The NAFCU Journal September-October 2020 - 39

to grow their international sales, showcase the quality of well-made American
goods, services, and valuable intellectual
properties, and provide stability for their
employees, all while mitigating the risk of
nonpayment on international sales. EXIM
has solutions that can meet those needs.
In addition, EXIM and NAFCU play
similar roles in supporting small and
medium-sized businesses. Nearly 90
percent of EXIM's transactions directly
support small businesses.
EXIM can assist U.S. exporters by:
protecting against buyer nonpayment;
providing the ability to sell to foreign
customers on credit terms;
■	 enabling the ability to borrow against
export-related assets;
■	 financing a foreign buyer's purchase;
■	 limiting country and credit risks; and
■	 satisfying bank regulatory requirements.
■	
■	

EXIM's Export
Financing Solutions

EXIM is a leading innovator in the
development of competitive export
credit financing solutions. Key export
financing and risk mitigation solutions
available to credit union customers
through EXIM include:
EXIM's Export Credit Insurance, which
allows lenders to increase their traderelated services portfolio while limiting
exposure to country and foreign buyer
risks. These policies are available for
short-term credits (generally up to
180 days) and medium-term credits
(generally up to five years). Openaccount credit terms can increase the
exporter's ability to sell more instead
of insisting on cash in advance, which
can harm the buyers' cash flow.
■	 EXIM's Working Capital Loan Guarantee, which allows credit unions to extend
pre-export working capital loans to qualifying companies, with EXIM covering
90 percent of the risk. Loans backed by
■	

Dan Berger and Kimberly Reed

EXIM's guarantee also can support bid
and performance bonds, export-related
inventory advances of up to 75 percent,
and export-related accounts receivable
advances of up to 90 percent.
■	 EXIM's Loan Guarantee, which helps
secure competitive financing for
international buyers of capital goods
and services. EXIM guarantees term
financing (generally up to 10 years) to
creditworthy international buyers in
both the private and public sectors.

Expanding Lender Services
with EXIM

With EXIM's trade financing support,
lenders can offer more products and
services to their customers and be less
concerned about risks. Qualifying lenders
can have an EXIM credit line authority
whereby they can extend eligible export
working capital loans without prior EXIM
approval. The agency grants delegated
authority to qualifying lenders of up to
$1 million per exporter and $10 million
per institution, with no previous EXIM
experience required. Delegated authority
allows credit unions to commit the EXIM
guarantee when they approve the loan
and to share the fee EXIM charges.
As an added feature, when companies
assign the EXIM-backed policy proceeds
to their credit union, EXIM pays claims
directly to the lender. Of note, Missoula
Federal Credit Union in Missoula, Mont.,
and Northwest Farm Credit Services

THE NAFCU JOURNAL  SEPTEMBER-OCTOBER 2020

in Springfield, Ore., are already financing insured receivables protected from
exporter performance risk by EXIM.
Finally, credit unions can also reduce
their risk on confirmations and negotiations of irrevocable letters of credit
issued by a foreign bank. EXIM's letter of
credit policy typically covers 95 percent
of the foreign-issuing bank risk.
I am excited about what lies ahead for
EXIM and NAFCU as we join together
in launching this effort to promote
EXIM's export financing products
among federally-insured credit unions
and their clients. This initiative will
facilitate the engagement of credit
unions in export financing, and that
will lead to expanded opportunities
for American businesses and increased
support for American workers' jobs.
Our two institutions will be pooling our
talents and our dedication to help more
Americans attain their dreams.
My trade finance team is eager to
support credit unions in expanding
services to support their members
and limiting their own risks. For more
information or a free consultation,
contact Steven.Freshour@exim.gov
or 202.257.3789.
Kimberly A. Reed is President and
Chairman of the Board of Directors of the
Export-Import Bank of the United States.
39


https://www.exim.gov/what-we-do/loan-guarantee https://www.exim.gov/who-we-serve https://www.exim.gov/what-we-do/export-credit-insurance https://www.exim.gov/what-we-do/working-capital https://www.exim.gov/what-we-do/working-capital

The NAFCU Journal September-October 2020

Table of Contents for the Digital Edition of The NAFCU Journal September-October 2020

The NAFCU Journal September-October 2020 - Cover1
The NAFCU Journal September-October 2020 - Cover2
The NAFCU Journal September-October 2020 - 1
The NAFCU Journal September-October 2020 - 2
The NAFCU Journal September-October 2020 - 3
The NAFCU Journal September-October 2020 - 4
The NAFCU Journal September-October 2020 - 5
The NAFCU Journal September-October 2020 - 6
The NAFCU Journal September-October 2020 - 7
The NAFCU Journal September-October 2020 - 8
The NAFCU Journal September-October 2020 - 9
The NAFCU Journal September-October 2020 - 10
The NAFCU Journal September-October 2020 - 11
The NAFCU Journal September-October 2020 - 12
The NAFCU Journal September-October 2020 - 13
The NAFCU Journal September-October 2020 - 14
The NAFCU Journal September-October 2020 - 15
The NAFCU Journal September-October 2020 - 16
The NAFCU Journal September-October 2020 - 17
The NAFCU Journal September-October 2020 - 18
The NAFCU Journal September-October 2020 - 19
The NAFCU Journal September-October 2020 - 20
The NAFCU Journal September-October 2020 - 21
The NAFCU Journal September-October 2020 - 22
The NAFCU Journal September-October 2020 - 23
The NAFCU Journal September-October 2020 - 24
The NAFCU Journal September-October 2020 - 25
The NAFCU Journal September-October 2020 - 26
The NAFCU Journal September-October 2020 - 27
The NAFCU Journal September-October 2020 - 28
The NAFCU Journal September-October 2020 - 29
The NAFCU Journal September-October 2020 - 30
The NAFCU Journal September-October 2020 - 31
The NAFCU Journal September-October 2020 - 32
The NAFCU Journal September-October 2020 - 33
The NAFCU Journal September-October 2020 - 34
The NAFCU Journal September-October 2020 - 35
The NAFCU Journal September-October 2020 - 36
The NAFCU Journal September-October 2020 - 37
The NAFCU Journal September-October 2020 - 38
The NAFCU Journal September-October 2020 - 39
The NAFCU Journal September-October 2020 - 40
The NAFCU Journal September-October 2020 - Cover3
The NAFCU Journal September-October 2020 - Cover4
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