.
The FEFC offers information, technical and consulting assistance to exporters throughout the State of Florida. Financial assistance, though, is our chief service. The FEFC will guarantee a lender's revolving line up to a maximum of $500,000, and make direct loans for a single transaction up to a maximum of $50,000. Applicants for a direct loan or a loan guarantee must be exporters based in Florida who have been turned down by at least one potential lender.
The FEFC is a member of the City/State program of the Export-Import Bank of the United States and offers Florida exporters access to U.S. Government export assistance programs offered by the Ex-Im Bank and the SBA. Services include packaging for the loan, insurance and guarantee programs offered by these agencies. The FEFC is the holder of an Ex-Im Bank Umbrella Policy which allows Florida exporters easy access to political and credit risk insurance and has Ex-Im Bank delegated authority for working capital loan guarantees up to $1,000,000.
This pamphlet reviews our general services. We ask that you bring to your client's attention the many opportunities available to them to enhance their success as exporters. One call or visit to our offices is all that is necessary to learn about these opportunities. Applications are available on the Internet or upon request.
A major hurdle for many
businesses seeking to take advantage of the opportunities offered by expanding
foreign markets is access to affordable working capital. The State of Florida,
working in partnership with the federal government and the State's banking community
has lowered this hurdle for small and medium-sized businesses. FLORIDA EXPORT
FINANCE CORPORATION Access to direct loans up to $50,000 or loan guarantees
of up to $500,000 is available to Florida's small and medium-sized businesses
through the Florida Export Finance Corporation (FEFC). The FEFC was created
by the State in 1993 as a not for profit corporation with a mandate to expand
employment and income opportunities to Florida residents by increased exports
of goods and services resulting from assistance given by the FEFC to Florida
companies. Information, technical, and consulting assistance is offered. However,
financial assistance is the primary service offered by the FEFC. 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.
- Direct loans for the lesser of 90% of the product cost or $50,000.
- Loan guarantees for the lesser of 90% of the loan or $500,000.
- No minimum size.
- May be used to support loan or standby letter of credit.
- Available for pre-export working capital and/or post-export receivables financing.
- Maximum term for pre or post-export is 180 days, combination is 360 days.
- Reduced turn-around time for approval.
- Flexible collateral requirements.
FEFC PROGRAM CRITERIA
- Shipment must be from Florida.
- Products do not have to be made in Florida.
- Must be a small/medium sized Florida company.
- Must have received a turndown from conventional lender or apply jointly with a lender.
FEFC PROGRAM FEES:
- $250 application fee.
- 1% facility fee based on maximum allowable outstandings at any one time.
- Usage fee/interest rate depends on period of loan.
EXPORT-IMPORT BANK OF THE UNITED STATES AND SMALL BUSINESS ADMINISTRATION CITY/STATE PROGRAM The FEFC is a member of the City/State program and offers Florida exporters access to export assistance programs offered by the Ex-Im Bank and the SBA. Services include packaging for Ex-Im Bank and SBA export working capital guarantees, and other loan, insurance and guarantee programs offered by these agencies. FEFC is the holder of an Ex-Im Bank Umbrella Policy which allows Florida exporters easy access to political and credit risk insurance.
FEFC PACKAGING, CREDIT INSURANCE, AND CO-GUARANTEE PROGRAMS Financing assistance provided by the City/State Program focuses on the packaging and expedited processing of applications. The FEFC will assist exporters and lenders in arranging loans exceeding the FEFC limit in order to complete an export sale of any size including Ex-Im Bank product and project loans and SBA loans. The FEFC, as a holder of an Ex-Im Bank Umbrella Insurance Policy, will assist exporters and lenders in obtaining credit insurance to mitigate foreign risk. FEFC can combine its guarantee with that of the SBA for a total guarantee value of up to $1,250,000. FEFC has delegated authority from Ex-Im Bank and can combine its guarantee with that of Ex-Im Bank for a $1,000,000 guarantee. This delegated authority is primarily designed to work with community banks in support of their customers.
Products offered by Ex-Im Bank include:
- working capital guarantees/ medium-term guarantees/direct project guarantees/foreign credit insurance
SBA also offers working capital guarantees in support of export sales.
- Guarantees to support specific transactions or a revolving line
- No minimum or maximum amount (though the amount requested will determine which agency will make the guarantee)
EWCP ELIGIBILITY CRITERIA:
- Exporter must have been in business at least one year
- Exporter must be able to demonstrate financial strength to support loan
- Export transaction must involve a country approved by Ex-Im Bank's Country Limitation Schedule
- Exporting company must have business operations in Florida.
- The most important of the defining criteria is the amount of financing being requested:
Ex-Im Bank Guarantee requests exceeding $750,000
(Up to 90% of loan)
SBA Guarantee requests below $750,000
(Up to 90% of loan)
UNIQUE EX-IM BANK FEATURES:
- Maximum term of financing is 1 year
- Exporter must be profitable
- No military sales
- Export product must exceed 50% U.S. origin
- Preliminary commitment for 6 months
- FEFC delegated authority for up to a $1,000,000 guarantee
- Master Agreements with community banks thru FEFC
UNIQUE SBA FEATURES:
- Exporter must be a small business as defined by SBA
- Maximum term of financing is 3 years
- Military sales are allowed
- No U.S. content requirement
- Preliminary Commitment for 60 days
- Combined SBA/FEFC guarantee for up to $1,250,000.
PLEASE CALL THE FEFC OFFICE FOR FURTHER INFORMATION
ON PROGRAM LIMITATIONS & CRITERIA