KEEPING AMERICA STRONG Export-Import Bank of the United States | 2019 Annual Report Keeping America Strong: EMPOWERING U.S. BUSINESSES AND WORKERS TO COMPETE GLOBALLY EXIM supports American jobs at companies all across our nation by assisting in the financing of their exports of “Made in America” products and services to markets around the world. EXIM customers featured on the fiscal year (FY) 2019 Annual Report cover are: A – Mack Trucks, Greensboro, North Carolina (photo of Lehigh Valley Operations facility in Macungie, Pennsylvania) M – Bob’s Red Mill Natural Foods, Milwaukie, Oregon E – Graceland Fruit Inc., Frankfort, Michigan R – Mid-South Control Line, Houston, Texas; Marrero, Louisiana I – Tactical Medical Solutions LLC (TacMed), Anderson, South Carolina C – DemeTECH Corporation, Miami Lakes, Florida A – FHC Inc., Bowdoin, Maine S – Zeigler Bros. Inc., Gardners, Pennsylvania T – Mark Andy Inc., Chesterfield, Missouri R – Environmental Dynamics International Inc. (EDI), Columbia, Missouri O – Thrush Aircraft Inc., Albany, Georgia N – Competitive Engineering Inc. (CEI), Tucson, Arizona G – Zeeco Inc., Broken Arrow, Oklahoma Table of Contents MISSION ......................................................................................................................................................................... 2 REAUTHORIZATION ...................................................................................................................................................... 3 EXIM BOARD OF DIRECTORS ...................................................................................................................................... 3 MESSAGE FROM THE CHAIRMAN ............................................................................................................................. 4 ABOUT EXIM .................................................................................................................................................................. 8 OUR MISSION, VISION, AND VALUES ........................................................................................................................ 9 CONGRESSIONAL REPORTING ................................................................................................................................. 10 EXIM EXPORT CREDIT INSURANCE: DECOART ..................................................................................................... 14 EXIM WORKING CAPITAL GUARANTEE: PATTON ELECTRONICS ....................................................................... 16 EXIM BUYER FINANCING: WABTEC CORPORATION ............................................................................................ 18 EXIM-SUPPORTED U.S. EXPORTS BY STATE ........................................................................................................20 FY 2019 AUTHORIZATIONS AND SMALL BUSINESS AUTHORIZATIONS .......................................................... 21 FY 2019 AUTHORIZATIONS BY MARKET ................................................................................................................ 22 FY 2019 LOANS AND LONG-TERM GUARANTEES AUTHORIZATIONS .............................................................. 26 AGENCY MANAGEMENT REPORT ............................................................................................................................ 27 DIRECTORS AND OFFICERS .....................................................................................................................................82 EXIM REGIONAL EXPORT FINANCE CENTERS .....................................................................................................84 2019 EXIM ANNUAL REPORT | 1 Mission The Export-Import Bank of the United foreign competition backed by other States (EXIM) is the official export credit governments, EXIM provides buyer agency (ECA) of the United States. EXIM financing that is competitive with the is an independent federal agency that financing offered by foreign ECAs. supports American jobs by facilitating the export of U.S. goods and services. EXIM assumes credit and country risks that the private sector is unable EXIM does this in two principal ways. or unwilling to accept. All transactions First, when exporters in the United demonstrate a reasonable assurance of States or their customers are unable repayment in accordance with statutory to access export financing from private requirements (12 U.S.C. § 635(b)(1)(B)). sources, the agency equips them with EXIM closely monitors the risks in its the necessary tools to compete in portfolio and consistently maintains a foreign markets—direct loans, loan default rate that is substantially below guarantees, export credit insurance, its statutory threshold and that found in and guarantees of working capital the private sector. loans. Second, when U.S. exporters face 2 | EXIM.GOV Reauthorization The Further Consolidated Appropriations Act, 2020 (P.L. 116-94, Division I, Title IV) reauthorized EXIM through December 31, 2026, and maintains the agency’s exposure limit at $135.0 billion. This legislation provides much-needed certainty and predictability to U.S. businesses of all sizes and their workers—as well as stakeholders and potential customers around the world—as they seek to increase export sales, support American jobs, and compete and win in the very competitive global marketplace. EXIM Board of Directors On May 8, 2019, the United States Senate voted on an overwhelming, bipartisan basis to confirm EXIM President and Chairman Kimberly A. Reed (center) and Board Members Spencer Bachus, III, (on left) and Judith D. Pryor (on right). The Senate’s action restored a quorum on EXIM’s Board of Directors and enabled the agency to return to full functionality in support of U.S. exports and American jobs. 2019 EXIM ANNUAL REPORT | 3 Message from the Chairman “ EXIM’s public servants— including both senior leadership and staff—look forward to continuing to work with the U.S. Congress to implement agency reforms and to bring the Bank back to full force in the service of U.S. exporters and their workers.” — name, name, Title 4 | EXIM.GOV Message from the Chairman The Trump Administration is committed to maintaining Because of this hard work and the leadership of the United States as the pre-eminent economy in the President Trump and the United States Congress, on world and creating jobs so that all Americans can share December 20, 2019, the President signed into law the in this prosperity. In 2019, the economy of the United longest reauthorization in EXIM’s 85-year history—a States was more vigorous than ever, with the lowest seven-year reauthorization that extends EXIM’s unemployment rates since the 1960s. authority through December 31, 2026. An important part of this Administration’s successful It was a long wait, but the bipartisan legislation achieved economic agenda is to create new opportunity for every two important goals: providing certainty to American American by leveling the playing field for America’s businesses and workers—as well as their potential businesses and workers—and their outstanding “Made customers around the world—that EXIM is fully open in the USA” goods and services—in the extremely for business and giving clear direction to focus on the competitive global marketplace. In addition to signing economic and national security challenges from China. the United States-Mexico-Canada Agreement (USMCA) and U.S.-China Phase 1 Trade Agreement, President GOVERNMENT-BACKED GLOBAL COMPETITION Donald J. Trump put his full support behind America’s The revitalization of EXIM came at an important only export credit agency (ECA)—the Export-Import time, as reflected in the agency’s annual Report to Bank of the United States (EXIM)—to ensure that the U.S. Congress on Global Export Credit Competition American companies and their workers are not (Competitiveness Report) bit.ly/EXIMcomp2019, a disadvantaged by the lack of our nation’s official export comprehensive survey of officially supported medium- credit whenever it is needed to be competitive around and long-term (MLT) export credit provided by export the world. credit systems around the world. EXIM’s June 2019 With President Trump’s leadership, on May 8, 2019, Competitiveness Report (which covers the calendar the United States Senate, on a strong bipartisan basis, year 2018) examines the significant changes to official confirmed me and my fellow Board Members Spencer export credit finance in the years following the 2008 Bachus III and Judith D. Pryor. This crucial step restored financial crisis. In fact, between 2008 and 2018, export- a quorum of the EXIM Board of Directors for the first led growth became a key priority of many governments, time since July 2015 and allowed EXIM to again offer its with China chief among them. The report illustrates the full range of financing after nearly four years without a breadth and depth of the involvement of governments functioning board. in promoting and financing the exports from their countries. As the first woman and the first West Virginian to lead EXIM since its founding in 1934, I am deeply honored China’s aggressive use of export credit has encouraged to be charged with—along with nearly 400 talented other countries to change the policies of their ECAs and dedicated EXIM professionals—fulfilling the critical or risk their exporters losing access to large swaths mission of supporting American jobs by facilitating of global markets. For example, China’s standard U.S. exports.