DEFINITION of 'Private Export Funding Corporation - PEFCO'
A single corporation created by the U.S. Treasury and the Export-Import Bank of the U.S. that facilitates funding of exports that have not been subsidized. The PEFCO does this with the purchase of loans in the secondary market from commercial lenders. The loans are then used to finance U.S. exports.
BREAKING DOWN 'Private Export Funding Corporation - PEFCO'
The PEFCO was created to help American-made goods find their way into other countries. PEFCO loans are guaranteed by the Export-Import Bank of the United States. Some of the shareholders in PEFCO include large commercial banks that participate in financing U.S. exports, as well as industrial export companies.