U.S. Export-Import Bank Shares How It's Helping Companies Do Business Abroad

Published Jul 16, 2020 by A.J. Mistretta

The Export-Import Bank of the United States provides export credit to support the sale of U.S. goods and services to international buyers. It’s a critical component for many American companies venturing into conducting business abroad.

The Chairman of EXIM Kimberly Reed and her team presented on the services and opportunities offered by the federal agency during a Partnership Business Beyond Borders session on July 15.

EXIM works to level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their own governments. The agency also contributes to U.S. economic growth by helping to create and sustain jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of EXIM’s authorizations has directly supported small businesses, according to the agency. And since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.

Reed said EXIM provided $8.2 billion in financing for U.S. companies in 2019, $2.2 billion of that for small businesses alone. So far in 2020, the agency has financed $1.7 billion for small businesses, which has helped support 10,900 U.S. jobs.

During a visit to the Port of Houston last October, Reed said she was pleased to meet with several area companies doing business internationally. Today, about 17% of the region’s economy is tied to exports and more than 5,000 Houston-area companies are doing business abroad. “EXIM is committed to helping even more Houston businesses expand further into foreign markets,” she said.

Reed and her team pointed to a $25 billion liquified natural gas project in Mozambique that EXIM has helped support with $4.7 billion in direct loan financing for U.S. companies to provide goods and services. That’s been particularly beneficial for Texas companies.

During her presentation, Reed discussed EXIM’s new Program on China and Transformational Exports, established as part of the agency’s reauthorization, which is intended to help level the playing field for U.S. exporters and workers by neutralizing export subsidies for competing goods and services offered by China. Currently, China is doing more in export financing than all of the G7 countries combined. In May, EXIM launched its “Strengthening American Competitiveness” initiative, beginning with a series of teleconferences with American businesses and stakeholders. The goal is to increase U.S. companies’ global competitiveness in sectors such as artificial intelligence, biomedical sciences, energy efficiency and storage and high-performance computing.

Reed also outlined EXIM’s COVID-19 relief measures, which includes an increase in liability coverage for U.S. companies. She also reaffirmed EXIM’s continuing commitment to supporting U.S. businesses of all sizes that export as the U.S. reopens.

“Houston is a global manufacturing and logistics hub and the nation’s top metro exporter. The future success of our region’s export economy relies on a strong and reliable EXIM,” said Ambassador Eduardo

Aguirre, Co-Chair of the Partnership’s International Investment and Trade Advisory Committee, who moderated the discussion. “We applaud EXIM’s initiative in creating flexible programs to support exporters during these unprecedented times.”

Learn more about international business here in Houston and get the latest trade data in the Partnership's Global Houston publication. Also learn more about EXIM.