U.S. Government assists U.S. Exporters by providing fixed-rate loans to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services.
Benefits:
Enables international buyers to obtain loans up to $200,000,000. The loans are available for up to 85% of the U.S. export value. The buyer must make a cash payment of at least 15% of the U.S. export value
Medium-term and long-term financing available
Eligibility
Loan to an international buyer is generally used for financing purchases of U.S. capital equipment and services, and exports to large-scale projects.
Financing may also be available for:
Refurbished equipment
Software
Certain banking and legal fees
Certain local costs and expenses
Military or defense items are generally not eligible nor are sales to military buyers (with certain exceptions).
Goods eligible for financing must meet foreign content requirements(Goods must be Made in USA).
Goods eligible for financing must be shipped from the United States to an international buyer. Exports financed by direct loans are normally subject to U.S. flag vessel requirements.
There may be limited or unable to offer financing in certain countries and under certain terms
Prior to approving certain transactions, U.S. Government will take into account the economic impact of a particular transaction
Loan Description
Size: There is no minimum or maximum limit to the size of the export sale that may be financed. However, transactions normally involve amounts over $10 million.
Coverage: The total level of support will be the lesser of 85% of the value of all eligible goods and services in the U.S. supply contract or 100% of the U.S. content in all eligible goods and services in the U.S. supply contract.
Cash Payment: Requires the buyer to make a cash payment to the exporter equal to at least 15% of the U.S. supply contract. The 15% cash payment can either be borrowed from a lender or the exporter at market terms, or be from the buyer's own funds.
Repayment Terms: Generally, the repayment term of a transaction is determined by numerous variables including but not limited to the borrower's financial condition, the common repayment terms the market gives such products, specific industry practices, industry and country conditions, useful life, OECD and Berne Union agreements, and the matching of terms offered by other foreign government-sponsored financing. Repayment terms are generally in excess of seven years.
Application
Final Commitment (AP): If the contract has been awarded, only the international borrower may submit the final commitment (AP) application.
Letter of Interest (LI): If the contract has not been awarded, then an exporter, an international borrower, or a lender may request a nonbinding letter of interest (LI) containing terms for the specific transaction. The LI is processed within seven working days, is valid for six months, and can be renewed.
Preliminary Commitment (PC): In exceptional cases, will accept an application for a preliminary commitment (PC). A PC is a nonbinding expression of interest from that the borrower's needs, as outlined in the application, generally meet financing requirements.
Benefits:
Enables international buyers to obtain loans up to $200,000,000. The loans are available for up to 85% of the U.S. export value. The buyer must make a cash payment of at least 15% of the U.S. export value
Medium-term and long-term financing available
Eligibility
Loan to an international buyer is generally used for financing purchases of U.S. capital equipment and services, and exports to large-scale projects.
Financing may also be available for:
Refurbished equipment
Software
Certain banking and legal fees
Certain local costs and expenses
Military or defense items are generally not eligible nor are sales to military buyers (with certain exceptions).
Goods eligible for financing must meet foreign content requirements(Goods must be Made in USA).
Goods eligible for financing must be shipped from the United States to an international buyer. Exports financed by direct loans are normally subject to U.S. flag vessel requirements.
There may be limited or unable to offer financing in certain countries and under certain terms
Prior to approving certain transactions, U.S. Government will take into account the economic impact of a particular transaction
Loan Description
Size: There is no minimum or maximum limit to the size of the export sale that may be financed. However, transactions normally involve amounts over $10 million.
Coverage: The total level of support will be the lesser of 85% of the value of all eligible goods and services in the U.S. supply contract or 100% of the U.S. content in all eligible goods and services in the U.S. supply contract.
Cash Payment: Requires the buyer to make a cash payment to the exporter equal to at least 15% of the U.S. supply contract. The 15% cash payment can either be borrowed from a lender or the exporter at market terms, or be from the buyer's own funds.
Repayment Terms: Generally, the repayment term of a transaction is determined by numerous variables including but not limited to the borrower's financial condition, the common repayment terms the market gives such products, specific industry practices, industry and country conditions, useful life, OECD and Berne Union agreements, and the matching of terms offered by other foreign government-sponsored financing. Repayment terms are generally in excess of seven years.
Application
Final Commitment (AP): If the contract has been awarded, only the international borrower may submit the final commitment (AP) application.
Letter of Interest (LI): If the contract has not been awarded, then an exporter, an international borrower, or a lender may request a nonbinding letter of interest (LI) containing terms for the specific transaction. The LI is processed within seven working days, is valid for six months, and can be renewed.
Preliminary Commitment (PC): In exceptional cases, will accept an application for a preliminary commitment (PC). A PC is a nonbinding expression of interest from that the borrower's needs, as outlined in the application, generally meet financing requirements.
