Distinguished Guest Speaker from the World Bank

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On February 18th, our class got the pleasure of having a distinguished guest speaker Ms. Anabel Gonzalez, Senior Director of  World Bank Group Global Practice on Trade and Competitiveness . We are very grateful for the inspiring thoughts and valuable experiences she shared with us.

 

 

 

 

 

 

ExWorks Capital To Provide Funding To Fill Possible ExIm Bank Gap

ExWorks Capital – a privately funded export & trade finance companyis prepared to finance small to mid-size business as a bridge measure, or ongoing, should the ExIm Bank of the United States have its operations interrupted on June 30th.

ExIm Bank is important to ExWorks Capital under normal circumstances, but also has private capital for trade finance that is often used for companies and transactions which may not fit the usual ExIm Bank profiles.

Furthermore, ExWorks has a SBA export finance platform – World Trade Finance – that is unrelated to ExIm reauthorization issues and completely independent as it operates under the SBA’s authority.

ExWorks provides trade financing with private capital to support the purchase and shipment of U.S. manufactured products to overseas buyers, and to assist and support U.S. manufacturing by procuring and shipping to overseas buyers as a one-stop trading house.

“ExWorks stands ready to support ExIm Bank users and prospective borrowers to bridge this critical period of time should ExIm see interruption in ability to operate” says Randy Abrahams, Executive Chairman of ExWorks Capital. “We remain mystified that a debate even exists around the United States having an export credit agency that by every measure clearly supports small businesses across the country and provides for job creation and preservation in the United States.”

“Without a doubt, small companies will be the most dramatically affected as will be their respective employees by a shut down or interruption of ExIm” comments John McAdams, CEO of ExWorks. “We will be there in support of those companies as needed until the ExIm Bank Charter is reauthorized.”

ExWorks provides trade financing with private capital by buying goods like any domestic customer and taking the risk in selling overseas as well as advancing funds to complete manufacturing of viable export purchase orders.

ExWorks also provides Working Capital lines of Credit under SBA and ExIm Delegated Authority whereby transaction specific loans are provided to U.S. exporters permitting them to extend more aggressive terms to their overseas buyers.

As a result of its private funding, ExWorks Capital will be able to respond to requests as it continues to build its presence as the premier independent non bank lender in the Export Trade Finance space.

Exworks remains hopeful the ExIm Bank will not see interruption in the critical funding it provides for small business, but will plan to help keep these businesses from meltdown in case the much needed authorization for ExIm is not provided by June 30th.

About ExWorks Capital:
ExWorks Capital is an international trade finance company that offers export financing solutions through its export finance company that utilizes its own capital as well as ExIm Bank and SBA export authorities to support small to mid-size businesses. ExWorks Capital’s offerings include:
Working Capital Financing – International Trade Receivable and Inventory Revolvers, including advancing on Raw Materials, WIP and Finished Goods, between $1,000,000 and $25,000,000
Term Loan Financing – Term Loans between $10,000,000 and $100,000,000 to Foreign Customers
Export Trading – Negotiating the buy and/or sell side of a transaction and processing all of the associated documentation from the acquisition of the export to its shipment and delivery to an international customer thus eliminating trade risk to the supplier between $500,000 and $25,000,000

The Fate of the Export-Import Bank: Save Jobs or Save money?

Now is the time to determine the fate of the Export-Import Bank of the United States. This 80-year-old federal institution was created during Franklin D. Roosevel’s New Deal era and has been helping U.S. companies finance the export of goods to foreign markets. Yet, since 2012, Congress has considered stopping the renewal of its charter. The deadline is coming soon — June 30.

What are the key issues and arguments? Some claim that the bank supports less than half of 1 percent of U.S. “small business” and that big companies are the main beneficiaries of the bank. Boeing and General Electric, it is said, can access private financing easily by themselves. Advocates and objectors have important arguments over reauthorizing the EX-IM bank.

The Objectors:

Adam Andrzejewski, a Forbes contributor concluded that critics Ex-Im of charge cronyism, waste and outright corruption. His study Federal Transfer Report – Export-Import Bank states that taxpayers have an exposure of almost $140 billion in Ex-Im’s increasing lending. Pemex, which is owned by the Mexican government, is the biggest importer supported by Ex-Im bank, benefiting to the tune of $7.21 billion,. The biggest exporter, Boeing, benefits to the tune of $60 billion and received one third of all export support.

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http://www.forbes.com/sites/adamandrzejewski/2015/05/31/the-export-import-bank-and-the-art-of-picking-losers/2/

 

Advocates

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So why does Hillary Clinton and some Congressional representatives such as Republican Stephen Fincher, and Democrat Annie Kuster work hard to save the bank? The answer is straightforward – to save jobs! It is ironic to see the possible demise of the bank while president Obama visits dozens of countries to increase sales of  U.S. made products and preserve U.S. jobs.

Policies such as tax and training benefits for reshoring companies (companies which offshored but now return to America) have encouraged firms to create jobs in the United States. Boeing has been severely criticized in the Ex-Im debate. However, the criticism of Boeing may not be entirely fair. Do big companies like Boeing produce every component for their planes? Or do they buy many parts from small businesses? Competition is not the only relationship between big and small companies, cooperation is more than common. American jobs would be lost with the discontinuation of the bank. This is not the best time to experiment with employment, exports and economic growth.

 

Related article

We Need Export Lending

Export Promtion Rationale

Twice the Work in Half the Time: Doubling U.S. Exports

DOING BUSINESS IN CUBA: DON’T FORGET OPPORTUNITY COSTS 

World Bank forums see youth as global changemakers

By Michael Marshall for UPI.com

An international group of young professionals, entrepreneurs, social activists, and student leaders showcased the role of youth in global development through forums at the World Bank forums on youth service and entrepreneurship.

“Without the involvement of young people in areas that affect them it will be difficult for countries to move forward,” said Evans Musonde from Zambia. He represented the Africa Peace Service Corps that is working to integrate the societies on east and southern Africa through cross-border youth service exchanges.

Karen Scheuerer of the U.S. Peace Corps said, “We see youth as change makers.” She noted the Peace Corps efforts to promote youth entrepreneurship. About three-quarters of the people the Peace Corps works with are youth.

H.E. Olive Wonekha, Uganda’s ambassador to the U.S., said that countries like hers needed a shift from donor aid to more international trade and investment. Uganda needed to develop a core of young entrepreneurs to facilitate this development.

Speakers also stressed the importance of international exchanges and fellowships in developing the skills of young entrepreneurs and leaders in the developing world.

The forums are part of the 4th International Young Leaders Assembly that brings together 800 young leaders from over 60 countries for programs in Washington, DC, Philadelphia, and New York at the U.N. from August 11-20.

Read more: http://www.upi.com/Top_News/Analysis/2014/08/17/World-Bank-forums-see-youth-as-global-changemakers/1421408154721/#ixzz3AkiPfSvQ