Ex-Im Bank Approves $10 Million Increase To Existing Loan Facility
WASHINGTON, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today announced that the board of directors has doubled to $20 million an existing working capital loan guarantee to MAG IAS, LLC, which is based in Sterling Heights, Michigan.
This increase enables MAG to handle increased foreign demand for its products, which will increase their sales and help them maintain approximately 100 high quality manufacturing jobs related to their export business. MAG's Ex-Im Bank working capital loan guarantee currently enables them to support $100 million in annual exports to customers in key markets including China, Brazil, and India. With Ex-Im's backing, MAG will now be able to hire additional workers in areas that have been hard hit by the economic recession. Potentially jobs could be added in Fond du Lac, Wisc.; Hebron, Ky.; Port Huron, Wisc.; and Sterling Heights, Mich.
MAG will now be able to hire additional workers because of support from Ex-Im Bank, said Ex-Im Bank Chairman and President Fred P. Hochberg. Exports create, sustain, and save U.S. jobs, and it is vital that American companies continue to gain new global customers.
The increase in the Ex-Im facility will enable MAG to pursue additional export sales which in turn will secure our current manpower and support new hires, said Dave Nowicki, President of MAG Americas.
MAG employs more than 1,000 workers in the Americas and operates through several business divisions and subsidiaries. The company is a leading machine tool and systems supplier serving the durable goods industry worldwide with complete manufacturing solutions for metal cutting and composites applications. Key industrial markets served include aerospace, automotive and truck, heavy equipment, oil and gas, rail, solar energy, wind turbine production and general machining.
The guaranteed lender is Burdale Capital Finance of Stamford, Conn., an asset-based lending institution with offices in New York, N.Y.
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private sector export financing at no cost to American taxpayers. The Bank provides a variety of financing products, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. capital goods and services. Small business exporters may obtain more information about Ex-Im Bank products by calling 1-800-565-EXIM (3946) and selecting option 2.
By charging fees and interest on all loan related transactions, Ex-Im Bank is self-sustaining. It is able to cover all operation costs and potential losses while also producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years.
In fiscal year 2010, Ex-Im Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance (including more than $5 billion in authorizations for small businesses), supporting an estimated 230,000 American jobs. For the first half of the year, Ex-Im completed $13.4 billion in total authorizations. This supported $15.9 billion in exports and more than 115,000 U.S. jobs, a 14 percent increase in jobs supported over the first half of 2010. These strong financial results put the Bank on a path to its third consecutive record-breaking year. For more information, visit Ex-Im Bank's Web site at www.exim.gov.