12 U.S.C. § 635g — Report to Congress; time for submission; contents

(a) Annual submission of report. Each year, the Export-Import Bank of the United States must send Congress a complete and detailed report about its operations. The report must be current as of the close of business on the last day of each fiscal year.

(b) Report on money set aside for small-business exports.

(1) The Bank must include in its annual report to Congress a report on how it allocated the money set aside for small-business exports under section 635(b)(1)(E).

(2) The report must state^*—

(A) the total number and dollar amount of loans made from the money set aside;

(B) the number and dollar amount of loans made through the consortium program under section 635(b)(1)(E)(vii);

(C) the amount of guarantees and insurance provided for small-business exports;

(D) the number of recipients of financing from the money set aside who had not previously taken part in the Bank’s programs;

(E) the number of commitments made for amounts below $500,000; and

(F) any recommendations for increasing the participation of banks and other institutions in the programs authorized under section 635(b)(1)(E).

(3) For this subsection, the Bank must send the report to the Senate Committee on Small Business and the House Committee on Small Business.

(c) Technology to assist small businesses. For each fiscal year from 2002 through 2006, the Bank must include in its annual report under subsection (a) a report on its efforts to carry out section 635(b)(1)(E)(x) and (J), and on how those efforts assist “small business concerns.” This section does not define “small business concerns”; it refers to the definition in section 632(a) of title 15.

(d) Number of small-business suppliers of Bank users. Based on an annual survey or tabulation, the Bank must estimate the number of entities that supply users of the Bank and that are “small business concerns” located in the United States. It must include the estimate in its annual report under subsection (a). This section does not define “small business concerns”; it refers to the definition in section 632(a) of title 15.

(e) Outreach to certain small businesses. The Bank must include in its annual report under subsection (a) a description of its outreach efforts to “socially and economically disadvantaged small business concerns,” “small business concerns” owned by women, and “small business concerns” that employ fewer than 100 employees. This section does not define those terms; it refers to sections 637(a)(4) and 632(a) of title 15.

(f) Additional reports. By March 31 of each year, the Bank must send reports to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs about—

(1) the extent to which the Bank has been able to use the authority and has complied with the mandates in section 635(b)(1)(E). If the Bank has been unable to fully use that authority or comply with those mandates, the report must explain why and describe the steps the Bank is taking to remedy that inability;

(2) the extent to which financing has been made available to the “small business concerns” described in subsection (e) so they can take part in exports by major contractors, including through direct or indirect funding that gives them access to the contractors’ supply chains;

(3) the specific measures the Bank will take in the coming year to achieve its small-business objectives, including expanded outreach, product improvements, and related actions;

(4) the progress the Bank has made in supporting exports by “socially and economically disadvantaged small business concerns” and “small business concerns” owned by women. This must include estimates of the amounts made available to finance exports directly by those small business concerns, a comparison of those amounts with the amounts made available to all small business concerns, and a comparison of those amounts with the amounts made available during the two preceding years. This section does not define those terms; it refers to title 15.

(5) for each type of transaction, the interest and fees the Bank charges exporters, including a description of any fees and interest charged to “small business concerns,” buyers, and other applicants in connection with each Bank financing program; and the highest, lowest, and average fees charged for short-term insurance transactions;

(6) the effects of the fees on the Bank’s ability to achieve its small-business objectives;

(7) the Bank’s fee structure compared with the fee structures of foreign export credit^* agencies; and

(8) (A) the Bank’s efforts to carry out section 635(b)(1)(E)(x) and (J), including the total amount the Bank spent on those efforts; and (B) if the Bank has been unable to comply with those provisions—

(i) an analysis of the reasons for that inability; and

(ii) what the Bank is doing to achieve compliance, and the date by which the Bank expects to have achieved it.

(g) Monitoring of default rates on bank financing; reports on default rates; safety and soundness review.

(1) Monitoring of default rates. At least once every three months, the Bank must calculate the rate at which entities receiving the Bank’s short-, medium-, or long-term financing are in default on a payment obligation under that financing. To calculate the rate, the Bank must divide the total amount of required payments that are overdue by the total amount of the financing involved.

(2) Additional calculation by product, key market, and industry sector; report to Congress. In addition, at least once every three months, the Bank must—

(A) calculate the default rate—

(i) for each kind of product: short-term loans, medium-term loans, long-term loans, insurance, medium-term guarantees, or long-term guarantees;

(ii) for each key market involved; and

(iii) for each industry sector involved; and

(B) send the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services a report on each rate and any information the Bank considers relevant.

(3) Report on causes of default rate; plan to reduce default rate. Within 45 days after a rate calculated under paragraph (1) reaches or exceeds 2 percent, the Bank must send Congress a written report explaining the circumstances that caused the default rate to be at least 2 percent. The report must also include a plan to reduce the default rate to below 2 percent.

(4) Plan contents. The plan described in paragraph (3) must—

(A) explain in detail the processes and controls the Bank uses to monitor and track outstanding loans; and

(B) describe specific planned actions, including a time frame for completing them, to reduce the default rate described in paragraph (1) to below 2 percent.

(5) Monthly reports required while default rate is at least 2 percent. For as long as the default rate calculated under paragraph (1) is at least 2 percent, the Bank must send Congress monthly reports describing the specific actions taken during that period to reduce the default rate.

(6) Safety and soundness review. If the default rate calculated under paragraph (1) stays above 2 percent for six months, the Secretary of the Treasury must arrange for an independent third party to—

(A) review the Bank’s loan programs and funds. The review must determine—

(i) the financial safety and soundness of the programs and funds; and

(ii) the extent of the loan-loss reserves and capital adequacy of the programs and funds; and

(B) within 60 days after the six-month period ends, send the Secretary a report that—

(i) describes the methods and standards used to conduct the review required by subparagraph (A);

(ii) states the review’s results and findings, including the extent of the Bank’s loan-loss reserves and capital adequacy; and

(iii) includes recommendations about restoring reserves and capital so the programs and funds remain in a safe and sound condition.

(h) Categorization of the purposes of loans and long-term guarantees. In its annual report under subsection (a), the Bank must categorize each loan and long-term guarantee it made during the fiscal year covered by the report according to these purposes:

(1) “To assume commercial or political risk that exporter or private financial institutions are unwilling or unable to undertake.”

(2) “To overcome maturity or other limitations in private sector export financing.”

(3) “To meet competition from a foreign, officially sponsored, export credit competition.”

(4) “Not identified,” together with the reason why the purpose was not identified.

(i) Access to Bank products by the textile industry. The Bank must include in its annual report under subsection (a) a report on the determinations made by the Advisory Committee under section 635a(d)(5) during the year covered by the report.

(j) Textile and apparel supply-chain financing. The Bank must include in its annual report under subsection (a) a description of how successful it was during the year covered by the report in providing effective and reasonably priced financing to the United States textile and apparel industry for exports of goods manufactured in the United States that are used as components in global textile and apparel supply chains. It must also describe the steps it has taken to increase the use of Bank products by those firms.

(k) Report on programs for small- and medium-sized businesses. The Bank must include in its annual report under subsection (a) a report on its programs for United States businesses with less than $250,000,000 in annual sales.

(l) Report on authorizations under the Program on China and Transformational Exports. The Bank must include in its annual report under subsection (a) a narrative and financial summary of the authorizations made under the Program on China and Transformational Exports.