link to page 1 
Updated January 21, 2021
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
loan guarantees to lenders against default on loans to
provides financing and insurance to facilitate the export of
foreign buyers of U.S. exports (lender usually sets rate);
U.S. goods and services to support U.S. jobs, pursuant to a
insurance to protect U.S. exporters or financial
renewable, general statutory charter (Export-Import Bank
institutions against export-related risks; and
Act of 1945, as amended; 12 U.S.C. §635 et seq.). It aims to
working capital loans and guarantees, which are short-
provide support for U.S. exports when the private sector is
term, secured types of financing.
unwilling or unable to do so and/or to counter foreign ECA
Underwriting techniques such as project, structured, and
financing. The Bank is demand-driven, fee-based, and
supply chain finance may be used in some cases. Under the
backed by the U.S. government’s full faith and credit.
latest reauthorization, the Bank established a new China
Background
and Transformational Exports program to counter export
subsidies by China or other designated countries for exports
Authorization. The Further Consolidated Appropriations
in specified high-technology sectors, such as 5G.
Act, 2020 (P.L. 116-94, enacted December 20, 2019)
extended Ex-Im Bank’s general statutory authority for a
Activity. In FY2020, Ex-Im Bank approved $5.4 billion for
record seven years, through December 31, 2026. This
more than 2,000 authorizations of direct loans, loan
extension, which includes certain other changes, provides
guarantees, and export credit insurance (see Figure 1), to
new stability to an agency that had faced active policy
support $10.8 billion in estimated U.S. export sales and an
debate and constraints on its operating authority in recent
estimated 37,000 in U.S. jobs. Transactions for small
years. Absent reauthorization, the Bank generally would not
business exporters accounted for 38.6% of authorizations
have been able to approve new transactions, but would have
by amount and 88.6% by number. Between FY2014 and
been able to continue managing its existing financial
FY2018, authorization levels declined, largely due to the
obligations, and to perform certain other functions “for
board’s inability to approve larger deals; the number of
purposes of an orderly liquidation” (12 U.S.C. §635f).
authorizations stayed relatively level as the Bank focused
more on small business exporters.
Leadership. By statute, a five-member board of directors,
representing both political parties, leads Ex-Im Bank. Board
Figure 1. Ex-Im Bank Authorizations, FY1997-2020
members are appointed by the President and confirmed by
the Senate. The Bank president and first vice president
serve respectively as the board chairman and vice chairman.
The board needs a quorum of at least three members to
conduct business, including to approve transactions above a
certain threshold (previously $10 million, now $25 million
after board action in May 2019), make policies, and
delegate authority (e.g., to staff to approve transactions
below the threshold). Advisory and other committees
support the board. The recent reauthorization created
alternative procedures to fill vacancies on the board
temporarily if a quorum lapses.
On May 8, 2019, the Senate confirmed three nominations to
the board: the president/chairman and one member for a
Source: CRS, based on data from Ex-Im Bank annual reports.
term expiring on January 20, 2021, and one member for a
In FY2014, the Bank’s overall portfolio exposure reached
term expiring on January 20, 2023. The confirmations
reinstated a quorum and enabled the board to exercise the
$112 billion (nearing the $140 billion statutory exposure
full panoply of its statutory authorities again. Previously,
cap in FY2014). It dropped in subsequent years, down to
the board lacked a quorum from July 20, 2015 to May 7,
$55 billion in FY2019 and further down to $47 billion in
2019, as terms expired and “holds” in the Senate prevented
FY2020, as repayments on transactions exceeded new
action on nominations reported from the Senate Banking
activity. The recent reauthorization sets the Bank’s
Committee. The Senate confirmations followed the Trump
exposure cap at $135 billion through FY2027.
Administration’s renewed support for the Bank, and cloture
Statutory and Policy Requirements. Ex-Im Bank
votes in the Senate to limit debate. The Senate in the 116th
financing may be extended only where there is a
Congress did not act on two other nominations: first vice
“reasonable assurance of repayment” and should
president/vice chairman and a member.
supplement, not compete with, private capital. The Bank
Products and Programs. Key Bank products include
must consider a proposed transaction’s potential economic
impact to U.S. industry and its environmental impact,
direct loans to foreign buyers of U.S. exports (interest
among other factors. The Bank, which views the amount of
rates are based on parameters set in international rules);
https://crsreports.congress.gov
link to page 2 
Export-Import Bank of the United States (Ex-Im Bank)
U.S. content in an export contract to be a proxy for U.S.
practices are not treated as prohibited export subsidies.
jobs, reduces its level of support based on foreign content in
Over time, unregulated ECA financing has grown; non-
an export contract; the board recently eased the content
OECD countries operate ECAs and OECD members
policy for financing under the new China program. The
provide financing outside of the Arrangement’s scope.
Bank also has U.S.-flag shipping requirements. In terms of
China especially presents competitiveness concerns, due to
specific U.S. export focuses, the Bank must:
the size of its ECA financing (see Figure 2), lack of
make available not less than 30% of its total authority to
transparency, and operation outside of the OECD rules.
finance small business exports (increased from 25%);
According to Ex-Im Bank’s 2020 competitiveness report,
promote renewable energy exports and make available
China’s intensive ECA activity for geopolitical aims is
not less than 5% of its portfolio to support such exports;
placing pressure on other foreign ECAs to proactively seek
support environmentally beneficial exports (no
financing opportunities. An International Working Group
percentage requirement);
(United States, China, and other countries) recently
support exports to sub-Saharan Africa (no percentage
suspended talks to establish new export credit rules after
requirement); and
eight years of limited progress.
have a general goal to reserve 20% of its portfolio for
the new China and Transformational Exports program.
Figure 2. Export Financing by Selected ECAs in 2019
The Bank is also subject to various reporting requirements,
including new China-related reporting under the extension.
Funding. Ex-Im Bank’s revenues include interest, risk
premia, and other fees charged for its support. Revenues
acquired in excess of forecasted losses are recorded as
offsetting collections. The Bank reports contributing to the
Treasury, since 1992, a net of $9.5 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.) Offsetting collections did not fully
cover program and administrative costs in FY2018 and
FY2019, during the quorum lapse. In contrast, offsetting
collections again fully covered these costs in FY2020.
An FY2021 appropriations law (P.L. 116-94) provides Ex-
Im Bank with a limit of $110.0 million for administrative
expenses, and with $6.5 million for its Office of Inspector
General. As in FY2020, the FY2021 appropriations law
includes a prohibition against Ex-Im Bank using its funding
to support nuclear-related exports to Saudi Arabia, unless
Source: CRS, based on Ex-Im Bank 2019 Competitiveness Report.
the country meets certain nonproliferation requirements.
Note: Data are for new medium- and long-term official export credit
Risk management. Based on its charter, Ex-Im Bank
financing, and subject to analytic assumptions and other limitations.
*Brazil abides by the Arrangement’s Aircraft Sector Understanding.
assesses and monitors credit and other risks of transactions,
and maintains reserves against losses. It reported a default
Policy Debate and Issues for Congress
rate of 0.819% as of September 2020 (reported quarterly to
Congress). In FY2019, its reserves and allowances for total
Over the years, Ex-Im Bank has been the object of policy
losses were $2.9 billion (7.6% of total outstanding balance).
debate. Supporters argue that the Bank fills gaps in private-
The latest reauthorization added an anti-fraud requirement
sector financing for exports and helps U.S. firms compete
on the Bank’s consideration of applications for support.
against foreign ECA-backed firms, while managing risks
and advancing other U.S. policy goals. Critics argue that the
International context. The United States has led efforts to
Bank crowds out the private sector, picks winners and
develop international rules for ECA activity. Ex-Im Bank
losers, is corporate welfare, and imposes taxpayer risks.
abides by the Organisation for Economic Co-operation and
Development (OECD) Arrangement on Officially
In the 117th Congress, potential board nominations may be
Supported Export Credits, which aims to ensure a level
an issue in the Senate. Congress may also examine:
playing field for exporter competition. Applying to ECA
the implementation of the 2019 reauthorization changes;
financing with repayment terms of two years or more, the
activity under Ex-Im Bank’s new China program;
Arrangement sets minimum interest rates, maximum
Ex-Im Bank’s competitiveness in supporting U.S.
repayment terms, and other terms and conditions. It also has
exports balanced with its risk management; and
transparency and other provisions on tied aid (concessional
the alignment of current international ECA rules with
financing for projects in developing countries linked to
U.S. policy goals, and other potential options to address
procurement from the donor country). Ex-Im Bank does not
“unfair” competition from foreign ECAs.
initiate tied aid for commercial purposes; it aims to match
foreign offers, but does so infrequently, due in part to a lack
Shayerah I. Akhtar, Specialist in International Trade and
of transparency in foreign financing packages.
Finance
Under an exception to the World Trade Organization
IF10017
(WTO) rules, Arrangement-compliant export credit
https://crsreports.congress.gov
Export-Import Bank of the United States (Ex-Im Bank)
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10017 · VERSION 22 · UPDATED