Chairman Reed Highlights EXIM Export Financing Tools for Small Businesses During Remarks to National Credit Union Administration
WASHINGTON - Export-Import Bank of the United States (EXIM) President and Chairman Kimberly A. Reed delivered prerecorded remarks yesterday to more than 160 registrants of a National Credit Union Administration (NCUA) webinar, underscoring how small businesses can leverage the new partnership between EXIM and credit unions to better compete in the global marketplace. The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions.
During the virtual event, Chairman Reed highlighted how credit union members can use EXIM's financing tools and resources to increase their international sales, showcase their "Made in the USA" products, and support American jobs. The webinar, which is part of a new EXIM outreach effort with credit unions, followed the signing of a memorandum of understanding between EXIM and NCUA that launched a three-year collaboration on educational initiatives and other outreach efforts with credit unions.
"Our partnership with the Export-Import Bank opens new opportunities for credit unions to support their local businesses and communities," said NCUA Chairman Rodney E. Hood. "Helping small businesses gain access to capital is essential, especially with today's uncertainty. I encourage credit unions to participate in this webinar and learn how they can leverage these programs to support their small business member exporters."
"Since President Trump appointed him to lead NCUA, Chairman Hood has focused with great effectiveness on getting credit into the hands of the underserved and the marginalized as well as on bringing new opportunities to urban neighborhoods and rural communities that are fighting decline," said Chairman Reed. "EXIM's collaboration with NCUA will bring small businesses and credit unions together and promote EXIM export financing products among federally insured credit unions and their members."
Along with Chairman Reed and Chairman Hood, others participating in the webinar were:
- Uduak Essien, NCUA Director - Credit Markets, Office of Examination and Insurance.
- Smaro Karakatsanis, EXIM Director of Business Credit.
- Jeffrey Clare, EXIM Business Development Specialist.
The speakers highlighted opportunities for credit unions to further support small businesses with export financing. By partnering with EXIM, small businesses can mitigate the risk of nonpayment on international sales by using tools such as EXIM's working capital loan guarantees, which are exempt from the credit union member business cap of 12.25 percent. They also discussed EXIM's coronavirus response measures for helping reopen the economy.
Following the June memorandum signed by EXIM Chairman Reed and NCUA Chairman Hood, EXIM signed a complementary memorandum of understanding in July with the National Association of Federally-Insured Credit Unions, the national trade association focusing on federal issues affecting federally insured credit unions. In addition, EXIM has held educational webinars in collaboration with the National Association of Credit Union Service Organizations and CUNA Councils, a professional organization for credit union leaders. As part of EXIM's recent reauthorization, Congress directed the agency to further build on its robust support of small businesses, and partnership with credit unions is an important step toward that goal.
Federally insured credit unions are an important part of the U.S. financial structure, with more than 5,000 institutions and a membership of 120.4 million during the fourth quarter of 2019. Total assets in federally insured credit unions reached $1.57 trillion at the same time, with total outstanding loans of $64 billion.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency's authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.