North Dakota bank designated Export-Import bank

Northwestern Financial Review, Sep 1-Sep 14, 2003

First Western Bank & Trust, Minot, N.B., has received an Export-Import Bank designation, which gives First Western "delegated authority" as an underwriter to aid financing and facilitating U.S. exports in-house.

"It's not unlike certain Small Business Administration designations where pre-approved lenders can make SBA guaranteed loans up to a certain level without individual approval from the SBA," said Dave Kuschel, First Western Bank's senior vice president. "We wanted to be able to provide this as a bank and be able to market an export-import product to customers who need it. Obviously, we have a significant ag community in North Dakota and if we can do anything to help get - for instance, a cooperative's products shipped to another country - then we want to do that."

The Export-Import Bank of the United States, which is based in Washington D.C., was created in 1934 and established under its present law in 1945 to aid in financing and to facilitate U.S. exports.

Ex-Im Bank is encouraged to supplement, but not compete with, sources of private capital. While any bank can employ Ex-Im guarantee loans by seeking an Ex-Im Bank designation, banks like First Western Bank formalize their partnership with the Ex-Im Bank.

"North Dakota is trying to broaden its economic base," said Kuschel. "The state is trying to market its products more broadly. We didn't seek the designation with any one product in mind, but if that potential is there we want to help."