Many companies recognize the potential of global markets—with 95% of consumers living outside the United States—yet find themselves intimidated by the financial risks of international trade. The Export-Import Bank of the United States (EXIM Bank) can help, offering trade finance solutions that improve competitiveness through export credit insurance, providing pre-export working capital financing and supporting capital goods exports with financing for international buyers.
Jonathan Brady from EXIM’s Minority and Women-Owned Business (MWOB) Outreach Division joined us for a webinar last month to explain how EXIM can help businesses confidently pursue international growth. If you missed it, don’t worry. In this article we’ll summarize some of the key insights, and you can still watch the full recording here: Growing Your Exports: What the EXIM Bank Can Do for You.
Who Is EXIM Bank?
EXIM Bank serves as the official export credit agency of the United States. With a mission to create and sustain jobs by increasing U.S. export sales, the bank has two primary principles: filling financing gaps in private-sector financing and leveling the playing field for U.S. companies competing in global markets.
EXIM is committed to helping small businesses: in fiscal year 2023, small business transactions made up approximately 87% of EXIM’s portfolio, challenging the common perception that export financing is only for large corporations.
Key EXIM Bank Programs
EXIM offers various trade finance solutions to mitigate export risks and make U.S. companies more competitive:
Working Capital Loan Guarantee
- Provides funds to fulfill export orders
- Covers costs like raw materials, labor and overhead
- Offers a 90% loan backing guarantee to lenders
- Loans can be transaction-specific or a revolving line of credit
- Typically covers a one-year term, extendable up to three years
Export Credit Insurance
- Protects against non-payment by international buyers
- Covers both commercial and political risks
- Allows exporter to offer competitive credit terms like open account to buyers
- New Equity Express Select policy launched this year specifically designed for minority, women, veteran, rural and disability-owned and businesses
A New Initiative: Make More in America
EXIM introduced a new program to help revitalize U.S. domestic manufacturing. It makes EXIM’s existing medium- and long-term loans, loan guarantees and insurance available for export-oriented domestic manufacturing projects. Some features of the program include:
- Requires 15-25% of domestic production to be earmarked for exports
- Supports job creation (a company is eligible for approximately $1 million in support per 5.3 jobs created)
- Encourages reshoring of supply chains
Thanks to EXIM Bank for joining us for this webinar. Remember, this recap is only a quick look at the information shared—don’t forget to watch the full recording here.
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