Programs -Short-Term Insured Loan Facility-
The PEFCO Short-Term Insured Loan Facility is a secondary market buyer of loans
financing short-term export receivables insured against nonpayment by the
Export-Import Bank of the United States ("Ex-Im Bank").
Eligible Loans
PEFCO purchases participations in loans insured under short-term policies that are
"documentary" or "enhanced" (i.e., policies under which the risk of supplier
non-performance is eliminated).
- Financial Institution Buyer Credit policy
- Bank Letter of Credit policy
- Small Business and New-to-Export policies
PEFCO does not purchase participations in loans insured under non-documentary policies.
Eligible Lenders
PEFCO will purchase loans from any bank, finance company, or asset-based lender
experienced in structuring and financing Ex-Im Bank loans. PEFCO does not
purchase loans directly from exporters.
The amount of loans purchased from a lender will depend upon PEFCO's evaluation
of the lender's experience with these loans and ability to indemnify PEFCO if policy
coverage is lost or a claim denied.
PEFCO Purchase
PEFCO purchases the insured portion of each loan (e.g., 90%, 95%, 98% or 100%)
without recourse to the lender. The lender funds and retains the risk of the uninsured
balance.
Purchase Document
The PEFCO purchase document is a Master Short-Term Insured Loan Participation
Agreement that governs all purchases.
PEFCO requires the personal guarantee of majority owners of non-regulated and/or
privately-held lenders.
Loan Servicing
Lender retains control over loan servicing, documentation, the Ex-Im Bank policies and claims.
Interest & Fees
A schedule of interest rates and fees is available from PEFCO.
Special Programs
PEFCO offers several programs to meet specific needs. (See Short-Term Initiatives in the Small Business Initiative section.)
