Florida Export Finance Corporation & Elite Bank

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.

Elite Bank is excited to be named an Approved Lending Partner with FEFC.

The FEFC will assist exporters and lenders in arranging loans exceeding the FEFC limits in order to complete an export sale of any size including Ex-Im Bank product and project loans and SBA loans. The FEFC will assist exporters and lenders in obtaining credit insurance to mitigate foreign risk. The FEFC is a participant of the Regional Export Promotion Program (REPP) of the Export Import Bank of the United States (Ex-Im Bank) and offers Florida exporters access to export assistance programs offered by Ex-Im Bank and SBA. Services include packaging for

Ex-Im Bank and SBA export working capital guarantees, and other loan, insurance and guarantee programs offered by these U.S. Government agencies.

The FEFC does not make grants, nor will it issue a loan guarantee or make a direct loan, unless it can be secured in a manner which assures a reasonable probability of repayment. The FEFC paperwork will be the minimum necessary and its fees and rates will be as low as possible. FEFC loan guarantees will require the lender to follow all customary and prudent lending practices.

The agreement of lenders to accept the FEFC guarantee is dependent on many factors. The question of safety is paramount and is reflected by FEFC’s credit policy. Where possible FEFC will use the risk mitigation programs of Ex-Im Bank or other acceptable means. FEFC’s credit policy and procedures, and its operations policy and procedures, are similar to those of a lending institution and have been formulated by the FEFC’s Board of Directors to evolve based on FEFC’s delineated market. These 14 individuals all have extensive experience in commercial lending, export sales, and trade finance, representing and blending the expertise of banks and exporters, both large and small.