On May 8, the U.S. Senate formally confirmed three of the Trump administration’s nominees to the board of directors of the Export-Import Bank of the United States (EXIM). The nominees include Kimberly A. Reed, confirmed as president and chairman of the board, Spencer T. Bachus III, and Judith DelZoppo Pryor. Two additional nominees remain under consideration by the Senate.
The confirmation establishes a quorum of three members on the EXIM board of directors need for the bank to authorize transactions greater than $10 million. EXIM had been operating since July 2015 without a full quorum and was limited in its ability to approve larger, typically long-term financing deals.
EXIM’s inability to fully conduct larger deals hindered its overall ability to support smaller transactions that typically assist small and medium-sized enterprises (SMEs) and to be self-funding—covering its operations on fees and interest it receives from its beneficiary clients. In fiscal year 2018, EXIM reported $3.4 billion in transactions, down significantly from a high of $35.8 billion in 2015, and also forecast a $492.2 million operating deficit. The Wall Street Journal reports that EXIM’s own internal estimates value the amount of lost transactions since mid-2015 at $21.5 billion. While the restoration of EXIMs full financing capacity is welcome news to businesses seeking to increase American exports, EXIMs legal authorization will lapse on September 30, 2019 if Congress fails to reauthorize it past that date.
The Ex-Im Bank helps support U.S. exports through a range of programs, including guaranteeing loans to foreign buyers, credit insurance and some direct lending to foreign companies. To learn more about the range of products offered by the EXIM Bank, click here.
As a certified EXIM broker, Securitas has years of experience working with U.S. companies seeking to access EXIM’s services to help generate export-driven growth. Offering services such as trade credit insurance and risk insurance, Securitas is able to provide these trade insurance solutions, often at no cost to the exporter, and then works with its customers structure insurance solutions that meet their goals of sustained and secure long-term growth. In 2015, Securitas was named EXIM Broker of The Year.
Securitas is ready to help businesses, particularly SMEs interested in pursuing an export strategy, learn how to access EXIM’s services.
Securitas Global Risk Solutions is pleased to note that it will once again be participating in the 2019 EXIM Conference, to be held at the Omni Shoreham Hotel in Washington, DC from March 28-29, 2019. The annual event showcases the work of the EXIM Bank and brings together over 1000 business leaders, government officials and foreign dignitaries from across the world with an interest in promoting U.S. exports.
The EXIM Bank is an independent and self-sustaining federal agency that provides a range of trade financing solutions – including loan guarantees, working capital guarantees, direct loans, and export credit insurance – to promote the sale of U.S. goods and services to foreign buyers. To learn more about the range of products offered by the EXIM Bank, click here.
The focus of this year’s conference will be the role of trade in promoting national security, as well as highlighting EXIM’s role in assisting American energy and manufacturing sectors. The program will include keynote speeches, panel discussions, as well as ample networking time for participants to discuss best practices, and export opportunities.
As a certified EXIM broker, Securitas assists U.S. exporters to identify, implement and manage the appropriate EXIM export trade credit insurance program to meet their goals of sustained and secure long-term growth. Securitas provides these services at no additional cost to the exporter. In 2015, Securitas was named EXIM Broker of The Year.
Securitas is ready to help businesses, particularly small and medium-sized enterprises (SMEs) interested in pursuing an export strategy and learn how to access EXIM’s export trade credit insurance programs.
Securitas Global Risk Solutions is delighted to announce that Pamela Bates has joined our team to provide customized solutions to mitigate credit and investment risk in global markets. Pamela will be based in Virginia, where, in addition to risk mitigation, she will provide strategic and policy advice to assist our clients in navigating international business opportunities. Working for the U.S. Department of State for over two decades as a foreign service officer, Pamela managed U.S. diplomatic efforts on energy, information technology and government procurement issues. In addition, she earned an MBA from the Wharton School. Pamela brings the skills, knowledge and network to support our clients’ international expansion goals.
International markets provide outstanding opportunities for U.S. exporters to diversify their customer base. Securitas provides risk mitigation strategies to help reduce the uncertainty associated with approaching new markets. Pamela will concentrate on solutions ranging from mitigating private sector credit risk, sovereign contract frustration risk, financing international trade, protecting equity investments against political risk, along with government relations strategies, to bring products to global markets.
Having previously lived and worked in France, Germany, Switzerland, and Brazil, Pamela has an extensive network of contacts around the world. She speaks Spanish, Portuguese, and French, along with English. While a State Department employee, she taught classes on diplomatic tradecraft, including how to evaluate sources of risk. In addition to her MBA, Pamela earned a Bachelor’s degree in Economics and Environmental Studies from Bowdoin College in Maine and a Master’s degree in International Affairs from the Johns Hopkins University, School of Advanced International Studies.
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. Its mission is to support American jobs by facilitating the export of U.S. goods and services. It does so by assuming credit risk, primarily through two programs – extending export credit insurance for exporters and providing working capital guarantees. These programs are available to companies of any size with 80% of authorizations are to SBA defined small business.
The Current State:
EXIM is congressionally authorized through 2019. While this seems several years from now, it’s important to note the last two authorizations have been tenuous, including a period in 2015 when its charter lapsed for six months. President Obama and congressional Democrats generally supported EXIM through this period, however there was an influential group of House Republicans that held up authorization process.
In addition to upcoming the re-authorization debate, EXIM also lacks three board members. Therefore, it does not have the quorum required to approve authorizations over $10MM.
The new administration brings renewed and increased speculation regarding the future of EXIM. President Trump campaigned on a platform of reduced government and seemed less friendly toward global trade. However, he heavily emphasized his business background and experience, which included strong support of U.S. manufacturers and small businesses, both of which he believes are critical to economic growth.
Against this backdrop, members of the Securitas team attended the EXIM 2017 Annual Conference on April 7-8 to learn more about the bank’s future.
95% of global population and 80% of global GDP is outside the U.S.
According to the Organization for Economic Co-operation and Development (OECD), there are 32 countries with Export Credit Agencies (ECAs) that compete with the U.S.
Exports will become even more critical in helping the U.S. grow its GDP, reduce the debt and balance the budget.
In order to compete globally against China, the U.S. needs to increase its support of exports. For example, the U.S. EXIM Bank supported $10 billion in authorizations in 2015. In comparison, China supported $500+ billion in exports through EXIM-China, China Development Bank and Sinosure).
Jobs created by export-related business tend to pay an estimated 18% more according to the International Trade Administration.
During a panel discussion regarding the future of EXIM, congressional members Jack Ryan, R-PA and Chris Collins R-NY both indicated President Trump fully supported the bank and recognized the need to support U.S. exporters though tax policy and regulation reform. They further indicated his commitment to a fully functioning bank by filling the vacancies on its board with immediate appointment approval of three new board members.
While there is still internal debate within the Republican caucus regarding the future of EXIM, it does appear the agency has the backing of President Trump and will continue to be an important tool in the U.S. government’s toolbox to support exports.
If financing is not part of your export strategy, you could be missing out on important sales or exposing your company to unnecessary risks.
Do not miss this opportunity to meet the region’s leading trade finance lenders and government finance representatives.
Receive the latest information on financing programs available with U.S. government backing from the Export – Import Bank of the United States and the Small Business Administration. You will also hear from companies like yours who have successfully utilized this financing to grow their international business. Who should attend?
CEOs, CFOs, and international marketing managers of export-ready companies
You will learn how to:
Utilize export credit insurance to protect against buyer non-payment, minimize risk, and offer extended credit terms to international buyers to increase sales;
Obtain working capital loans with U.S. government backing to provide capital for inventory, hiring, and performance bonds to support export sales orders and free up needed capital;
Offer financing at competitive rates to prospective customers to help close the sale;