The U.S. Export-Import Bank, which ceased conducting new business in July after Congress refused to extend its charter, may be back in business this fall. And a relaunch of the bank that provides financing and loan guarantees for exported U.S. goods couldn’t come soon enough for a small Ridgefield company on the cusp of a very big sale to a Saudi Arabia construction contractor.
Burke Industrial Coatings, which sells anti-bacterial coatings used on deck rails and in commercial cooling systems, among other uses, is about to complete a sale of 40,000 gallons of its Silver Bullet coating. The anti-microbial coating will be used in air ventilation equipment at a huge new airplane maintenance facility in Saudi Arabia, said Jim Harris, president of the seven-employee company.
Even with a sale price that is significantly lower than the $12 million list price for the coating, the order is a big deal for a company that generally earns about $10 million annually. Harris expects to double the company’s core staffing, and it will take more than 100 contract manufacturing employees at U.S. industrial plants to fill the giant order.
But with the demise of the Ex-Im Bank, Harris is scrambling to make sure he can craft a transaction that won’t go awry. As part of its foray into foreign markets, his company had won approval to buy Ex-Im Bank insurance just before the bank lost its charter. Now, Harris is meeting with Umpqua Bank, the company’s banker, and others who are helping him close the deal without the insurance protection Ex-Im would have offered.