The U.S. Export-Import Bank, the official “export credit agency” of the U.S. government, facilitates the export of U.S. goods and services when private sector lenders are unable or unwilling to provide financing.
With the new administration taking a strong stance on existing U.S. foreign trade agreements and looking to reshape trade policies, the fate of this funding entity remains in question. The 81-year old Export-Import Bank—also known as Ex-Im—is already wobbling. A recent report showed the Ex-Im has been “unable to operate at full throttle” since December 2015 when lawmakers voted to revive the lapsed congressional authority. It has been more than a year since the Ex-Im has been able to extend any significant new loans, primarily due to a lack of leadership. Under the previous administration, nominees to the agency’s board were blocked, preventing the quorum required for making decisions. Moreover, President Trump has yet to name a chairman to take the organization forward. One international ratings agency, Fitch, predicts that the future of the U.S. Export-Import Bank is questionable under the Trump administration. In addition to altering key trade agreements, they may also want to shutter the Ex-Im Bank. But will it matter? Especially to SMEs?
While the Ex-Im reports that 90% of its transactions are with small businesses, the volume of funding in terms of dollar value is dominated by large corporations. In fact, a single business giant, Boeing, accounts for almost half of the loan volume.
Whatever the fate of the Ex-Im, ExpoCredit is a ready alternative for companies engaged in foreign trade. As a specialty finance firm, we provide short-term working capital to domestic and international companies in need of immediate cash flow. We have the capabilities to work with any size business, but our focus is on small to mid-sized companies. Through our innovative solutions, ExpoCredit ensures your company can continue doing business and growing during the current transition period—and beyond. If the new trade policies create more market opportunities, ExpoCredit offers a range of options to keep goods and services flowing. If the policies (including closing Ex-Im) give a boost to domestic manufacturing and sales, you can rely on ExpoCredit for fast and easy access to funding to expand your facilities, increase staff or any other business related need.
For more details, or to access our online application process, visit www.expocredit.com