A major hurdle for many businesses seeking to take advantage of the opportunities offered by expanding in foreign markets is access to affordable working capital. The State of Florida, working in partnership with the federal government and the State’s banking community has lowered this hurdle for small and medium-size businesses.
In a continuing effort to improve its services to the Florida business community the State of Florida formed a new entity under Florida Statute 288.770. The Florida Export Finance Corporation (FEFC) was created in 1993 as a not for profit corporation with a mandate to expand employment and income opportunities for Florida residents.
Fulfillment of the mandate is accomplished by increased exports of goods and services resulting from assistance given by FEFC to small and medium sized Florida domiciled and registered companies. No specific Florida content is required for the exported items but preference is given to Florida value added transactions.
Elite Bank is excited to be named an Approved Lending Partner with FEFC.
Under the program, in order to make full use of its leveraging authority most FEFC financial assistance to exporters will be in the form of guarantees given to commercial lenders who make loans to exporters to support a verified foreign order. The exporter may apply directly to the FEFC for a loan guarantee or, preferably, a lender may apply jointly with an exporter. The maximum amount FEFC will consider guaranteeing is $500,000 on a single transaction and the FEFC guarantee may not exceed 90% of the loan value. The FEFC guarantee is available for pre-shipment loans or post-shipment loans or combination of both.