Export–Import Bank of the United States facts for kids

Quick facts for kids
Export–Import Bank of the United States

Agency overview
Formed	February 2, 1934; 91 years ago (1934-02-02)
Headquarters	Lafayette Building Washington, D.C.
Employees	370 (2018)
Agency executive	Reta Jo Lewis, President and Chair of the Board of Directors

The Export–Import Bank of the United States (EXIM) is a special bank run by the United States federal government. Its main job is to help American businesses sell their goods and services to other countries. It steps in when regular banks can't or won't provide the money needed for these sales.

EXIM was created in 1934 by President Franklin D. Roosevelt. It was first called the Export–Import Bank of Washington. Its goal was to help with trade between the U.S. and other nations. One of its first deals was a loan to Cuba in 1935. This loan helped Cuba buy silver from the U.S. In 1945, Congress made EXIM an independent agency. This means it works on its own within the government.

Congress needs to approve EXIM's work every few years. This is called reauthorization. In 2015, EXIM couldn't make new deals for a short time because its authorization ran out. But Congress approved it again later that year. In 2019, its authorization was extended until December 31, 2026.

Over the years, EXIM has helped fund many big projects. These include parts of the Pan-American Highway and the Burma Road. It also helped countries rebuild after World War II. Supporters say EXIM helps small and medium-sized businesses compete globally. But some critics say it mostly helps large companies.

What the EXIM Bank Does

U.S. exports in 2006. EXIM helps American companies sell their products abroad.

EXIM has regional centers to help businesses across the U.S.

The Export–Import Bank of the United States (EXIM) is a government agency. It offers different ways to help American companies export their goods and services. EXIM's main goal is to create and keep U.S. jobs. It does this by helping finance sales of U.S. exports to international buyers.

EXIM gives U.S. exporters and their customers tools to make deals happen. These tools include financing for buyers, insurance for export credit, and access to money for daily business. EXIM also helps U.S. exporters compete with foreign companies. Many other countries have similar banks, called export credit agencies (ECAs). There are about 96 ECAs around the world.

EXIM is set up as a government company by the U.S. Congress. Its rules say that EXIM should not compete with private banks. Instead, it helps with deals that private banks can't or won't support. This is often because the deals have too much political or business risk.

EXIM's services are meant to help any American export company, no matter its size. The bank aims to give at least 20% of its lending to small businesses. This helps smaller companies grow and sell their products globally.

Many countries have banks similar to EXIM. These are called export credit agencies (ECAs). The U.S. is part of a group called the Organisation for Economic Co-operation and Development (OECD). Members of the OECD follow special rules for their ECAs. These rules help make sure that companies compete based on the quality of their goods. They don't compete based on who offers the best financing deals. Some ECAs, like the China Exim Bank, are not part of the OECD. This means they don't have to follow these rules.

EXIM Bank's History

How EXIM Started (1934–1944)

EXIM was first created by President Franklin D. Roosevelt on February 2, 1934. It was set up as a banking company in Washington, D.C.. Its first name was the Export–Import Bank of Washington. The goal was to help finance and make trade easier between the U.S. and other nations. At first, it aimed to help with loans to the Soviet Union and countries in Latin America.

President Roosevelt also created a second Export–Import Bank in March 1934. This one was specifically to help trade with Cuba. The bank's very first deal was a $3.8 million loan to Cuba in 1935. This loan helped Cuba buy silver from the U.S. In 1936, Congress combined the two banks into one.

Becoming Independent (1945–Present)

Congress made EXIM an independent agency on July 31, 1945. This was done with the Export–Import Bank Act of 1945. Later, in 1968, its name was changed to "Export–Import Bank of the United States." Since 2007, EXIM has been able to fund itself. This means it doesn't need money from taxpayers, but its loans are still backed by the government.

A law from 1945 says that Congress must approve EXIM's work every four to five years. This is called reauthorization. Here are some times the bank was reauthorized:

In 2015, EXIM's authorization ran out on July 1. This meant the bank could not make any new deals. However, it continued to manage its existing loans. Five months later, Congress approved the bank again. This was part of the Fixing America's Surface Transportation Act. President Barack Obama signed this into law on December 4, 2015. This reauthorized the bank until September 2019. In December 2019, President Donald Trump signed another law. This extended EXIM's authorization until December 31, 2026.

Projects EXIM Has Helped With

Pan-American Highway

The Pan-American Highway is a huge road system. It runs from Alaska all the way to Chile. It passes through 14 countries and connects to many others in Latin America. Construction of the highway began in 1936 and finished in 1980.

EXIM Bank helped fund parts of the Pan-American Highway. This included sections in Mexico, Honduras, Guatemala, Nicaragua, El Salvador, Costa Rica, Panama, Colombia, Ecuador, Peru, and Chile. EXIM also helped build connecting roads in Paraguay, Argentina, and Bolivia. EXIM approved many loans to U.S. companies. These companies, like Caterpillar, provided equipment to build the highway.

Burma Road

The Burma Road was built between 1937 and 1938. It is 717 miles long. This road connects Lashio in Myanmar (formerly Burma) to Kunming in China.

EXIM approved a $25 million loan in December 1938. This money was very important. It helped keep the supply route open during World War II. It provided vehicles and supplies to use the new road. It also gave China money to buy things during the war. In 1940, another $20 million was approved. China used some of this money to buy 2,000 trucks from U.S. companies like Ford and General Motors.

Rebuilding After World War II

EXIM played a key role right after World War II ended. It helped countries rebuild before other major aid programs started. After the war, the U.S. needed a way to help with the huge demand for money. The Export–Import Bank Act of 1945 greatly increased EXIM's ability to lend money. This was to help Europe rebuild after the war.

In 1945 and 1946, EXIM offered loans to many countries. These included France, Denmark, Norway, and Italy. The money helped them buy equipment and services from the U.S. The goal was to help these nations rebuild. It also helped them improve their ability to import and export goods. This included buying new machines and fixing transportation systems.

When the Marshall Plan started in 1948, EXIM focused on helping countries in North and South America. These were nations not covered by the Marshall Plan.

First Loans to Post-Soviet Nations

When the Berlin Wall fell in 1989 and the Soviet Union broke up in 1991, U.S. companies could trade with Eastern Europe again. This was the first time since World War II. EXIM was one of the first banks to help finance exports to the former Soviet Union and other new countries.

In 1990, President George H.W. Bush removed a trade barrier. This allowed EXIM to offer its programs to U.S. companies wanting to do business with these countries. EXIM started doing business with Czechoslovakia again in March 1990. On January 25, 1991, EXIM approved its first deal with Czechoslovakia since 1947. This deal helped a hat company buy computers from a U.S. company. Since 1991, EXIM has helped exports to 25 nations that were once behind the Iron Curtain.

First Loan to India

In January 2015, President Obama visited India. After his visit, he announced that EXIM would help finance $1 billion of "Made-in-America" products for India. The U.S. Overseas Private Investment Corporation also lent $1 billion to small and medium-sized businesses in rural India. The U.S. Trade and Development Agency promised $2 billion for renewable energy projects. Obama and India's leader, Modi, also agreed on issues that had stopped U.S. companies from building nuclear reactors in India.

Support for EXIM

Supporters of EXIM say the bank focuses on helping small and medium-sized businesses. They say it helps these businesses expand their ability to export. Jay Timmons, who leads the National Association of Manufacturers, said EXIM is very important. He stated that it helps manufacturers export to new markets. He also said it helps them keep up with global competition.

Timmons noted that EXIM supports almost 290,000 jobs related to exports. He added that each year, more small and medium-sized manufacturers use EXIM to grow. He said that over 85% of EXIM's deals directly help small businesses. These small businesses are a key part of the U.S. economy and job creation.

When he was running for president in 2008, Barack Obama said EXIM had become "little more than a fund for corporate welfare." But in May 2012, during EXIM's reauthorization, he changed his view. He said EXIM plays a very important role in helping him reach his goal of doubling exports. At the reauthorization ceremony, Obama stated that EXIM helps thousands of businesses sell more products overseas. He added that this helps create jobs in the U.S. and costs taxpayers nothing extra.

See also

In Spanish: Eximbank para niños

• CoBank
• List of export credit agencies
• Independent agencies of the United States government
• List of federal agencies in the United States
• Title 12 of the Code of Federal Regulations