§ 279c. Vermont Export Finance Program

(a) The Authority may, directly or indirectly, extend export finance to Vermont businesses, or to non-Vermont businesses where a substantial beneficiary of the export finance would be a Vermont business. The Authority may only directly extend export finance where the transaction will be guaranteed or insured against nonpayment by the Export-Import Bank of the United States, the U.S. Small Business Administration, or a comparable source of risk mitigation. Such export finance may include extending working capital loans to finance the pre-export costs of manufacturing, preparing, or accumulating products destined for export by overseas importers, the post-export costs of holding export receivables, as well as purchasing export receivables that are payable by overseas importers.

(b) The Authority may use any cash on hand in the Vermont Jobs Fund established under subchapter 3 of this chapter, any appropriations made by the General Assembly for this purpose, loans from banks, export finance specialty lenders, the Treasurer, or other sources in order to provide funds for lending under this subchapter. The Authority may pledge its assets as security for such loans.

(c) The Authority may sell any loans or participations in loans made under this subchapter to financial institutions.

(d) The Authority may extend export finance on such terms and conditions as it deems appropriate. Export finance directly extended by the Authority shall conform to the terms and conditions of the applicable risk mitigation offered by the Export-Import Bank of the United States, the U.S. Small Business Administration, or a comparable source of risk mitigation.

(e) Any excess of revenues over expenses derived from this program shall be deposited in the development fund. (Added 1995, No. 46, § 13, eff. April 20, 1995.)