Replies to post #30452 on Bioelectronics Corp (BIEL)

[kidnova]

Hmmm...looks like this one might be different afterall. The EX-IM bank started a pilot program in March of last year for small business lines of credit:

http://208.68.149.50/products/GCEFacSheet.pdf

However, I'm not sure how much they actually have available under the line since it's capped based on a % of their exports from the previous year, or a % of their net current assets as of their last financial statements.

http://www.ibt-articles.com/absnet/templates/trade_article.aspx?articleid=485&zoneid=2
http://www.exim.gov/smallbusiness/smallbusprod/Global-Credit-Express.cfm

The maximum loan amount is $500,000, and the maximum term is 12 months. The maximum loan amount is calculated as the lesser of: 50% of the borrower's direct and indirect exports in the previous year; 90% of the borrower's net current assets as per their most recent financial statement; or $500,000. The loan amount can be drawn in full or in part at any time during the term of the loan, with a minimum drawing of $10,000. The loan can be renewed annually, but the borrower must again meet the approval criteria at the time of renewal, including the small business requirement.

Seeing as how their net current assets are negative, they wouldn't have any funds available under the facility currently unless they're somehow discounting the current portion of related notes payable. If that's the case then they'd be capped by 50% of their exports from 2012, which would mean roughly $250K would be available. Hopefully they'll disclose the details in their next quarterly report.