The Export Import Bank of the United States (EXIM) issued its 2020 annual report highlighting EXIM’s results and priority initiatives in its mission to support American jobs by facilitating the export of U.S. goods and services. EXIM, an independent federal governmental agency, is authorized by Congress until 2026 to maintain $135 billion of credit exposure. Through direct loans, guarantees, credit insurance, and supply chain financing support, EXIM finances U.S. exporters and suppliers that cannot arrange export financing from private sources without EXIM’s credit support. EXIM also provides foreign buyers of U.S. goods and services with credit support so U.S. exporters can be competitive, even in the current environment where foreign credit agencies, such as those from the People’s Republic of China, support foreign competition in overseas markets.
To be eligible for EXIM financing, an assessment must be made that EXIM financing fosters additional exports (called “additionality”) – in other words that the transaction is unlikely to proceed without EXIM support. Further, the goods and services being exported have must be “made in the U.S.A.” as tested by having adequate U.S. content as measured under the guidelines. The EXIM financing cannot have a negative economic impact on domestic industries. Finally, there are identified countries where EXIM financing is unavailable.
EXIM reported its results under several Congressional mandates:
EXIM also reported that during 2020:
Export financing and supply chain financing help drive the success of U.S. exporters and suppliers. EXIM’s financing initiatives promise to facilitate U.S. business and even the playing field against foreign competitors. Congress has made a historic commitment to EXIM’s role and mandated EXIM to provide significant credit support of up to $135 billion. Businesses are encouraged to learn more and take advantage of EXIM’s credit support programs.