The Legal Definition of Export Import Bank and Its Importance

Definition & Meaning

The Export-Import Bank of the United States, commonly referred to as the Ex-Im Bank, is an independent agency established in 1945. Its primary purpose is to facilitate the financing of U.S. exports to developing and industrializing markets. The bank provides various financial products, including loans, credit guarantees, and insurance, to support American businesses in international trade. Over its history, the Ex-Im Bank has backed more than $400 billion in U.S. exports, making it a vital resource for small and mid-sized exporters seeking to enter or expand in foreign markets.

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Real-world examples

Here are a couple of examples of abatement:

For instance, a small manufacturing company in the U.S. may seek a loan through the Ex-Im Bank to finance the production of goods intended for sale in a developing country. This loan could be guaranteed by the bank, reducing the risk for commercial lenders.

(Hypothetical example) A tech startup may utilize the Export Credit Insurance Program to protect against potential payment defaults from international buyers, allowing them to confidently enter new markets.

Comparison with related terms

Term Definition Key Differences
Export Credit Insurance Insurance that protects exporters against non-payment by foreign buyers. Specifically focuses on risk management for export transactions.
Small Business Administration (SBA) A U.S. government agency that provides support to small businesses. While both support small businesses, the SBA focuses more on domestic financing.

What to do if this term applies to you

If you are a small or mid-sized business interested in exporting, consider exploring the financing options available through the Ex-Im Bank. You can access their programs by visiting their website or contacting their offices directly. Additionally, US Legal Forms offers templates and resources that can help you navigate the application process effectively. If your situation is complex, consulting with a legal professional may be beneficial.

Quick facts

  • Agency Established: 1945
  • Total Exports Supported: Over $400 billion
  • Small Business Transactions (FY 2004): 2,572
  • Credit Insurance Authorizations (FY 2004): $1.6 billion

Key takeaways