Temporary Pre-Export Payment Policy Expansion

In numerous discussions with exporters, lenders and other EXIM stakeholders about the temporary problems caused by the COVID-19 crisis, it was clear that there was concern regarding the inability to finance pre-delivery or pre-export payments owed to manufacturers during the manufacturing process.

In response to this need, EXIM developed a temporary expansion of the existing Pre-Export Payment Policy. The current Pre-Export Payment Policy allows EXIM-supported disbursements for pre-export payments owed to manufacturers during the manufacturing process for transactions in which EXIM is providing the medium-term and long-term financing to the foreign buyer. The Pre-Export Payment Policy allows one or more disbursements, which would otherwise not take place until shipment of the completed product, to take place during the manufacturing process in proportion to the work completed.

Temporarily expanding the Pre-Delivery/Pre-Export Financing Program to purchasers of U.S. exports will:

• Support U.S. exports in various sectors during this period of uncertainty;
• Support the U.S. supply chain in multiple manufacturing sectors;
• Facilitate the re-entry of private sources of financing as soon as possible; and
• Ultimately reduce the amount of EXIM supported long-term financing.

Click here to find out more about the Expanded Pre-Export Payment Program.