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An Engineering Multiplier Program for U.S. Exporters & Foreign Buyers
May 16, 2017 Tatiana Bertolo, Office of Small Business
Tagged: Exporting Tips

The EXIM medium-term engineering multiplier program (EMP) helps stimulate exports of U.S. architectural, industrial design, and pre-project engineering services and thus increases the potential for future project-related U.S. exports. It aims to expand the sales of project-related feasibility study services and pre-construction engineering, design and environmental services by offering fixed-rate loans and guarantees to foreign buyers of these services. In addition, EXIM provides direct financing solutions for U.S. small businesses (in any industry such as architectural services, construction, IT, etc.) that are looking to expand to foreign markets abroad – more information can be found here.

The U.S. Trade and Development Agency (USTDA) is the primary U.S. government agency for the funding of feasibility studies, and prospective U.S. service exporters are encouraged to approach USTDA to discuss eligibility of their proposed pre-project services for grant support.

EMP Program Description

The program is designed to generate additional exports of U.S. goods and services overall  (the "multiplier effect"), since the foreign buyer is more likely to procure U.S. equipment and construction services for a project for which U.S. engineers, designers, architects and environmental analysts undertook the feasibility study, design and other pre-project work.

The engineering multiplier program will finance feasibility studies, pre-construction design, engineering, architectural and environmental services undertaken prior to the award of major equipment supply and construction contracts for foreign projects.  These  services must support projects that have the potential of generating subsequent U.S. export orders of at least double the amount of the original pre-export service contract(s).

If the underlying project goes forward with U.S. goods and services,  EXIM Bank may extend a loan or guarantee for the project to the foreign buyer. The financing undertaken under the EMP can then be rolled into the subsequent financing of the project, on standard terms applicable to the nature of the project. Transactions that cannot meet the eligibility requirements of this program (because, for example, the transaction would not likely generate sufficient subsequent U.S. export orders) remain eligible for support under EXIM's standard medium-term guarantee.

The buyer must be a creditworthy entity and the underlying project must be eligible for EXIM support. Moreover, the Bank looks at the foreign buyer's ability to finance all stages of the project, whether or not the actual project is to be supported by EXIM. The buyer must be in a country eligible for EXIM Bank financing assistance. EXIM financing for U.S. pre-project services under the engineering multiplier program is eligible for repayment terms of up to five years. Applications for support of greater than $10 million, including any local cost support, are subject to review and decision by the Bank's board of directors.

Learn More

To learn more about the EMP program, please contact EXIM’s Engineering and Environment Division at: 202-565-3556. If you’re a small business who is in discussions with a foreign buyer seeking engineering services, please contact your local EXIM rep below to find out how you can benefit from export credit insurance or working capital guarantees:

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