Most Americans are unaware that the U.S. government offers significant tools to help U.S. companies compete for business internationally, finance domestic manufacturing, and build resilient supply chains.
Among the most effective and impactful is the U.S. Export-Import Bank (EXIM).
As the former Chief Banking Officer of EXIM, I have first-hand experience extending credit solutions to U.S. exporters and developers of manufacturing capacity and supply chains.
Companies that engage EXIM achieve financing solutions that were not available from the private sector and thus better succeed at their business mission.
EXIM is exactly what its name says it is - a bank. It is based on the private sector bank model and underwrites to a credit determination of “reasonable assurance of repayment.”
EXIM is unique in that it is a bank of the U.S. government and extends the full faith and credit of the United States with its financing solutions.
The EXIM Mission
To support U.S. jobs by facilitating exports, the development of domestic manufacturing, and supply chain security. EXIM does so by:
- Supplementing private sector financing;
- Filling gaps when the private sector is unable or unwilling to finance; and
- Leveling the playing field for U.S. exporters in the face of increased competition from foreign export credit agencies.
Financial Products EXIM Offers
- Direct Loans or Loan Guarantees of commercial loans to foreign buyers of U.S. goods and services to cover risks associated with buyer default.
- Limited Recourse or Structured Financing to project sponsors that buy U.S. goods and services or create domestic jobs through the development/improvement of U.S. manufacturing/supply chains.
- Working Capital Guarantees guarantee repayment to U.S. lenders on secured working capital loans made to qualified exporters.
- Export Credit Insurance protects exporters against the risk of buyer or debtor default for political or commercial reasons.
EXIM Priority Sectors
EXIM can provide solutions to any type of industry, except defense sector production. Nevertheless, Congress has directed EXIM to provide emphasis where possible on:
- Energy production of all types including nuclear
- Technology
- Domestic manufacturing
- Businesses competing with state-supported Chinese companies
- Sub-Saharan Africa
- Small business
Ankura is Uniquely Positioned to Navigate the EXIM Bank
Despite the impressive value proposition that EXIM provides, the reality is that it is a federal government agency. Being such, it can be a challenge to understand what it does, how it works, how you access it, and how to navigate your way through a financing application.
However, the professionals at Ankura are uniquely positioned to advise a company on all of the above. With experience working at the highest levels of the EXIM Bank, clients would be most expertly advised throughout the entire process.
For further information, please contact Stephen Renna, former EXIM Chief Banking Officer steve.renna@ankura.com, or Cameron Dorsey, former EXIM Senior Advisor cameron.dorsey@ankura.com.
© Copyright 2023. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
