Private Export Funding Corporation (PEFCO) 2025: Export Financing Explained with Costs and Benefits

What is the Private Export Funding Corporation (PEFCO)?

The Private Export Funding Corporation (PEFCO) is a private-sector financial institution dedicated to providing export financing solutions for U.S. businesses. Established in 1970 with backing from the U.S. Treasury and the Export-Import Bank of the United States (Ex-Im Bank), PEFCO offers a variety of loan programs designed to facilitate international trade by funding purchases of American goods and services abroad.

PEFCO operates both as a direct lender and as a purchaser of export loans in the secondary market, working exclusively with loans guaranteed by the Ex-Im Bank or equivalent federal agencies, which ensures low risk and reliable funding.

Key Highlights

• PEFCO supports U.S.-based exporters by providing flexible financing options secured by federal guarantees.
• It acts as an intermediary, enhancing liquidity for export loans originated by other lenders.
• All loans serviced by PEFCO are backed by the Export-Import Bank, ensuring strong federal support and risk mitigation.

How Does PEFCO Work?

Owned by a consortium of 26 U.S. commercial banks, one financial services firm, and six industrial companies, PEFCO’s mission is to complement—not compete with—the financing provided by the Ex-Im Bank and commercial banks. It offers loan products tailored to match the insurance and guarantee programs of the Ex-Im Bank, including short-, medium-, and long-term export financing options.

Because all loans are guaranteed by the U.S. government through the Ex-Im Bank, PEFCO does not conduct independent credit risk assessments or economic appraisals of foreign markets. This structure allows exporters to access financing with confidence, backed by the full faith and credit of the United States.

Ownership and Governance

PEFCO’s shareholders consist primarily of major U.S. commercial banks that hold shares directly or through affiliates, alongside industrial exporters and financial services companies. This diverse ownership base ensures that PEFCO remains closely aligned with the needs of the U.S. export community.

Financial Overview and Recent Trends

As of the end of 2020, PEFCO reported assets totaling approximately $4.87 billion. Despite a decline in revenues due to the global economic slowdown caused by the COVID-19 pandemic, PEFCO maintained operational stability and resilience. The corporation’s annual reports confirm that it was not materially impacted by the pandemic and anticipated recovery aligned with the resurgence of global trade and shipping activities in 2021.

Why Choose PEFCO for Export Financing?

PEFCO offers U.S. exporters a reliable and federally backed source of export financing that adapts to various business needs and timelines. By leveraging the guarantees of the Export-Import Bank, PEFCO mitigates risk and facilitates smoother international transactions, empowering American companies to expand their global reach with confidence.

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