News Releases for September 2002
September 24, 2002
For further information, contact: Linda Butts
Division of Economic Development & Finance
North Dakota Department of Commerce
(701) 328-5300
State Of North Dakota, Export-Import Bank Of U.S. Join Forces To Expand Export Opportunities
FARGO, N.D. - Governor John Hoeven today implemented another of his strategies to help North Dakota businesses expand into foreign markets.
Hoeven and Dan Renberg, a member of the board of directors of the Export-Import Bank of the United States (Ex-Im Bank), signed a new export finance partnership agreement between the bank and the state as part of the governor’s two-day International Trade Conference that ends today.
“Working together we can help North Dakota businesses develop markets across the globe,” Hoeven said. “This partnership is one of the ways our administration is working to help North Dakota businesses tap into the global market and to help create more and better-paying jobs here at home.”
Under the agreement, the North Dakota Department of Commerce will market Ex-Im Bank’s export financing products to local businesses and commercial lenders. Ex-Im Bank and the Department of Commerce will also hold exporter and lender seminars throughout the state to inform companies about the financing products available through Ex-Im Bank.
Renberg said, “We look forward to working with Governor Hoeven and the Department of Commerce staff to increase the number of products exported from the state of North Dakota. Ex-Im Bank financing provides the security local lenders need to extend credit to exporters. Having local access to expert export information will provide North Dakota’s business community with the help it needs to compete in the international marketplace.”
Ex-Im Bank is the official export credit agency of the United States. The bank fills a critical trade finance gap by supporting exports to developing markets where commercial bank financing is unavailable or insufficient. The bank makes direct loans and loan guarantees and offers export credit insurance and working capital guarantees to help small and medium-sized U.S. companies.
Renberg said the partnership could also lead to a number of North Dakota banks signing up with Ex-Im Bank to become “delegated authority lenders.” Under the delegated authority program, lenders can make working capital loans directly to small and medium-sized businesses without Ex-Im Bank’s prior approval. “It’s a great way to put the local lending decisions in the hands of local lenders,” Renberg said.
North Dakota experienced a 107 percent increase in its export sales of merchandise between 1993 and 2000. North Dakota was one of only 11 states that more than doubled sales overseas during that time period. According to Small Business Exporters Association and the U.S. Department of Commerce, 70 percent of U.S. exporters have fewer than 20 employees.
Linda Butts, director of the Department of Commerce’s Economic Development & Finance Division said, “Wages of people in jobs supported by exports range 13-18 percent higher than average. Our partnership with Ex-Im Bank is one more service we can offer small- and medium-sized North Dakota businesses to help them compete and succeed around the world. It extends our ability to serve existing businesses.”
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