Pennsylvania Small Business is First to Benefit From Ex-Im Bank Medium-Term
Delegated Authority Program to Win Mexican Sale (Mar 2009)
Washington, DC —A Pennsylvania small business has become the first U.S. exporter to benefit from a new initiative that delegates authority to lenders, enabling them to speed approval of Ex-Im Bank-guaranteed medium-term export loans.
F. L. Smithe Machine Co., Inc. of Duncansville, Penn., has won an order for printing machinery from a buyer in Mexico, sustaining U.S. jobs in the process, with financing facilitated under a new Ex-Im Bank (Export-Import Bank of the United States) Medium-term Delegated Authority program.
Ex-Im Bank provided a guarantee on a loan from NorthStar Trade Finance, Inc., Houston, Tex., to support the sale by the 175-employee company, which specializes in manufacturing printing presses and paper-converting and envelop-making machines.
"Selling machinery requires much quicker turnaround because customers need answers right away," said Stuart Roberts, vice president at F. L. Smithe Machine Co. "Ex-Im Bank delegated authority enabled NorthStar to provide quick decisions to our customers, which enabled us to secure a sale. Many times, there's a lot of competition, and the most competitive financing wins the order. Financing is critical, but so is the lead time associated with obtaining financing. This sale helps us sustain jobs here in Pennsylvania.”
"During these challenging times small business exporters and their lenders can become more competitive by using this delegated authority program," said Kenneth M. Tinsley, Ex-Im Bank senior vice president, Credit and Risk Management. "We're committed to helping more lenders qualify to offer their clients access to it."
"Good economic news is a little scarce right now, so this great new Ex-Im program is especially welcome. It should be particularly helpful for smaller companies that export capital goods," said James Morrison, president of the Small Business Exporters Association of the U.S.
NorthStar Trade Finance is one of three lenders approved by Ex-Im Bank last August to qualify for the new program, and the first one to use it. The bank specializes in providing trade finance services to small and medium-sized exporters. The other two approved lenders are Citibank, N.A. , New York, N.Y.; UPS Capital Business Credit, Windsor, Conn.
"We're very pleased to be the first lender to use this innovative Ex-Im Bank program," said C. Scott M. Shepherd, president and CEO of NorthStar Trade Finance. "F. L. Smithe is a great example of a small business gaining a competitive edge in the global marketplace through our partnership with Ex-Im Bank. Now we need to spread the word to exporters throughout the country about this program."