City to partner with Export-Import Bank
City Hall is striking up an unusual partnership with a federal agency, one that both sides say could make it significantly easier for local small exporters to find cash needed to grow their business.
In a joint statement, Mayor Rahm Emanuel and U.S. Export-Import Bank Chairman Fred Hochberg say they’re taking a variety of steps to make the bank more accessible to local firms and to fast-track applications for credit guarantees, short-term loans and other financing.
The plan is to be announced at a meeting of small-business executives and bank officials this afternoon at the Willis Tower.
According to the statement, the main goal of the partnership is to help small businesses that, post-recession, are having a harder time accessing moderate lines of credit to bridge the gap between when they export goods and when they’re paid.
The bank will work directly with World Business Chicago, the city’s economic-development unit, to market the bank’s programs to local companies and banks via seminars, counselors and other communications. Officials will be available to make site visits to complete due diligence and help with paperwork.
One thing they’ll be talking about is a year-old pilot program, Global Credit Express, that provides short-term working capital loans up to $500,000. That program is being expanded to allow state and local partners, like WBC, to refer small businesses to the bank for financing, allowing them to bypass intermediary commercial banks.
The partners also are setting up a Chicago Trade Accelerator to help firms slash red tape; the accelerator, among other things, will offer dedicated case managers to help companies develop both financing and marketing plans.
Both the Obama administration and Mr. Emanuel, the president’s former chief of staff, have been big proponents of expanding American exports.
“Mayor Emanuel has made export promotion one of his signature issues, and I am delighted we are working today,” Mr. Hochberg said.
Said the mayor, “Our small businesses have shown tremendous initiative in establishing exporting relationships on their own; now is the time for us to step up and help them take it to the next level.”
Read More – http://www.chicagobusiness.com/article/20130219/BLOGS02/130219769/city-to-partner-with-export-import-bank
