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In a powerful demonstration of support for small business, the Export-Import Bank of the United States (Ex-Im Bank) approved $49.7 million in financing backing the sale of equipment by a small Nevada company for a Philippine geothermal power project. Ormat International, Sparks, Nevada, is the sponsor of the project as well as the primary exporter. It is the first time a small business has sponsored an Ex-Im Bank project finance transaction. The Ex-Im Bank financing enabled Ormat to win the contract in the face of stiff competition from Japanese and French companies. More than 82 percent of the Ex-Im Bank financing will support small business exports.

Limited recourse project finance is a type of private financing where repayment is based on project revenues, rather than a guarantee of the debt by the host country government. Generally it is used to finance large infrastructure projects.

There is a perception that only major companies can take advantage of Ex-Im Bank's project finance program, said Ex-Im Bank Board Director Maria Luisa Haley. This project shows Ex-Im Bank's commitment to provide its full array of services to smaller businesses.

Not only does this deal support small business and environmentally clean technologies, said Glen T. Matsumoto, Vice President and Co-Head of the Project Finance Division, but it also proceeded to final commitment in one of the shortest time periods in the short history of this division — four months from initial application.

It is Ex-Im Bank's sixth project finance transaction in the Philippines.