The Resurgence of EXIM Bank
Coming off of EXIM Bank’s 2020 Annual Conference, it is encouraging to see EXIM Bank back in full force. EXIM Bank, for those of you that are not familiar, is the official export credit agency of the United States. EXIM’s mission is to support US jobs by facilitating the export of US goods and services to other countries. EXIM Bank fulfills this mission by delivering risk mitigation tools such as trade credit and political risk insurance and loan guarantee programs.
Impello Global representatives attended the Annual Conference and commend the organizers for its first virtual event: Well Done! There was an impressive collection of public and private sector speakers showing enthusiastic support and sharing experiences. In addition, EXIM Bank outlined their growth strategy and has significantly added to staff in the past five months, placing new resources and expertise around the country in many of its 12 regional offices. We are quite impressed with the quality of professionals hired from within the industry and look forward to working with EXIM Bank to help more companies better utilize EXIM Bank’s services.
EXIM Bank’s export trade credit insurance is especially targeted toward small businesses. This product insures the risk of non-payment from foreign buyers, enabling US companies to be more competitive while securely selling their products overseas. Uniquely, EXIM Bank’s insurance products allow US businesses to report and pay premiums on actual sales activities rather than on future sales projections, giving customers a pay-as-you-go feature. In addition, the programs typically have zero to low deductibles.
EXIM Bank’s loan guarantee programs include working capital solutions as well as medium and long-term guarantees intended for capital goods. The working capital program provides lenders with a loan guarantee to facilitate loans against certain foreign receivables and inventory and is primarily targeted at US lenders to entice them to expand working capital availability for US exporters.
EXIM Bank’s medium and long-term loan guarantee programs are designed to support large ticket capital goods and effectively provide the lender with a loan guarantee to mitigate the risk of non-payment from the foreign buyer. Many of these programs support large corporate profile clients; however, this program also provides significant support for small business exports as well as suppliers who supply products and services into these supply chains.
As part of EXIM Bank’s mission, they fill gaps left by the private sector when the private sector is unable or unwilling to provide insurance and/or lending solutions that companies need. These gaps happen for a variety of reasons but the primary reasons are due to economic contractions and the increased risks associated with overseas collateral.
EXIM Bank is a vital component to the US trade finance system and its good to see the institution back in action and ramping up to help US exporters compete globally.
About Impello Global
Impello Global is a trade finance advisory boutique and trade credit and political risk insurance brokerage, headquartered in Seattle, Washington with offices in Oregon and Idaho. We specialize in trade credit and political risk insurance and provide advisory services to companies and lenders who are looking to expand their global trade capabilities. Our team has a combined 50 years of experience working EXIM’s programs, as lender and as insurance broker.
If you are a lender or a company trying to better understand EXIM Bank and the programs that they offer, our team would be delighted to learn more about your business and discuss options available to you. Please visit our website at www.impelloglobal.com or contact us directly at EXIM@impelloglobal.com.