About PEFCO

Private Export Funding Corporation (PEFCO) was incorporated in 1971 with the strong support of the Export-Import Bank of the United States (Ex-Im Bank). PEFCO is a privately-owned, public-purpose corporation. PEFCO shareowners include commercial banks, major U.S. exporters, and financial service companies.

PEFCO's mission is to be a dependable source of liquidity for lenders as a supplement to the financing available through the Export-Import Bank of the United States ("Ex-Im Bank"), commercial banks, and other lending institutions.

PEFCO's only business is financing U.S. exports that are guaranteed or insured against non-payment by Ex-Im Bank. PEFCO finances most Ex-Im Bank programs.

• Short-term Working Capital Guarantee
• Short-term insurance policies (except policies that do not have documentary cover)
• Medium-term guarantees and insurance policies (including lease guarantees)
• Long-term guarantees

PEFCO's principal source of new business is lenders. PEFCO does not engage directly with importers or exporters unless invited by the originating lender or other entity that is eligible to use Ex-Im Bank programs as a financial institution.

PEFCO provides financing directly as the lender or indirectly as a secondary market buyer.

• Direct loans are made only under Ex-Im Bank's long-term and medium-term programs.
• Secondary market purchases occur in all Ex-Im Bank programs.
• Secondary market purchases are always without recourse to the originating lender.

PEFCO will purchase any loan or loan structure approved by Ex-Im Bank. PEFCO is neutral about borrowers and countries. The predicate is the protection provided by Ex-Im Bank. PEFCO's portfolio of Ex-Im Bank guaranteed and insured loans is currently about $5 billion

The reasons why lenders elect to work with PEFCO are diverse. They include improved profitability, removal from the balance sheet of low-yielding assets or loans in high-risk countries, freed credit capacity for a client, and reduced loan portfolio size. By having PEFCO extend a loan, or by selling a loan to PEFCO, a lender can achieve financial objectives while maintaining the underlying relationship with clients.

Ex-Im Bank cooperates in the operation of PEFCO through various agreements. Ex-Im Bank is always involved when PEFCO develops new programs and sometimes is the impetus for those new programs. The PEFCO Small Business Program was created to support Ex-Im Bank outreach to small exporters.