New Partnership to Help Connecticut Small Businesses Boost Exports
Connecticut Development Authority joins forces with Export-Import Bank of U.S.
Gov. M. Jodi Rell has announced that Connecticut employers will benefit from a new financing partnership that will help them strengthen and grow their export business.
The governor said that the Connecticut Development Authority (CDA), the state’s quasi-public business financing arm, will now be able to provide international trade financing to small businesses thanks to a partnership with the Export-Import Bank of the United States.
Bright Spot in Our Economy
“This is tremendous news for our small exporters in need of lines of credit to sustain and grow their businesses,” says Gov. Rell. “Connecticut exports have been a traditional bright spot in our economy, and this will allow us to build on that success. Connecticut companies are some of the most innovative in the world. Increasing our exports and giving employers more access to export financing will strengthen our hold in the global marketplace while creating jobs at home.”
Connecticut exports totaled more than $10.3 billion through Aug. 2010, a nearly 18% increase over the same period last year. Currently, the state’s top exports are (1) aircraft, spacecraft, parts; (2) industrial machinery, including computers; (3) electric machinery, sound equipment, TV equipment, parts; (4) optic, photo, medical, and surgical instruments; and (5) cereals, because of state-based hedge funds that buy and sell grains on international markets.
“CDA’s new service builds on our high level of finance expertise and provides more advantages to the state’s small banks, manufacturers, wholesalers, distributors, and service companies as they compete internationally,” says CDA President Marie O’Brien.
Designated a Delegated Authority Lender by Ex-Im Bank, the CDA may now make credit decisions and provide up to $1 million in international trade financing to eligible exporters. The lender is guaranteed for 90% of its principal and interest under each line of credit under Ex-Im Bank’s working capital guarantee.
CDA’s designation as a Delegated Authority Lender builds upon its existing relationship with Ex-Im Bank. Earlier this year, both parties announced a partnership agreement that markets the services of Ex-Im Bank to small businesses throughout Connecticut.
The CDA and Ex-Im Bank
The Connecticut Development Authority is a member of the state’s economic development team, stimulating investment in commercial and industrial businesses and retaining and creating jobs that contribute to the state’s economy, technology base, intellectual capital, and infrastructure. To learn more about the CDA, please visit ctcda.com or call 860.258.7800.
Ex-Im Bank, an independent, self-sustaining federal government agency, helps create and maintain U.S. jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The bank provides a variety of financing mechanisms, including working capital loan guarantees to help small and medium-size U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services. For more information, visit www.exim.gov.
Note: Additional financing options are available through CBIA’s affiliate BDC Capital, which provides innovative financing and credit lines to any type of business for working capital; refinancing; the acquisition of real estate, machinery, and equipment; leasehold improvements; business acquisitions; and growth capital. For more information, contact CBIA’s Tom Guerra at 860.244.1160 or firstname.lastname@example.org.
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