Re-evaluating Small Business Outreach and Financing

Congress has had a long-standing interest in the extent of Ex-Im Bank's financing of small business—since 2002, it has required that Ex-Im Bank make available to small businesses at least 20 percent of the bank's annual financing.  In reauthorizing the bank’s charter in 2006, Congress directed Ex-Im Bank to develop performance standards to measure progress in reaching small business goals.

• Ex-Im Bank's small business financing did not reach the 20 percent goal in fiscal years 2002 through 2005 but exceeded the goal in fiscal years 2006 and 2007 (see figure).

  Highlights of GAO-08-419T (PDF)

• GAO found that Ex-Im Bank 's performance standards for small business addressed most, but not all, functions referred to in the 2006 act, and that the bank lacked measures or targets for assessing progress in some areas.

  Highlights of GAO-08-915 (PDF)

Ex-Im Bank committed to make improvements in those areas, but Ex-Im Bank's implementation of these requirements, including ones specific to businesses owned by socially and economically disadvantaged individuals and women, is an area where continued attention by Ex-Im Bank management is needed.

Ex-Im Bank's Reported Proportion of Financing Directly Benefiting Small Businesses, Fiscal Years 2000 through 2007

Source: GAO Analysis of Ex-Im data

^ Back to topWhat Needs to Be Done

GAO has recommended that Ex-Im Bank

• establish performance standards for functions not currently addressed;
• revise several current measures to include measurable targets and time frames; and
• establish a measure for financing to small businesses owned by socially and economically disadvantaged individuals and women

  Highlights of GAO-08-915 (PDF)

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