EXIM Bank: Helping American exporters

The Export-Import Bank of the United States (EXIM) is a U.S. government agency that provides financial assistance to American exporters. EXIM was established in 1934 and operates as an independent agency of the U.S. government. 

You may not have heard of the EXIM Bank before, and it’s definitely not an everyday supply chain term, but the EXIM Bank quietly, and behind the scenes, supports exports from the U.S., resulting in U.S. manufacturing job growth.

When American companies export products, they put more Americans to work. In 2023, EXIM Bank supported an estimated $10.6 billion in U.S. export sales, which helped create around 40,000 jobs in America. 

Sandra Donzella, the deputy managing director of EXIM Bank, was my guest on the Frictionless Supply Chain Podcast to talk about the role of the Bank in supporting exporters including insurance and loan products and programs to assist American companies.

Insurance for international shipments

EXIM’s most popular program is providing insurance guarantees for shipments made to international customers. When an American company sells a product to a foreign customer, the EXIM Bank guarantees that the American company will be paid.

Related podcast

 

Frictionless Podcast: How the U.S. ExIm Bank helps American exporters

Listen as Sandra Donzella, from America’s official export credit agency, and Rosemary Coates, Executive Director of the Reshoring Institute, discuss the United States Export Import Bank. Sandra Donzella is the Deputy Managing Director of the Export-Import Bank of the United States. The ExIm Bank's Mission is to promote U.S. jobs by facilitating exports. When American companies expand their exports, they put more Americans to work. In this episode, Sandra Donzella discusses the programs and support that the U.S. ExIm Bank provides to exporters who need financing and guarantees for their international shipments. 

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Fifty percent or more of the product being exported must be U.S. content to qualify for EXIM Bank programs. This is another way that EXIM Bank supports U.S. supply chains and manufacturing.

Working capital loans

Another product is working capital loans. An exporter will typically work through their local bank for a working capital loan that is then guaranteed by EXIM. The local bank lends money so that the American company can manufacture its goods for export. EXIM Bank guarantees the loan so that the loaning bank can be assured of repayment.

The exporting company’s finance department is usually the point of contact with the EXIM Bank, but because the process involves international shipments, supply chain staff should also be aware of transactions with the bank.

Other countries do it, too

More than 100 countries around the world have similar organizations to assist exporters from their countries. Wherever exports originate, new jobs are related to international commerce.

Although there is U.S. Congressional funding controversy for EXIM Bank from time to time, the bank receives popular support from Republicans and Democrats. This is because exports are good for the economy and represent jobs growth in every district. The bank is financially self-sustaining and typically returns funds to the Treasury each year, as it collects fees for insurance products and interest on loans. Under federal law, the EXIM must be reauthorized by Congress every four to five years.

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