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.
Links to these hearings:
EXIM Bank can get our exporters back in the game: https://bit.ly/2M3qrpY
Corporate Welfare Wins Again in Trump’s Washington: https://nyti.ms/2VW1C3z
Senate Revives Ex-Im Bank: https://on.wsj.com/2WhvhUb
The Senate is making a big mistake as it drags its feet over EXIM Bank confirmations: https://cnb.cx/2uJiAln