The Working Capital Loan Guarantee Program of the Private Export Funding Corporation (PEFCO) encourages commercial banks to extend short-term export financing to eligible exporters by providing a comprehensive guarantee that covers 90 percent of the loan's principal and interest.

Question

Quizplus · Accepted Answer

The Working Capital Loan Guarantee Program is actually offered by the Export-Import Bank of the United States (EXIM), not the Private Export Funding Corporation (PEFCO). This program guarantees loans for U.S. exporters to finance their inventory and accounts receivable.