The Export-Import Bank of the United States is incorporated.

The Export–Import Bank of the United States, widely recognized as EXIM or simply "the Bank," stands as the official export credit agency (ECA) of the United States federal government. Operating as a wholly owned federal government corporation, EXIM plays a pivotal role in strengthening the nation's economic landscape by assisting in the financing and facilitating of U.S. exports of goods and services to diverse international markets. Its core mission is to support American jobs and enhance global competitiveness by empowering U.S. businesses to secure sales abroad.

EXIM's Critical Market-Gap Role

EXIM's intervention is particularly crucial in situations where private sector lenders are either unable or unwilling to provide the necessary financing for U.S. exports. This often arises due to various factors, including the inherent risks associated with international transactions, such as political instability in foreign markets, the need for longer repayment terms typical of large-scale projects, or simply the immense capital required for significant infrastructure or capital goods exports. By stepping in to fill this market gap, EXIM enables American businesses, including vital small and medium-sized enterprises (SMEs), to pursue sales in challenging or emerging markets that would otherwise be inaccessible without such support.

To achieve its objectives, the Bank offers a comprehensive suite of financial products. These include direct loans to foreign buyers of U.S. goods, loan guarantees to mitigate risk for commercial banks, and export credit insurance, which protects U.S. exporters against the risk of non-payment by foreign purchasers. These tools collectively help de-risk international trade, fostering confidence and ensuring that American companies can compete effectively on the global stage.

Current Leadership at EXIM

The strategic direction and day-to-day operations of the Export-Import Bank are overseen by its leadership team. The current Chairman and President, Reta Jo Lewis, was confirmed by the Senate on February 9, 2022, bringing her expertise to guide the Bank's ongoing efforts to promote U.S. exports and support American workers.

The Genesis and Evolution of the Export-Import Bank

EXIM's history dates back to February 1934, a critical period during the Great Depression when it was established by an executive order organized by President Franklin D. Roosevelt. Initially named the Export-Import Bank of Washington, its foundational mandate was ambitious and broad: "to aid in financing and to facilitate exports and imports and the exchange of commodities between the United States and other Nations or the agencies or nationals thereof." This initial focus underscored a national effort to stimulate trade and economic recovery during a time of profound economic challenge.

The Bank's very first transaction in 1935 highlighted its early role, involving a $3.8 million loan to Cuba for the acquisition of U.S. silver ingots, showcasing its early engagement in facilitating commodity trade. Recognizing its growing importance and a shift towards more permanent operations, Congress formally transformed EXIM into an independent agency within the Executive Branch in 1945. This move solidified its status as a critical component of U.S. economic policy, particularly as the nation transitioned into the post-World War II global reconstruction era.

Congressional Reauthorization: Ensuring EXIM's Continuity

The operational stability of EXIM is periodically subject to Congressional reauthorization, a process that has occasionally led to periods of uncertainty. The Bank was last chartered for a three-year term in 2012, which was subsequently extended through June 30, 2015. However, on July 1, 2015, its Congressional authorization lapsed. This significant event prevented EXIM from undertaking any new business transactions, although it continued to diligently manage its existing portfolio of loans and guarantees.

This lapse spurred a robust national debate, underscoring the Bank's perceived importance to U.S. exporters and the broader economy. Five months later, after the successful, albeit rarely employed, discharge petition procedure was utilized in the House of Representatives, Congress reauthorized EXIM. This reauthorization was enacted via the Fixing America's Surface Transportation Act (FAST Act), which President Barack Obama signed into law on December 4, 2015, extending the Bank's authority until September 2019.

Demonstrating continued bipartisan support for its vital mission, in December 2019, President Donald Trump signed the Export-Import Bank Extension into law as part of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). This crucial legislation provided long-term stability by authorizing the Bank through December 31, 2026, offering predictability for U.S. exporters who depend on EXIM's financial support to compete globally.

EXIM's Enduring Impact: Historic Projects and Global Development

Throughout its extensive history, the Export-Import Bank has been instrumental in financing numerous transformative projects that have left a lasting impact on global development and advanced U.S. economic interests. Beyond its daily role in facilitating thousands of U.S. export sales across various industries, EXIM's legacy includes support for monumental undertakings such as:

These examples highlight EXIM's consistent contribution to not only promoting U.S. exports and supporting American jobs but also to advancing strategic foreign policy objectives and fostering global economic stability and development through the sale of U.S. goods and services.

Frequently Asked Questions About the Export-Import Bank

What is the primary purpose of the Export-Import Bank of the United States (EXIM)?
EXIM's core mission is to support American jobs by financing and facilitating U.S. exports of goods and services, particularly when private sector lenders are unable or unwilling to provide the necessary capital, ensuring U.S. companies can compete effectively in global markets.
How does EXIM differ from commercial banks?
EXIM functions as a "lender of last resort" for export financing. It complements, rather than competes with, commercial banks by stepping in to fill financing gaps for transactions deemed too risky or too large by the private sector, such as those involving political risk in certain markets or extremely long repayment terms.
What types of financial products does EXIM offer?
EXIM offers a range of financial tools, including export credit insurance (which protects U.S. exporters against non-payment by foreign buyers), loan guarantees (which reduce the risk for commercial lenders involved in export transactions), and direct loans (which provide direct financing to foreign buyers for the purchase of U.S. goods and services).
When was the Export-Import Bank established, and what was its original name?
EXIM was established in February 1934 by an executive order from President Franklin D. Roosevelt, originally known as the Export-Import Bank of Washington.
Why did EXIM's authorization lapse in 2015, and how was it resolved?
EXIM's Congressional authorization lapsed on July 1, 2015, preventing it from engaging in new business, due to legislative inaction. It was reauthorized five months later through a rarely used discharge petition in the House of Representatives, leading to its reinstatement via the Fixing America's Surface Transportation Act in December 2015.
What is the current authorization period for EXIM?
As of the Export-Import Bank Extension within the Further Consolidated Appropriations Act, 2020, signed in December 2019, EXIM is authorized to operate until December 31, 2026, providing a stable operating environment for the Bank and its clients.