Bank Approves $39 Million in Export Credit Insurance for Minnesota Small Business

April 5, 2012 - 3:30pm

Exporter: BendTec – Duluth, Minnesota
Destination: India
Ex-Im Bank Product: Buyer Financing
Jobs Supported: 50 retained employees (and up to 40 to be rehired)

BendTec, a company started in 1916, provides steel bending and fabrication to a variety of industries. With Ex-Im Bank's nonpayment risk support, this small business of 109 employees obtained a large contract that will maintain and increase jobs in Duluth, Minnesota.

The Bank approved a $39 million single-buyer export credit insurance policy for BendTec that will allow it to sell fabricated high pressure piping, bends and fittings to Technopromexport in Moscow, Russia. BendTec's products will be exported to India for installation at the Barh super thermal power project.

The purchase by Technopromexport represents BendTec's largest ever awarded contract. On its own, BendTec was unable to accept the risk of nonpayment for a contract of this size. However, with the backing of Ex-Im Bank's insurance and a $22 million working capital lender loan guarantee BendTec was able to secure this contract and retain at least 50 employees. This export sale will also allow the company to rehire up to 40 additional employees who had previously been laid off during the economic crisis.

BendTec's export credit insurance policy was brokered by Trade Acceptance Group, a Midwest-based specialized trade finance company, who helped arrange the transaction. The working capital loan was obtained from JPMorgan Chase.

"We are grateful to Ex-Im Bank for providing us with the necessary insurance to mitigate our payment risk," said BendTec Vice President and CFO Tom Conrad. "We wish to thank Ex-Im Bank and JPMorgan Chase for supporting us on this project and for allowing us to enter overseas markets we are less familiar with. These markets are necessary for us to grow our business in these economically challenged times."