Short-Term Insurance Pilot Program (STIPP)

The Export-Import Bank of the United States (Ex-Im Bank) has approved of a $100 million Short-Term Insurance Pilot Program to support short-term exports to several sub-Saharan Africa countries, including a number of countries where Ex-Im Bank support would not otherwise be available. 

The Africa Pilot Program assists businesses in sub-Saharan Africa in purchasing U.S.-made goods and services, including spare parts, raw materials and agricultural commodities. 

Under the Pilot Program, Ex-Im Bank can insure short-term export credit transactions involving various payment terms, including open account terms.  Highlights are as follows:

• U.S. exporters and financial institutions can apply for coverage under any of Ex-Im Bank's short-term insurance policies (including the bank letter of credit, single buyer, financial institution buyer credit or financial institution supplier credit policies).

• Both African importers and financial institutions can be the borrower under these policies.  

Please see the Sub-Saharan African CLS for a current listing of the countries eligible for the STIPP.

Commonly Asked Questions about the Short-Term Insurance Pilot Program:

What U.S. exports are covered under the Short-Term Insurance Pilot Program?
Exports of consumer goods, services, spare parts, raw materials (on terms up to 180 days) and certain bulk agricultural commodities and capital goods (on terms up to 360 days) can be supported under the Pilot Program.  Support for capital goods under this Program will be considered on a case-by-case basis.

How do U.S. exporters and financial institutions access this Program?
Apply to Ex-Im Bank for coverage using normal application procedures for a short-term single buyer policy.

How do African buyers and financial institutions access this Program?
As the African buyer/financial institution, you should contact your U.S. supplier or correspondent bank for information regarding eligibility and application requirements under the Program.

What is the premium fee charged by Ex-Im Bank to the U.S. exporter/financial institution applying for coverage?
Transactions under the Pilot Program will be priced using the single-buyer fees for the appropriate country. Detailed pricing information can be found on the Exposure Fee Advice Tables.

What information does Ex-Im Bank require for non-financial institution buyers/guarantors to determine creditworthiness?
Because information requirements depend on the U.S. dollar size of the transaction, please refer to the Short-Term Credit Standards. 

What information does Ex-Im Bank require for financial institution buyers/guarantors to determine creditworthiness?

1. Two current bank references dated no earlier than 30 days prior to the date of application.
2. The most recent fiscal year-end audited financial statements with notes and auditor's opinion. Interim statements will be required if the aforementioned statements are more than six months old.
3. If available, the lender that is financing the sale should submit their credit memorandum on the borrower.
4. Depending on the characteristics of specific transactions, additional information may be required.

Who do I contact at Ex-Im Bank to answer additional questions that I may have?
For transactions involving countries in sub-Saharan West Africa, please contact Ex-Im Bank by phone at 202-565-3916 or e-mail your questions to eximafrica@exim.gov.

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