Issue Position: The Export-Import Bank
Issue Position
Some in Washington feel that all government is bad government, even those services aimed at strengthening the economy. Now this small, but outspoken, group has taken aim at eliminating the Export-Import Bank whose chartered mission is to help U.S. companies compete overseas.
The Export-Import Bank's charter is set to expire on June 30, 2015, harming thousands of businesses unless it is renewed. Congressman Larson has always fought to create, attract, and retain good jobs in Connecticut. He will continue to work in Congress to support the state's manufacturing base and reauthorize the bank's continued investment in Connecticut's companies and products.
What is the Export-Import Bank?
The Export-Import Bank (Ex-Im or the bank) is a government-chartered bank that helps U.S. businesses export and insure their products and services overseas. By securing loans or loan guarantees for foreign purchasers to buy U.S. goods or helping U.S. companies insure international shipments, Ex-Im makes it more attractive to do business with American companies.
The bank's charter must periodically be reviewed and renewed by the Congress to ensure Ex-Im is living up to its responsibility to U.S. companies and taxpayers. Ex-Im's charter has been renewed sixteen times with bipartisan majorities in Congress. The current charter is now set to expire on June 30, 2015.
Why should Ex-Im's charter be renewed?
The Export-Import Bank has been successful at supporting export jobs and promoting American companies, as well as turning a profit for the taxpayers. Its impact on jobs have been seen especially in our own state and district, which is why it is imperative that the Export-Import Bank charter be reauthorized.
How else does the Bank help U.S. businesses?
Ex-Im levels the playing field for U.S. companies and industries. Other nations have steadily increased the support they offer their companies, while U.S. assistance to firms remains modest by comparison. European companies and Chinese firms have seen increasing amounts of government support, putting U.S. businesses at a severe competitive disadvantage.
Does the bank take the place of private banks?
As a part of its charter, the bank is required to operate where private sector lenders are unable or unwilling to provide financing. Ex-Im does not compete with the private sector, but instead supplements the activity of other lenders and acts as a conduit for overseas growth. For many smaller manufacturers, the Ex-Im bank provides vital assistance and expertise to help mitigate the risks that come with conducting business overseas.
How much does the Bank cost U.S. taxpayers?
Ex-Im funds itself and returns money back to the Treasury. It costs the American taxpayer nothing. By setting small fees for its users, Ex-Im returned approximately $7 billion in excess revenues for the Treasury over the past two decades.
What is Rep. Larson doing to help Ex-Im?
I am proud to cosponsor the Promoting U.S. Jobs Through Exports Act of 2015 (H.R. 1031). This bill would reauthorize the bank's charter for seven years, expand services to small- and medium-sized firms, establish risk-sharing programs to incentivize private investment, and provide new oversight tools to enhance transparency. The bill brings together the interests of manufacturers who utilize the bank's services, lenders who partner with the bank, and American workers whose jobs the bank supports. I have also joined my colleagues on a discharge petition to try to expedite consideration of the bank's reauthorization before its charter expires on June 30, 2015.
Ex-Im boasts bipartisan support. In addition to the almost 200 Democratic members who cosponsored the U.S. Jobs Act, there are 41 Republican members who have written a letter to their leadership to urge reauthorization - and even more Republicans who back a short-term extension of the bank's charter. With tremendous support spanning the business community, labor, and both parties, it is time to act.
Where can I get more information?
Should you be interested in learning more about this topic, the non-partisan Congressional Research Service (CRS) has a report entitled In Focus: Export-Import Bank (Ex-Im Bank) Reauthorization, that I hope you will find helpful.
The Ex-Im Bank's official website also has additional information on how it is helping support U.S. jobs.
Nationally, over 9,000 total companies have utilized Ex-Im's services since 2007, helping to maintain over a million jobs. Over half of the exporting companies at a national level are small businesses, and hundreds are labeled as environmentally beneficial, minority-owned, or women-owned.
In our home state of Connecticut, 112 exporters have been financed since 2007, with a majority of these being small businesses. Ex-Im has helped finance $4 billion in exports, supporting local jobs and home state products.
In the First Congressional District, the impact has been profound. Approximately $531 million of exports have been financed from 26 companies within our community, including Stanadyne Corporation, Kahn Industries, Dymax, and Gibbs Wire & Steel Company. Fourteen small businesses have also been financed in Windsor, Hartford, East Hartford, Bloomfield, Southington, and Windsor Locks.
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