Small businesses in the U.S. that manufacture aircraft parts and provide services for the aftermarket now have access to a new source of financing under a new policy implemented by the Export-Import Bank (Ex-Im Bank) for parts and services provided for foreign aircraft.
The new policy’s goal is to help small businesses in the U.S. expand sales of their aftermarket goods and services—from aircraft windows to aircraft maintenance. It also supports the National Export Initiative, a goal announced by President Obama in 2010 to double U.S. exports by the end of 2014, says an Ex-Im Bank spokesman.
Funding is not permitted, however, for sales to large aircraft manufacturers outside the U.S., in line with standing Ex-Im Bank policy for all its financing options. The bank applies the U.S. Small Business Administration’s definition of small companies to its financing options under this new policy.
In its past fiscal year, the Ex-Im Bank authorized $10.8 billion to support commercial aircraft manufactured in the U.S. and sold outside the country.
The bank, which is a federal agency that finances the sale of U.S. exports, recently faced funding challenges before the U.S. Congress over claims it provides foreign companies an advantage over their U.S. rivals.