Summary

Removes certain Export-Import Bank (EXIM) financings from counting against the Bank’s statutory default-rate calculation. If EXIM determines a financing was used to replace or compete with products or services tied to entities on the Commerce Department’s Entity List, or was made under the Program on China and Transformational Exports, any defaults on that financing will not be included in the Bank’s default-rate metric. This change is meant to give EXIM more room to support U.S. exporters in strategic and emerging technologies against foreign adversary-linked suppliers, without those higher-risk deals inflating its measured default rate.

Key Points

• Directs EXIM to exclude specified defaults from its statutory default-rate calculation.
• Covers financings that compete with or replace goods/services tied to Commerce’s Entity List.
• Also covers financings under EXIM’s Program on China and Transformational Exports (CTEP).
• Aims to enable more strategic, higher-risk support without inflating EXIM’s measured default rate.
• Could expand EXIM’s ability to back U.S. exporters in critical and emerging technologies.
• Does not change who can receive EXIM support or appropriate any new funds.
• Implementation depends on EXIM’s case-by-case determinations.
• May draw oversight attention to transparency of default-rate reporting and risk management.

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