Export finance program chosen for pilot project

Maryland Watch

November 26, 1996

The export finance program run by Maryland's economic development agency has been picked to participate in a pilot project in which financing risks are shared by the state, commercial lenders and the Export-Import Bank of the United States.

The Ex-Im Bank will match loan guarantees made by the state for Maryland companies that need financing to export their products.

Initially, $10 million in total financing will be available. On any given deal, the state will insure 45 percent of the loan; the Ex-Im Bank will insure another 45 percent; and a commercial bank will assume a 10 percent risk.

Last year, Maryland guaranteed $15.9 million in export loans for Maryland companies. With the Ex-Im Bank helping, "that should free more insurance dollars for more companies," said Marie V. Torres, director of the state's Export Finance Program.

The pilot, in which five other states are participating, also lets Maryland officials authorize Ex-Im Bank's guarantees for working capital, which is supposed to speed processing.

To learn more about the program, call Torres at 767-6382.

Pub Date: 11/26/96

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