July 30, 2020 / 10:58 PM / 13 days ago

Embraer business jet unit gets $97 mln U.S. EXIM Bank loan guarantee

WASHINGTON, July 30 (Reuters) - The U.S. Export-Import Bank said on Thursday its board of directors approved a $97.2 million working capital loan guarantee for Brazilian aircraft maker Embraer’s U.S.-based business jet subsidiary.

The federal export credit agency said the guarantee for the one-year, revolving working capital facility from Apple Bank for Savings would support an estimated 800 U.S. jobs, mainly at Embraer Executive Aircraft’s factory in Melbourne, Florida.

EXIM said the loan guarantee also would support supply chain jobs in Arizona, Connecticut, Georgia, Tennessee and Texas.

Embraer has been struggling to craft a new future since Boeing Co canceled its $4.2 billion takeover of the Brazilian jetmaker’s commercial aircraft business in April.

EXIM said the guarantee was needed because Embraer Executive Aircraft customers have delayed deliveries of business jets due to the coronavirus pandemic, cutting the firm’s revenues.

“In addition, the commercial sector is significantly constrained in its lending capacity due to the pandemic and its ability to make new loans has been reduced,” EXIM said.

Boeing has traditionally been EXIM’s largest single customer, using the agency to finance jetliner sales to many foreign airlines. (Reporting by David Lawder; editing by Richard Pullin)

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