The Export-Import Bank, known as EximBank, is an independent U.S. Government agency with the primary purpose of facilitating the export of U.S. goods and services. Eximbank meets this objective by providing loans, guarantees, and insurance coverage to U.S. Exporters and foreign buyers, normally on market-related credit terms.
Eximbank's insurance and guarantee programs encourage private financial institutions to fund U.S. exports by reducing the commercial and political risks exporters face. The financing made available under Eximbank's guarantees and insurance is generally on market terms, and most of the commercial and political risks are borne by Eximbank.
Eximbank's loan program is structured to neutralize interest rate subsidies offered by foreign governments. By responding with its own subsidized loan assistance, Eximbank enables U.S. Financing to be competitive with that offered by foreign exporters.
The Overseas Private Investment Corporation (OPIC) is a U.S. government agency that provides project financing, investment insurance, and a variety of investor services in more than 130 developing nations and emerging economies throughout the world. OPIC assists U.S. Investors through three principal programs:
The Foreign Agriculture Service of the Department of Agriculture administers several programs to make U.S. exporters competitive in international markets and make U.S. Products affordable to countries that have greater need than they have ability to pay. The Export Credit Guarantee program offers risk protection for U.S. Exporters against non payment by foreign banks.
Several states and cities have export financing programs. To be eligible for assistance, an export sale must generally be made under a letter of credit or with credit insurance coverage. A certain percentage of state or local content may also be required. Some programs may require only that certain facilities, such as a state or local port, be used. Exporters should contact a Department of Commerce district office or state economic development agency for more information.
The Private Export Funding Corporation (PEFCO) is owned by more than five-dozen investors, primarily commercial banks. PEFCO supplements the financing activities of commercial banks and Eximbank, lending only to finance the export of goods and services of U.S. manufacture and origin. PEFCO loans normally mature in a range of 181 days to five years, and all are unconditionally guaranteed by Eximbank with regard to payment of interest and repayment of principal.
For more information on the above topics, contact:
Export-Import Bank Marketing and Program Division 811 Vermont Avenue, NW Washington, DC 20571 (800) 565-3946
Overseas Private Investment Corporation 1100 New York Avenue, NW Washington, DC 20537 (202) 336-8799
Foreign Agricultural Service Export Credits 14th Street and Independence Avenue, SW A.G. Box 1030 Washington, DC 20250 (202) 720-6301
PEFCO 280 Park Avenue New York, NY 10017 (212) 916-0300