The Private Export Funding Corporation (PEFCO) is a major source of capital for intermediate- and long-term fixed-rate loans for U.S. exports. It acts as a supplemental lender to traditional sources by making loans available for foreign purchasers of U.S. goods and services.
PEFCO is a private corporation owned by banks and industrial and financial companies. It works closely with Eximbank. Eximbank, for example, unconditionally guarantees all PEFCO loans. It assists in the financing of U.S. exports by providing a direct loan or buying export loans originated by lenders. PEFCO has a program for small-business exporters to provide short-term working capital through private lenders or directly to small business exporters as a lender of last resort.
Source: Seyoum Belay (2014), Export-import theory, practices, and procedures, Routledge; 3rd edition.
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