FINISHED FILE

NATIONAL DISABILITY INSTITUTE
MARCH 26, 2024
12:45 P.M. CST
EXIM 101‑EXPORT ESSENTIALS FOR SUCCESSFUL GLOBAL BUSINESS GROWTH

Services provided by:
      Caption First, Inc.	
      P.O. Box 3066        
      Monument, CO  80132
      800‑825‑5234
      www.captionfirst.com

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This text is being provided in a realtime format.  Communication Access Realtime Translation (CART) or captioning are provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings.
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   >> RUTH CHAVEZ:  Welcome.  Welcome, everyone.  Thank you for being with us today for the Export Essentials for Successful global Business Growth.
The audio for today's meeting can be accessed using computer audio or by calling in by phone.  If you select Computer Audio, please make sure the speakers are turned on and headphones are plugged in.  To call in for audio, dial 301‑715‑8592.  The meeting code is 885 1540 5910.
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With that, I will present you all to LaTaunya Darden, Business Development Specialist under the Minority and Women‑Owned business development division of the export im‑import bank.  Thank you for being with us.
   >> LaTAUNYA DARDEN:  We are mandated to reach minority businesses which are comprised of minorities of all ethnicities and those in underserved communities, so ‑‑
>> Before you get started, oh, there you go.  I wanted to make sure that everybody could see your face.
   >> LaTAUNYA DARDEN:  Yes, I'm sorry about that.  Happy to be here and raising awareness about EXIM and particularly our team, and the services that we offer to minority businesses.  You can advance the slide.
For those that aren't aware the Export‑Import Bank of the United States also known as EXIM is a Federal Government Agency and we are also the Export Credit Agency of the United States.
So just to put that into perspective, most countries have an agency or ECA that supports businesses in those perspective country, and that is what EXIM does for businesses here in the United States who are selling tare product or providing services to customers outside of the United States.  The mission of EXIM Bank is to support American jobs by increasing U.S. export support.
We offer financing, including Export Credit Insurance, loan guarantee, just to name a few, to advance American competitiveness and assist U.S. businesses as they compete for global sales.  EXIM programs actually ‑‑ we don't compete with other financial institutions.  We actually complement them by filling the gaps and assuming risk associated with doing business abroad.
So, whenever you hear risk, often equate that to EXIM because we actually assume the risk and come in and make the buyers and the customers, U.S. businesses, more comfortable due to the products that we offer.
Next slide, please.
Okay, so the Minority and Women Owned Business Outreach Division is a group of business development officers who assist U.S. businesses navigate the export landscape.  The MWOB, which it is also known as, division is surprised of three groups, there is the MWOB group.  The group also contains the Client Care Unit known as CCU, and the Client Care Unit was established maybe about three or four years ago now, but they actually assist our current customers in helping them to leverage or use their policies more if we determine that, hey, they have this policy but they're not using it.  Let's give them a call to see how we can help them to better do at that.  They also help businesses to acquire the unique entity identifier or UEI number, which is also a requirement now for any businesses who are securing government contracts.  That is a number that you must have.  They assist our current customers in getting that number.
Then there is also the Regional Export Promotion Program, and those organizations assist us in reading awareness about EXIM.  We are a small team, but we have a mandate to reach thousands and thousands of businesses every year, which is quite frankly impossible.  So, we rely on the organizations who are actually our boots on the ground, if you will, and they help us to reach the businesses that we are mandated to reach and to just educate them on the export resources that are available to them.
The team exists, and it is part of the main charter for us to exist.  Our primary focus is to raise awareness, again, about the EXIM Bank as well as other export business resources.  We provide free consultations, so I encourage you to reach out to us.  We provide free one‑on‑one consultations, and we provide introductions and connections to those businesses who may not be yet quite ready for EXIM Bank, but we will guide them to business who can assist them in their export readiness.
EXIM is just a small piece of an entire ecosystem of export resources that can be challenging to sift through without experienced and knowledgeable consultants to help you, so that's where the MWOB team comes in.
Next slide, please.
So, last fiscal year the MWOB Team hosted more than 95 events in over $345‑million‑dollars supported minority and women‑owned businesses.  Here are some points that the team is mandated in our efforts.  So, we ensure equitable distribution of services.  We actually train businesses on the availability of EXIM support as well as other export resources.  We increase awareness about other resources, as I mentioned earlier.  And we very often do what I am doing now through seminars, webinars, trade shows, roundtables, any opportunity to get to raise awareness about EXIM.  We are there for that and that is our goal.  We nurture clients in meeting the eligibility requirements for government assistance programs and financing.
So, again, I encourage you to contact us, to schedule that consultation so that we can have a deeper discussion about where you are in your business journey and how EXIM and other resources can potentially help you.
Next slide.
So, again, last year our team hosted important 95 events in over 345‑million‑dollars went to support women and minority‑owned businesses.  As you see here, we support businesses owned by minorities, veterans, businesses located in rural areas, businesses whose owners identify as LGBTQ+, and really any business that is in an underserved community, that is who we outreach to.  Again, I'm very excited today, as you can see here, business owners with disabilities are also encompassed in the minority platform so I'm very excited and happy to be here today.  This is our first time co‑hosting an event with the business community, with the disabled business community, and I'm very excited about that and the future relationship and events that we will host together.
Next slide.
So, if you are focusing on increasing your customer base domestically, you are actually hindering the growth of your business.  95% of consumers are located outside of the United States.  Only 1% of U.S. companies’ export.  Export gives you access to those customers who want to do business with you because your products are actually made in the United States, and American‑made products are highly sought after around the globe.
Next slide.
So, businesses often ask the question, why should I export?  What's the benefit?  What's in it for me?  Exporting provides access to more customers, and again, American‑made products and services are highly regarded and wanted around the world.  It gives you an opportunity to also expand your customer base.
Minority‑owned businesses often have relationships with businesses in the countries that they're interested in exporting to.  So, again, just remember that you might not be ready today, but you could be just gathering information about the export process at this moment, that is fine.  We do encourage you and just want to raise awareness about the benefits of exporting.
Next slide, please.
EXIM has you covered from the beginning of your transaction to the end after you ship or provide your service to the customer.  We are there for ‑‑ we have our working capital loan guarantee, which is at the beginning of the transaction.  At the end, you have your insurance, your export credit insurance or trade credit insurance which is what it is most known as.  And direct loans, and direct loans are typically for those transactions where a customer abroad wants to buy ‑‑ wants to purchase capital equipment or construction equipment that is made here in the United States.  That may or may not apply to you.  If it does, I can have that conversation with you as well.  Although a transaction of that size is typically beyond the scope of the Office of Small Business which is where the MWOB Division is located, but I can definitely connect you with the correct or the appropriate division.
I see here the insurance is for post‑export financing, and actually the insurance should be, I'm thinking, for pre.  Because you can't offer credit terms with the insurance product, and I will go into deeper detail about that as we move forward.
Next slide.
So, I'll start with the working capital loan guarantee program, which is also known as EXIM's Access to Capital Tool.  This is a guarantee of 95% that we provide lenders we have an agreement with, known as delegated lenders.  These lenders actually finance the export‑related loans.  They're typically more comfortable and willing to finance these export‑related loans because they have the backing or the guarantee of EXIM Bank.  Lenders typically will not provide an advance or finance loans without EXIM's guarantee.
Next slide.
Here is a visual here for of the process of what it looks like to ‑‑ the process of acquiring an export working loan.  They can be made for materials made to finish your product, any finished materials you're exporting, labor and materials, any fees associated with the transaction.  You have an export opportunity that you want to take advantage of, but you need financing and inventory destine for export.  You apply for a working capital loan, but your lender will not finance export‑related collateral, not willing to assume the risk.  That's where we come in.
Lenders with delegated authority process or finance the loan per EXIM guidelines.  The loan proceeds are used to fulfill the export sale.
Next slide.
Okay, so now you've gotten the financing you need to fill the order, but there is still the concern about getting paid.  The solution to that concern is export or Trade Credit Insurance.  Three primary benefits for having a Trade Credit Insurance policy.  In addition to the ease of doing business internationally, it is a great marketing tool that gives you an advantage when negotiating a contract or a sale.  That advantage is open account or credit terms that you can offer your potential buyer.  Typical term or credit limits that we see are anywhere from 30 to 90 days.  However, terms can extend as long as 180 days in some cases.  This is attractive for you, the exporter, as well as the buyer who would rather buy on credit versus cash in advance.  We all know cash is king; however, extending credit terms attracts more customers and you'll likely get larger orders because buyers are not paying in advance.  Exporting without Trade Credit Insurance, I often equate it to, it's like driving without car insurance.  You know, one can do it but there is risk involved.  So why take on that risk when this tool is available at a very minimal cost.  65 cents per 100 dollars of the invoice value, which is very minimal.
For example, on a $30,000 sale, $28500 is covered for a premium of $195.  Which actually is not paid until you ship your product.  So, it's not like the insurance you may be familiar with, some insurances where you pay a monthly premium every month.  Trade credit insurance isn't structured that way.  You pay your premium when you actually ship your product or provide your service.  Your business qualifies for trade credit insurance if it has been operating for ‑‑ our underwriters like to see at least two to three years.  You must have a DUNS or DMB number and UEI number that I mentioned previously, a positive net worth or confirmed profits with account statements and tax returns, and the product has at least 51% of U.S. content or components.  If it's a service that's being provided, if your business provides a service and doesn't have a tangible product that you're exporting, U.S. personnel must be providing the service either here in the U.S. or abroad.
We prefer to see these criteria; however, we can wave one or two of these depending on the circumstances.  For instance, quite a few businesses have taken a hit over the past four years or so due to the pandemic.  That can be considered during the underwriting process.
Next slide, please.
So, a transaction utilizing trade credit insurance is outlined here.  You've identified your customer, you apply for trade credit insurance.  When approved, you offer credit terms to the buyer and they agree to the payment terms.  The product is shipped and it's important we have an online product or tool that all shipments must be reported via that portal, and you also pay the premium at that time.  What's great about this insurance is, again, you pay premium of fees when you ship your product and not monthly, as I said earlier, as what most insurance policies require.
Next slide, please.
So, the policy covers commercial or political risk.  Some examples of these are inability to convert currency, if your customer abroad loses their import license or political unrest or war breaks out in a country, fraud on the part of your customer, these are just some instances where you would be covered.  Again, I can't stress enough that it's very important to report those shipments and pay your premium, because if something does go array during the transaction, if we're not aware that a shipment has occurred, we would not be able to approve your claim.  Hopefully that won't be the case, but that is just an example of where EXIM would not provide support.
Next slide, please.
Now, EXIM supports many industries or sectors, as you can see here.  But I like focus on services for a moment because a lot of businesses that we outreach to, they do not have a product.  They're actually a business that provides a service.  So don't dismiss receiving support from EXIM because you don't have a product and you provide a service.  The key to remember is if your customer is beyond U.S. borders, the service your business provides is an export.
We support a wide range of services, such as IT, consulting, engineering, freight forwarding, security, and legal services are just some examples of service providers or services that EXIM will provide support for.  Again, key is remember that the customer is abroad and payment from outside of the U.S. border, then it is an export.
Next slide, please.
So, we often refer to whenever you're considering exporting, always review the Country Limitation Schedule, also known as the CLS.  Visit the site often because as we know, changes occur rapidly in the world, so we encourage you to go to our website, EXIM.gov and look at the Country Limitation Scheduled to see if we are in fact open in a particular country.
Next slide.
There are a few restrictions per our charter which is our EXIM Bank operates.  I'll just go over a couple of them here.  Absolutely no sales to foreign military, unless it's for humanitarian reasons such as food drops during a country crisis or emergency vehicles that could be considered.  We also have a U.S. content as I mentioned earlier.  It is a U.S. product that you are exporting, it must have U.S. content of 51%.  And products must ship from the U.S. to get support from us.
Next slide.
Now, the question now is are you ready to export?  So, in order to get ready to export, you must get counseling and training.  Again, you can contact us.  I encourage you to contact your team, the MWOB Team, and I will put our website in the chat.  If you need assistance with finding buyers for your products or services, the U.S. Department of Commerce is a great resource and they assist with that as well.  To get funding for your export activities, that's where we come in.  Or if we are not able to provide the funding for you, there are organizations that we have alliances with that can get you that funding that you may need for your export activities.
Next slide.
So, again, these are some resources that I mentioned before.  The SBA has an international trade division, and they also have ‑‑ they also have export resources and financing.  Also, the Department of Commercial or International Trade Association within the Department of Commerce have resources available to help U.S. businesses find buyers abroad who actually have a need or want their product or service.
Next slide.
And these are additional resources of EXIM that we rely on to assist us in our outreach initiatives.  We have credit insurance brokers that are available at no charge to you.  They assist businesses in selecting the policy that's best for their business model.  They actually report shipments for you, and in the event that you would need to file a claim, they submit those documents on your behalf as well.
I mentioned our Regional Export Promotion Program, REPP, in the beginning of the presentation, they are at the state and local level that assist us in educating thousands of businesses that we educate.  They assist us with an export business plan which is key, just as you need a business plan when you are trying to acquire any type of funding or grant, you also need an export business plan, and our REPP organizations assist with that.
There are over 50 REPP organizations across the U.S., and you can find the REPP in your state at EXIM.gov.repp‑locater.
Then we have export loans, they can be used to purchase raw material, a finished product that you might be exporting, any cost associated with exporting the transaction.  You can find these resources, again, on your website.
Next slide, please.
I encourage you to stay connected with EXIM on all social media platforms outed here.  Also, visit our site and subscribe to our newsletter to stay updated to our upcoming events that are mostly no cost, and there is another great website to subscribe to as well, trade.gov because they have events that they update as to everything that's going on in the world of trade.
I believe, next slide, I believe that concludes my presentation today.  And now I'll open the floor for any questions.
   >> LEXI JONES:  LaTaunya, this is Lexi.  I don't see any questions until the chat yet.  If anyone does have a question, you can come off of mute and ask it directly or done it into the chat.  You can ask if off question and need assistance from an ASL interpreter.
   >> LaTAUNYA DARDEN:  I'm also putting my landing page in the chat.  And you can use the page to schedule an appointment at any time.  I will also include my email address.  You can always reach me by email and/or phone.
   >> LEXI JONES:  It does look like we have one question in the chat.  Mark asks how long does it take to process a claim and ultimately receive payment from the customer?
   >> LaTAUNYA DARDEN:  So the claim process, when you submit a claim and after you submitted all of the required documents with the claim and you've exhausted all measures to collect, we will pay you the exporter at 95% of your invoice, and then we will collect from the buyer.  So if a claim is filed, you will actually receive payment from EXIM, not the customer.  Then we will collect from the buyer.  I hope that answers your question.
   >> LEXI JONES:  You got a thank you in the chat so I think it did.  Go ahead, Caroline.
   >> CAROLINE BOLAS:  You talked about the benefits of exporting.  What are the challenges that you see?  How can businesses prepare so that they don't encounter those challenges?
   >> LaTAUNYA DARDEN:  Okay.  So hold on one second.  So, customers can prepare by utilizing the resources of the businesses that I mentioned earlier.  Excuse me.  Hold on.
I'm sorry about that.  They can utilize and reach out to those organizations that assist with export readiness.  You know, we will help ‑‑ and when I say we, I mean all of the export resource, we will do the hand‑holding and assist you every step of the way to make sure that you are ready for your first export transaction.
Another point that I would like to make, too, if you're not ready yet, but there is a business that you should consider partnering with that has experience with exporting, or maybe not exporting.  They may have been in business longer, they have stronger finances, you know, to go after that first export deal.
   >> LEXI JONES:  This is Lexi again.  We do have another question in the chat.  I just lost it.  Angela asked, are shipping resources available, for example, vendors?
   >> LaTAUNYA DARDEN:  Yeah, so we do have a network of freight forwarders that we can possibly connect you with.  Yes.  We can, but there are so many other resources that you can get connected with shippers, yes, to answer your question.
   >> LEXI JONES:  Thank you.  Also from Cari, is there a recommended minimum number of sales before, I know you mentioned some are larger than definition of SBA, small business.
   >> LaTAUNYA DARDEN:  We do like to see some but a waiver can be issued in this scenario.  So, say if you worked for a company where you made widgets for 15 years, you no longer work at the company and you started your own.  That experience that you had with that business, you may not be exporting, but you have experience with the product or service, that is a scenario where the export requirement can possibly be waved.
Yes, these are great questions.  Thank you.  I love questions.  Keeps me on my toes.  (laughter).
   >> LEXI JONES:  It's always nice when it can be a little more interactive.
   >> LaTAUNYA DARDEN:  Exactly.  I love it.
   >> LEXI JONES:  Does anyone else have a question that they would like to come off of mute and ask or put in the chat, you're welcome to.
   >> LaTAUNYA DARDEN:  I see someone asked about customer service, particularly general communications.  Yes, that is something that ‑‑ or a service that potentially can receive service from EXIM.  The key to remember is as long as your customer is located outside of the United States and U.S. personnel are providing that service, whether it's here in the U.S. or abroad, that is something that we can potentially look at.  Yes.
   >> LEXI JONES:  Wonderful.  All right.  Any more questions before we move into the services that NDI provides and then wrap things up?  You're welcome to throw them into the chat if you think of something.
   >> LaTAUNYA DARDEN:  To add to that, you can also schedule an appointment with me.  It would be to meet with me or someone on my team.  You can also call me or send me an email, all of which I have included in the chat.
   >> LEXI JONES:  Wonderful.  Thank you for that.  You know, of course, once you get off the webinar then you think the next question you wanted to ask.  Right.
   >> LaTAUNYA DARDEN:  Exactly.
   >> LEXI JONES:  First I'll share your contact information so everyone can see it on the screen as well, I know you put your phone number and email in the chat also.  We will send an email with all of the information, how to access the recording and the slides, and reach LaTaunya, you'll have this in email as well, everybody.  There is the information up on the screen.
We will let Ruth share some upcoming events and things about NDI.  There is still time if you think of another question to paste it into the chat for LaTaunya.
   >> RUTH CHAVEZ:  Thank you, Lexi.  Thank you, LaTaunya.  Upcoming events, we have the World of Possibilities Disability Expo which will be held April 3 11:00 to 3:00 p.m. eastern time an in‑person event at the Samuel Riggs IV Alumni Center College Park.
We have Addressing Barriers for Diverse Suppliers on Wednesday April 17th from 2:00 to 3:00 eastern standard time, presented by Yvonn Durbin, Director, of Capital Innovation Lab for the Strategic Investments.  You can register through the link provided in the chat.
At the NDI Small Business Hub, if you are an aspiring entrepreneur or have interest in starting a business or growing your business, you have access to small business support.  You can visit your website at www.disabilitysmallbusiness.org or you can email me at Ruth Chavez as rchavez@ndi‑inc.org.  You can visit our streaming TV channel for information and motivational content for disability‑owned small businesses.  That website is www.disabilityowned.com.  Also, you can access training and mentoring, business coaching and an opportunity to apply for a $10,000 grant through Verizon's Small Business Digital Ready Program.  If you need assistance with registering for that, feel free to reach out to me and we can set up an appointment and go through that process one‑on‑one as well and what would be the process of applying for the grant.
As always, we recommend if you have not signed up for the mailing list, feel free to sign up and Lexi will put that until the chat as well, for our small business hub where we provide new opportunities, opportunities for small businesses, and any grant opportunities that come about.
This is our team.  This slide has a picture of Nikki Powis, Director of small business programs, myself Ruth Chavez, Small Business Community Navigator, and Caroline Bolas, Small Business Specialist, and Alexis Jones, Small Business Project Coordinator.
   >> LEXI JONES:  That is the end of the presentation.  If there are any other questions, please feel free to raise your hand or come off mute.  Otherwise, LaTaunya would like to thank you for your team and sharing this important resource with the entrepreneurs that we work with.
Thank you to everyone for taking time out of your day to learn a little more about EXIM and NDI and please be on the lookout with an email with all of these links and information easily accessible for you.
   >> LaTAUNYA DARDEN:  Have a good afternoon, everyone.
(session completed at 1:39 p.m. CST)

Services provided by:
      Caption First, Inc.	
      P.O. Box 3066        
      Monument, CO  80132
      800‑825‑5234
      www.captionfirst.com

***
This text is being provided in a realtime format.  Communication Access Realtime Translation (CART) or captioning are provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings.
***