Ex-Im back US business jet exports

The Export-Import Bank of the United States (Ex-Im) says it wants to finance
business jets and helicopters worth over $1 billion by 2013. This would triple
its commitment to business aviation.

“Business aircraft and helicopters are a vital part of the US aerospace
industry that is one of the most competitive sectors of the economy and employs
thousands of Americans,” says Fred Hochberg, chairman of Ex-Im. “We want to
support these good jobs.

At EBACE 2012, Hochberg announced that Cessna Finance would receive $300 million in
guarantees allowing it to finance Cessna aircraft and Bell helicopters. PNC
Finance will provide the guaranteed loan. This is the second time the bank has supported Cessna Finance.

He also said that Ex-Im had launched a new qualified adviser scheme where
private sector organizations would outsource due diligence and credit analysis
for the bank. Hochberg says this will speed up approval times, one of the
biggest criticisms of business jet export credit deals.

“We want to offer government at the speed of the business,” says Hochberg. “We
want to provide financing in a real time way.”

He says that Ex-Im bank will try and approve deals within two to four weeks
of applications.  Deals below $10 million
can be approved by Bob Morin, vice president of transportation without needing
to go to the Ex-Im board.

The first qualified adviser is Airfinance a specialist firm run by Kirsten
Bartok, former vice president of structured finance and corporate development
at Hawker Beechcraft, and Tom Low, former president of Textron Financial and
Cessna Finance Corporation. Airfinance will work with buyers to prepare
applications

Ex-Im says that they are keen to talk with other firms that would like to
become qualified advisers. “We are keen to support general aviation
manufacturers that do not have captive finance arms. We are very happy with
Cessna and Bell and want to expand it,” says Hochberg. “Ex-Im Bank understands
that business-aircraft transactions require specialized knowledge and
experience but has limited resources to meet the growing demand for export
financing in this industry. By leveraging private-sector expertise to assist
and support our evaluation of these credits, we will be able to expand Ex-Im
Bank’s support for U.S. business-aircraft exports and the manufacturing jobs
that they sustain.”

In its 2011 financial year Ex-Im Bank authorized $12.6 billion in aircraft financing
however just $90 million of this was for business aircraft and helicopters. It
financed the export of 10 business aircraft to Brazil, Mexico, Panama and
Switzerland.