U.S. Export-Import Bank
As of April 2017, President Trump nominated one-time Ex-Im Bank critic, former Republican congressmen Scott Garrett of New Jersey, to serve as president of the credit agency. Trump also nominated former congressman Spencer T. Bachus III of Alabama to the board of directors. This will restore the bank’s power to approve transactions exceeding $10 million, if both are confirmed by the Senate.This restoration comes after a December 2015 vote in Congress where an overwhelming majority voted to fully reauthorize the bank. However, at the time the chairman of the Senate Banking Committee stymied the bank’s full restoration by blocking action on nominees required to achieve a quorum for the Ex-Im Bank Board in 2016. In the absence of a quorum, the bank could not approve transactions of more than $10 million. In 2016, the Ex-Im Bank authorized $5 billion which supported $8 billion in exports at no cost to American taxpayers. Ninety eight percent of loans authorized in 2016 were to small businesses. $284 million was sent to the U.S. Treasury for debt reduction.
With economic growth and job creation the top priorities for the United States, the restoration of the full powers of the Ex-Im Bank will once again allow it to play an important role. It is expected that increased authorizations will represent numerous opportunities for U.S. businesses and their workers. The bank’s ability to approve transactions exceeding $10 million extends the profound impact on larger exporters, the thousands of smaller companies that supply them, and the hundreds of thousands of workers whose jobs depend on exports.
Effects on U.S. businesses and workers are exacerbated by the extraordinary steps other countries are taking to support their own exporters and national interests. Export credit agencies (ECAs) abroad are expanding product offerings allowing exporters to compete more aggressively, and more countries are opening new ECAs of their own.
Moreover, the hundreds of workers at large businesses are not the only ones affected by U.S. export transactions; there are strong ripple effects on the many small and medium-sized enterprises throughout their supply chains. The United States is home to some of the largest supply chains in the world. Sales and employees in these supply chains depend on exports of larger clients, financed by Ex-Im. Hopefully, renewed support for large clients by the Ex-Im Bank means increased purchasing, which means more sales and a direct impact on jobs in cities and towns across the country.
|On Friday, December 4, 2015, President Obama signed legislation to re-authorize the Export-Import Bank. This action will extend the bank’s charter by five years until 2019.
According to The Hill, the renewal of the 81-year-old institution’s charter was included in a five-year, $305 billion federal transportation measure that passed the Senate late Thursday on an 83-16 vote, only one day ahead of the expiration of the latest short-term funding patch. The House passed the bill earlier in the day on a 359-65 vote.
A California Chamber of Commerce-supported resolution urging Congress to reauthorize the Export-Import Bank of the United States (Ex-Im Bank) is awaiting a vote by the entire Senate. CalChamber, June 18, 2015
| AJR 37 (Muratsuchi-D)
Export-Import Bank 6/24/2014-Chaptered by Secretary of State
Urged Congressional reauthorization of the Export-Import (Ex-Im) Bank, thereby enabling U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.Bill Version: 06/24/2014 Chaptered
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets.
Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.
Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. The Bank assumes credit and country risks that the private sector is unable or unwilling to accept. The Bank also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.
Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. In FY 2016, nearly 90 percent of Ex-I’m Bank’s transactions were for American small businesses.
With 80 years of experience, Ex-Im Bank has supported more than $567 billion of U.S. exports, primarily to developing markets worldwide.
The Export-Import Bank has the mission of supporting U.S. jobs through exports. 60 other nations have similar export financing mechanisms.
In addition to supporting U.S. jobs, the Ex-Im Bank is a self-sustaining agency that operates at no net cost to the taxpayers. Ex-Im Bank pays for itself by charging fees or interest to its customers for loans, credit insurance and loan guarantees that they receive.
The U.S. Export-Import Bank has a proven record of success, and the myths questioning its need and effectiveness have no basis in fact. Far from being a burden on the taxpayer, Ex-Im turns a profit for the American taxpayer.
Nor does Ex-Im help only big business. In fact, small businesses account for the majority of Ex- Im’s transactions; further, these small business transaction figures are in addition to the tens of thousands of small and medium-sized businesses that supply goods and services to large exporters.
The California Chamber of Commerce, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business.
Export-Import Bank Reauthorization
Congress’s Ex-Im Battle Taking a Heavy Toll on American Businesses
J.D. Harrison, U.S. Chamber of Commerce, September 15, 2015
Democrats lodge U.S. Export-Import Bank survival plan
Reuters, February 25, 2015
U.S. Export-Import Bank Reauthorization Fact Sheet
U.S. National District Export Council, February 2014