EXIM Expands U.S. Small Business Eligibility for Export Financing by Adopting U.S. Small Business Administration Standard
WASHINGTON - The United States Small Business Administration (SBA) has authorized the Export-Import Bank of the United States (EXIM) to adopt the 2010 Small Business Jobs Act Interim Rule as an alternative size standard for defining small businesses. The formal announcement was made and published in the Federal Register today.
On June 15, 2020, EXIM President and Chairman of the Board Kimberly A. Reed wrote to SBA Administrator Jovita Carranza to request SBA approval to permit EXIM to adopt the alternative size standard for defining small business concerns in all EXIM programs. The SBA alternative size standard is the following: the company's tangible net worth is not more than $15 million; and the company's average net income after federal taxes (excluding any carryover losses) for the full two fiscal years prior to the date of application is not more than $5 million. In the past, EXIM applied the SBA basic size standards for its insurance and lending products, but until now, EXIM was not authorized to apply the SBA's alternative size standard.
"One of my top priorities at EXIM is to increase our support of and strengthen our engagement with U.S. small businesses, including women-, minority-, and veteran-owned businesses, businesses owned by persons with disabilities, and businesses in rural areas. With this important change, even more U.S. small businesses will be able to access EXIM products that help exporters bring their 'Made in the USA' goods and services to the world," said EXIM Chairman Kimberly Reed. "I'd like to thank SBA Administrator Carranza and SBA staff for their assistance in helping EXIM swiftly adopt this important change. The action taken today will make it easier for even more small businesses to access EXIM services in support of more U.S. jobs, as well as be consistent with SBA Programs," Chairman Reed added.
ABOUT EXIM:
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