New Status Means Exporters Can More Easily Qualify for Larger Working Capital Loans
LOS ANGELES--(BUSINESS WIRE)--Nov. 13, 2006--Exporters inCalifornia who need working capital to fulfill overseas orders now canmore easily qualify for larger export finance loans with lower feeswith City National Bank, which recently was designated as a "HighPlus" Delegated Authority lender by The Export-Import Bank of theUnited States.
Ex-Im Bank, the nation's official export credit agency, approved anew level of delegated authority designated as "High Plus," whichallows qualified lenders to approve working capital loans up to $7.5million per borrower and receive an Ex-Im Bank guarantee without itsprior approval. City National's previous "High Level" designationallowed up to $5 million per borrower without prior Ex-Im Bankapproval.
"This is great news for exporters in California," said Tom Burr,City National Bank senior vice president and manager of theInternational department's Export Finance Group. "Our increased exportfinance activity, the expertise we've brought on board to run theprogram and the high level of skill in our Asset Based Lendingdepartment has helped Ex-Im Bank's growing confidence in our workingcapital program. That means small and mid-sized companies now haveeven more resources through City National to finance their exportactivities."
Presently, Ex-Im Bank charges 1.5 percent of the loan amount forany Working Capital Guarantee Program (WCGP) facility that is approvedoutside of a bank's delegated authority. Now, with the increaseddelegated authority, City National can approve a working capital lineof credit up to $7.5 million without first gaining approval from Ex-ImBank, and can negotiate a lower facility fee for its clients using theWCGP.
About City National
City National Corporation (NYSE:CYN) is a financial servicescompany with $14.6 billion in total assets. Its wholly ownedsubsidiary, City National Bank, is California's Premier Private andBusiness Bank(R). City National provides banking, investment and trustservices through 54 offices, including 12 full-service regionalcenters, in Southern California, the San Francisco Bay Area and NewYork City.
City National Bank's International Banking Services departmentserves businesses, professional firms, business managers and theirclients, and entrepreneurs through a range of international bankingservices, including trade financing, currency management, foreignexchange, foreign credit information, online foreign exchange andonline letters of credit.
For more information about City National, visit the company'sWebsite at cnb.com.
CONTACT: City National Bank
Daniel Minkoff, 213-673-7631
SOURCE: City National Bank