Private Export Funding Corporation

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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