FOR IMMEDIATE RELEASE August 27, 2020
Office of Communications (202) 565-3203
WASHINGTON — Export-Import Bank of the United States (EXIM) President and Chairman Kimberly A. Reed today delivered prerecorded remarks to 25 members of the National Association of Federally-Insured Credit Unions (NAFCU), outlining how EXIM and NAFCU can work together to support small businesses.
During the virtual event, Chairman Reed highlighted how credit unions can partner with small businesses and utilize EXIM’s financing tools and resources to increase export opportunities and support American jobs. The webinar, which is part of a new EXIM outreach effort with credit unions, followed the July 21, 2020, signing of a memorandum of understanding between EXIM and NAFCU.
The agreement, signed by Chairman Reed and NAFCU President and CEO B. Dan Berger, launched a two-year educational effort to promote EXIM export financing products among federally-insured credit unions and their clients. On June 9, 2020, EXIM signed a complementary memorandum of understanding with the National Credit Union Administration, initiating EXIM’s first-ever targeted outreach to credit unions.
“Through this collaborative effort, EXIM and NAFCU can pool our resources to expand the opportunities available to U.S. exporters and support more American jobs,” said Chairman Reed. “I look forward to working together on educational initiatives and other outreach efforts throughout the credit union industry.”
Also participating in the webinar were:
- Ann Kossachev, NAFCU Director of Regulatory Affairs.
- Mario Ramirez, EXIM Director of Working Capital Guarantees Lender Relations.
- Jeffrey Clare, EXIM Business Development Specialist.
The participants discussed how the growth of commercial lending has created opportunities for credit unions to further support their members 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.
“Credit unions are committed to supporting Main Street small businesses, and EXIM’s guaranteed loan options will help them assist small business exporters recover from the coronavirus crisis,” said Ann Kossachev of NAFCU, the national trade association focusing on federal issues affecting federally-insured credit unions. “These lending options, which are exempt from credit unions’ member business lending cap, will have a positive impact on credit unions’ ability to help our local communities overcome the economic challenges posed by the virus. NAFCU is proud to partner with EXIM for this webinar to raise awareness about the agency’s guaranteed loan options and to help credit unions explore new ways to provide greater member service.”
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. EXIM also has held educational webinars in collaboration with credit union organizations including the National Credit Union Administration and National Association of Credit Union Service Organizations.
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.