Ex-Im Insurance Will Allow BendTec to Retain and Rehire Previously Laid-off Workers
WASHINGTON, April 13, 2011 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) today announced that the Board of Directors has approved nearly $40 million in export insurance for BendTec, Inc., a small business located in Duluth, Minnesota. Ex-Im Bank's insurance will allow BendTec to sell fabricated high pressure piping, bends and fittings to Technopromexport in Moscow, Russia. BendTec's products will be exported to India for installation at the Barh super thermal power project.
The purchase contract with Technopromexport represents BendTec's largest ever awarded contract. BendTec is a small business with 109 employees, and it was unable to accept the risk for a non-payment for a contract of this size. Ex-Im Bank's export-credit insurance allowed BendTec to secure this contract, which has allowed BendTec to retain at least 50 employees as it prepares for this project. This contract also allows BendTec to rehire up to 30-40 additional employees who had previously been laid off during the economic crisis.
"I am pleased that our export-credit insurance will enable BendTec to put people back to work," said Ex-Im Chairman & President Fred Hochberg. "Small businesses are the backbone of our economy, and we will continue to provide our small business owners with the export financing they need to successfully compete around the globe."
"We are grateful to Ex-Im Bank for providing us with the necessary insurance to mitigate our payment risk," said BendTec Vice President Tom Conrad. "We wish to thank Ex-Im Bank and JPMorgan Chase for supporting us on this project and for allowing us to enter overseas markets we are less familiar with. These markets are necessary for us to grow our business in these economically challenged times."
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private sector export financing at no cost to American taxpayers. The Bank provides a variety of financing products, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. capital goods and services. Small business exporters may obtain more information about Ex-Im products by calling 1-800-565-Exim (3946) and selecting option 2.
By charging fees and interest on all loan related transactions, Ex-Im Bank is self-sustaining. It is able to cover all operation costs and potential losses while also producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years.
In fiscal year 2010, Ex-Im Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance (including more than $5 billion in authorizations for small businesses), supporting an estimated 230,000 American jobs. During the first quarter of fiscal year 2011, the Bank approved $8 billion in total financing authorizations, supporting nearly $9.3 billion in export sales. The sales in turn support approximately 66,000 American jobs in communities across the country. For more information about Ex-Im Bank visit www.exim.gov.
SOURCE Export-Import Bank of the United States