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Amends the Export‑Import Bank Act to change how the Bank calculates a particular rate under its law: when an entity is in default, the Bank must exclude that entity from the rate calculation if the Bank determines the financing to that entity either (a) helped replace or compete with products or services of certain listed entities or persons, or (b) was provided under the Program on China and Transformational Exports. The change narrows which defaulted borrowers are counted in the rate calculation for that statutory provision and ties exclusion to findings about competition/ replacement or participation in the named China/transformational exports program. The effect is to give the Bank authority to omit certain defaulted borrowers from the specified rate when those defaults are linked to financing that competes with or replaces particular products or was made through the China/Transformational Exports program. That can change reported rates and potentially alter the Bank's portfolio calculations and future underwriting/treatment of similar financings.
Amend Section 6(a)(3) of the Export-Import Bank Act of 1945 (12 U.S.C. 635e(a)(3)) by striking and inserting new language for subparagraph (A) titled 'In general' (text shown as: 'If; and').
Add a new subparagraph (B) titled 'Exclusion of certain financing' stating: for purposes of this paragraph, the rate calculated under section 8(g)(1) shall not include an entity in default if the Bank determines that the financing provided to the entity meets the conditions described in clauses (i) and (ii).
Clause (i)(I): The financing facilitates the replacement of or competition with a product or service provided by an entity on the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce (Supplement No. 4 to part 744 of 15 C.F.R.).
Clause (i)(II): The financing facilitates the replacement of or competition with a product or service provided by a person (text as stated: 'a person—').
Clause (ii): The financing was provided pursuant to the Program on China and Transformational Exports established under section 2(l).
Who is affected and how:
Export‑Import Bank borrowers and applicants: Companies that borrow from or seek financing from the Bank are directly affected because defaulted entities meeting the stated criteria will be excluded from a statutory rate calculation. That may change portfolio metrics the Bank reports and could affect internal risk assessments or policy direction.
Businesses developing critical or transformational technologies (including those engaged with China): Firms financed under the Program on China and Transformational Exports or those whose financing the Bank deems to replace or compete with certain listed products/services may see different administrative treatment of defaults — potentially changing how the Bank and stakeholders view program performance and risk.
Financial institutions and partners: Lenders, insurers, and intermediaries that interact with Ex‑Im Bank transactions could see indirect effects through changes in Bank-calculated rates, which may influence pricing, risk allocation, or willingness to participate in similar transactions.
Government oversight and policy actors: The amendment gives the Bank an explicit basis to exclude certain defaulted entities from rate metrics when those defaults are tied to competition/replacement findings or to the China program. That can affect how policymakers and the public interpret Bank performance vis‑à‑vis China-related or transformational export support.
Overall effect: The change is a narrow, technical amendment that changes statutory accounting/reporting for certain defaulted borrowers. It does not itself change loan terms, repayment obligations, or program authorizations, but it can influence perceptions of portfolio health and future Bank decisions about underwriting or program design for transactions tied to China or transformational exports.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced February 26, 2025 by Catherine Marie Cortez Masto · Last progress February 26, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate
