SHORT-TERM WORKING CAPITAL FACILITY

The PEFCO Short-Term Working Capital Facility is a secondary market buyer of loans financing short-term working capital loans and letters of credit that are guaranteed against nonpayment by the Export-Import Bank of the United States ("Ex-Im Bank").

Eligible Loans	PEFCO will purchase participations in loans and stand-by letters of credit that are authorized by Ex-Im Bank under a Working Capital Guarantee. PEFCO will participate in any loan structure acceptable to Ex-Im Bank.
Eligible Lenders	PEFCO will purchase loans and stand-by letters of credit from any bank, finance company, or asset-based lender experienced in structuring and financing Ex-Im Bank loans. PEFCO does not finance exporters directly.
	The amount of loans purchased from a lender will depend upon PEFCO's evaluation of the lender's experience with these loans and lender's ability to indemnify PEFCO if guarantee coverage is lost or a claim denied.
PEFCO Purchase	PEFCO purchases the 90% guaranteed portion of each loan or letter of credit. PEFCO purchases are without recourse to the lender. The lender funds and retains the risk of the unguaranteed balance.
Purchase Document	The PEFCO purchase document is a Master Short-Term Working Capital Loan Participation Agreement that governs all purchases.
	PEFCO requires the personal guarantee of majority owners of privately-held lenders.
Loan Servicing	Lender retains control over loan servicing, documentation, the Ex-Im Bank guarantee and claims.
Interest & Fees	A schedule of standard interest rates and fees may be obtained from PEFCO.
Special Programs	PEFCO offers several programs to meet specific needs. (See Short-Term Initiatives in the Small Business Initiative section.)