Trade Finance Advisory Council Members Can Help Lay Policy Groundwork for Next Administration, Pritzker Says
Members of the International Trade Administration’s recently formed Trade Finance Advisory Council (TFAC) can help bridge executive branch export financing policies and programs heading into the new Trump administration, Commerce Secretary Penny Pritzker said Nov. 18 during the first meeting. Deputy Commerce Secretary Bruce Andrews told members to craft actionable recommendations grounded in a “solid consensus.” TFAC member and Meridian Finance Group President Gary Mendell said there is a need for public/private partnerships like TFAC to expand and ensure the durability of credit financing for small and medium-sized enterprises (SMEs).
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One of the biggest challenges for financiers engaged in small-business lending is understanding collateral and credit monitoring, The Credit Junction Chief Strategy Officer and TFAC member Sergio Rodriguera said during the meeting. Rodriguera said his firm is analyzing data to better understand these nuances in an effort to improve small-business lending, and that he hopes to bring related insights to the council. For SMEs with capital up to $10 million, “what we are doing with the life cycle of the loan is providing assets to the additional capital in a very efficient and transparent way,” Rodriguera said. “For companies who may have challenges with traditional forms of capital available to them, there are many products available to them.”
TFAC member and FirmGreen CEO Steven Wilburn said taking out loans for small businesses is cumbersome, intimidating and expensive. He noted that “most of us SMEs” misunderstand financiers’ vetting processes, and called for more coordination across the different modes of trade finance. He referred to the Small Business Administration, the Overseas Private Investment Corporation and the Export-Import Bank as currently functioning like “pockets” that could work more effectively if they were part of a more cohesive public framework. Wilburn said he hopes to engage in meaningful dialogue at TFAC about SME trade financing, bringing the perspective of a small business.