Florida Export Finance Corporation



FEFC

[pic]

APPLICATION

Florida Statute 288.770, effective July 1st, 1993, created and funded the Florida Export Finance Corporation (FEFC) as a not for profit corporation with an economic development mandate to expand employment and income opportunities for Florida residents.

Fulfillment of the mandate is to be accomplished by increased exports of goods and services resulting from informational, technical, and financial assistance given by FEFC to small and medium sized Florida domiciled businesses. No specific Florida content is required for the exported items but preference is given to Florida value added transactions.

Information and technical assistance to business is offered and the FEFC will cooperate and work with other organizations to enhance the ability of Florida exporters to increase their access to programs designed to assist them. However, financial assistance is the primary service offered by the FEFC. FEFC financial assistance is available to small and medium sized companies registered to do business in the State of Florida; with less than 250 employees and less than a $6,000,000 net worth; only for direct export transactions; only for goods and services being shipped from Florida; and only when the inability to obtain financing elsewhere is demonstrated.

FEFC financial assistance is in the form of a loan guarantee generally for short-term transactions. The FEFC may have guarantees outstanding at any one time not greater that 5 times the FEFC Fund amount at such time.

In order to make full use of its leveraging authority FEFC financial assistance to exporters is in the form of guarantees given to commercial lenders who make loans to exporters to support a verified foreign order. The exporter may apply directly to the FEFC for a loan guarantee or a lender may apply on behalf of an exporter. The maximum amount FEFC will consider guaranteeing is $500,000 and the FEFC guarantee may not exceed 90% of the loan value. The loan is to be secured by the foreign receivable generated by the sale. Ex-Im Bank or other acceptable foreign risk insurance should be obtained where possible.

The FEFC does not make grants, nor will it issue loan guarantees unless they can be secured in a manner which assures a high probability of repayment. The FEFC paperwork will be the minimum necessary and fees and rates will be as low as possible. FEFC loan guarantees will require the lender to follow all customary and prudent lending practices.

The agreement of lenders to accept the FEFC guarantee is dependent on many factors. The question of safety is paramount and is reflected by FEFC’s credit policy, the risk mitigation arrangements which the FEFC might have, and the size of the FEFC Fund. Where possible FEFC will use the risk mitigation programs of Ex-Im Bank or other acceptable means. FEFC’s credit policy and procedures, and its operations policy and procedures have been formulated by FEFC’s Board of Directors to evolve based on FEFC’s delineated market and acting as an economic development entity. These individuals all have extensive experience in commercial lending, export sales and trade finance representing and blending the expertise of lenders and exporters, both large and small.

FEFC’s Board of Directors recognizes the wide gap between the financing needs of small and medium sized exporters and the conservative approach required of conventional lenders, especially when it concerns trading companies who by many lending definitions are viewed as being undercapitalized with insufficient collateral. The bridging of this financing “gap” and the

mandate to assist and nurture the growth of qualified Florida exporters is the guiding principle of FEFC’s Board of Directors. Application of FEFC’s credit policy and procedures will always consider this factor.

FEFC accounts and books are maintained by the Corporation with annual audits by independent auditors and regular reviews by the State of Florida. The FEFC Fund, initially funded with $1,000,000 from the State of Florida, is under the full control of FEFC’s Board of Directors and is separated from any other funds. Additional funding may be appropriated each year by the State of Florida or from other sources, both public and private. The Corporation’s administrative expenses are allocated from the FEFC Fund in accordance with an operating budget approved by the Board of Directors. All fees, interest income, investment income or any other income is deposited directly to the FEFC Fund. Investments are made under rules established in Florida Statutes and in accordance with policy established by FEFC’s Board of Directors.

The policy of the Board of Directors is to operate the FEFC in a sound and prudent manner, which will accomplish the purposes, and requirement of the Corporation as set forth in Florida Statutes while safeguarding and increasing its assets. The Board has established a credit committee, an audit and examination committee, an asset and liability committee, a management review committee and an executive committee. Each committee has specific responsibilities concerning establishing and overseeing policies and procedures of the Corporation.

FINANCIAL ASSISTANCE CRITERIA

FEFC financial assistance is available only for exporters and transactions which meet the following requirements:

The exporter/borrower must be registered to do business in Florida and be able to produce a current corporation, partnership or proprietorship registration.

The exporter/borrower must have less than 250 employees. Full and part time employees are included in this requirement.

The exporter/borrower must have less than $6,000,000 of net worth.

The equity owner of the exporter/borrower must sign the FEFC application, all loan documents, and personally guarantee the loan.

The exporter/borrower must have a specific and verified order from a foreign buyer and the loan must be made to support the order.

The goods or services must be shipped from Florida.

The maximum FEFC guarantee amount is 90% of the loan or $500,000, which ever is the lowest.

The maximum term for a guarantee is one year.

The maximum cumulative FEFC financial assistance available to any one exporter/borrower in any five-year period is $500,000. The FEFC Board of Directors may exempt an exporter from this requirement upon proof of need.

If the exporter/borrower applies direct to the FEFC for an FEFC loan guarantee the exporter must demonstrate the inability to obtain funding elsewhere. (Lender loan denial letter, if any, must accompany the application).

An application for an FEFC guarantee which is submitted through a lender must include a lender application stating the loan will be made only with a guarantee from FEFC.

CHECKLIST FOR SUBMITTING THE FEFC GUARANTEE APPLICATION PACKAGE

The items included in this checklist should provide the necessary information for FEFC to fully evaluate and process your loan guarantee request. Please make sure to submit the following requested information with your application:

APPLICATION

1. Borrower’s FEFC Application form (including Statutory Compliance)

2. $250 Processing Fee (payable to FEFC)

PROFILE

3. Resume of principals and key employees

4. Copy of Business plan (if new business)

5. FEFC Exporter Profile form

6. History of Business (please see attached guideline)

7. Borrower’s Certification

TRANSACTION(S)

8. Explanation of use of proceeds and benefits of the loan guarantee, including

details of the underlying transaction(s) for which loan is needed.

9. Copy of Letter of Credit and/or copy of buyer’s order/contract *if applicable

10. Foreign risk insurance-related materials (policy, application, buyer credit limit)

*if applicable

FINANCIAL INFORMATION

11. Business financial statements (Balance Sheet & Income Statement for the

last three (3) years.) The most current year end financials may be required to be CPA

reviewed *if applicable

12. Current financial statement (interim) dated within one hundred & eighty (180)

days of the date of application filing.

13. Aging of accounts receivable and accounts payable, as of last balance sheet date

14. The most recent federal and state income tax returns for the business.

15. Personal financial statement(s) of the major shareholder(s)/partner(s)

of the company (over 20%)

16. Most recent personal federal income tax return. (of above persons)

17. Lender or supplier reference letters *if applicable

BUSINESS HISTORY GUIDELINES

1. How business started, how many employees, background of the borrower (registered as a “C”, “S”, “LLC” or other), competitive edge, what NAICS (Industry Classification).

2. Who are the stockowners with 20% or more? Background of key management (title, professional experience, contact info i.e. email, address, phone)

3. Borrowing and financing experience (listed by financial institution, including any existing liens, previous experience with FEFC (if any) and credit insurance coverage, CILC). Who does the business bank with, is this a depository relation or what kind of relation? Does business have any credit lines and if so what are the terms and what is the collateral.

4. Product(s) to be exported, explain: if manufacturer; is manufacturing from the ground up or does company buy components and put them together? What countries are they exporting to and who are the most important clients? What are the terms to buyers? Is company wholesaler or distributor, what kind of terms does company have with suppliers, provide list of suppliers with address, does company have representation or a private label, etc.

5. Transaction Sequence: Example only- Each deal could be different

a) Exporter/Borrower receives purchase order from foreign Buyer

b) Lender disburses funds to Borrower’s Supplier (s)

c) Products are shipped to Buyer

d) Buyer pays according to terms (What are the terms?)

EXPORTER’S APPLICATION FOR FINANCIAL ASSISTANCE

Date:      Application No.      (for FEFC use)

1- Company Information

a. Exporter:

Company Name-      

Address-      

10 digit zip code-      

b. Name and title of contact person:      

c. Telephone No.:       Fax No:      

d. Legal status of exporter (Ind., P/ship, Corp):      

e. Principals’ Names/ Address / Social Security Number:

                 

                 

                 

2- Product(s) to be exported:

3- Name and address of Foreign Buyer(s), (attach list as necessary):

     

     

     

     

Note: FEFC’s guarantee may be requested to support extension of credit relating to: (a) a single sale;

(b) a particular series of sales; or (c) a continuing flow of sales on a revolving basis.

4- Terms of Buyer payment (Cash, Net 30 days, Etc.):

5- Contract

a. Export sale contract value:      

b. Terms of Sale (FOB, CIF, etc.):      

6- Amounts/Payments

a. Amount of lender credit requested:      

b. Proposed final payment date of lender credit:      

c. Nature of lender credit (loan, standby or domestic L/C):      

7- Type and value of proposed collateral (company assets/export product):

      $     

      $     

      $     

8- Purpose of guarantee requested:

Pre-shipment Working Capital Post-Shipment (AR financing)

Combination

9- Documents attached relating to export sale(s):

Copy of letter of credit, if available

Copy of contract or purchase order(s)

Copy of credit insurance policy, or Special Buyer Credit limit application/approval

10- Content Certification: If U.S. content exceeds 50% show percentage here-      %

The undersigned hereby certifies that the export goods being financed have a U.S.

Content in excess of 50% of total FOB doc value. Total content to be measured can

include labor, materials, freight, direct service, overhead and other direct or

allocated cost but exclude profit.

If less than 50% please show U.S. content percentage here-     %

11- Is a validated export license required?      ; If yes, status?      

12- Percentage of export sales to total sales: Last 12 months      % Next 12 months (estimate)       %

13- Number of employees in Florida at present     ; (full and part time)

14- State why a FEFC loan or guarantee is required; i.e., have you attempted to secure related financing? If so, list bank(s) contacted and results. Attach lender denial letters if such was issued.

     

15- Please see attached checklist for material to support this application, including the $250

non-refundable processing fee.

Return completed application to: FLORIDA EXPORT FINANCE CORPORATION

10400 NW 33RD Street, Suite 200

Miami, FL 33172-5902

We hereby certify that the representations made and the facts stated in this application are true, to the best of our knowledge and belief, and that, we have not misrepresented or omitted any material facts relevant to said representations. We understand and agree that such representations shall form the basis of approval, if granted by the Florida Export Corporation and that the truth of such representations and facts contained herein or attached hereto shall be a condition of any commitments or guarantees extended.

By: _________________________ _____________________

Authorized Signature Name/Title

STATUTORY COMPLIANCE CHECKLIST

Applicant:

The company applying at this time for export financing assistance from FEFC meets the following application criteria:

Applicant is registered to do business in the State of Florida. Yes No

Applicant employs less than 250 people Yes No

Applicant has a net worth of less than $6,000,000. Yes No

Applicant has sought export financing from a conventional lender (check one)

Applicant referred to FEFC by lender

Applicant turned down by the lender in writing (letter in file)

Applicant turned down during interview with lender.

Name of lender:      

Contact person:      

Contact number:      

Have the principals or the company filed for protection under any bankruptcy laws?

No Yes (if yes, attach details)

Are there pending lawsuits/judgments/tax or other liens against the principals or the company?

No Yes (if yes, attach details)

Have any of the principals ever been convicted of a felony?

No Yes (if yes, attach details

This is to certify under penalty of law that the above information is true and correct, and is offered as a material inducement for Florida Export Finance Corporation to consider offering export financing assistance to the applicant, and that I am authorized to sign on the applicants behalf.

Signature: _______________________________ Date: __________________________

Application No.: _______________ (FEFC Use only)

EXPORTER PROFILE

COMPANY NAME:      

ADDRESS:      

     

ZIP CODE (10 digits):       COUNTY:      

TELEPHONE:       FAX:      

BACKGROUND SUMMARY

Type of Business

Check one- Corporation Partnership Sole Proprietor

Check one- Manufacturer Distributor Services

Trading Agriculture

Date and Jurisdiction Incorporated/Registered:      

     

Duns Number:      

Federal Employer Identification Number:      

Social Security Number (if Sole Proprietor):      

Number of Employees: Full Time       Part Time      

Years of Exportation:      

Products:       =      % of Export Sales

Services (please explain)      

Buyer Types % of Export Sales

Manufacturers      

Dealer/Distributors      

Governments      

Wholesalers      

Retailers      

Sales 20      20      20     

Export                  

Domestic                  

Total                  

Countries Exported to % of Export Sales

           

           

           

Banking Information

Bank Name:      

Address:      

Officer:      

Telephone:       Fax:      

Parent, Subsidiary or Affiliated Companies

Name Location Relationship

                 

                 

                 

Do you now use or in the past two years used any government export assistance programs?

Yes No If yes, please give type of usage and program name:      

Ownership and Management Information- Attach resumes for each.

Name Position % Ownership

                 

                 

                 

Please attach most current company Financial Statements and any company marketing literature.

Signed by: _______________________________ Title: __________________________

Signature: _______________________________ Date: __________________________

AUTHORIZATION TO RELEASE INFORMATION

I hereby authorize Florida Export Finance Corporation to release the financial and company information provided by me, to a financial institution that may serve as a lender for the company’s export transactions.

This information may include, but is not limited to, business plans and projections, business and personal financial statements and tax returns.

___________________________________ ___________________________________

Authorized Signature Date

___________________________________ ____________________________________

Name of Officer Title

___________________________________

Name of Company

Florida Export Support Program

Export Loan Guarantee

Borrower Certification

Borrower Information

|Company Name | |

|Company Address | |

|City | |County | |

|Phone Number | |Fax Number | |

|Email Address | |

|Tax ID Number | |NACIS Code | |

Estimated Job Creation

|Number of Current employees | |

|Estimated jobs to be retained due to the guarantee | |

|Estimated new jobs created due to the guarantee | |

|Estimated average wage for the new jobs | |

Tracking Information (Please provide a response, as specified, to the following questions)

|Current Annual Sales | |

|Primary Business Activity | |

|Type of company (e.g., manufacturer) | |

|Is the company minority-owned? (yes/no) | |

|Is so, what ethnicity? | |

|Is the company woman-owned? (yes/no) | |

|Is the company veteran-owned? (yes/no) | |

The Borrower certifies and acknowledges that:

1. The loan proceeds will be used for a “business purpose”. A business purpose includes, but is not limited to, startup costs, working capital, business procurement, franchises fees, equipment, inventory, as well as the purchase, construction renovation or tenant improvements of an eligible place of business that is not for passive real estate investment purposes. The definition of business purpose excludes acquiring or holding passive investments such as commercial real estate ownership, or the purchase of securities; and lobbying activities (as defined in Section 3(7) of the Lobbying Disclosure Act of 1995, P.L. 104-65, as amended), or acquiring or holding passive investments such as commercial real estate ownership, or purchase of securities; and

2. The loan proceeds will not be used to:

a. repay a delinquent federal or state income taxes unless the borrower has a payment plan in place with the relevant taxing authority;

b. repay taxes held in trust or escrow, e.g. payroll or sales taxes;

c. reimburse funds owed to any owner, including any equity injection or injection of capital for the business’ continuance;

d. purchase any portion of the ownership interest of any owner of the business; or

e. enhance the unguaranteed portion of a SBA – or other federally –guaranteed loan.

3. The principal shareholder(s) is not:

a. an executive officer, director, or principal shareholder of the financial institution lender;

b. a member of the immediate family of an executive officer, director, or principal shareholder of the financial institution lenders; or

c. a related interest or an entity controlled by an executive officer, director, principal shareholder of the Lender or member of the immediate family of an executive officer, director or principal shareholder of the Lender.

FEFC understands that the borrower may or may not be aware of the existence of a condition prohibited by paragraph 3. at the signing of this Borrower Certification, and FEFC shall verify with the Borrower, at the time of closing if certification of paragraph 3., is still, in fact true.

For purposes of these borrower restrictions, the terms "executive officer", "director", "principal shareholder" and "immediate family" refer to the same relationship to a financial institution lender as the relationship described in 12 C.F.R. Sec. 215.2 (1991) “Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks”, including amendments and modifications.

4. The company is not:

a. a business engaged in speculative activities that develop profits from fluctuations in price rather than through normal course of trade, such as wildcatting for oil and dealing in commodities futures, unless those activities are incidental to the regular activities of the business and part of a legitimate risk management strategy to guard against price fluctuations related to the regular activities of the business;

b. a business that earns more than half of its annual net revenue from lending activities; unless the business is a non-bank or non-bank holding company Community Development Financial Institution;

c. a business engaged in pyramid sales, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants;

d. a business engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted. (Included in these activities is the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that knowingly permits illegal prostitution);

e. repaying a delinquent state or federal income tax unless the borrow has a payment plan in place with the relevant taxing authority; or

f. a business engaged in gambling enterprises, unless the business earns less than 33% of its annual net revenue from lottery sales.

5. No principal of the company has been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C 16911)). For the purposes of this certification, “principal” is defined as “if a sole proprietorship, the proprietor; if a partnership, each partner; if a corporation, limited liability company, association or a development company, each director, each of the five most highly compensated executives, officers, or employees of the entity, and each direct or indirect holder of 20% or more of the ownership stock or stock equivalent of the entity”.

6. The Borrower is:

a. a corporation, partnership, joint venture, sole proprietorship, cooperative, limited liability corporation, or other for profit or not for profit entity, and is authorized to conduct business in Florida; and,

b. a business entity with 250 or fewer employees.

7. The borrower authorizes the Lender and FEFC to report to the Department of Economic Opportunity (the Department) certain loan information as the Department may reasonably require.

Authorized Signature for Borrower

|Borrower Signature | |

|Printed Name | |

|Title | |

|Date | |

|Borrower Re-Certification at | |

|closing (Signature/Date) | |

Verified by FEFC at Time of Closing with Financial Institution

|FEFC Signature | |

|Printed Name | |

|Title | |

|Date | |

PERSONAL FINANCIAL STATEMENT

As of:      , 20     

|Complete this form for (1) each proprietor: or (2) limited partner who owns 20% or more interest and each general partner, or (3) each |

|stockholder owning 20% or more of voting stock, or (4) any person or entity providing a guaranty on the loan. |

|Name:       |Business Phone:       |

|Residence Address:       |Residence Phone:       |

|City, State & Zip Code (10 digits):       |

|Business Name of Applicant/Borrower:       |

|ASSETS |LIABILITIES |

|Cash on hand & in banks |$      |Account Payable |$      |

|Savings Account |$      |Notes Payable to Banks & Others (describe in section 2) |$      |

|IRA or Other Retirement Account |$      |Installment Account (Auto) |$      |

| | |Mo. Payments $      | |

|Accounts & Notes Receivable |$      |Installment Account (other) |$      |

| | |Mo. Payments $      | |

|Life Insurance-Cash Surrender Value Only |$      |Loan on Life Insurance |$      |

|(complete section 8) | | | |

|Stocks & Bonds (describe in section 3) |$      |Mortgages on Real Estate (describe in section 4) |$      |

|Real Estate (describe in section 4) |$      |Unpaid Taxes (describe in section 6) |$      |

|Automobile-Present Value |$      |Other liabilities (describe in section 7) |$      |

|Other Personal Property (describe in section |$      |TOTAL LIABILITES |$      |

|5) | | | |

|Other Assets (describe in section 5) |$      |NET WORTH |$      |

|TOTAL ASSETS |$      |TOTAL |$      |

|SECTION 1: Source of Income |Contingent Liabilities |

|Salary |$      |As Endorser or Co-Maker |$      |

|Net Investment Income |$      |Legal Claims & Judgments |$      |

|Real Estate Income |$      |Provision for Federal Income Tax |$      |

|Other Income (describe below) |$      |Other Special Dept |$      |

|Description of Other income in Section 1 |

|      |

|Alimony or child support payments need not be disclosed in “Other Income” unless it is desired to have such payments counted towards total |

|income |

|SECTION 2: Notes Payable to Banks & Other |

|(Use attachments if necessary. Each attachment must be identified as a part of this statement and signed) |

|Name & Address of Note Holder |Original |Current |Payment Amount |Frequency (monthly) |How Secured or Endorsed/Type of |

| |Balance |Balance | | |Collateral |

|      |$      |$      |$      |      |      |

|      |$      |$      |$      |      |      |

|      |$      |$      |$      |      |      |

|      |$      |$      |$      |      |      |

|SECTION 3: Stocks & Bonds (Use attachment if necessary. Each attachment must be identified as a part of this statement and signed) |

|Number of Shares |Name of Securities |Cost |Market Value |Date of |Total Value |

| | | |Quotation/Exchange |Quotation/Exchange | |

|      |      |$      |$      |      |$      |

|      |      |$      |$      |      |$      |

|      |      |$      |$      |      |$      |

|SECTION 4: Real Estate Owned (list each parcel separately. Use attachment if necessary. Each attachment must be identified as part of |

|this statement and signed) |

| |Property A |Property B |Property C |

|Type of Property |      |      |      |

|Address |      |      |      |

|Date Purchased |      |      |      |

|Original Cost |$      |$      |$      |

|Present Market Value |$      |$      |$      |

|Mortgage Account Number |      |      |      |

|Mortgage Balance |$      |$      |$      |

|Amount of Payment per Month/Year |$      |$      |$      |

|Status of Mortgage |      |      |      |

|SECTION 5: Other Personal Property and other Assets (Describe, and if any is pledged as security, state name and address of lien holder, |

|amount of lien, terms of payment and if delinquent, describe delinquency.) |

|      |

|SECTION 6: Unpaid Taxes (Describe in detail, as to type, to whom payable, when due, and to what property, if any, a tax lien attached.) |

|      |

|SECTION 7: Other Liabilities (Describe in detail.) |

|      |

|SECTION 8: Life Insurance Held (give face amount and cash surrender value of policies- name of insurance company and beneficiaries.) |

|      |

|**I authorize FEFC to make inquiries as necessary to verify the accuracy of the statements made and to determine my creditworthiness. I |

|certify the above and the statements contained in the attachments are true and accurate as of the stated date. These statements are made for |

|the purpose of either obtaining a loan or guaranteeing a loan. I understand FALSE statements may result in forfeiture of benefits and |

|possible prosecution by the US Attorney General. |

|Signature: |Date: |Social Security Number: |

|Signature |Date: |Social Security Number: |

|**Please complete, print/sign and submit with complete application packet |

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download