Supporting Statement for Paperwork Reduction Act Submissions
OMB Form 3048-0038
Application for Global Credit Express Revolving Line of Credit (EIB11-08)
General Instructions
A Supporting Statement, including the text of the notice to the public required by 5 CFR 1320.5(a)(i)(iv) and its actual or estimated date of publication in the Federal Register, must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below, and must contain information specified in Section A below. If an item is not applicable, provide a brief explanation. OMB reserves the right to require the submission of additional information with respect to any request for approval.
Specific Instructions
Justification
Explain the circumstances that make the collection of information
necessary. Identify any legal or administrative requirements that
necessitate the collection. Attach a copy of the appropriate
section of each statute and regulation mandating or authorizing the
collection of information.
The
Export Import Bank of the United States (Ex-Im Bank) pursuant to the
Export Import Bank Act of 1945, as amended (12 USC 635, et seq),
facilitates the financing of exports of U.S. goods and services. By
neutralizing the effect of export credit insurance and loan
guarantees offered by foreign governments and by absorbing credit
risks that the private sector will not accept, Ex-Im Bank enables
U.S. exporters to compete fairly in foreign markets on the basis of
price and product quality. This collection of information is
necessary, pursuant to12 USC Sec. 635 (a) (1), to determine
eligibility of the applicant for Ex-Im Bank assistance.
Indicate how, by whom and for what purpose the information is to be
used. Except for a new collection, indicate the actual use the
agency has made of the information received from the current
collection.
This form is used by an
exporter in order to obtain approval for an Ex-Im Bank direct loan
or a guaranteed working capital line of credit to finance export
sales. The information received provides Ex-Im Bank staff with the
information necessary to make a determination of the eligibility of
the applicant and its creditworthiness for Ex-Im Bank assistance
under this direct loan and guarantee program.
Describe whether, and to what extent, the collection of information
involves the use of automated, electronic mechanical, or other
technological collection techniques or other forms of information
technology, e.g., permitting electronic submissions of responses,
and the basis for the decision for adopting this means of
collection. Also describe any consideration of using information
technology to reduce burden.
For
the next several months Ex-Im Bank will only accept hard copy
applications for their Global Credit Express Revolving Line of
Credit.
Describe effort to identify duplication. Show specifically why any
similar information already available cannot be used or modified for
use for the purposes described in Item 2 above.
Each
application is independent so there is no duplication of information
for a given applicant.
If the collection of information impacts small businesses or other
small entities describe any methods used to minimize burden.
We have made extensive use of URL links to
policy guidelines on Ex-Im’s Web Site to facilitate required
certifications and assist users in completing the application. We’re
also making use of a two-step application process to enable small
businesses to determine if they are eligible based on credit scoring,
before they need to submit tax and financial statements for final
loan approval.
Describe the consequence to Federal program or policy activities if
the collection is not conducted or is conducted less frequently, as
well as any technical or legal obstacles to reducing burden.
Absent the information required in
the application form, Ex-Im Bank would be unable to make the
necessary credit decisions to determine the eligibility of the
applicant. Consequently, Ex-Im Bank would not be able to provide
either a direct loan or working capital support needed by small
business exporters.
Explain any special circumstances that would cause an information
collection to be conducted in a manner”
*requiring
respondents to report information to the agency more often than
quarterly;
*requiring respondents to prepare a written response
to a collection of information in fewer than 30 days after receipt
of it;
*requiring respondents to submit more than an original
and two copies of any document;
*in connection with a
statistical survey, that is not designed to produce valid or
reliable results that can be generalized to the universe of
study;
*requiring the use of statistical data classification
that has not been reviewed and approved by OMB;
*that includes
a pledge of confidentiality that is not supported by authority
established in statute or regulation, that is not supported by
disclosure and data security policies that are consistent with the
pledge, or which unnecessarily impedes sharing of data with other
agencies for compatible confidential use; or
*requiring
respondents to submit proprietary trade secrets, or other
confidential information unless the agency can demonstrate that it
has instituted procedures to protect the information’s
confidentiality to the extent permitted by law.
This
collection is consistent with guidelines in 5 CRF 1320.6.
If applicable, provide a copy and identify the date and page number
of publication in the Federal Register of the agency’s notice
soliciting comments on the information collection prior to
submission to OMB. Summarize public comments received in response
to that notice and describe actions taken by the agency in response
to these comments.
60 Day Federal
Register document published December 27, 2011, FR vol 76, number
248.
SORN published February 10, 2012 FR vol 77 number
28.
Export Import’s Response to PNC Comment
On
the Application:
Regarding the "Additionality"
statement in the Originator's Application on
page 7, your
counsel makes a good point because the statement has been
excerpted
from the Working Capital Guarantee Application. I'm going
to
recommend that we change the wording to read as
follows:
"We would not be willing to make this loan
on the terms prescribed in the
Global Credit Express Program,
and in our opinion the financial assistance
to be approved is
not otherwise available on reasonable terms without
the
participation of Ex-Im Bank."
While I
believe this change can be incorporated into the Global
Credit
Express Application, we have to submit your Bank's
comments about the
application to OMB (Office of Management and
Budget) within the next 30
days to secure their approval to
make such a change. Basically, OMB has to
agree a change is
warranted. As I understand the process, PNC's request
for a
change and our acknowledgement of the change should satisfy
OMB's
requirements.
On the Master Referral Fee
Agreement:
Section 5. (a) - In the Term Sheet dated
2/23/12, we provided an example of
"good standing" as
". . . all obligations have been paid as agreed, and
there
are no defaults, suspensions, restrictions or overdrafts on
their
accounts . . ." (See attached) I concede neither
the Master Referral Fee
Agreement nor the Term Sheet states the
customer relationship does not have
to be a borrowing
relationship. We have consistently made that point in
our
communications, but we chose not to make it a non-requirement in
the
Agreement. If PNC wants Ex-Im Bank to specifically address
it in the
Master Referral Fee Agreement, then I think our
in-house counsel can
accommodate that request. Let me also
assure you that Ex-Im Bank is not
asking PNC to certify the
Borrower will not default. We are seeking only a
modicum of
comfort from PNC and the other Originators that the applicant is
not
currently in default or otherwise deficient.
Section 5.
(b) - I think our in-house counsel can accommodate this
change
request to read: "Originator is not aware, to the
best of its knowledge, of
any material misstatement or omission
in the GCE Borrower materials
submitted to Ex-Im Bank , ,
,"
Sections 6 & 7 - The Originator may charge
the Borrower a referral fee of
up to $2,000 and a renewal fee
of up to $1,500. The Originator (PNC) will
be copied on the
Commitment Letter issued by Ex-Im Bank to the Borrower
once the
loan has been approved by Ex-Im Bank. When the loan is closed
and
funded, the initial disbursement under the loan will be the
referral fee
payment, which Ex-Im Bank will promptly wire
transfer to the Originator
(PNC). If you like, we can email
you the identifying wire information and
amount at the time of
the transfer. The same procedures will apply to
renewals given
they require a new application, approval and Commitment
Letter.
Again, the renewal fee will be disbursed from the loan and
promptly
wire transferred to the Originator. Please note that the
Originator
has the sole discretion to determine the amount of both the
referral
and renewal fees in amounts of up to $2,000 and
$1,500,
respectively. If PNC wants to charge the Borrower flat
fees of $2,000 for
referrals and $1,500 for renewals that's the
Bank's prerogative. Some
Originators have indicated they may
not charge either referral or renewal
fees so we needed to
allow for amounts less than the stated limits of
$2,000 and
$1,500.
Exhibit A - Paragraph F - PNC is currently
certifying to both parts of Para
F (i.e., current and future
status of representations made) in the standard
certifications
section of the Ex-Im Bank Working Capital Guarantee
Documents
as well as other Ex-Im Bank Insurance and Guarantee Programs.
Explain any decision to provide any payment or gift to respondents,
other than remuneration of contractors or grantees.
Not
applicable.
Describe any assurance of confidentiality provided to respondents
and the basis for the assurance in statute, regulation, or agency
policy.
Ex-Im Bank, its officers
and its employees are subject to Trade Secrets Act, 19 USC Sec 1905
requiring Ex-Im Bank to protect confidential business information
from disclosure, and, 12 CRF 404.1, which states that, except as
required by law, Ex-Im Bank will not disclose any information
without the submitter’s consent.
Provide
additional justification for any question of a sensitive nature,
such as sexual behavior and attitudes, religious beliefs, and other
matters that are commonly considered provides. This justification
should include the reasons why the agency considered the questions
necessary, the specific uses to be made of the information, the
explanation to be given to persons from whom the information is
requested, and any steps to be taken to obtain their consent.
As
indicated in the response to Item 6, Ex-Im Bank would be unable to
make the necessary credit decisions to determine the eligibility of
the applicant and the transaction unless it specifically receives
the social security numbers of the principal owners (i.e., 20% or
more ownership interest) of the applicant company. A basic tenant
of this Loan Program and Working Capital Guarantee and Direct Loan
Program is the requirement for a score of 180 or higher on the FICO
(Fair Isaac Corporation) SBSS (Small Business Scoring Service). In
order for FICO to generate an SBSS Score for Ex-Im Bank they must
have the social security number of the principal owners as well as
the tax identification number of the company. For that reason,
Ex-Im Bank has added a clause to the Certifications and Notices
Section of this Application (Item H – Authorization –
see below) to ensure the applicant and its principals and guarantors
know that Ex-Im Bank is making use of this personal information to
obtain consumer credit reports and scores for purposes of loan
origination (i.e., approving small business loans).
Authorization - I authorize Ex-Im Bank to make inquiries
as necessary to verify the accuracy of the statements made and to
determine my creditworthiness. The Privacy Act authorizes Ex-Im Bank
to make certain "routine uses" of information protected by
that Act. One such routine use of personal information is to assist
in obtaining credit bureau reports, including business credit
reports on the small business borrower and consumer credit reports
and scores on the principals of the small business and guarantors on
the loan for purposes of originating, servicing, and liquidating
small business loans and for purposes of routine periodic loan
portfolio management and lender monitoring. In connection with the
foregoing, the undersigned also authorize Ex-Im Bank to report their
credit experience with the Applicant(s) and its Guarantor(s) to the
applicable credit bureaus. (69 F.R. 58598, 58617)
Provide an explanation of how this information will be used by the agency; this justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information.
The Application for Global Credit Express
Revolving Line of Credit will be used to determine the eligibility of
the applicant and the transaction for Export-Import Bank assistance
under its Working Capital Guarantee and Direct Loan Program.
Applicants will be identified and referred by a bank or non-bank
lender acting as the Originating Financial Institution. To qualify
for consideration, the applicant must have had a client relationship
with the Originating Financial Institution for at least one year.
The Originating Financial Institutions participate in Ex-Im Bank’s
existing, Working Capital Guarantee and Direct Loan Program.
This program relies to a large extent on the exporter’s qualifying score on the FICO (Fair Isaac Corporation) SBSS (Small Business Scoring Service), which is derived from third party business and consumer credit bureau data. All applicants with an SBSS score over 180 will be considered to be eligible for the program. They will also be evaluated by using an internal Ex-Im Bank scoring (without reference to PII) that takes into account the country and the exposure risk of the export. A certain amount of financial and credit information from D&B and TransUnion are needed to calculate the FICO score, while specific, trade credit experience addressed in the application is used for the Ex-Im Bank Exporter Evaluation. The new form incorporates the recently updated standard Certifications and Notices section.
Provide any explanation and instructions given to respondents as to
why the agency is collecting the sensitive information, whether
respondents may choose not provide this information, and steps taken
to obtain their consent.
The
Bank’s Privacy Act statement is located in Part B
Certifications and Notices item H. This statement provides the
applicant with the reason for collecting this information, that the
information is mandatory to receive consideration for a loan, and how
the information will be used.
Part B. Authorization and Notices
Authorization
- I authorize Ex-Im Bank to make inquiries as necessary to verify the
accuracy of the statements made and to determine my creditworthiness.
The Privacy Act authorizes Ex-Im Bank to make certain "routine
uses" of information protected by that Act. One such routine use
of personal information is to assist in obtaining credit bureau
reports, including business credit reports on the small business
borrower and consumer credit reports and scores on the principals of
the small business and guarantors on the loan for purposes of
originating, servicing, and liquidating small business loans and for
purposes of routine periodic loan portfolio management and lender
monitoring. In connection with the foregoing, the undersigned also
authorize Ex-Im Bank to report their credit experience with the
applicant(s) and its guarantor(s) to the applicable credit bureaus.
(69 F.R. 58598, 58617)
NOTICES
The applicant is hereby notified that information requested by this application is done so under authority of the Export-Import Bank Act of 1945, as amended (12 USC 635 et. seq.); provision of this information is mandatory and failure to provide the requested information may result in Ex-Im Bank being unable to determine eligibility for support. If any of the information provided in this application changes in any material way or if any of the certifications made herein become untrue, the applicant must promptly inform Ex-Im Bank of such changes. The information provided will be reviewed to determine the participants' ability to perform and pay under the transaction referenced in this application. Ex-Im Bank may not require the information and applicants are not required to provide information requested in this application unless a currently valid OMB control number is displayed on this form (see upper right of each page). Ex-Im Bank reserves the right to decline to process or to discontinue processing of an application.
With respect to Privacy and Confidentiality:
Provide the exact language of any statement(s) that will be read or provided to respondents on how their information will be handled and protected by the agency and any contractors.
If the agency is pledging to keep the information “confidential,”
then provide the citation for statute that the agency is using as the
basis of its confidentiality pledge. Include the appropriate
excerpt from the statute here or as a supplementary document.
The Bank’s Privacy Act
statement is located in Part B Certifications and Notices item H.
This statement provides the applicant with the reason for collecting
this information, that the information is mandatory to receive
consideration for a loan, and how the information will be used.
Part B. Authorization and Notices
The Privacy Act authorizes Ex-Im Bank to make certain "routine uses" of information protected by that Act. One such routine use of personal information is to assist in obtaining credit bureau reports, including business credit reports on the small business borrower and consumer credit reports and scores on the principals of the small business and guarantors on the loan for purposes of originating, servicing, and liquidating small business loans and for purposes of routine periodic loan portfolio management and lender monitoring. In connection with the foregoing, the undersigned also authorize Ex-Im Bank to report their credit experience with the applicant(s) and its guarantor(s) to the applicable credit bureaus. (69 F.R. 58598, 58617)
Provide an explanation for any pledge of confidentially that is not
supported by authority established in stature of regulation, that
is not supported by disclosure and data security policies that are
consistent with the pledge, or which unnecessarily impedes sharing
of data with other agencies for compatible confidential use;
The Bank’s Privacy Act statement is located in Part B Certifications and Notices item H. This statement provides the applicant with the reason for collecting this information, that the information is mandatory to receive consideration for a loan, and how the information will be used.
Are respondents required to submit proprietary trade secrets, or other confidential information? (Y/N)
Y- SSN and Tax ID information to get the FICO score
Explain the procedures that the agency will implement to protect the information’s confidentiality to the extent permitted by law.
The application is going to be submitted as a paper application.
Ex-Im Bank will store the paper application in filing cabinets kept in a locked room with restricted access.
Will the agency collect any personally identifiable information? In general, “personally identifiable information” refers to information that can be used to distinguish or trace an individual’s identity, either alone or when combined with other personal information that can be linked to a specific individual. (Y/N) Y
If yes, will the agency collect any information that will be included in records that are subject to the Privacy Act of 1974 (5 U.S.C. § 552a)? (Y/N)
If yes, does the agency include a Privacy Act statement on the form (or on a separate form that can be retained by the individual) that clearly informs the individual regarding:
the agency’s authority for the collection,
whether providing the information is voluntary or mandatory,
the principal purpose(s) for which the information will be used,
the routine uses which may be made of the information (see 552a(a)(7)), and
any effects on the individual of not providing certain information.
The Bank’s Privacy Act statement is located in Part B Certifications and Notices item H. This statement provides the applicant with the reason for collecting this information, that the information is mandatory to receive consideration for a loan, and how the information will be used.
ii If yes, has the agency published a
system of records notice (“SORN”) in the
Federal Register (see 552a(e))?
Not applicable the Bank
is only accepting paper applications at this time.
If so, provide the Federal Register citation to the system of records notice: __________.
If not, explain the status of the agency’s system of
records notice and indicate when the agency expects to submit
the notice to OMB for review under OMB Circular A-130. (As
a reminder, the agency cannot launch a system that is subject to
the Privacy Act until the agency has published its notice.)
Will the agency use information technology to collect, maintain, or disseminate information that is subject to the E-Government Act of 2002 (44 U.S.C. 3501 note)?
Not applicable the Bank is only accepting
paper applications at this time.
Has the agency completed a privacy impact assessment in full
compliance with 44 U.S.C. 3501 note § 208?
If so, provide a link to the privacy impact assessment that
is posted on the agency’s website, or explain why the agency
has determined that making the privacy impact assessment
publicly available is not practicable (see 208(b)(1)(B)(iii)).
Drawing on the agency’s SORN and/or privacy impact assessment, if available, briefly describe how the agency has considered and addressed privacy issues pertaining to the collection. For example, explain how the agency is collecting only the minimum personally identifiable information that is necessary to accomplish a purpose required by statute, regulation, or executive order.
The Ex-Im Bank collects the PII information on the paper form. It uses the PII to get a FICO score. Ex-Im Bank will store the paper application in filing cabinets kept in a locked room with restricted access.
Provide estimates of the hour burden of the collection of
information. The statement should include:
The number
of respondents; 500
The
frequency of response; Once per
year
Annual hour burden; and 1,167
hours per year
An explanation of how the burden
was estimated.
If the
applicant has their credit information at hand, it should take the
respondent less than 90 minutes to complete the application. For
purposes of calculating the burden, we assumed that it would take a
full 90 minutes. Given we expect to receive up to 500 applications
per year, the annual burden rate can be calculated as 500 * 1.5
hours) = 750 hours.
13. Provide an estimate for the total annual cost burden to
respondents or records keepers resulting from the collection of
information. (Do not include the cost of any hour burden shown in
items 12 and 14).
Not applicable
14.
Provide estimates of annualized costs to the Federal government.
Reviewing time per response: 2.3
hour
Responses per year 500
Reviewing
time per year 1,167 hours
Total
Government Cost $30,000
15.
Explain the reasons for any program changes or adjusted reported in
items 13 or14 of OMB from 83-1.
This
is a new program that is being created to reach small U.S. exporters
who have not previously had access to export working capital. This
form contains minimal questions about the exporter’s credit
sales experience and is a simplified version of our existing,
asset-based, Working Capital Guarantee application form. As the
applicants gain experience exporting under a Global Credit Express
Revolving Line of Credit, they will often migrate to the Working
Capital Guarantee product which requires the exporter to calculate a
monthly borrowing base of eligible export receivables and inventory.
Furthermore, as noted in Item 11, Ex-Im relies to a large extent on
the FICO (Fair Isaac Corporation) SBSS (Small Business Scoring
Service). Basically, exporters won’t be required to provide
extensive financials on a recurring basis because Ex-Im Bank is using
automated underwriting tools and processes instead.
16.
For collection of information whose results will be published,
outline plans for tabulation and publication. Address any complex
analytical techniques that will bee used. Provide the time schedule
for the entire project, including beginning and ending dates of the
collection of information, completion of report, publication dates,
and other actions.
Not applicable.
17.
If seeking approval to not display the expiration date for OMB
approval of the information collection, explain the reasons that
display would be inappropriate.
Not
applicable
18.
Explain each exception to the certification statement identified in
Item 19 “Certification for Paperwork Reduction Act
Submissions,” of OMB Form 83-1.
Not
applicable.
Collection of Information Employing Statistical Methods
The agency should be prepared to justify its decision not to use statistical methods in any case where such methods might reduce burden or improve accuracy of results. When Item 17 on OMB Form 83-1 is checked, “Yes” the following documentation should be included in the Supporting Statement to the extent that it applies to the methods proposed:
Statistical methods were not used.
| File Type | application/msword |
| File Title | Supporting Statement for Paperwork Reduction Act Submissions |
| Author | whitt |
| Last Modified By | whitt |
| File Modified | 2012-09-20 |
| File Created | 2012-09-20 |