Better understanding, and use, of the U.S. export credit agency by credit unions, primarily through education opportunities, is the stated aim of an agreement announced Tuesday by the federal credit union regulator and the credit agency.
The focus of the three-year agreement (a “memorandum of understanding”) with the Export-Import Bank of the U.S. (Exim), according to a release from the National Credit Union Administration (NCUA), is to “bring small businesses and credit unions together and expand awareness about Exim programs.” That includes use of such Exim programs as guaranteed loans and resources.
NCUA Board Chairman Rodney Hood said his agency would work with Exim to develop educational and training initiatives on export financing opportunities to share with credit unions. He said that would allow the cooperative financial institutions to educate their small-business members about the available opportunities, such as an guaranteed loans from Exim being exempt from the cap on credit union member business loans of 12.25% of total assets.
The agreement, according to Exim President and Chairman Kimberley A. Reed, is the bank’s first-ever “targeted outreach” to credit unions and their members. Reed said the deal will provide important support to America’s small businesses – “especially those that may be exporting for the first time.”