Ep053: Unlocking the Potential of Export Credit Insurance with Eric Miller
Description
In today's episode of the IC-DISC show, Eric Miller from the Export-Import Bank of the United States (EX-IM) provides valuable insights into how this 90-year-old institution supports American exporters through strategic financial services. I also learned that EX-IM is one of just two governmental agencies that is an actual profit center.
Before joining EX-IM, Eric worked for a privately-held exporter that was a customer of EX-IM. His expertise both inside and outside of EX-IM sheds light on crucial products like export credit insurance, export financing, and financing for foreign buyers. These solutions can alleviate common hurdles inhibiting international trade growth.
We also talk through some real-world examples of these various EXIM solutions. This is a must-listen episode for any company doing substantial direct exports.
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SHOW HIGHLIGHTS
- Eric Miller from the Export-Import Bank of the United States (Ex-Im Bank) discusses the role of the bank in aiding exporting companies with financial services, operating without costing taxpayers.
- We delve into how Ex-Im Bank and the Small Business Administration (SBA) offer loan guarantees and insurance to boost companies' borrowing capacity.
- Eric shares insights into export credit insurance and how Ex-Im Bank's products can help resolve common financial challenges in international transactions.
- The discussion covers Ex-Im Bank's new domestic project finance product, designed to support projects that have a significant export component.
- We touch on the requirement for a U.S. majority in product content, aiming to foster manufacturing and job growth in the United States.
- Eric explains the importance of services, like engineering and architectural services for foreign projects, requiring a U.S. majority for cost.
- We discuss government resources that can aid businesses in exporting, such as tax incentives and the Gold Key service provided by the U.S. Commercial Services.
- The episode highlights the STEP grant, a federal program managed by states to support companies with export-related expenses.
- Eric and I settle the Tex-Mex vs. BBQ debate with an appreciation for both, adding a lighthearted twist to the episode.
- Contact information for Eric Miller is shared for listeners who wish to connect and further explore export financing options.
Contact Details
[Email]
(eric.miller@xmexim.gov)
[Phone Number]
(713-306-7969)
LINKS
About Export-Import Bank of the United States
GUEST
TRANSCRIPT
(AI transcript provided as supporting material and may contain errors)
Dave: Hi, this is David Spray. Welcome to another episode of the IC Disc Show. My guest today is Eric Miller of the Export-Import Bank of the United States, colloquially known by the acronym of XM. More useful takeaways for privately held exporting companies than any guest I've ever had. We talked about the history of the XM, its purpose and the four service offerings that they have for privately held exporting businesses. We also talked about three other governmental arms that can also be of value. The other interesting thing about Eric is he actually was a customer of XM early in his career when he was a minority owner of an exporting business. So Eric's a really dynamic guy. He's really passionate about serving exporting companies and he really understands what it's like to be in the shoes of their customers.
I really recommend you take a listen to this one. It's really valuable hey good morning Eric. Welcome to the podcast.
Eric: Thank you, Dave. It's a pleasure to be here. It's an honor. Thank you.
Dave: Well, the pleasure is all mine. So where are you connecting from today? What part of the world are you in at the moment?
Eric: The great state of Texas. I'm in the Houston area, born and raised in Texas and been all over the world, but this is home. Oh, that's awesome.
Dave: In fact, I think you even stayed close for college, right.
Eric: I did. I'm a Cougar alumni, so a proud Houston native.
Dave: Awesome, so I'm really excited to have you on. You are with the Export Import Bank of the United States, correct? Correct so we also go by XM Bank, sorry.
Eric: Yep.
Dave: So tell me about XM, tell me about the kind of the history of the organization and why it exists, and then we'll get it. We'll see where the conversation goes.
Eric: Yeah, no, it's a good question. I'm biased, of course, working here, but I think it's one of the most fascinating government agencies that exist. We're set up in the executive branch of the federal government. We've been around for 90 years. Most people haven't heard of us. We are small. We've got anywhere between 400 and 500 people as a part of the agency. Most are headquartered in Washington DC, but we do have a dozen regional offices scattered throughout the US and all the major cities. I cover the Houston office and in doing so, I work with exporters in the great state of Texas and help them export more US made products and services. That's really what we're about here at XM Bank is supporting our US companies that are exporting a US made good or service. We're on the finance side of that help. There's other government agencies. Throughout the whole process of a transaction, whether it's finding buyers, whether it's financing a transaction or even getting grant money to help you export. There's other support, but EXIM is specific on the finance piece.
Dave: Okay, and so does EXIM. At the end of the day, you know, does this cost taxpayers, you know, billions of dollars to have this thing in place.
Eric: Yeah, that's another good question. So you know, we're one of the few agencies historically that have actually built a surplus of money for the taxpayer. In other words, we're using less than we're making and we send money back to Treasury. It changes year to year, but historically, if you look over the past you the past 20, 30 years we're generating a surplus and sending that back to treasury, so costing taxpayers billions of dollars. No, we like to operate a little differently than a government agency. We are an independent government agency, which means we're not inside a cabinet, but we are set up in the executive branch and we like to say we run at the speed of business Internally, we're very efficient, we're very effective and we're very aggressive, trying to reach out to US companies and get them involved in helping them.
Dave: Well, that is awesome. I think it sounds like just a win, right. It's a win for the taxpayers. It's actually a profit center, if you will, for the taxpayers. It's good for the exporters, it's good for the country. Am I correct? I think the only other government agency I've ever heard of that's a profit center is like the Patent and Trademark Office. Have you heard that too?
Eric: I think you're right. Now, I haven't researched that myself, just in passing and conversations I've heard of the same and there might be one or two others out there. But yeah, it's an unusual feat of a government agency to kind of generate that surplus for a taxpayer and send it back to Treasury. We do charge, you know, fees and that's how the agency itself makes and brings in money. We charge fees for our different products and you know we have products like export credit insurance. To just kind of dive into what we do, yeah, let's do that In export credit insurance to just kind of dive into what we do yeah let's do that In export credit insurance.
So let me take a couple steps back.
When an exporter engages in international business, when they find a foreign buyer in a country and they say, hey, here's what I
United States
