According to an article by World Trade, in May 2012, President Barack Obama signed the Export-Import Bank Reauthorization Act of 2012. The Ex-Im Bank provides U.S. companies and foreign buyers of U.S.-made goods with government-guaranteed export working capital loans. Exporters can also sell, bid, and negotiate more competitively compared to those supported by export credit agencies of other countries. Small and medium-sized businesses especially benefit from this, and have sustained about 290,000 American jobs.
Companies that qualify for Ex-Im Bank’s export financing include U.S. companies selling U.S. made goods and services to international buyers, as well as U.S. companies that sell to other U.S. companies, which then package those products with their own goods before exporting them to foreign countries. The exporter must be in the U.S., have a positive net worth and have been in operation for at least a year. Exports must be goods containing at least 50% US content and shipped from the US, and must be services provided by U.S.-based employees.
There is always a circulation of activity in the U.S. Ex-Im Bank when it comes to India. The Jagran Post recently created an article on how the solar sector attracted three Indian transactions, which include secured funding for Welspun Energy, Mahindra Suryaprakash and Solar Field Energy. Bloomberg also posted an article on how the U.S. Ex-Im Bank approved loans for two Indian solar projects, by allowing about $25 million in loans.
