FACT SHEET: The Export-Import Bank: Supporting American Exports and American Workers in Every State Across the Country

Additional Background on the Export-Import Bank

The Export-Import Bank is an independent federal agency that fills gaps in private export finance in order to bolster U.S. job growth at no cost to American taxpayers. Ex-Im provides trade financing solutions—including export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers—to empower exporters of U.S. goods and services.

Because it is backed by the full faith and credit of the United States, Ex-Im is able to assume credit and country risks that the private sector is unable or unwilling to accept. The Bank’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; the Bank consistently maintains a low default rate—in Fiscal Year 2014 it was a mere 0.175 percent—and closely monitors credit and other risks in its portfolio. The bank has also generated nearly $7 billion for the taxpayers over the past two decades. Ex-Im Bank offers four financial products:

Direct loans and loan guarantees. Loans and guarantees extended under the medium-term loan program typically have repayment terms of one to seven years, while loans and guarantees extended under the long-term loan program usually have repayment terms in excess of seven years. Generally, both the medium-term and long-term loan and guarantee programs cover up to 85 percent of the U.S. contract value of shipped goods.

Working capital guarantees. Under the Working Capital Guarantee Program, Ex-Im Bank provides repayment guarantees to lenders on secured, short-term working capital loans made to qualified exporters. The working capital guarantee may be approved for a single loan or a revolving line of credit. Ex-Im Bank’s working capital guarantee protects the lender from default for 90 percent of the loan principal and interest. The Bank also has a Supply Chain Finance (SCF) Guarantee Program to support U.S. exporters and their U.S.-based suppliers, many of whom are small and medium sized companies. Under the SCF Program, lenders purchase accounts receivable owned by the suppliers and due from the exporter. Ex-Im Bank provides a 90 percent guarantee on the repayment obligation of the exporter. The purchase of accounts receivable allows suppliers to receive immediate payment of their outstanding invoices, decreases their cost of financing, and enables them to better fulfill new orders and maintain and/or add jobs. The exporters benefit by having the option to extend payment terms without imposing undue financial hardship on their suppliers.

Export credit insurance. Ex-Im Bank’s export-credit insurance policies help U.S. exporters sell their goods overseas by protecting them against the risk of foreign-buyer or other foreign-debtor default for political or commercial reasons, allowing them to extend credit to their international customers. Insurance policies may apply to shipments to one buyer or many buyers, insure comprehensive (commercial and political) credit risks or only political risks, and cover short-term or medium-term sales.

The Export-Import Bank Has a Long History of Bipartisan Support

Ex-Im has earned the support of the last 13 U.S. presidents—Republicans and Democrats alike:

President Dwight D. Eisenhower, February 12, 1959: "[Ex-Im's] record of repaid loans and repayable loans, your infinitesimal portion of written-off loans is one that I can do nothing except to say congratulations to your Directors, the President, and to all of you."

President John F. Kennedy, July 18, 1963: "...the Export-Import Bank has created a wholly new program of export financing which now provides U.S. business with credit facilities equal to any in the world."

President Gerald Ford, November 18, 1974: "In order for the United States to maintain its strong position in foreign markets, it is important that the Congress pass the Export-Import Bank bill and avoid attaching unnecessary encumbrances."

President Ronald Reagan, January 30, 1984: "Exports create and sustain jobs for millions of American workers and contribute to the growth and strength of the United States economy. The Export-Import Bank contributes in a significant way to our nation's export sales."

President William J. Clinton, May 6, 1993: "Export expansion obviously encourages our most advanced industries. I am committed to promoting these exports, and what's where the Ex-Im Bank plays an important role."

President George W. Bush, June 14, 2002: "I have today signed into law S. 1372, the Export-Import Bank Reauthorization Act of 2002. This legislation will ensure the continued effective operation of the Export-Import Bank, which helps advance U.S. trade policy, facilitate the sale of U.S. goods and services abroad, and create jobs here at home."

And Ex-Im has been reauthorized 16 times, with strong bipartisan support, including the last three reauthorizations, which all earned majority support in both parties in both houses of Congress:

In 2002, Ex-Im reauthorization passed with 344 votes in the House, including more than 75 percent of both Republicans and Democrats who voted. The reauthorization passed unanimously in the Senate.

In 2006, Ex-Im reauthorization passed by voice vote in the House and unanimous consent in the Senate.

In 2012, Ex-Im reauthorization passed with 330 votes in the House and 78 votes in the Senate, including about 60 percent of Republicans in both the House and Senate and unanimous support among Democrats.

Ex-Im Supports Exports from a Variety of Sectors

Ex-Im Bank has identified key industrial sectors with high potential for U.S. export growth. These sectors include agribusiness, aircraft and avionics, satellites, mining, oil-and-gas development, and power generation, including renewable energy. Competitive financing is a necessary component for U.S. exporters to succeed in these sectors abroad, particularly when foreign competitors are backed by financing and other aid from their respective governments. By equipping U.S. businesses with financing tools, Ex-Im Bank levels the playing field for large and small exporters alike.

In 2014, Ex-Im supported exports from a variety of industries, including:

• Manufacturing (non-aircraft) – $8.1 billion authorized in support of U.S. manufacturing other than aircraft, including other transportation vehicles, large agricultural equipment, product manufacturing machinery, consumer products, and much more. 43 percent of the dollar value of non-aircraft manufacturing-related authorizations directly supported small business exports.
• Services – $1.1 billion authorized to finance exports of all types of U.S.-produced services, including engineering, design, construction, aircraft engine maintenance, computer software, oil and gas drilling, architecture, transportation services, legal services, training, and consulting.
• Satellites – $941 million authorized to support exports of U.S.-manufactured satellites and launch services
• Agribusiness – $501 million authorized to support more than $1.2 billion of U.S. exports of agricultural goods and services, including commodities, livestock, foodstuffs, farm equipment, chemicals, supplies, and services. 83 percent of the dollar value of the Bank’s agribusiness authorizations directly supported small business exports.
• Aircraft and Avionics – $8.4 billion authorized to support exports of U.S.-manufactured large commercial aircraft, business aircraft and helicopters, aircraft engines, avionics, and related services provided by American workers
• Oil and Gas – $1.3 billion authorized to support U.S. goods and services exports related to the development of onshore and offshore oil- and gas-field projects
• Power Generation – $462 million authorized to support U.S. exports related to power-generation projects
• Mining – $746 million authorized for U.S. exports of mining-related equipment and services