Working Capital Guarantee Program

By modifying the Working Capital Guarantee Program, EXIM will:

• Increase access to capital for U.S. exporters by expanding their available borrowing base;
• Entice lenders to make more loans to U.S. exporters by reducing their credit risk; and
• Make the program more affordable for U.S. exporters.

Click here to find out more about the Modified Working Capital Guarantee Program and how this resource may be able to help your business if it has been affected by COVID-19.

 

Overview

EXIM’s Working Capital Loan Guarantee can empower exporters to unlock cash flow to fulfill sales orders and take on new business abroad. With EXIM support, exporters can borrow more with the same collateral, secure performance and bid bonds necessary to win projects, and increase their global competitiveness.

EXIM Working Capital offers the following benefits:

• Waiver of program requirements with which parties cannot reasonably comply under the circumstances, such as field exams, borrowing base certificates, financial statement reporting, and other reporting requirements;
• Waiver of defaults for nonpayment of interest up to 30 days;
• Waiver of provisions relating both to defaults and to replenishment of collateral for over-advances resulting from losses of inventory and/or sales;
• Automatic extensions of up to 30 days for all claim-filing deadlines that arise from the date of this notification (with further extensions considered at EXIM’s discretion);
• Flexibility regarding the documentation necessary to file a claim.

 

Use an EXIM Working Capital Loan Guarantee to:

• Pay for materials, equipment, supplies, labor, and other inputs to fulfill export orders.
• Post standby letters of credit serving as bid bonds, performance bonds, or payment guarantees.
• Purchase finished products for export.

 

Benefits of an EXIM Working Capital Loan Guarantee:

• Flexible financing for large contracts.
• More attractive advance rates than conventional financing.
• Obtain the line of credit quickly from a qualified lender with less red tape.
• Inclusion of otherwise excluded collateral in borrowing base.
• Lower collateral requirements for bid bonds, performance bonds, or advance payment guarantees.

 

How it Works

EXIM doesn’t replace an exporter’s bank; it works with lenders to provide a loan guarantee that backs the borrower’s debt in the event something goes awry. 

• EXIM provides a 90% loan-backing guarantee to the lender, decreasing repayment risk and thereby increasing the lender’s willingness to extend a loan.
• With an expanded borrowing base, small business exporters are able to borrow more with the same collateral.
• The Guarantee can cover both multiple export sales and individual contracts.
• EXIM can guarantee both revolving and transaction-specific facilities.
• There is no minimum or maximum transaction amount.