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Lee County International Trade
Solution Seminar
Presentations from August 12
Seminar in Fort Myers
Exporting & the SBDC Exporting &
the SBDCDiversify and expand your business with export
Presented by: Kevin Brady, International Trade Consultant
Small Business Development Center, Florida Gulf Coast University
Diversify and expand your business with export
Presented by: Kevin Brady, International Trade Consultant
Small Business Development Center, Florida Gulf Coast University
Exporting & the SBDC
Kevin Brady, International Trade Consultant
• Covering Lee, Collier, Charlotte, Glades, Hendry counties
• Providing no-cost one-on-one consultation regarding international business
Expertise and Experience
International Sales and Marketing*** Brand Development*** Strategic Supplier
Development*** Global Freight Forwarding and Logistics*** Export Market
Development*** Import/Export Operations*** Strategic Planning*** Foreign
Procurement*** Global Customs*** International Operations***
FSBDC at Florida Gulf Coast University
Lutgert College of Business
10501 FGCU Blvd. S.
Fort Myers, FL 33965
239-745-3712
504-338-9477
kbrady@fgcu.edu
SBDC at Florida Gulf Coast University
FSBDC at Florida Gulf Coast University
Lutgert College of Business
10501 FGCU Blvd. S.
Fort Myers, FL 33965
239-745-3712
504-338-9477
kbrady@fgcu.edu
Mission Statement
• We are a customer driven organization of business professionals, dedicated to helping small businesses succeed by
enthusiastically providing creative solutions which exceed customer, employee, and stakeholder expectations.
Consulting
• The SBDC at FGCU employs 20+ Certified Business Analysts who provide free, confidential and one-on-one consulting,
information, and guidance to small business owners. Certified Business Analysts from the SBDC are available to meet with
potential and existing small business owners at multiple locations in Southwest Florida.
Training
• The SBDC at FGCU sponsors more than 120 programs each year. These programs include a series of affordable business
startup workshops, management seminars, as well as select special events for start-up and existing small businesses.
Impact SBDC @ FGCU 2013
Florida Small Business Development Centers
Why Go Global?
• Business to Other Markets: 95% of the world’s population is
outside of the United States
• Avoid Changes in U.S. Economy: Extend product life cycles,
access seasonal sales, avoid domestic regulations or concerns
• Lower the Company Cost Structure: Improve competitiveness
in marketplace, importation of goods/materials, foreign
manufacturing facility
Exports from Florida
• International trade proved, once again, to be one of the state’s strongest sectors in 2013,
even with the economic challenges that affected global trade.
• Total merchandise trade (exports plus imports) reached $158.4 billion – the second-highest
level ever recorded – as total trade fell by -2.3% in 2013. Merchandise exports (goods that
are shipped from and through Florida) were down by -5.4% and imports gained 1.6%.
• As expected, the same activity that drove trade up over the last few years – imports of gold
from Latin America/Mexico and exports of that gold to Switzerland – accounted for virtually
all of the decline. Gold prices hit a high of $1,895 per ounce in September of 2011 and
dropped precipitously throughout 2013.
• Florida exports felt the impact, falling by $4.9 billion, as exports to Switzerland alone fell by
$4.8 billion.
Florida Export by the Numbers
Total # of Exporters
• California 75,028
• Florida 60,147
• New York 41,216
• Texas 40,056
• Illinois 22,855
• More than 96 percent of Florida exporters are small and medium-sized enterprises (SMEs) with 500 or
• fewer employees.
• Small and medium-sized companies accounted for 68 percent of Florida exports in 2013. This is the
• highest figure among the 50 states and is much higher than the U.S. average of 33 percent.
• According to the Florida Chamber of Commerce’s “Florida Trade and Logistics Study 2.0:”
─ More than half a million Floridians hold jobs in trade and logistics industries.
─ Jobs in Florida’s trade and logistics industries pay 30 percent higher wages than average.
• ─ Roughly 1 in 7 Florida manufacturing jobs depend on exports.
Florida Merchandise Exports 2013
MILLIONS OF USD % CHANGE % CHANGE
RANK COUNTRY 2011 2012 2013 2011-2012 2012-2013
TOTAL ALL COUNTRIES 86,753.10 90,360.30 85,460.40 4.2 -5.4
1 BRAZIL 15,825.30 15,782.10 16,219.30 -0.03 2.80
2 COLOMBIA 5,276.10 5,817.00 6,027.10 10.30 3.60
3 VENEZUELA 5,751.90 6,671.40 4,519.60 16 -32.3
4 CHILE 3,921.70 4,281.00 3,727.60 9.2 -12.9
5 ARGENTINA 3,316.90 3,276.90 3,395.60 -1.2 3.6
6 SWITZERLAND 7,247.80 8,171.90 3,378.00 12.8 -58.7
7 SAUDI ARABIA 2,637.90 3,405.80 3,239.50 29.1 -4.9
8 UNITED ARAB EMIRATES 1,529.60 2,351.40 3,148.20 53.7 33.9
9 DOMINICAN REPUBLIC 3,237.20 3,065.40 2,953.00 -5.3 -3.7
10 PERU 2,508.20 2,796.00 2,832.50 11.5 1.3
FL. Export Categories
HS
MILLIONS OF
USD % CHANGE
RANK CODE 2011 2012 2013 2012-2013
TOTAL EXPORTS COMMODITY 86,753.10 90,360.30 85,460.40 -5.4
1 8703 Motor cars & vehicles for transporting persons 5,919.30 7,333.70 7,657.80 4.4
2 8800 Civilian aircraft, engines, and parts 6,325.10 7,009.30 6,625.40 -5.5
3 8517 Electric apparatus for line telephony, parts 4,442.40 5,142.30 5,682.60 10.5
4 7108 Gold, unwrought, semimanufactured 547.20 7,931.30 4,878.90 -38.5
5 8471 Automatic data process machines, magnetic readers 4,219.50 4,563.30 4,153.00 -9
6 3105 Mineral or chemical fertilizers 2,829.90 2,258.00 1,947.20 -13.8
7 8542 Electronic integrated circuits & microassembly 1,743.10 1,734.00 1,811.30 4.5
8 9018 Medical, surgical, dental or veterinary instruments 1,767.20 1,713.30 1,806.70 5.5
9 3004 Medicaments, mixed or not, in dosage form 1,173.90 1,389.50 1,400.90 0.8
10 8473 Parts for office machines, copiers 1,802.00 1,629.40 1,335.40 -18
Is Your Company Ready?
4 Key Indicators and Conditions
• Managerial Understanding and Commitment
• Ability to Produce International Products
• Adequate Cash Flow
• Significant Experience with Products or Services
Resources
The World is Open
for Your Business
Let the U.S. Commercial Service
connect you to a world of
opportunity.
100+ offices in the USA120+ offices in ›75 countries›95% of the world marketplace›70% world’s purchasing powerGlobal network of 1,400 specialists
The U.S. Commercial Service generates:
$135 in sales
per $1 in federal taxes spent
Results?
So, Why Export?
• Increase Sales - Reach 95% of Your Market
• Make Use of Excess Production (+ Profits)
• Ride Out Economic Cycles
• Balance Seasons for Your Products
• Improve Your Products
• Extend the Life of Your Products
• Compete with Your Global Competitors
Assemble Your Team
Senior
Management
Production Logistics Legal Finance
Marketing
& Sales
Outside
Experts
Prepare for Success…
• Senior Management Must Be On Board!
• Senior Management MUST BE ON BOARD!!
• Senior Management MUST BE ON BOARD!!!
Assemble Your Team - Management
Prepare for Success…
• Do you have the excess capacity?
• Must you modify the product?
• Can you meet technical and quality standards and
certifications?
• Warranties.
• Repairs & Servicing.
• Technical Support.
Assemble Your Team - Production
Prepare for Success…
• Can you ship internationally and be competitive?
• International shipping requirements
• Export Compliance
• Identify a good international freight forwarder for
your team.
Assemble Your Team - Logistics
Prepare for Success…
• You Need a Budget for International
• What About Getting Paid: foreign currencies, terms, etc.
• Financing: cash flow, loans (buyer, PO, WC, inventory, et. al.),
AR insurance, etc.
• Include on your team:
– A bank with international services.
– Export-Import Bank of the U.S.
– Small Business Administration
– Florida Export Finance Corporation
Assemble Your Team - Finance
Prepare for Success…
• International Agreements
• International Patents, Trademarks, and Copyrights
• Export Control
• Identify existing staff or find outside expertise to put on your
team.
Assemble Your Team - Legal
Prepare for Success…
• Research your markets
• Train staff on international marketing, cross cultural
communications.
• Include on your team:
– SBDC
– Universities
– Enterprise Florida
– U.S. Commercial Service
Assemble Your Team - Marketing & Sales
Prepare for Success…
Now…You Have Assembled Your Team
Senior
Management
Production Logistics Legal Finance
Marketing
& Sales
Outside
Experts
√
√
√ √ √
√
√
Prepare for Success…
• Data Base Searches
• Contact Lists
• International Partner Search (IPS)
– You complete a questionnaire.
– We have a conference call.
– Our industry specialist generates a list of prospects and makes contact
– You receive a short list of prospects interested in talking to you.
– It’s up to you to continue the dialog.
• Gold Key Service (GKS)
– IPS plus setting of appointments
Identify Channel Partners.
• Trade Journals, Magazines, ExportUSA
• Single Company Promotion (SCP)
• Trade Shows
– In the USA – International Buyer Program.
– Abroad – Certified Trade Fair Program
Advertising and Promotion
• a clearing house, a help desk, a Wiki for international
business solutions.
• an extension of your international business development
staff.
Think of us as…
Contact us today
to connect with a world of opportunity.
Dan Bjerk, Sr. International Trade Specialist
Tel: (727) 464-7347
Email: Dan.Bjerk@trade.gov
export.gov | 800.USA.TRADE
Financial Support for U.S. Exports:
Small Business Exporter Programs
Export-Import Bank of the United States
Lee County EDO, Fort Myers, FL
August 12, 2014
What is Ex-Im Bank?
Our Mission – To create and sustain U.S. jobs by
increasing U.S. exports
– Official Export Credit Agency (ECA) of the U.S.
Government since 1934
– 89% of all transactions are to small businesses
– Target 20% of all US$ authorizations to small
businesses
– Self-sustaining agency – returned $1+ billion
to the U.S. Treasury & U.S. taxpayers
Ex-Im Bank’s Footprint – Regional Offices (12)
Prestigious Recognitions given to Ex-Im Bank:
 Trade Finance Magazine Awards for Excellence:
• “Best Global ECA” (Export Credit Agency) – 2012 & 2013
• and
• “Best ECA in the Americas” - 2010, 2011, 2012, & 2013
 Trade and Forfaiting Review (TFR)
• “World's Best Export Credit Agency" award - 2013
 “Bright Ideas in Government” Award, Harvard
• University’s John F. Kennedy School of Government:
• Express Insurance Policy (Sept. 2012)
Ex-Im Credit & Finance Makes a Difference!
– Minimizes exporter’s risk
– Strengthens U.S. competitiveness
– Supplements commercial financing
New Exporters’ Concerns
– Should I enter that new overseas market?
– When and how will I get paid by the buyer?
– How will I get cash to make the product?
– I made the big sale, but will my buyer be able
to obtain financing?
Ex-Im Supports a Diverse Variety of Industries
– Manufacturing
– Construction
– Medical
– Mining
– Power Generation
– Aircraft and
Avionics
– Renewable Energy
– Agribusiness
– Wholesale/Retail
– Oil and Gas
– Services (engineering,
legal, consulting, etc.)
• Programs are open in over 180 Countries…
Country Limitation Schedule
(“CLS”):
This schedule lists every country in alphabetical
order, with public- and private-sector risk
classifications, each by tenors ranging from under
1 year, 1-7, and over 7 years.
An “X” indicates CLOSED for Ex-Im programs.
Link:
http://www.exim.gov/tools/countrylimitationschedule/
Requirements and Restrictions
• To be eligible for Ex-Im Bank's insurance and financing products, your
business, its exports and your foreign customers must meet certain
requirements:
 Goods and services must be exported from the United States
 Exports must have 50+% U.S. content (85% medium-term)
 Export destinations must not be restricted countries
 No Military or Defense-related products or obligors (exceptions apply)
 http://www.exim.gov/smallbusiness/policies/Requirements-and-Restrictions.cfm
Other Restrictions
 Economic Impact
• http://www.exim.gov/generalbankpolicies/economici
mpact/
 Shipping
• http://www.exim.gov/generalbankpolicies/us-flag-
shipping-requirements.cfm
 Additionality
• Why is Ex-Im Bank’s Guarantee Required? --“Additionality”: “Additionality” is a statutory-
based test used to determine whether an Ex-Im Bank Guarantee is necessary to facilitate the
financing of an export sale. Specifically‚ Congress instructed Ex-Im Bank to provide guarantee
support to otherwise creditworthy Borrowers when support from the private sector is not
available and when the exports to be supported would not otherwise go forward.
Eligibility Requirements
• U.S. Exporters must :
• be in business (operating) at least three years, exporting one
year (unless otherwise noted)
• have financial statements or tax returns, and
• have a DUNS (D&B) number
• Exported Products / Services must be, for Short-Term products (Global Credit
Express, Working capital and ST insurance) :
• 50-plus% U.S. content, including labor, excluding mark-up (cost
basis)
• Exported Products / Services must be, for Medium-Term products ( MT Insurance
and Guarantees) :
• 85-plus% U.S. content, including labor, excluding mark-up (cost
basis) for full support of the transaction
Trade Terms as a Spectrum of Risk
•Seller Risk Trade Terms Buyer Risk
•
High Low
•
• Low High
Open Account
Cash Against Documents and other
Documentary Collections
Usance / Deferred Letters of Credit
Sight Letters of Credit
Payment in Advance
Working Capital Guarantee
on Exporter Loans
Medium and Long Term
Insurance & Guarantees on
Buyer Loans
Pre-Export Post-Export
Exporter Supply Chain
Export Credit Insurance on
Buyer Credit
Working Capital Guarantee
 Assists small and mid-size companies in obtaining
working capital to produce or purchase US goods
and services for export
 Provides a 90% guarantee of repayment (principal
and interest) on loans to exporters
 May be set up as “Transaction-Specific” or a
“Revolving” Line of Credit
 No minimum or maximum amounts
 Loan supports advances made against export-
related inventory (including WIP) and foreign
receivables:
 Up to 75% advance rate on inventory, and up to 90% on
foreign receivables
Working Capital Guarantee
Asset-Based: fully collateralized
 Personal guarantees are required of owner(s)
Cost:
 $100 application fee
 Up to 1.75% facility fee – Reduced fee if:
 Exports sales structured under L/Cs and/or secured
by export credit insurance; exporter’s financial ratios
are within its industry median
 A lower fee may be negotiated with a “Delegated
Authority” Lender (see list on www.exim.gov)
 Interest rate is determined by the lender
Working Capital Guarantee
Ex-Im Bank Programs supporting the
National Export Initiative (NEI):
• Global Credit Express: (pilot program)
• Direct loan from Ex-Im Bank up to $500,000
• No monthly borrowing base for A/Rs or inventory
• Exporter needs a “referring originator” to complete
loan package
• Express Insurance : For new exporters :
• Easy qualify, fast turn-around
• No standard set-up fee; pay as you ship
• No first loss deductible
• Up to 20 foreign buyers
Global Credit Express (GCE):
A Pilot Program
• A direct loan from Ex-Im Bank to an exporter for
pre-export working capital:
• Maximum loan amount $500,000
• Tenor of 6 OR 12 months
• To qualify:
• FICO SBSS score of at least 170
• In business 3 years, exporting for 1 year
• Ex-Im Bank U.S. content requirements apply
Global Credit Express (GCE)
•Benefits to exporter:
• * Provides pre-export working capital
• * Streamlined processing
• * Quick turnaround on applications
• * Fixed-rate financing
• * No borrowing base or reporting
requirements
• * Option to renew at end of initial loan term
Short-Term Export Credit Insurance (ECI)
• Benefits:
•RISK PROTECTION: Protects US exporters
against non-payment by foreign buyers due to
 Commercial Risks & Political Risks (see next slide)
•MARKETING TOOL: Allows exporters to offer
competitive credit terms to foreign buyers
 Generally up to 180 days, some products may
qualify for 360 day terms
•FINANCING AID: obtain additional financing
 Insured foreign receivables may be added to your
borrowing base by assignment of policy proceeds
(claim payments) to lender
Risks Covered
•Commercial Risks
 Insolvency
 Bankruptcy
 Protracted default
Political Risks
 Transfer risk
 War, revolution,
insurrection, expropriation
 Cancellation of an import
or export license
Short-Term Export Credit Insurance
• Policies for Small Business*:
–Express Insurance
• 95 % cover, no deductible, pay-as-you-go, Ex-Im Bank
obtains and reviews all credit info on buyers, maximum of
20 buyers
–Multi-Buyer
• 95 % cover, no deductible, pay-as-you-go, some buyer
approval authority may be given to exporter
–Single-Buyer
• 90% cover, no deductible
* SBA definition
Small Business Express Insurance: Eligibility
• In addition to “small business”
eligibility definition:
–20 buyers or less (on credit terms)
–Not currently insured by Ex-Im
Bank or any private sector insurer
for foreign accounts receivable
Small Business Express Insurance:
Key Features
• 95% coverage for non-payment due to commercial
insolvency/bankruptcy/default) and political (war,
revolution, “transfer risk”) risks
• No deductible! No application fee!
• Ex-Im Bank pre-approves all credit limits requested
and obtains credit information on your buyers at no
additional cost to you
• No minimum sales volume or premium… pay only on
the gross invoice value of what you ship, when you
ship!
Small Business Express Insurance: Rates
– Rates are charged according to the length of
the credit term you extend and the buyer type:
for a sale to a private sector buyer on terms up
to 60 days open account - $0.65 per $100. of
the gross invoice value…
…on a $25,000 sale, that’s only $162.50 in
premium!
– AND… if you use insurance with a working
capital guarantee from either Ex-Im Bank OR
the SBA, you get a 25% rate reduction on your
premiums!
Small Business Multi-Buyer Policy
 Coverage: 95% commercial and 95% political
 Exporter must qualify as “small business”
by SBA definition, and
 No more than $7.5 million in export credit sales over the past 2 years
 In same line of business for at least 3 years
(No material adverse issues)
 Must insure ALL export credit sales
(L/C, CIA, CAD, SDDP, and Canadian sales may excluded)
 No deductible, no application fee, no advance premium required, “pay-
as-you-ship,” no minimum premium requirement
 Buyer credit limits endorsed to policy (requires minimal pre-approvals
by Ex-Im Bank)
Standard Multi-Buyer Policy
•For experienced exporters with over 500 employees and /or $7.5mm
in annual export credit sales
•Must insure ALL export credit sales (L/C, CIA, CAD, SDDP and
Canadian sales may be excluded)
 On a case-by-case basis, exporter may request to exclude
certain countries and/or buyers (“Reasonable Spread of Risk”)
Coverage:
 95% for both commercial and political risks
 No minimum premium, “pay-as-you-ship”
 Buyer credit limits endorsed to policy (requires minimal pre-
approvals by Ex-Im Bank)
Short-Term Single-Buyer Insurance Policy
 Buyer-specific policy
 Insures a single sale or multiple sales to one buyer
 90% coverage, both commercial and political;
98% for bulk agricultural transactions
95% for letter of credit transaction
 Maximum policy period: 1 year
 No deductible, No application fee
 Premium based on country, type of buyer, and length of credit
term extended (see rates on www.exim.gov)
 Charged on sales volume (not credit limit)
 “Pay-After-You-Ship” Premiums
 Reduced $500 minimum premium for “small business” exporters
($2,500 minimum premium for non-small business)
Medium- & Long-Term Buyer Finance
at Competitive Terms
• For international buyers purchasing U.S.
capital goods (and related services):
85% financed, min. 15% cash down
payment
Medium-term:
Repayment tenors typically up to 5-7 years;
and amounts up to $10 million
Long-term:
Greater than 7 years and over $10 million
Medium-Term Financing
• Generally used for buyer financing of capital
equipment:
– 85% financed, 15% cash down payment
– Repayment up to 5 years, exceptionally 7 years
– Amounts of $10 million or less
• Financing can be accomplished through the
following Ex-Im products:
– Lender guarantees
– Credit Insurance
– Direct Loans (few)
Long-Term Financing
• Generally used for buyer financing of very large
items (aircraft) and project finance:
– Over 7 year repayment or over $10 million
– 15% down payment: 85% financed amount
• Financing can be accomplished through the
following Ex-Im Bank products:
– Lender guarantees
– Direct Loans
Call Ex-Im Bank if you…
• ….export routinely but your growth in foreign sales is limited because of
fears of non-payment
• …are losing export opportunities because you will only accept a L/C or
cash prepayment (cash in advance)
• ….can’t find a lender to finance your overseas purchase orders
• … are encountering cash flow problems due to increased foreign sales
• …couldn’t get your lender to confirm a L/C from your buyer’s bank
• …have a foreign buyer that wants credit terms
• …have a buyer that needs several years to pay for capital goods/
equipment
Useful Links – Ex-Im Bank Website
• Home Page: http://www.exim.gov/
• Small Business: http://www.exim.gov/smallbusiness/
• Small Business Insurance: http://www.exim.gov/products/exportcreditinsurance/smallbusinessinsurance/
• Express Insurance: http://www.exim.gov/products/exportcreditinsurance/express-insurance.cfm
• Global Credit Express (GCE): http://www.exim.gov/products/global-credit-express.cfm
• Working Capital Guarantee: http://www.exim.gov/products/workingcapital/
• Tools for Foreign Buyers: http://www.exim.gov/tools/for-buyers.cfm
• Ex-Im Online (EOL): http://www.exim.gov/tools/onlineservices/ex-im-online.cfm
• Country Limitation Schedule (CLS): http://www.exim.gov/tools/countrylimitationschedule/index.cfm
• Brokers’ List: http://www.exim.gov/about/whoweare/partners/insurance-
brokers.cfm
• Strategic Partners: http://www.exim.gov/about/whoweare/partners/
• Brochures/Literature: http://www.exim.gov/about/library/brochures/
Ex-Im Eastern Regional Office
Eastern Region Export Finance Center
5835 Blue Lagoon Drive, Suite 203
Miami, FL 33126
Tel: (305) 526-7436
Fax: (305) 526-7435
- - - - - - - - - - - - - --
Elena Méndez
Regional Director, Eastern Region
(FL, MS, PR, USVI)
(305) 526-7436, Ext. 19
elena.mendez@exim.gov
TAKING YOUR BUSINESS GLOBAL
SBA
FINANCING OPTIONS
SBA Loan Programs for Exporters
• Export Working Capital Program
• Export Express
• International Trade Loan
Loan Types
Export Working Capital Loan
Features
• 90% Guaranty
• $4.5 Million – maximum SBA guaranty
• $5.0 Million – maximum loan amount
• Finance Single Sale or Revolving LOC
• No restrictions regarding U.S. Content or Military Sales!
• Quick Turnaround Time
Export Working Capital Loan
Eligibility
• Company Meets SBA Size Standards
• Based on NAICS (North American Industry Classification System)
•Average # of Employees over past 12 months or average
receipts over past 3 years
• Manufacturing: Under 500 Employees
• In Business for 12 Months or Proven Expertise
•Product is Titled and Shipped from U.S.
Export Working Capital Program
• Applicants who produce products or services that enter
the export channel, but do not export their products are
eligible for EWCP financing.
Example:
• Manufacturers using an Export Trading Company
• Suppliers to other domestic manufacturers
• Requires certification from domestic customer that
goods are exported.
Indirect Exports
Export Working Capital Loan
Use of Proceeds
• Provide Working Capital for Export Orders or Contracts
• Finance Export Receivables and Inventory
• Support Standby Letters of Credit Used as Bid Bonds or
Performance Bonds
• Purchase goods or service to export
Export Working Capital Loan
Collateral
• Self-liquidating loan
• First lien on all assets being financed
• Personal guarantees of all owners of 20% or more
• Other collateral on a case-by-case basis
Export Express
Features
• Term loans and Lines of Credit up to $500,000.
• Banks currently authorized under the SBAExpress program
are automatically approved for Export Express.
• Approved banks make their own credit decision, use their
own forms and receive a 90% guaranty on loans up to
$350,000; 75% on loans up to $500,000.
Export Express
Eligibility
• Applicant in business for at least 12 months (not necessarily
in exporting)
• Loan proceeds must be used to develop or expand their
export markets
• Applicant is not selling in a prohibited country
• Proceeds are not financing offshore operations
Export Express
Use of Proceeds
• Transaction-specific financing of export deals, including
stand-by letters of credit
• General lines of credit for export purposes
• Export development activities such as brochure translation
or participation in a trade mission
• Term loans for permanent working capital, machinery and
equipment, or real estate
International Trade Loan
Features
• Designed to benefit a small business that is expanding
through exports or is adversely affected by imports
• 90% Guaranty
• $4.5 Million – maximum SBA guaranty
• $5.0 Million – maximum loan amount
•Can combine long-term capital to finance fixed assets with
export working capital (EWCP)
International Trade Loan
Eligibility
• Proceeds will expand export markets or develop new ones.
• Business is confronting increased competition with foreign
firms in the relevant market and is injured by such
competition.
International Trade Loan
Use of Proceeds
• Proceeds can be used to acquire, construct, renovate,
modernize, improve or expand facilities and equipment to be
used in the U.S. to produce goods or services involved in
international trade.
• Can be used to refinance existing debt that is not structured
with reasonable terms and conditions.
WHY SHOULD YOU EXPORT?
Some compelling reasons!
Expanding World Markets
• Nearly 96 percent of consumers live outside the U.S.
• Over two-thirds of the world’s purchasing power resides
outside the U.S.
• There is a significant opportunity for companies to increase
sales by exporting
• Made in the USA still a powerful message.
Exporting Advantages
• Increased sales and profit
• Lower costs for transportation and
communication (generate economics of scale)
• Stabilize seasonal market/sales fluctuations
• Diversify sources of customers and revenue.
Federal Government Exporting
Assistance
• Global access to business opportunities
• Trade expertise to succeed in markets around
the world
• Export training and education resources
online or in-class for beginner or advanced
exporters
Thank You!
Today’s Presenter
Name Charles Long
District International Trade Officer
Address 501 E. Kennedy Blvd. Suite 1210
Tampa, Fl. 33602
Phone 813-228-2104 Ext. 271
E-mail charles.long@sba.gov
Website www.sba.gov/international
Enterprise Florida
International Trade
Development Program
Stephanie Pavolini
Manager, Latin America & Caribbean
Enterprise Florida
Florida Export Highlights
• Total trade in 2013 (exports plus imports):
$158.4 billion
• Over 60,000 Florida companies export
• International business (trade + FDI) accounts for one-sixth (17%) of the state’s
economy
• Florida accounts for 25% of all U.S. trade with South America, 37% of total
trade with Central America and the Caribbean
• The number of Florida exporters has grown by 3% from 2010 to 2011
The Importance of Trade In Florida
• More than 96% of Florida exporters are SMEs
• Jobs in trade and logistics industries pay 30%
better than the state average
• Companies who diversify their markets are
less vulnerable to economic downturn
• Companies that export grow 15% faster, 12%
more profitable
Our Priorities
• Expand market share in Latin America
• Assist SMEs to diversify exports in emerging
markets in Asia, Africa, and Middle East
• Grow manufacturing, high-tech, and
knowledge based services exports worldwide
• Capitalize on expansion of the Panama Canal
• Market Florida as the ideal investment
destination
International Development
• Free, Statewide Export
Counseling Services
• Educational Seminars
• Trade Shows & Trade
Missions (grants available to
offset costs)
• Export Marketing Plans
• Florida Export Directory
• Export Financing (FEFC)
• 13 International Offices
• Trade Lead Generation
• World Bank Opportunities
Florida Field Offices
= Liaison Office (3)= Full Service Office (11)
Enterprise Florida International Offices
Beijing
Japan
Taiwan
Czech Republic
Germany
United Kingdom
France
Spain
Israel
South Africa
Brazil
Mexico
Toronto
Montreal
FLORIDA
Circles represent approximate flight times from Florida in one-hour increments.
Export Sales Mission to Panama
• October 5-7, 2014
Panama City, Panama
Delegate
• $350 per participant + hotel and flight
Gold Key
• $1,050 for first company representative
• $500 for second representative
Delegate: Registration Process and What is Included
Included
• Country briefing by the U.S. Embassy
• Ambassador’s reception
• Networking events
• Transportation to all mission events
• Possible additional events
Process
• Register at: http://www.cvent.com/d/q4qxwh/4W
• Advise setting up you own appointments
Export Sales Mission to Panama: Additional Costs
EFI has arranged special group rates for participants but are
responsible for their own hotel and airfare charges
• Copa Airlines
– Miami to Panama City roundtrip ($523)
– Orlando to Panama City roundtrip ($440)
• Marriott Panama City, Panama
– Single occupancy ($122/night)
– Double occupancy ($135/night)
• Express Travel will coordinate all air and hotel arrangements
with you and assist you with options and preferences
Important Dates
• Delegate Package Registration Deadline
• September 5, 2014
• Cancellations
• Must be made in writing and submitted by August 30,
2014. No verbal cancellations will be accepted.
Contact:
Stephanie Pavolini
Manager, Latin America & Caribbean
International Trade Development
201 Alhambra Circle, Suite 610
Miami, FL 33134
T (305) 808-3660
www.enterpriseflorida.com
Private Sector Liaison Officer
World Bank
Max Stewart
Regional Manager, ITBD EFI
History
World Bank Group (World Bank, IFC and MIGA) has developed a network of
liaison officers based in business intermediary organizations, called the Private
Sector Liaison Officers Network (PSLO Network). The PSLO Network works to
foster trade and investment in developing countries with the support of the
World Bank Group's products and services.
Function
What the State of Florida PSLO does:
• Manage trade events and lead trade missions for the World Bank (WB), Inter-
Agency Developmental Bank (IADB), Millennium Challenge Corporation, and
African Developmental Bank (ADB)
• Distribute information on International Finance Institutions (IFI) opportunities
• Facilitate contact between Florida companies and IFI’s
Leading Industry Sectors for World Bank Opportunities
• Water & Flood Protection • Sanitation
• Transportation • Law, Justice & Public Admin
• Agriculture, Fishing, & Forestry • Education
• Energy & Mining • Health & Other Social Services
• Industry & Trade • Information & Communication
How to get started
Who should be involved in (IFI) projects: Project Consultants, Business Management
Experts, Architectural Firms, Construction Firms, Accounting Agencies, Project
Planning Organizations
How does your company get involved:
• Locate projects under the World Bank Projects & Operations page that best fit your
company capabilities. (Pre-pipeline, or Pipeline Phase)
• Contact your State PSLO to discuss company goals and potential markets.
• Advise PSLO on projects of interest and include project number, country, and
approval date. (To start a dialogue with industry specialist)
• If applicable, consider registering to receive automatic project updates with
www.DGMarket.com and www.devbusiness.com.
• Attend a sector mission in Washington D.C. or host country in your company
industry sector.
Cycle
Brower (Country)
has idea for
project
Country visits the
World Bank to
request assistance
World Bank approves
project and lists “Pre-
Pipeline”
procurement
Country and WB
work together to
source
consultation (Pre-
Pipeline Stage)
Project is
consulted,
Procurement is
started
Goods are being
ordered, services
provided
Checklist
• Have a product or service that fits in the key sectors
– Have checked that your product or service is in the pre-pipeline process
• Have time to commit to writing detailed proposals for projects
• Has financial resources to commit to project
• Can visit Washington DC on a regular basis
• Can travel overseas to discuss with in-country staff
• Willing to train staff overseas on your product
• Willing to teach staff overseas your service
World Bank Private Sector Liaison
Officer (PSLO) Program
• Global network of 145 PSLOs in 98 countries.
• Educate Florida companies about World Bank
opportunities and assist Florida companies in
using the procurement tools
• Coordinate meetings for visiting Bank reps
• Organize EFI-World Bank events
• Promote World Bank/PSLO events to Florida
companies
Max Stewart
Enterprise Florida, Regional Manager
International Trade Development
(PSLO) for World Bank
T 813.276.9430
mstewart@eflorida.com
All Presentations:  International Trade Solution Seminar, August 12, 2014

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All Presentations: International Trade Solution Seminar, August 12, 2014

  • 1. Lee County International Trade Solution Seminar Presentations from August 12 Seminar in Fort Myers
  • 2. Exporting & the SBDC Exporting & the SBDCDiversify and expand your business with export Presented by: Kevin Brady, International Trade Consultant Small Business Development Center, Florida Gulf Coast University Diversify and expand your business with export Presented by: Kevin Brady, International Trade Consultant Small Business Development Center, Florida Gulf Coast University Exporting & the SBDC
  • 3. Kevin Brady, International Trade Consultant • Covering Lee, Collier, Charlotte, Glades, Hendry counties • Providing no-cost one-on-one consultation regarding international business Expertise and Experience International Sales and Marketing*** Brand Development*** Strategic Supplier Development*** Global Freight Forwarding and Logistics*** Export Market Development*** Import/Export Operations*** Strategic Planning*** Foreign Procurement*** Global Customs*** International Operations*** FSBDC at Florida Gulf Coast University Lutgert College of Business 10501 FGCU Blvd. S. Fort Myers, FL 33965 239-745-3712 504-338-9477 kbrady@fgcu.edu
  • 4. SBDC at Florida Gulf Coast University FSBDC at Florida Gulf Coast University Lutgert College of Business 10501 FGCU Blvd. S. Fort Myers, FL 33965 239-745-3712 504-338-9477 kbrady@fgcu.edu Mission Statement • We are a customer driven organization of business professionals, dedicated to helping small businesses succeed by enthusiastically providing creative solutions which exceed customer, employee, and stakeholder expectations. Consulting • The SBDC at FGCU employs 20+ Certified Business Analysts who provide free, confidential and one-on-one consulting, information, and guidance to small business owners. Certified Business Analysts from the SBDC are available to meet with potential and existing small business owners at multiple locations in Southwest Florida. Training • The SBDC at FGCU sponsors more than 120 programs each year. These programs include a series of affordable business startup workshops, management seminars, as well as select special events for start-up and existing small businesses.
  • 5. Impact SBDC @ FGCU 2013
  • 6. Florida Small Business Development Centers
  • 7. Why Go Global? • Business to Other Markets: 95% of the world’s population is outside of the United States • Avoid Changes in U.S. Economy: Extend product life cycles, access seasonal sales, avoid domestic regulations or concerns • Lower the Company Cost Structure: Improve competitiveness in marketplace, importation of goods/materials, foreign manufacturing facility
  • 8. Exports from Florida • International trade proved, once again, to be one of the state’s strongest sectors in 2013, even with the economic challenges that affected global trade. • Total merchandise trade (exports plus imports) reached $158.4 billion – the second-highest level ever recorded – as total trade fell by -2.3% in 2013. Merchandise exports (goods that are shipped from and through Florida) were down by -5.4% and imports gained 1.6%. • As expected, the same activity that drove trade up over the last few years – imports of gold from Latin America/Mexico and exports of that gold to Switzerland – accounted for virtually all of the decline. Gold prices hit a high of $1,895 per ounce in September of 2011 and dropped precipitously throughout 2013. • Florida exports felt the impact, falling by $4.9 billion, as exports to Switzerland alone fell by $4.8 billion.
  • 9. Florida Export by the Numbers Total # of Exporters • California 75,028 • Florida 60,147 • New York 41,216 • Texas 40,056 • Illinois 22,855 • More than 96 percent of Florida exporters are small and medium-sized enterprises (SMEs) with 500 or • fewer employees. • Small and medium-sized companies accounted for 68 percent of Florida exports in 2013. This is the • highest figure among the 50 states and is much higher than the U.S. average of 33 percent. • According to the Florida Chamber of Commerce’s “Florida Trade and Logistics Study 2.0:” ─ More than half a million Floridians hold jobs in trade and logistics industries. ─ Jobs in Florida’s trade and logistics industries pay 30 percent higher wages than average. • ─ Roughly 1 in 7 Florida manufacturing jobs depend on exports.
  • 10. Florida Merchandise Exports 2013 MILLIONS OF USD % CHANGE % CHANGE RANK COUNTRY 2011 2012 2013 2011-2012 2012-2013 TOTAL ALL COUNTRIES 86,753.10 90,360.30 85,460.40 4.2 -5.4 1 BRAZIL 15,825.30 15,782.10 16,219.30 -0.03 2.80 2 COLOMBIA 5,276.10 5,817.00 6,027.10 10.30 3.60 3 VENEZUELA 5,751.90 6,671.40 4,519.60 16 -32.3 4 CHILE 3,921.70 4,281.00 3,727.60 9.2 -12.9 5 ARGENTINA 3,316.90 3,276.90 3,395.60 -1.2 3.6 6 SWITZERLAND 7,247.80 8,171.90 3,378.00 12.8 -58.7 7 SAUDI ARABIA 2,637.90 3,405.80 3,239.50 29.1 -4.9 8 UNITED ARAB EMIRATES 1,529.60 2,351.40 3,148.20 53.7 33.9 9 DOMINICAN REPUBLIC 3,237.20 3,065.40 2,953.00 -5.3 -3.7 10 PERU 2,508.20 2,796.00 2,832.50 11.5 1.3
  • 11. FL. Export Categories HS MILLIONS OF USD % CHANGE RANK CODE 2011 2012 2013 2012-2013 TOTAL EXPORTS COMMODITY 86,753.10 90,360.30 85,460.40 -5.4 1 8703 Motor cars & vehicles for transporting persons 5,919.30 7,333.70 7,657.80 4.4 2 8800 Civilian aircraft, engines, and parts 6,325.10 7,009.30 6,625.40 -5.5 3 8517 Electric apparatus for line telephony, parts 4,442.40 5,142.30 5,682.60 10.5 4 7108 Gold, unwrought, semimanufactured 547.20 7,931.30 4,878.90 -38.5 5 8471 Automatic data process machines, magnetic readers 4,219.50 4,563.30 4,153.00 -9 6 3105 Mineral or chemical fertilizers 2,829.90 2,258.00 1,947.20 -13.8 7 8542 Electronic integrated circuits & microassembly 1,743.10 1,734.00 1,811.30 4.5 8 9018 Medical, surgical, dental or veterinary instruments 1,767.20 1,713.30 1,806.70 5.5 9 3004 Medicaments, mixed or not, in dosage form 1,173.90 1,389.50 1,400.90 0.8 10 8473 Parts for office machines, copiers 1,802.00 1,629.40 1,335.40 -18
  • 12. Is Your Company Ready? 4 Key Indicators and Conditions • Managerial Understanding and Commitment • Ability to Produce International Products • Adequate Cash Flow • Significant Experience with Products or Services
  • 14. The World is Open for Your Business Let the U.S. Commercial Service connect you to a world of opportunity.
  • 15. 100+ offices in the USA120+ offices in ›75 countries›95% of the world marketplace›70% world’s purchasing powerGlobal network of 1,400 specialists
  • 16. The U.S. Commercial Service generates: $135 in sales per $1 in federal taxes spent Results?
  • 17. So, Why Export? • Increase Sales - Reach 95% of Your Market • Make Use of Excess Production (+ Profits) • Ride Out Economic Cycles • Balance Seasons for Your Products • Improve Your Products • Extend the Life of Your Products • Compete with Your Global Competitors
  • 18. Assemble Your Team Senior Management Production Logistics Legal Finance Marketing & Sales Outside Experts Prepare for Success…
  • 19. • Senior Management Must Be On Board! • Senior Management MUST BE ON BOARD!! • Senior Management MUST BE ON BOARD!!! Assemble Your Team - Management Prepare for Success…
  • 20. • Do you have the excess capacity? • Must you modify the product? • Can you meet technical and quality standards and certifications? • Warranties. • Repairs & Servicing. • Technical Support. Assemble Your Team - Production Prepare for Success…
  • 21. • Can you ship internationally and be competitive? • International shipping requirements • Export Compliance • Identify a good international freight forwarder for your team. Assemble Your Team - Logistics Prepare for Success…
  • 22. • You Need a Budget for International • What About Getting Paid: foreign currencies, terms, etc. • Financing: cash flow, loans (buyer, PO, WC, inventory, et. al.), AR insurance, etc. • Include on your team: – A bank with international services. – Export-Import Bank of the U.S. – Small Business Administration – Florida Export Finance Corporation Assemble Your Team - Finance Prepare for Success…
  • 23. • International Agreements • International Patents, Trademarks, and Copyrights • Export Control • Identify existing staff or find outside expertise to put on your team. Assemble Your Team - Legal Prepare for Success…
  • 24. • Research your markets • Train staff on international marketing, cross cultural communications. • Include on your team: – SBDC – Universities – Enterprise Florida – U.S. Commercial Service Assemble Your Team - Marketing & Sales Prepare for Success…
  • 25. Now…You Have Assembled Your Team Senior Management Production Logistics Legal Finance Marketing & Sales Outside Experts √ √ √ √ √ √ √ Prepare for Success…
  • 26. • Data Base Searches • Contact Lists • International Partner Search (IPS) – You complete a questionnaire. – We have a conference call. – Our industry specialist generates a list of prospects and makes contact – You receive a short list of prospects interested in talking to you. – It’s up to you to continue the dialog. • Gold Key Service (GKS) – IPS plus setting of appointments Identify Channel Partners.
  • 27. • Trade Journals, Magazines, ExportUSA • Single Company Promotion (SCP) • Trade Shows – In the USA – International Buyer Program. – Abroad – Certified Trade Fair Program Advertising and Promotion
  • 28. • a clearing house, a help desk, a Wiki for international business solutions. • an extension of your international business development staff. Think of us as…
  • 29. Contact us today to connect with a world of opportunity. Dan Bjerk, Sr. International Trade Specialist Tel: (727) 464-7347 Email: Dan.Bjerk@trade.gov export.gov | 800.USA.TRADE
  • 30. Financial Support for U.S. Exports: Small Business Exporter Programs Export-Import Bank of the United States Lee County EDO, Fort Myers, FL August 12, 2014
  • 31. What is Ex-Im Bank? Our Mission – To create and sustain U.S. jobs by increasing U.S. exports – Official Export Credit Agency (ECA) of the U.S. Government since 1934 – 89% of all transactions are to small businesses – Target 20% of all US$ authorizations to small businesses – Self-sustaining agency – returned $1+ billion to the U.S. Treasury & U.S. taxpayers
  • 32. Ex-Im Bank’s Footprint – Regional Offices (12)
  • 33. Prestigious Recognitions given to Ex-Im Bank:  Trade Finance Magazine Awards for Excellence: • “Best Global ECA” (Export Credit Agency) – 2012 & 2013 • and • “Best ECA in the Americas” - 2010, 2011, 2012, & 2013  Trade and Forfaiting Review (TFR) • “World's Best Export Credit Agency" award - 2013  “Bright Ideas in Government” Award, Harvard • University’s John F. Kennedy School of Government: • Express Insurance Policy (Sept. 2012)
  • 34. Ex-Im Credit & Finance Makes a Difference! – Minimizes exporter’s risk – Strengthens U.S. competitiveness – Supplements commercial financing
  • 35. New Exporters’ Concerns – Should I enter that new overseas market? – When and how will I get paid by the buyer? – How will I get cash to make the product? – I made the big sale, but will my buyer be able to obtain financing?
  • 36. Ex-Im Supports a Diverse Variety of Industries – Manufacturing – Construction – Medical – Mining – Power Generation – Aircraft and Avionics – Renewable Energy – Agribusiness – Wholesale/Retail – Oil and Gas – Services (engineering, legal, consulting, etc.)
  • 37. • Programs are open in over 180 Countries… Country Limitation Schedule (“CLS”): This schedule lists every country in alphabetical order, with public- and private-sector risk classifications, each by tenors ranging from under 1 year, 1-7, and over 7 years. An “X” indicates CLOSED for Ex-Im programs. Link: http://www.exim.gov/tools/countrylimitationschedule/
  • 38. Requirements and Restrictions • To be eligible for Ex-Im Bank's insurance and financing products, your business, its exports and your foreign customers must meet certain requirements:  Goods and services must be exported from the United States  Exports must have 50+% U.S. content (85% medium-term)  Export destinations must not be restricted countries  No Military or Defense-related products or obligors (exceptions apply)  http://www.exim.gov/smallbusiness/policies/Requirements-and-Restrictions.cfm
  • 39. Other Restrictions  Economic Impact • http://www.exim.gov/generalbankpolicies/economici mpact/  Shipping • http://www.exim.gov/generalbankpolicies/us-flag- shipping-requirements.cfm  Additionality • Why is Ex-Im Bank’s Guarantee Required? --“Additionality”: “Additionality” is a statutory- based test used to determine whether an Ex-Im Bank Guarantee is necessary to facilitate the financing of an export sale. Specifically‚ Congress instructed Ex-Im Bank to provide guarantee support to otherwise creditworthy Borrowers when support from the private sector is not available and when the exports to be supported would not otherwise go forward.
  • 40. Eligibility Requirements • U.S. Exporters must : • be in business (operating) at least three years, exporting one year (unless otherwise noted) • have financial statements or tax returns, and • have a DUNS (D&B) number • Exported Products / Services must be, for Short-Term products (Global Credit Express, Working capital and ST insurance) : • 50-plus% U.S. content, including labor, excluding mark-up (cost basis) • Exported Products / Services must be, for Medium-Term products ( MT Insurance and Guarantees) : • 85-plus% U.S. content, including labor, excluding mark-up (cost basis) for full support of the transaction
  • 41. Trade Terms as a Spectrum of Risk •Seller Risk Trade Terms Buyer Risk • High Low • • Low High Open Account Cash Against Documents and other Documentary Collections Usance / Deferred Letters of Credit Sight Letters of Credit Payment in Advance
  • 42. Working Capital Guarantee on Exporter Loans Medium and Long Term Insurance & Guarantees on Buyer Loans Pre-Export Post-Export Exporter Supply Chain Export Credit Insurance on Buyer Credit
  • 43. Working Capital Guarantee  Assists small and mid-size companies in obtaining working capital to produce or purchase US goods and services for export  Provides a 90% guarantee of repayment (principal and interest) on loans to exporters  May be set up as “Transaction-Specific” or a “Revolving” Line of Credit  No minimum or maximum amounts  Loan supports advances made against export- related inventory (including WIP) and foreign receivables:  Up to 75% advance rate on inventory, and up to 90% on foreign receivables
  • 44. Working Capital Guarantee Asset-Based: fully collateralized  Personal guarantees are required of owner(s) Cost:  $100 application fee  Up to 1.75% facility fee – Reduced fee if:  Exports sales structured under L/Cs and/or secured by export credit insurance; exporter’s financial ratios are within its industry median  A lower fee may be negotiated with a “Delegated Authority” Lender (see list on www.exim.gov)  Interest rate is determined by the lender
  • 46. Ex-Im Bank Programs supporting the National Export Initiative (NEI): • Global Credit Express: (pilot program) • Direct loan from Ex-Im Bank up to $500,000 • No monthly borrowing base for A/Rs or inventory • Exporter needs a “referring originator” to complete loan package • Express Insurance : For new exporters : • Easy qualify, fast turn-around • No standard set-up fee; pay as you ship • No first loss deductible • Up to 20 foreign buyers
  • 47. Global Credit Express (GCE): A Pilot Program • A direct loan from Ex-Im Bank to an exporter for pre-export working capital: • Maximum loan amount $500,000 • Tenor of 6 OR 12 months • To qualify: • FICO SBSS score of at least 170 • In business 3 years, exporting for 1 year • Ex-Im Bank U.S. content requirements apply
  • 48. Global Credit Express (GCE) •Benefits to exporter: • * Provides pre-export working capital • * Streamlined processing • * Quick turnaround on applications • * Fixed-rate financing • * No borrowing base or reporting requirements • * Option to renew at end of initial loan term
  • 49. Short-Term Export Credit Insurance (ECI) • Benefits: •RISK PROTECTION: Protects US exporters against non-payment by foreign buyers due to  Commercial Risks & Political Risks (see next slide) •MARKETING TOOL: Allows exporters to offer competitive credit terms to foreign buyers  Generally up to 180 days, some products may qualify for 360 day terms •FINANCING AID: obtain additional financing  Insured foreign receivables may be added to your borrowing base by assignment of policy proceeds (claim payments) to lender
  • 50. Risks Covered •Commercial Risks  Insolvency  Bankruptcy  Protracted default Political Risks  Transfer risk  War, revolution, insurrection, expropriation  Cancellation of an import or export license
  • 51. Short-Term Export Credit Insurance • Policies for Small Business*: –Express Insurance • 95 % cover, no deductible, pay-as-you-go, Ex-Im Bank obtains and reviews all credit info on buyers, maximum of 20 buyers –Multi-Buyer • 95 % cover, no deductible, pay-as-you-go, some buyer approval authority may be given to exporter –Single-Buyer • 90% cover, no deductible * SBA definition
  • 52. Small Business Express Insurance: Eligibility • In addition to “small business” eligibility definition: –20 buyers or less (on credit terms) –Not currently insured by Ex-Im Bank or any private sector insurer for foreign accounts receivable
  • 53. Small Business Express Insurance: Key Features • 95% coverage for non-payment due to commercial insolvency/bankruptcy/default) and political (war, revolution, “transfer risk”) risks • No deductible! No application fee! • Ex-Im Bank pre-approves all credit limits requested and obtains credit information on your buyers at no additional cost to you • No minimum sales volume or premium… pay only on the gross invoice value of what you ship, when you ship!
  • 54. Small Business Express Insurance: Rates – Rates are charged according to the length of the credit term you extend and the buyer type: for a sale to a private sector buyer on terms up to 60 days open account - $0.65 per $100. of the gross invoice value… …on a $25,000 sale, that’s only $162.50 in premium! – AND… if you use insurance with a working capital guarantee from either Ex-Im Bank OR the SBA, you get a 25% rate reduction on your premiums!
  • 55. Small Business Multi-Buyer Policy  Coverage: 95% commercial and 95% political  Exporter must qualify as “small business” by SBA definition, and  No more than $7.5 million in export credit sales over the past 2 years  In same line of business for at least 3 years (No material adverse issues)  Must insure ALL export credit sales (L/C, CIA, CAD, SDDP, and Canadian sales may excluded)  No deductible, no application fee, no advance premium required, “pay- as-you-ship,” no minimum premium requirement  Buyer credit limits endorsed to policy (requires minimal pre-approvals by Ex-Im Bank)
  • 56. Standard Multi-Buyer Policy •For experienced exporters with over 500 employees and /or $7.5mm in annual export credit sales •Must insure ALL export credit sales (L/C, CIA, CAD, SDDP and Canadian sales may be excluded)  On a case-by-case basis, exporter may request to exclude certain countries and/or buyers (“Reasonable Spread of Risk”) Coverage:  95% for both commercial and political risks  No minimum premium, “pay-as-you-ship”  Buyer credit limits endorsed to policy (requires minimal pre- approvals by Ex-Im Bank)
  • 57. Short-Term Single-Buyer Insurance Policy  Buyer-specific policy  Insures a single sale or multiple sales to one buyer  90% coverage, both commercial and political; 98% for bulk agricultural transactions 95% for letter of credit transaction  Maximum policy period: 1 year  No deductible, No application fee  Premium based on country, type of buyer, and length of credit term extended (see rates on www.exim.gov)  Charged on sales volume (not credit limit)  “Pay-After-You-Ship” Premiums  Reduced $500 minimum premium for “small business” exporters ($2,500 minimum premium for non-small business)
  • 58. Medium- & Long-Term Buyer Finance at Competitive Terms • For international buyers purchasing U.S. capital goods (and related services): 85% financed, min. 15% cash down payment Medium-term: Repayment tenors typically up to 5-7 years; and amounts up to $10 million Long-term: Greater than 7 years and over $10 million
  • 59. Medium-Term Financing • Generally used for buyer financing of capital equipment: – 85% financed, 15% cash down payment – Repayment up to 5 years, exceptionally 7 years – Amounts of $10 million or less • Financing can be accomplished through the following Ex-Im products: – Lender guarantees – Credit Insurance – Direct Loans (few)
  • 60. Long-Term Financing • Generally used for buyer financing of very large items (aircraft) and project finance: – Over 7 year repayment or over $10 million – 15% down payment: 85% financed amount • Financing can be accomplished through the following Ex-Im Bank products: – Lender guarantees – Direct Loans
  • 61. Call Ex-Im Bank if you… • ….export routinely but your growth in foreign sales is limited because of fears of non-payment • …are losing export opportunities because you will only accept a L/C or cash prepayment (cash in advance) • ….can’t find a lender to finance your overseas purchase orders • … are encountering cash flow problems due to increased foreign sales • …couldn’t get your lender to confirm a L/C from your buyer’s bank • …have a foreign buyer that wants credit terms • …have a buyer that needs several years to pay for capital goods/ equipment
  • 62. Useful Links – Ex-Im Bank Website • Home Page: http://www.exim.gov/ • Small Business: http://www.exim.gov/smallbusiness/ • Small Business Insurance: http://www.exim.gov/products/exportcreditinsurance/smallbusinessinsurance/ • Express Insurance: http://www.exim.gov/products/exportcreditinsurance/express-insurance.cfm • Global Credit Express (GCE): http://www.exim.gov/products/global-credit-express.cfm • Working Capital Guarantee: http://www.exim.gov/products/workingcapital/ • Tools for Foreign Buyers: http://www.exim.gov/tools/for-buyers.cfm • Ex-Im Online (EOL): http://www.exim.gov/tools/onlineservices/ex-im-online.cfm • Country Limitation Schedule (CLS): http://www.exim.gov/tools/countrylimitationschedule/index.cfm • Brokers’ List: http://www.exim.gov/about/whoweare/partners/insurance- brokers.cfm • Strategic Partners: http://www.exim.gov/about/whoweare/partners/ • Brochures/Literature: http://www.exim.gov/about/library/brochures/
  • 63. Ex-Im Eastern Regional Office Eastern Region Export Finance Center 5835 Blue Lagoon Drive, Suite 203 Miami, FL 33126 Tel: (305) 526-7436 Fax: (305) 526-7435 - - - - - - - - - - - - - -- Elena Méndez Regional Director, Eastern Region (FL, MS, PR, USVI) (305) 526-7436, Ext. 19 elena.mendez@exim.gov
  • 64. TAKING YOUR BUSINESS GLOBAL SBA FINANCING OPTIONS
  • 65. SBA Loan Programs for Exporters • Export Working Capital Program • Export Express • International Trade Loan Loan Types
  • 66. Export Working Capital Loan Features • 90% Guaranty • $4.5 Million – maximum SBA guaranty • $5.0 Million – maximum loan amount • Finance Single Sale or Revolving LOC • No restrictions regarding U.S. Content or Military Sales! • Quick Turnaround Time
  • 67. Export Working Capital Loan Eligibility • Company Meets SBA Size Standards • Based on NAICS (North American Industry Classification System) •Average # of Employees over past 12 months or average receipts over past 3 years • Manufacturing: Under 500 Employees • In Business for 12 Months or Proven Expertise •Product is Titled and Shipped from U.S.
  • 68. Export Working Capital Program • Applicants who produce products or services that enter the export channel, but do not export their products are eligible for EWCP financing. Example: • Manufacturers using an Export Trading Company • Suppliers to other domestic manufacturers • Requires certification from domestic customer that goods are exported. Indirect Exports
  • 69. Export Working Capital Loan Use of Proceeds • Provide Working Capital for Export Orders or Contracts • Finance Export Receivables and Inventory • Support Standby Letters of Credit Used as Bid Bonds or Performance Bonds • Purchase goods or service to export
  • 70. Export Working Capital Loan Collateral • Self-liquidating loan • First lien on all assets being financed • Personal guarantees of all owners of 20% or more • Other collateral on a case-by-case basis
  • 71. Export Express Features • Term loans and Lines of Credit up to $500,000. • Banks currently authorized under the SBAExpress program are automatically approved for Export Express. • Approved banks make their own credit decision, use their own forms and receive a 90% guaranty on loans up to $350,000; 75% on loans up to $500,000.
  • 72. Export Express Eligibility • Applicant in business for at least 12 months (not necessarily in exporting) • Loan proceeds must be used to develop or expand their export markets • Applicant is not selling in a prohibited country • Proceeds are not financing offshore operations
  • 73. Export Express Use of Proceeds • Transaction-specific financing of export deals, including stand-by letters of credit • General lines of credit for export purposes • Export development activities such as brochure translation or participation in a trade mission • Term loans for permanent working capital, machinery and equipment, or real estate
  • 74. International Trade Loan Features • Designed to benefit a small business that is expanding through exports or is adversely affected by imports • 90% Guaranty • $4.5 Million – maximum SBA guaranty • $5.0 Million – maximum loan amount •Can combine long-term capital to finance fixed assets with export working capital (EWCP)
  • 75. International Trade Loan Eligibility • Proceeds will expand export markets or develop new ones. • Business is confronting increased competition with foreign firms in the relevant market and is injured by such competition.
  • 76. International Trade Loan Use of Proceeds • Proceeds can be used to acquire, construct, renovate, modernize, improve or expand facilities and equipment to be used in the U.S. to produce goods or services involved in international trade. • Can be used to refinance existing debt that is not structured with reasonable terms and conditions.
  • 77. WHY SHOULD YOU EXPORT? Some compelling reasons!
  • 78. Expanding World Markets • Nearly 96 percent of consumers live outside the U.S. • Over two-thirds of the world’s purchasing power resides outside the U.S. • There is a significant opportunity for companies to increase sales by exporting • Made in the USA still a powerful message.
  • 79. Exporting Advantages • Increased sales and profit • Lower costs for transportation and communication (generate economics of scale) • Stabilize seasonal market/sales fluctuations • Diversify sources of customers and revenue.
  • 80. Federal Government Exporting Assistance • Global access to business opportunities • Trade expertise to succeed in markets around the world • Export training and education resources online or in-class for beginner or advanced exporters
  • 81. Thank You! Today’s Presenter Name Charles Long District International Trade Officer Address 501 E. Kennedy Blvd. Suite 1210 Tampa, Fl. 33602 Phone 813-228-2104 Ext. 271 E-mail charles.long@sba.gov Website www.sba.gov/international
  • 82. Enterprise Florida International Trade Development Program Stephanie Pavolini Manager, Latin America & Caribbean Enterprise Florida
  • 83. Florida Export Highlights • Total trade in 2013 (exports plus imports): $158.4 billion • Over 60,000 Florida companies export • International business (trade + FDI) accounts for one-sixth (17%) of the state’s economy • Florida accounts for 25% of all U.S. trade with South America, 37% of total trade with Central America and the Caribbean • The number of Florida exporters has grown by 3% from 2010 to 2011
  • 84. The Importance of Trade In Florida • More than 96% of Florida exporters are SMEs • Jobs in trade and logistics industries pay 30% better than the state average • Companies who diversify their markets are less vulnerable to economic downturn • Companies that export grow 15% faster, 12% more profitable
  • 85. Our Priorities • Expand market share in Latin America • Assist SMEs to diversify exports in emerging markets in Asia, Africa, and Middle East • Grow manufacturing, high-tech, and knowledge based services exports worldwide • Capitalize on expansion of the Panama Canal • Market Florida as the ideal investment destination
  • 86. International Development • Free, Statewide Export Counseling Services • Educational Seminars • Trade Shows & Trade Missions (grants available to offset costs) • Export Marketing Plans • Florida Export Directory • Export Financing (FEFC) • 13 International Offices • Trade Lead Generation • World Bank Opportunities
  • 88. = Liaison Office (3)= Full Service Office (11) Enterprise Florida International Offices Beijing Japan Taiwan Czech Republic Germany United Kingdom France Spain Israel South Africa Brazil Mexico Toronto Montreal FLORIDA Circles represent approximate flight times from Florida in one-hour increments.
  • 89. Export Sales Mission to Panama • October 5-7, 2014 Panama City, Panama Delegate • $350 per participant + hotel and flight Gold Key • $1,050 for first company representative • $500 for second representative
  • 90. Delegate: Registration Process and What is Included Included • Country briefing by the U.S. Embassy • Ambassador’s reception • Networking events • Transportation to all mission events • Possible additional events Process • Register at: http://www.cvent.com/d/q4qxwh/4W • Advise setting up you own appointments
  • 91. Export Sales Mission to Panama: Additional Costs EFI has arranged special group rates for participants but are responsible for their own hotel and airfare charges • Copa Airlines – Miami to Panama City roundtrip ($523) – Orlando to Panama City roundtrip ($440) • Marriott Panama City, Panama – Single occupancy ($122/night) – Double occupancy ($135/night) • Express Travel will coordinate all air and hotel arrangements with you and assist you with options and preferences
  • 92. Important Dates • Delegate Package Registration Deadline • September 5, 2014 • Cancellations • Must be made in writing and submitted by August 30, 2014. No verbal cancellations will be accepted.
  • 93. Contact: Stephanie Pavolini Manager, Latin America & Caribbean International Trade Development 201 Alhambra Circle, Suite 610 Miami, FL 33134 T (305) 808-3660 www.enterpriseflorida.com
  • 94. Private Sector Liaison Officer World Bank Max Stewart Regional Manager, ITBD EFI
  • 95. History World Bank Group (World Bank, IFC and MIGA) has developed a network of liaison officers based in business intermediary organizations, called the Private Sector Liaison Officers Network (PSLO Network). The PSLO Network works to foster trade and investment in developing countries with the support of the World Bank Group's products and services.
  • 96. Function What the State of Florida PSLO does: • Manage trade events and lead trade missions for the World Bank (WB), Inter- Agency Developmental Bank (IADB), Millennium Challenge Corporation, and African Developmental Bank (ADB) • Distribute information on International Finance Institutions (IFI) opportunities • Facilitate contact between Florida companies and IFI’s Leading Industry Sectors for World Bank Opportunities • Water & Flood Protection • Sanitation • Transportation • Law, Justice & Public Admin • Agriculture, Fishing, & Forestry • Education • Energy & Mining • Health & Other Social Services • Industry & Trade • Information & Communication
  • 97. How to get started Who should be involved in (IFI) projects: Project Consultants, Business Management Experts, Architectural Firms, Construction Firms, Accounting Agencies, Project Planning Organizations How does your company get involved: • Locate projects under the World Bank Projects & Operations page that best fit your company capabilities. (Pre-pipeline, or Pipeline Phase) • Contact your State PSLO to discuss company goals and potential markets. • Advise PSLO on projects of interest and include project number, country, and approval date. (To start a dialogue with industry specialist) • If applicable, consider registering to receive automatic project updates with www.DGMarket.com and www.devbusiness.com. • Attend a sector mission in Washington D.C. or host country in your company industry sector.
  • 98. Cycle Brower (Country) has idea for project Country visits the World Bank to request assistance World Bank approves project and lists “Pre- Pipeline” procurement Country and WB work together to source consultation (Pre- Pipeline Stage) Project is consulted, Procurement is started Goods are being ordered, services provided
  • 99. Checklist • Have a product or service that fits in the key sectors – Have checked that your product or service is in the pre-pipeline process • Have time to commit to writing detailed proposals for projects • Has financial resources to commit to project • Can visit Washington DC on a regular basis • Can travel overseas to discuss with in-country staff • Willing to train staff overseas on your product • Willing to teach staff overseas your service
  • 100. World Bank Private Sector Liaison Officer (PSLO) Program • Global network of 145 PSLOs in 98 countries. • Educate Florida companies about World Bank opportunities and assist Florida companies in using the procurement tools • Coordinate meetings for visiting Bank reps • Organize EFI-World Bank events • Promote World Bank/PSLO events to Florida companies Max Stewart Enterprise Florida, Regional Manager International Trade Development (PSLO) for World Bank T 813.276.9430 mstewart@eflorida.com

Notes de l'éditeur

  1. International Office Rep