For the first time, the Export-Import Bank (Ex-Im) of the United States is making targeted outreach to credit unions, announcing that it has signed a memorandum of understanding (MOU) with the National Credit Union Administration (NCUA).
The three-year collaborative effort is planned to bring credit unions together with small businesses and expand awareness about Ex-Im programs available to businesses.
“This MOU represents Ex-Im’s first-ever targeted outreach to credit unions and their millions of customers, and will provide important support to America’s small businesses – especially those that may be exporting for the first time,” Ex-Im Chairman Kimberly Reed said in a press release. “NCUA Chairman (Rodney) Hood is a visionary leader and I look forward to the collaboration between our agencies to raise awareness with credit unions on the services available through Ex-Im to help their members export, grow their businesses and U.S. jobs, and bring prosperity to local communities.”
The MOU will have both groups undertake a series of initiatives to help credit unions better understand and make use of Ex-Im guaranteed loans and resources. The groups said these joint initiatives might include webinars and training events.
“Under this agreement, we’ll be working with Ex-Im to develop educational and training initiatives on export financing opportunities to share with credit unions, so they can educate their small-business members about the available opportunities, such as an Ex-Im guaranteed loan being exempt from the member business cap of 12.25 percent,” Hood said. “Helping small businesses to gain access to capital is essential, and we can anticipate that this collaboration will be a great help to many hard-pressed entrepreneurs, particularly the steep challenges they face in today’s environment.”
Commercial lending by federally insured credit unions has grown in recent years. At the end of 2019, credit unions reported more than $81 billion in commercial loans outstanding.