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Wednesday, Nov 29, 2023

Importer Taps Into New Midmarket Loan Program

A San Diego produce importer became the first business to obtain financing through a new program launched by the Overseas Private Investment Corp. and Wells Fargo HSBC Trade Bank.

The $5 million loan to Andrew & Williamson Sales is being used to expand operations in Mexico, including construction of a new packing plant, housing for workers, school, medical care center and store in Vizcaino, 500 miles south of the U.S.-Mexico border.

A & W; is a U.S. distributor of produce but operates a subsidiary in Vizcaino that grows fruits and vegetables year-round for the U.S. market, said Fidela Irigoyen, senior vice president of Wells Fargo HSBC Trade Bank.

The bank is a joint venture of San Francisco-based Wells Fargo and London-based HSBC, and has $1.8 billion in assets.

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“The bank was established in 1995 and is the only U.S. chartered bank for trade financing aimed at midmarket companies,” Irigoyen said.

Midmarket firms have sales above $25 million. Loans range from $2 million to $15 million, with terms from two to seven years.

In Mexico, A & W; employs 600 employees, who grow tomatoes and cucumbers.

Federal agency OPIC helps U.S. companies invest in foreign markets and fosters business development in new and emerging markets.

A & W; said obtaining financing through OPIC was key to setting up operations in Mexico.

“This newly built community will help create jobs and provide a comfortable living for families,” said Fred Williamson, chief executive at A & W; Sales. “We not only see a successful future for our business, but also a positive impact on both economies.”

Borrowers agree not to violate human rights or workers’ rights.

, Mike Allen


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