Updated November 7, 2019
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
Board Quorum. On May 8, 2019, the Senate confirmed
provides financing and insurance to facilitate the export of
three nominations to the board: the president/chairman, for
U.S. goods and services to support U.S. jobs, pursuant to a
a term expiring January 20, 2021 (79-17 vote); a member,
renewable, general statutory charter (Export-Import Bank
for a term expiring January 20, 2023 (72-22); and another
Act of 1945, as amended; 12 U.S.C. 635 et seq.). It aims to
member, for a term expiring January 20, 2021 (77-19). This
provide support for U.S. exports when the private sector is
action reinstated a quorum, thus authorizing the board to
unwilling or unable to do so and/or to counter foreign ECA
exercise the full panoply of its statutory authorities. The
financing. The Bank is demand-driven, fee-based, and
Senate has not yet acted on the nominations for the two
backed by the U.S. government’s full faith and credit.
other positions (first vice president/vice chairman, for a
term expiring January 20, 2021, and member, for a term
Key Ex-Im Bank Products
expiring January 20, 2023). The board lacked a quorum
Direct loans to foreign buyers of U.S. exports (interest rate
from July 20, 2015, until the May 8, 2019, confirmations,
based on parameters set in international rules).
as terms expired and no board nominees were confirmed.
Loan guarantees to lenders against default on loans to foreign
On May 30, 2019, in its first meeting since regaining a
buyers of U.S. exports (lender usually sets rate).
quorum, the board increased to $25 million the threshold
Insurance to protect U.S. exporters or financial institutions
for financing above which approval requires board action.
against export-related risks.
The board also is considering and approving deals again.
Short-term, secured working capital loans and guarantees.
In some cases, specific underwriting techniques such as project,
Activity. Ex-Im Bank’s authorization levels have declined
structured, and supply chain finance may be used.
since FY2014 (see Figure 1), when the Bank last was fully
operational before the board quorum was restored in May
Background
2019. In FY2014, the Bank approved $20.5 billion for
3,746 authorizations, to support an estimated $27.5 billion
Authorization. The FY2020 continuing resolution (CR)
in U.S. exports and 164,000 U.S. jobs. By contrast, in
extends Ex-Im Bank’s general statutory authority through
FY2018, it approved $3.3 billion for 2,389 authorizations,
November 21, 2019. Absent congressional reauthorization
to support an estimated $6.8 billion in U.S. exports and
before this date, the Bank generally will no longer be able
33,000 U.S. jobs. The composition of authorizations shifted
to approve new transactions, but will be able to continue to
amid the limit on approving larger deals; the dollar amount
manage its existing loan, guarantee, and insurance
of support for U.S. small business exports grew from 25%
obligations, and to perform certain other functions “for
purposes of an orderly liquidation” (12 U.S.C. §635f).
in FY2014 to 66% in FY2018, as a share of total
authorizations. By number, small businesses continued to
Before the CR, Ex-Im Bank’s general statutory authority
account for most authorizations (91% in FY2018).
was due to expire at the close of business on September 30,
Figure 1. Ex-Im Bank Authorizations, FY1997-2018
2019, pursuant to P.L. 114-94 (enacted on December 4,
2015). In addition to renewing the Bank’s general statutory
authority for almost four years, P.L. 114-94 modified its
portfolio exposure cap and made reforms in such areas as
risk management, fraud controls, ethics, and the U.S.
approach to international negotiations on export credit
rules. Prior to this renewal, the Bank’s general statutory
authority lapsed from July 1, 2015, to December 4, 2015,
amid policy disagreements about the agency. Ex-Im Bank
reported that it monitored and managed its existing
portfolio and other obligations during the lapse.
Leadership. By statute, a five-member board of directors,
representing both political parties, leads Ex-Im Bank. The
president and first vice president of Ex-Im Bank serve as
the board chairman and vice chairman, respectively. The
board needs a quorum of at least three members to conduct
Source: CRS, based on data from Ex-Im Bank annual reports.
business, including approving transactions above a certain
As repayments on transactions exceeded new activity, Ex-
threshold (now $25 million, previously $10 million),
Im Bank’s portfolio declined. In FY2014, the Bank’s
making policies, and delegating authority (e.g., to staff to
overall portfolio exposure reached $112 billion (covering
approve transactions below the threshold). Advisory and
80% of the $140 billion statutory exposure cap in FY2014).
other committees support the board.
In contrast, the portfolio dropped to $61 billion in FY2018
(45% of the $135 billion exposure cap for that year).
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link to page 2 
Export-Import Bank of the United States (Ex-Im Bank)
Requirements. Ex-Im Bank financing may be extended
(United States, China, and other countries) reportedly has
only where there is a “reasonable assurance of repayment”
made limited progress to negotiate new export credit rules.
and should supplement, not compete with, private capital.
Figure 2. Export Financing by Selected ECAs in 2018
The Bank must consider each proposed transaction’s
potential economic impact to U.S. industry and its
environmental impact, among other issues. The Bank,
which views the amount of U.S. content in an export
contract to be a proxy for U.S. jobs, reduces its level of
support based on foreign content in an export contract. It
also has U.S.-flag shipping requirements. The Bank must
make available not less than 25% of its total authority to
finance small business exports. It also must promote
renewable energy exports, environmentally beneficial
exports, and exports to sub-Saharan Africa. It is generally
barred from financing defense exports.
Funding. Ex-Im Bank’s revenues include interest, risk
premia, and other fees that it charges for its support.
Revenues acquired in excess of forecasted losses are
recorded as offsetting collections. Ex-Im Bank reports
contributing to the Treasury, since 2000, $14.8 billion after
covering its administrative and program costs, and other
expenses. (This is on a cash basis, and different from the
amount calculated on a budgetary basis.) During the
quorum lapse, the Bank’s portfolio shrank and its offsetting
Source: CRS, based on Ex-Im Bank 2018 Competitiveness Report.
collections declined compared to administrative expenses.
Note: Data are for new medium- and long-term official export credit
FY2019 appropriations for Ex-Im Bank were $5.7 million
financing, and subject to analytic assumptions and other limitations.
for the Office of Inspector General and a limit of $110.0
*Brazil abides by the Arrangement’s Aircraft Sector Understanding.
million for administrative expenses. FY2020 funding
currently is provided at FY2019 levels under the CR.
Reauthorization Debate
Risk management. Based on its charter, Ex-Im Bank
Over the years, policymakers have raised various arguments
assesses and monitors credit and other risks of transactions,
for and against reauthorizing Ex-Im Bank. Supporters argue
and maintains reserves against losses. The Bank reported a
that the Bank fills in gaps in private-sector financing for
default rate of 0.504% as of June 2019 (sent quarterly to
exports and helps U.S. exporters compete against foreign
Congress). In FY2018, its reserves and allowances for total
ECA-backed firms, while managing risks and advancing
losses were $3.7 billion (6.4% of total outstanding balance).
other U.S. policy goals. Critics argue that the Bank crowds
out the private sector, picks winners and losers, is corporate
International context. The United States has led efforts to
welfare, and imposes taxpayer risks. The debate raises other
develop international rules for ECA activity. Ex-Im Bank
issues as well, such as whether current international ECA
abides by the Organisation for Economic Co-operation and
rules support U.S. policy goals or require changes.
Development (OECD) Arrangement on Officially
Supported Export Credits, which aims to ensure a level
Bills in the 116th Congress would reauthorize the Bank and
playing field for ECA activity such that the price and
make limited or significant other changes (H.R. 3407, H.R.
quality of exports, not their financing terms, guide
4863, S. 2293), or terminate its authority (H.R. 1910). On
purchasing decisions. Applying to ECA financing with
October 31, 2019, the House Financial Services Committee
repayment terms of two years or more, the Arrangement
approved H.R. 4863 (30-27 vote) following active debate. It
sets minimum interest rates, maximum repayment terms,
would reauthorize the Bank for 10 years, raise its exposure
and other terms and conditions. The Arrangement also has
cap to $175 million, create a temporary board to approve
transparency and other provisions on tied aid (concessional
larger deals if the board loses a quorum, and make other
financing for projects in developing countries linked to
policy and structural changes. Debate continues over issues
procurement from the donor country). Ex-Im Bank does not
such as the balance between ensuring Ex-Im Bank’s
initiate tied aid for commercial purposes; it aims to match
flexibility to conduct activities and imposing potential new
foreign offers, but now does so infrequently (most recently
limits (e.g., related to the environment or support for
in 2011), due in part to lack of transparency in foreign
exports to China) to advance other U.S. policy goals.
financing packages.
Despite vocal opposition by some Members, support for
Under an exception to the World Trade Organization
Ex-Im Bank overall is largely bipartisan in Congress.
(WTO) Agreement on Subsidies and Countervailing
Nevertheless, the outlook for a long-term reauthorization is
Measures, Arrangement-compliant export credit practices
unclear amid policy disagreements on specific terms.
are not treated as prohibited export subsidies. Over time,
For more information, see CRS Report R43581, Export-
unregulated ECA financing has grown, with non-OECD
Import Bank: Overview and Reauthorization Issues, by
countries such as China operating ECAs and OECD
Shayerah Ilias Akhtar.
members providing financing outside of the Arrangement’s
scope (see Figure 2). Issues include concessional export
Shayerah Ilias Akhtar, Specialist in International Trade
financing by China. An International Working Group
and Finance
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Export-Import Bank of the United States (Ex-Im Bank)
IF10017
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