Supply Chain Financing Guarantee Program

EXIM will temporarily modify the program to make it more widely available for suppliers as follows:

• Temporarily eliminate the target of 50 percent small business as defined by Small Business Administration guidelines as suppliers in the supply chain. This will allow EXIM to help U.S. exporters that have supply chains composed of suppliers that are not mostly small businesses.
• Some U.S. exporters distribute their products through foreign affiliates. The product is first shipped to their foreign affiliate and then sold to the foreign buyer. This type of transaction is normally excluded from EXIM support because it is considered an intercompany sale. Therefore, EXIM will temporarily allow for the U.S. exporters to make sales directly to foreign affiliates rather than directly to unaffiliated foreign buyers. This will allow for more support to U.S. exporters whose sales are directly to foreign affiliates who then distribute downstream to foreign buyers.

This measure will take effect and be available immediately, subject to the final determination of policies and procedures, as applicable, and will remain in place through April 30, 2021.

 

By modifying the SCF Program in the manner set forth above, EXIM will:

• Make the program more widely available to suppliers and U.S. exporters;
• Entice lenders to make more supply chain financing available to U.S. exporters by reducing their credit risk.

Click here to find out more about the Modified Supply Chain Financing Guarantee Program and how this resource may be able to assist your business if it has been affected by the COVID-19 crisis.