FAQs for New Exporters
These represent the most frequently asked questions regarding Ex-Im Bank, its mission, and the products it provides.
If at any time you feel that you are in need of more in-depth information, we strongly encourage you to call and speak directly with a representative at Ex-Im Bank. In this way, we will better be able to answer any questions you may have in how Ex-Im Bank can enable you to grow your company's export sales. Our goal is to provide you with the best customer service possible.
What is Ex-Im Bank?
The Export-Import Bank of the United States (Ex-Im Bank) is an independent U.S. government agency that helps finance the foreign sales of U.S. goods and services. Its mission is to create jobs through exports. In over 75 years, Ex-Im Bank has supported more than $4000 billion in U.S. exports. About 85% of our transactions support small business.
What are the products Ex-Im Bank offers to exporters to help finance their international sales?
Ex-Im Bank offers products that provide export financing solutions for U.S. businesses. Three primary products are:
- Insurance - Export Credit Insurance has two benefits: (1) it provides credit terms to foreign buyers; and (2) it protects exporters against loss should a foreign buyer or other foreign debtor default for political or commercial reasons. Insurance policies may apply to shipments to one buyer or to many. Coverage available includes comprehensive (commercial and political) credit risks or only specific political risks. The insurance covers short-term (up to 360 days) as well as medium-term (1 to 7 year) sales.
- Working Capital Loan Guarantee - This product addresses the export financing needs of U.S. businesses producing goods and services for the U.S. export market. By offering a 90% guarantee of principal and interest to the lender for export-related working capital loans, Ex-Im Bank allows U.S. businesses to borrow greater sums against their current assets (increases their borrowing base). These loans can be both transaction specific or revolving, and there is no minimum or maximum limits on the loan amount.
- Loan Guarantee - In cases when a foreign buyer seeks a loan to purchase U.S. made goods, and in-country loans are too expensive, Ex-Im Bank can provide a loan guarantee to a commercial lending institution to make the loan to the foreign buyer. Ex-Im Bank will guarantee up to 85% of principal and interest of the U.S. contract price.
Do you finance imports?
No. Although the word "import" is included in our name, Ex-Im Bank does not support imports. Ex-Im Bank's mission is supporting U.S. jobs through exports.Your local bank may be able to arrange financing support for your imports.
Is your financing support available only for large exporters?
No. We finance businesses of all sizes. Ex-Im Bank has no minimum or maximum limits on the transaction amount. In fiscal 2010, 87% of all Ex-Im Bank transactions were with small businesses.
Do you offer special assistance to underserved businesses?
Yes. We have specific group aimed at supporting minority and woman-owned businesses. For more information, contact Ms. Judith Rivera at 202.565.3417.
Do you have special financing support available for environmental exports?
Yes. We provide enhanced support for environmental exports with both our insurance and loan guarantee products. For more information, see Mr. Craig O'Connor at 202.565.3556.
Do you offer financial assistance in every country?
Ex-Im Bank is open for business in more than 140 countries. United States laws prohibit Ex-Im Bank assistance in some markets. Check our Country Availability Schedule for the current listing at http://www.exim.gov/tools/country/country_limits.cfm
Does the exported product have to be USA made and shipped from the United States?
Products must be shipped from the United States as our mission is to support USA jobs. In general, we support sales of products with US content greater than 50% but we also support some that do not. For more details, see http://www.exim.gov/products/policies/foreignshortprog.cfm
How can I get an advance indication of Ex-Im Bank's willingness to finance my possible foreign sale?
It only takes $100 and a complete Letter of Interest (LI) application. A LI is a non-binding document that gives you a prompt (7 days or less) indication of Ex-Im Bank's willingness to finance a proposed transaction. However, there is no guarantee of getting financing later. You can fill out a LI on-line at http://www.exim.gov/tools/li-app/howto-li.cfm
I have discussed the Ex-Im Bank insurance and guarantee products with my local bank, but they are not interested in financing my foreign customers. What can I do?
We have a list of commercial banks that currently cooperate with us. These banks are approachable and understand our programs. See http://www.exim.gov/about/partners/lenders/index.cfm to view the list.
How do I apply for an insurance policy?
There are several options. You may apply directly by obtaining an application on this website at forms or better yet, contact the regional office closest to you for assistance with filling out your application. You can also go through an insurance broker at no additional cost. However, we highly recommend that you first speak with an Ex-Im Bank representative before filling out an application.
Are you located only in Washington, DC?
No. Although Ex-Im Bank's headquarters is in Washington, D.C., there are regional offices located strategically throughout the U.S. See http://www.exim.gov/contact/contactus.cfm to view the regional office listing and contact a sales representative in your area.
I am just getting started in exporting. Where can I get assistance?
A wonderful web site for exporting information is www.export.gov. Furthermore, both the Department of Commerce (www.doc.gov ) 800-872-8723 and the Small Business Administration (www.sba.gov) 800-827-5722 can help you get started. The Department of Commerce also has more than 100 export assistance centers located nationwide to assist existing and potential exporters.
I would like to learn more about your agency. Where can I find additional information?
There are lots of ways to get more information. Call our toll-free number at 1-800-565-EXIM (3946) and press 2 at the prompt to connect with an export finance manager covering your region. In addition, Ex-Im Bank participates in many conferences and seminars throughout the U.S. See the Events section of our home page or visit http://www.exim.gov/seminars/index.cfm for a list of bi-monthly training seminars in Washington, DC.
I need money to help grow my export business. How can Ex-Im Bank help me?
As a US government agency, Ex-Im Bank does not have grants and cannot make loans to exporters. We can, however, offer a guarantee to your bank so they will be more willing to lend you money to purchase or manufacture US goods and services destined for export. The collateral for the loan is the inventory itself, including WIP, as well as the foreign receivables generated from the sale of the products. You must be able to demonstrate that you can service the debt you are taking on, and therefore your company financial statements will be reviewed and the owner's personal guarantees are required. Ex-Im Bank's guarantee is 90%, so the lender may require you to separately collateralize the remaining 10%. The interest rate is negotiated between you and the lender.
I sell US-made capital equipment and my foreign buyers want several years to pay for it. I cannot afford the carry the receivable for this long. What can I do?
Many commercial banks which partner with Ex-Im Bank are willing to finance the buyer for you. The Ex-Im Bank regional office near you can tell you if your own lender is one of these banks. If not, they can help you locate a lender for your deal. Generally, the bank will do a credit check on the buyer to make sure they are creditworthy for the amount of the sale. The bank cashes you out, and creates a promissory note between themselves and your buyer, under which the buyer pays the bank in semi-annual installments. The commercial bank is willing and able to do this only because Ex-Im Bank is protecting them against non-payment by your buyer!
I feel that my buyers are creditworthy, but I am concerned about the political climate in some of the countries. What can I do to mitigate these risks?
Ex-Im Bank offers a political-only export credit insurance policy which protects you at 95% for specified political risks. Sovereign buyers (those which have the Central Bank or Ministry of Finance guarantee) are covered at 100%. Remember though, that valid claims will require that the buyer makes the local currency deposit within 3 months after the due date.
I sell to my subsidiary in another country and I am concerned that they will not be able to get hard currency out of the country. How can Ex-Im Bank help me?
Sales to subsidiaries and affiliates are eligible for Ex-Im Bank's political-only export credit insurance policies, with coverage at 95%. One of the risks we cover is the inability of the Central Bank to convert to buyer's local currency into US dollars. Remember though, that valid claims will require that your subsidiary makes the local currency deposit within 3 months after the due date.
My company provides a service, so we don't have an actual "product". Can Ex-Im Bank help me?
Of course! Ex-Im Bank can insure you against non-payment by your foreign customers due to both commercial and political risks. The requirement for services is that the service be performed by US-based personnel, either here in the US or temporarily located in the host country. Progress billings must be in intervals no longer than 180 days. Please note that we do not cover contract repudiation (cancellation of the contract).
My bank is talking about financing my foreign buyer for me through Ex-Im Bank. What does this mean and how much will it cost me?
Many commercial banks which partner with Ex-Im Bank are willing to finance the buyer for you. Generally speaking, the bank will do a credit check on your buyer to make sure they are creditworthy for the amount of the sale. The bank cashes you out, and creates a promissory note between themselves and your buyer, under which the buyer pays the bank over the course of a few months or a few years (depending on the product and the dollar amount of the transaction). The commercial bank is willing and able to do this only because Ex-Im Bank is protecting them against non-payment by your buyer! And the cost to you is - zero! The foreign buyer is technically taking out a loan from the commercial bank and so the buyer - not you - pays the principal, interest and any other fees to the lender.
I have a very small business, with only 8 employees. We have just started to export a US made product and our sales volume is only $75,000 a year right now. Am I too small for Ex-Im Bank?
Absolutely not! Ex-Im Bank has a special policy for small businesses which have been in business for at least one full year, has a DUNS number and financial statements or tax returns; the coverage is 95% for both commercial and political risks, with no deductible! You pay the premiums only on what you ship, when you ship. This pay-as-you-go feature means that there are no lost premium dollars, and that you are only paying premium on the gross invoice value of your actual shipments. And... there is no minimum premium! To qualify as a small business, you must meet the definition set forth by the Small Business Administration (SBA). In general, you will qualify if the total number of employees in your company (including any parent, subsidiaries and affiliates) is less than 500 if your company is a manufacturer, or less than 100 if you are a distributor or wholesaler. To qualify for the small business policy, you must meet the SBA definition and have export credit sales of less than $7,500,000.
I am a small business exporter. Where can I find out more about Ex-Im Bank and their programs?
Small businessees are very important to Ex-Im Bank. There is a Senior Vice President that leads the Bank's effort to increase our small business activity with the support of over 50 small business specialists. Ex-Im Bank has a "Small Business Portal" on our WEB page that will answer most questions. For one-on-one counseling, our Regional Offices are dedicated to small business exporters and are ready to provide assistance with export credit insurance and working capital guarantees as well as the other products we offer. Ex-Im Bank also provides training every other month at our Washington, DC headquarters and in various cities throughout the U.S. Detailed information can be found at www.exim.gov.
What do I need to provide to get a working capital guarantee from Ex-Im Bank?
Ex-Im Bank provides guarantees to banks which, in turn, provide loans for working capital. It is therefore advisable to discuss your needs with your commercial bank before contacting Ex-Im Bank. You should have three years of financial statements, your most recent tax return, biographies of top management, company history, product description and a narrative of your export experience. A personal guarantee from any owner(s) with 20% or more equity in the company is normally required, as is a purchase order from a country in which we are doing business. The list of eligible countries is called the Country Limitation Schedule and is can be found on www.exim.gov.
How does Ex-Im Bank define US content? Other Export Credit Agencies do not have similar requirements and US exporters are at a disadvantage.
A critical part of Ex-Im Bank's mission is to create and sustain jobs in the US. By requiring that items Ex-Im Bank supports be made here in the US, we ensure that we are helping to create and sustain jobs here at home. Other Export Credit Agencies (ECA's) have less stringent requirements. Our US content requirements are liberal, and take into account that exporters want to further liberalize the US content requirement to be more competitive with other ECA's, while labor unions are concerned about exporting jobs. For short-term transactions (credit terms up to 180 days), products and services must contain at least 50.1% U.S. content, including labor but excluding mark-up. For medium-term transactions (generally sales of capital equipment with repayment terms between 1 and 5 years), the US content requirement is 85% for Ex-Im Bank to support the entire transaction.
How long does it take to process an application with Ex-Im Bank?
Approval times will vary according to the product, dollar amount and complexity of the transaction. Ex-Im Bank has improved the turnaround time for short-term export credit insurance policies and Special Buyer Credit Limits through "Ex-Im OnLine", a web based application system which ensures quick processing and tracking. This system works for medium-term insurance and guarantees as well. Working capital guarantee transactions may be approved very quickly by using a lender which has Delegated Authority (see the list at www.exim.gov.) . These banks can approve transactions within their own credit committee without having to present them to Ex-Im Bank for processing. These "DA" transactions are typically approved within 3 weeks.
Does Ex-Im Bank have any programs for Veterans, Women and Minority owned businesses?
Ex-Im Bank has a business development team devoted to veterans, women and minority-owned businesses which markets exclusively to those sectors. They provide hands-on training to small, veteran, woman and minority owned companies that wish to export.
These represent the most frequently asked questions regarding Ex-Im Bank, its mission, and the products it provides.
If at any time you feel that you are in need of more in-depth information, we strongly encourage you to call and speak directly with a representative at Ex-Im Bank. In this way, we will better be able to answer any questions you may have in how Ex-Im Bank can enable you to grow your company's export sales. Our goal is to provide you with the best customer service possible.
What is Ex-Im Bank?
The Export-Import Bank of the United States (Ex-Im Bank) is an independent U.S. government agency that helps finance the foreign sales of U.S. goods and services. Its mission is to create jobs through exports. In over 75 years, Ex-Im Bank has supported more than $4000 billion in U.S. exports. About 85% of our transactions support small business.
What are the products Ex-Im Bank offers to exporters to help finance their international sales?
Ex-Im Bank offers products that provide export financing solutions for U.S. businesses. Three primary products are:
- Insurance - Export Credit Insurance has two benefits: (1) it provides credit terms to foreign buyers; and (2) it protects exporters against loss should a foreign buyer or other foreign debtor default for political or commercial reasons. Insurance policies may apply to shipments to one buyer or to many. Coverage available includes comprehensive (commercial and political) credit risks or only specific political risks. The insurance covers short-term (up to 360 days) as well as medium-term (1 to 7 year) sales.
- Working Capital Loan Guarantee - This product addresses the export financing needs of U.S. businesses producing goods and services for the U.S. export market. By offering a 90% guarantee of principal and interest to the lender for export-related working capital loans, Ex-Im Bank allows U.S. businesses to borrow greater sums against their current assets (increases their borrowing base). These loans can be both transaction specific or revolving, and there is no minimum or maximum limits on the loan amount.
- Loan Guarantee - In cases when a foreign buyer seeks a loan to purchase U.S. made goods, and in-country loans are too expensive, Ex-Im Bank can provide a loan guarantee to a commercial lending institution to make the loan to the foreign buyer. Ex-Im Bank will guarantee up to 85% of principal and interest of the U.S. contract price.
Do you finance imports?
No. Although the word "import" is included in our name, Ex-Im Bank does not support imports. Ex-Im Bank's mission is supporting U.S. jobs through exports.Your local bank may be able to arrange financing support for your imports.
Is your financing support available only for large exporters?
No. We finance businesses of all sizes. Ex-Im Bank has no minimum or maximum limits on the transaction amount. In fiscal 2010, 87% of all Ex-Im Bank transactions were with small businesses.
Do you offer special assistance to underserved businesses?
Yes. We have specific group aimed at supporting minority and woman-owned businesses. For more information, contact Ms. Judith Rivera at 202.565.3417.
Do you have special financing support available for environmental exports?
Yes. We provide enhanced support for environmental exports with both our insurance and loan guarantee products. For more information, see Mr. Craig O'Connor at 202.565.3556.
Do you offer financial assistance in every country?
Ex-Im Bank is open for business in more than 140 countries. United States laws prohibit Ex-Im Bank assistance in some markets. Check our Country Availability Schedule for the current listing at http://www.exim.gov/tools/country/country_limits.cfm
Does the exported product have to be USA made and shipped from the United States?
Products must be shipped from the United States as our mission is to support USA jobs. In general, we support sales of products with US content greater than 50% but we also support some that do not. For more details, see http://www.exim.gov/products/policies/foreignshortprog.cfm
How can I get an advance indication of Ex-Im Bank's willingness to finance my possible foreign sale?
It only takes $100 and a complete Letter of Interest (LI) application. A LI is a non-binding document that gives you a prompt (7 days or less) indication of Ex-Im Bank's willingness to finance a proposed transaction. However, there is no guarantee of getting financing later. You can fill out a LI on-line at http://www.exim.gov/tools/li-app/howto-li.cfm
I have discussed the Ex-Im Bank insurance and guarantee products with my local bank, but they are not interested in financing my foreign customers. What can I do?
We have a list of commercial banks that currently cooperate with us. These banks are approachable and understand our programs. See http://www.exim.gov/about/partners/lenders/index.cfm to view the list.
How do I apply for an insurance policy?
There are several options. You may apply directly by obtaining an application on this website at forms or better yet, contact the regional office closest to you for assistance with filling out your application. You can also go through an insurance broker at no additional cost. However, we highly recommend that you first speak with an Ex-Im Bank representative before filling out an application.
Are you located only in Washington, DC?
No. Although Ex-Im Bank's headquarters is in Washington, D.C., there are regional offices located strategically throughout the U.S. See http://www.exim.gov/contact/contactus.cfm to view the regional office listing and contact a sales representative in your area.
I am just getting started in exporting. Where can I get assistance?
A wonderful web site for exporting information is www.export.gov. Furthermore, both the Department of Commerce (www.doc.gov ) 800-872-8723 and the Small Business Administration (www.sba.gov) 800-827-5722 can help you get started. The Department of Commerce also has more than 100 export assistance centers located nationwide to assist existing and potential exporters.
I would like to learn more about your agency. Where can I find additional information?
There are lots of ways to get more information. Call our toll-free number at 1-800-565-EXIM (3946) and press 2 at the prompt to connect with an export finance manager covering your region. In addition, Ex-Im Bank participates in many conferences and seminars throughout the U.S. See the Events section of our home page or visit http://www.exim.gov/seminars/index.cfm for a list of bi-monthly training seminars in Washington, DC.
I need money to help grow my export business. How can Ex-Im Bank help me?
As a US government agency, Ex-Im Bank does not have grants and cannot make loans to exporters. We can, however, offer a guarantee to your bank so they will be more willing to lend you money to purchase or manufacture US goods and services destined for export. The collateral for the loan is the inventory itself, including WIP, as well as the foreign receivables generated from the sale of the products. You must be able to demonstrate that you can service the debt you are taking on, and therefore your company financial statements will be reviewed and the owner's personal guarantees are required. Ex-Im Bank's guarantee is 90%, so the lender may require you to separately collateralize the remaining 10%. The interest rate is negotiated between you and the lender.
I sell US-made capital equipment and my foreign buyers want several years to pay for it. I cannot afford the carry the receivable for this long. What can I do?
Many commercial banks which partner with Ex-Im Bank are willing to finance the buyer for you. The Ex-Im Bank regional office near you can tell you if your own lender is one of these banks. If not, they can help you locate a lender for your deal. Generally, the bank will do a credit check on the buyer to make sure they are creditworthy for the amount of the sale. The bank cashes you out, and creates a promissory note between themselves and your buyer, under which the buyer pays the bank in semi-annual installments. The commercial bank is willing and able to do this only because Ex-Im Bank is protecting them against non-payment by your buyer!
I feel that my buyers are creditworthy, but I am concerned about the political climate in some of the countries. What can I do to mitigate these risks?
Ex-Im Bank offers a political-only export credit insurance policy which protects you at 95% for specified political risks. Sovereign buyers (those which have the Central Bank or Ministry of Finance guarantee) are covered at 100%. Remember though, that valid claims will require that the buyer makes the local currency deposit within 3 months after the due date.
I sell to my subsidiary in another country and I am concerned that they will not be able to get hard currency out of the country. How can Ex-Im Bank help me?
Sales to subsidiaries and affiliates are eligible for Ex-Im Bank's political-only export credit insurance policies, with coverage at 95%. One of the risks we cover is the inability of the Central Bank to convert to buyer's local currency into US dollars. Remember though, that valid claims will require that your subsidiary makes the local currency deposit within 3 months after the due date.
My company provides a service, so we don't have an actual "product". Can Ex-Im Bank help me?
Of course! Ex-Im Bank can insure you against non-payment by your foreign customers due to both commercial and political risks. The requirement for services is that the service be performed by US-based personnel, either here in the US or temporarily located in the host country. Progress billings must be in intervals no longer than 180 days. Please note that we do not cover contract repudiation (cancellation of the contract).
My bank is talking about financing my foreign buyer for me through Ex-Im Bank. What does this mean and how much will it cost me?
Many commercial banks which partner with Ex-Im Bank are willing to finance the buyer for you. Generally speaking, the bank will do a credit check on your buyer to make sure they are creditworthy for the amount of the sale. The bank cashes you out, and creates a promissory note between themselves and your buyer, under which the buyer pays the bank over the course of a few months or a few years (depending on the product and the dollar amount of the transaction). The commercial bank is willing and able to do this only because Ex-Im Bank is protecting them against non-payment by your buyer! And the cost to you is - zero! The foreign buyer is technically taking out a loan from the commercial bank and so the buyer - not you - pays the principal, interest and any other fees to the lender.
I have a very small business, with only 8 employees. We have just started to export a US made product and our sales volume is only $75,000 a year right now. Am I too small for Ex-Im Bank?
Absolutely not! Ex-Im Bank has a special policy for small businesses which have been in business for at least one full year, has a DUNS number and financial statements or tax returns; the coverage is 95% for both commercial and political risks, with no deductible! You pay the premiums only on what you ship, when you ship. This pay-as-you-go feature means that there are no lost premium dollars, and that you are only paying premium on the gross invoice value of your actual shipments. And... there is no minimum premium! To qualify as a small business, you must meet the definition set forth by the Small Business Administration (SBA). In general, you will qualify if the total number of employees in your company (including any parent, subsidiaries and affiliates) is less than 500 if your company is a manufacturer, or less than 100 if you are a distributor or wholesaler. To qualify for the small business policy, you must meet the SBA definition and have export credit sales of less than $7,500,000.
I am a small business exporter. Where can I find out more about Ex-Im Bank and their programs?
Small businessees are very important to Ex-Im Bank. There is a Senior Vice President that leads the Bank's effort to increase our small business activity with the support of over 50 small business specialists. Ex-Im Bank has a "Small Business Portal" on our WEB page that will answer most questions. For one-on-one counseling, our Regional Offices are dedicated to small business exporters and are ready to provide assistance with export credit insurance and working capital guarantees as well as the other products we offer. Ex-Im Bank also provides training every other month at our Washington, DC headquarters and in various cities throughout the U.S. Detailed information can be found at www.exim.gov.
What do I need to provide to get a working capital guarantee from Ex-Im Bank?
Ex-Im Bank provides guarantees to banks which, in turn, provide loans for working capital. It is therefore advisable to discuss your needs with your commercial bank before contacting Ex-Im Bank. You should have three years of financial statements, your most recent tax return, biographies of top management, company history, product description and a narrative of your export experience. A personal guarantee from any owner(s) with 20% or more equity in the company is normally required, as is a purchase order from a country in which we are doing business. The list of eligible countries is called the Country Limitation Schedule and is can be found on www.exim.gov.
How does Ex-Im Bank define US content? Other Export Credit Agencies do not have similar requirements and US exporters are at a disadvantage.
A critical part of Ex-Im Bank's mission is to create and sustain jobs in the US. By requiring that items Ex-Im Bank supports be made here in the US, we ensure that we are helping to create and sustain jobs here at home. Other Export Credit Agencies (ECA's) have less stringent requirements. Our US content requirements are liberal, and take into account that exporters want to further liberalize the US content requirement to be more competitive with other ECA's, while labor unions are concerned about exporting jobs. For short-term transactions (credit terms up to 180 days), products and services must contain at least 50.1% U.S. content, including labor but excluding mark-up. For medium-term transactions (generally sales of capital equipment with repayment terms between 1 and 5 years), the US content requirement is 85% for Ex-Im Bank to support the entire transaction.
How long does it take to process an application with Ex-Im Bank?
Approval times will vary according to the product, dollar amount and complexity of the transaction. Ex-Im Bank has improved the turnaround time for short-term export credit insurance policies and Special Buyer Credit Limits through "Ex-Im OnLine", a web based application system which ensures quick processing and tracking. This system works for medium-term insurance and guarantees as well. Working capital guarantee transactions may be approved very quickly by using a lender which has Delegated Authority (see the list at www.exim.gov.) . These banks can approve transactions within their own credit committee without having to present them to Ex-Im Bank for processing. These "DA" transactions are typically approved within 3 weeks.
Does Ex-Im Bank have any programs for Veterans, Women and Minority owned businesses?
Ex-Im Bank has a business development team devoted to veterans, women and minority-owned businesses which markets exclusively to those sectors. They provide hands-on training to small, veteran, woman and minority owned companies that wish to export.