JPMorgan Chase First Bank to Use Fast-track Authority for Loans to U.S. Exporters

New Export-Import Bank program aims to help domestic manufacturers do more international business

New Export-Import Bank program aims to help domestic manufacturers do more international business

New York, NY — March 10, 2006 — JPMorgan Chase Bank, a global provider of trade solutions, has become the first U.S. bank to arrange working capital finance under the Fast Track Lender Program of the Export-Import Bank of the United States (Ex-Im Bank), a new initiative that helps banks expedite loans to U.S.-based companies that produce goods or services for export.

JPMorgan Chase now can provide exporters with larger Ex-Im Bank-guaranteed loans after executing a new Master Guarantee and Fast Track Lender Agreement with the Ex-Im Bank for its Working Capital Guarantee Program, the bank said.

Specifically, JPMorgan Chase said that it can now quickly approve up to $25 million per borrower — and an aggregate of $300 million for all clients — to a trade client with a 90 percent guarantee by Ex-Im Bank. Under its standing Delegated Authority arrangement with Ex-Im Bank, JPMorgan Chase continues to make the credit decision and issue Ex-Im Bank guarantees for loans up to $10 million.

In January, JPMorgan Chase completed a Fast Track lending transaction for one of the bank's corporate clients — the first participating lender to close a deal under the new program.

Supporting International Growth

The Fast Track Lending program provides exporters with financing to support international growth, the ability to compete more effectively in the international marketplace, and an extension of favorable terms to their foreign customers.

"Fast Track Lending is ground breaking for the world of trade finance," said Lori Hricik, head of JPMorgan Chase Treasury Services. "Ex-Im Bank has now given us new capability as a funding source for American business, along with a strengthened position in the market as a leading provider of credit and liquidity solutions."

JPMorgan Chase has a longstanding relationship with Ex-Im Bank. With loan specialists positioned in several of its commercial lending businesses to provide expert access to appropriate Ex-Im Bank programs, JPMorgan Chase works to provide U.S. customers with structured finance solutions that help them better manage working capital and mitigate risk as they expand their businesses globally.

Sustaining U.S. Jobs

As the U.S. Government's official export credit agency, The Export-Import Bank of the United States has been promoting trade in developing markets since 1934.

"JPMorgan Chase and its predecessor banks have made extensive use of our Working Capital Guarantee program," says John McAdams, senior vice president for export finance at Ex-Im Bank. "Their lending team is to be congratulated on being the first to close a Fast Track financing transaction. JPMorgan Chase's participation throughout our relationship has helped Ex-Im Bank achieve record lending authorizations, and their continued use of our Working Capital program will ensure that Ex-Im Bank achieves its mission of supporting U.S. exporters and helping create and sustain U.S. jobs."

"Fast Track helps us deliver international financial solutions to our U.S. commercial customers," said Todd Maclin, head of Chase Commercial Bank, the top asset-based lender in the United States. "As American businesses do more business globally, we are there with Ex-Im Bank to help."

More information on the program is available at http://www.jpmorganchase.com/info/fasttrack.


Additional Articles of Interest

— Read about the five phases of global sourcing that, if followed, allow an organization to implement a successful global sourcing strategy in the short-, medium- and long-term. See more in "Making Global Sourcing Work," only on SDCExec.com.

— Leading crafts company Creativity Inc. has found that, with a bit of trust and a lot of teamwork, a little consulting can go a long way in addressing supply chain pain points. Read more in "Crafting Success in Supply Chain Transformation," cover story in the December 2005/January 2006 issue of Supply & Demand Chain Executive.


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