Connecticut employers will benefit from a new financing partnership with the Ex-Im Bank of the United States that will help them strengthen and grow their export business, according to former Westport First Selectman Diane Farrell, a member of Ex-Im’s board. 
Diane Farrell: partnership will create Connecticut jobs. Contributed photo
The Connecticut Development Authority (CDA), the state’s quasi-public business financing arm, will now be able to provide international trade financing to small businesses thanks to the partnership, an announcement said.
“This City-State Partnership – Ex-Im Bank’s first in Connecticut – will give us the opportunity to provide many more Connecticut small businesses with the competitive financing tools they need to successfully compete in the global marketplace, and create Connecticut jobs,” Farrell said in a statement.
Gov. M. Jodi Rell said the partnership fills a financing need of Connecticut small exporters.
“This is tremendous news for our small exporters in need of lines of credit to sustain and grow their businesses,” Rell said. “Connecticut exports have been a traditional bright spot in our economy and this will allow us to build on that success.
“Connecticut companies are some of the most innovative in the world. Increasing our exports and giving employers more access to export financing will strengthen our hold in the global marketplace while creating jobs at home.”
Connecticut exports totaled more than $10.3 billion through August 2010, a 17.8 percent increase over the same time period last year.
Currently, the state’s top exports are: (1) Aircraft, spacecraft, parts; (2) Industrial machinery, including computers; (3) Electric machinery; sound equipment, TV equipment, parts; (4) Optic, photo, medical or surgical instruments and (5) Cereals, because of state-based hedge funds that buy and sell grains on international markets.
“CDA’s new service builds on our high level of finance expertise and provides more advantages to the state’s small banks, manufacturers, wholesalers, distributors and service companies as they compete internationally,” said CDA President Marie O’Brien.
Designated a “Delegated Authority Lender” by Ex-Im Bank, the CDA may now make credit decisions and provide up to $1 million in international trade financing to eligible exporters.
The lender is guaranteed for 90 percent of its principal and interest under each line of credit under Ex-Im Bank’s working capital guarantee.
