Definition: An independent bank established by Congress that finances or
insures foreign purchases of U.S. goods for customers unable or
unwilling to accept credit risk.
If exporting is part of your business game plan, the
Export-Import Bank of the United States (Ex-Im Bank) can be your
biggest ally. The Ex-Im Bank is committed to supporting small
exporters and provides many financing tools targeted to small
businesses, such as working capital guarantees and export credit
insurance. It also guarantees repayment of loans or makes loans to
foreign purchasers of U.S. goods and services and offers U.S.
exporters credit insurance to protect against nonpayment by foreign
buyers. Since 1934, the Ex-Im Bank has helped finance overseas
sales of more than $300 billion in U.S. goods and services.
With a working capital guarantee and credit insurance, small
businesses can increase sales by entering new markets, expanding
their borrowing base, and offering buyers financing while carrying
less risk. Often, small exporters don't have adequate cash flow or
can't get a loan to fulfill an export sales order. The Ex-Im Bank
working capital guarantee assumes 90 percent of the lender's risk
so exporters can access the necessary funds to purchase raw
materials or supplies to fulfill an export order.
The export credit insurance protects an exporter from buyer
payment default and also allows exporters to extend credit to their
international buyers.
To be eligible for the Ex-Im Bank's programs, U.S. exporters
much simply meet the SBA's definition of a small business and have
export credit sales of less than $5 million. In addition, your
product or service must have at least 50 percent U.S. content. The
bank will finance the export of all types of goods or services
except for most military-related products.
Business owners can contact the Ex-Im Bank directly at (800)
565-3946 or through any commercial lender that works with the
agency (see the Lender Locator at www.exim.gov). Based in Washington, DC,
the Ex-Im Bank also has regional offices in Chicago, Houston,
Miami, New York City, and Long Beach and San Jose, California.