The U.S. Export-Import Bank renewed a 90-percent guarantee of a $100 million supply-chain facility for Citibank to purchase invoices that are generated via the sales of goods and services by eligible U.S. suppliers to agriculture and construction equipment manufacturer CNH America (CNH).
The authorization, which is Ex-Im’s second renewal of the facility, will support small-business suppliers of CNH by increasing liquidity to fulfill new orders. The facility is being provided under Ex-Im Bank’s Supply-Chain Finance Guarantee Program.
“Ex-Im Bank’s second renewal of this Citibank facility for CNH suppliers demonstrates our continued support for the small businesses that serve as reliable suppliers of U.S. exporters. This financing enables them to improve cash flow to increase sales and sustain jobs,” said Bank Chairman and President Fred P. Hochberg.
This guarantee helps qualified CNH suppliers obtain cash more quickly to fulfill new orders.
“This facility supports millions of dollars in export sales and enables hundreds of small businesses to access affordable financing while providing an important liquidity management tool for CNH,” said John Ahearn, global head of trade for global transaction services at Citi.
To participate in the Ex-Im Bank program, approved financial institutions must have an existing supply-chain finance platform. Ex-Im Bank requires that at least 50 percent of the credit provided be extended to suppliers meeting the small-business definition of the Small Business Administration. Additionally, the exported products must meet U.S. content requirements.