April 7, 2011
OCC Focuses on Government-Guaranteed Export Working Capital Loan Programs
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today published a Community Developments Insights report which looks at bank participation in the U.S. Export-Import Bank’s (Ex-Im Bank) Working Capital Guarantee Program and the Small Business Administration’s (SBA) Export Working Capital Program. By reducing lender risk, these programs help banks supply working capital credit to small business exporters nationwide. The report highlights how banks can use these programs to provide financing to their customers who are seeking to sell products and services in overseas markets.
"These loan guarantee programs offer a way for banks to provide working capital financing to small business exporters who otherwise might not be able to finance their production and distribution of export goods," said Acting Comptroller of the Currency John Walsh. "Indeed, the programs could make the difference in whether a bank will be able to extend credit to a small business exporter."
This Insights report highlights the potential benefits and risks posed to lenders by the Ex-Im Bank Working Capital Guarantee Program and the SBA Export Working Capital Program, describes the programs’ regulatory requirements, and outlines the processes through which lenders can offer these loans. The report also discusses how such loans might receive positive consideration in a bank’s Community Reinvestment Act examination.
The Insights report can be accessed quickly by selecting "Community Affairs" on the OCC Internet home page, https://www.occ.gov, and choosing "Publications."