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Mar 16, 2012
Posted by Scott Bates
In the global battle to capture markets and win
the jobs of the future, there are some who
through their inaction, would unilaterally
disarm America.
The Ex-Im Bank is the official export credit
agency of the United States and its charter
will expire on May 31st if the Bank is not
reauthorized. Funding the Bank has available to
provide to businesses will expire within months
without Congressional action. The nation’s
future economic growth, job creation, and
innovation are linked to the Bank's success.
Quite simply, the Bank assures that U.S.
exporters receive financing that helps level
and often uneven playing field in the global
marketplace. Without that financing, U.S.
businesses will lag behind in foreign markets,
meaning fewer exports and fewer jobs for
American workers. It means that competitors
overseas have an advantage over U.S. businesses
at a time when as a nation we are struggling to
balance the import-export balance.
Just how much of an impact will be felt by U.S.
businesses if Congress does not reauthorize?
In FY2011, the Bank provided more than $40
billion to U.S. exporters – that translates
into an estimated 290,000 direct and indirect
jobs at more than 3,600 U.S. companies. More
than 80% of its transactions support U.S. small
businesses and fifteen percent of its funding
went directly to such businesses. It is no
wonder that more than 60 CEOS from some of the
largest employers in the U.S., as well as over
a dozen associations, have called publicly for
Congress to act.
There are efforts on Capitol Hill to extend
through 2015 the authority of the bank to
provide loans and insurance to finance exports
of U.S. products and services and would
eventually raise to $140 billion the total
amount of loans, guarantees, and insurance that
the Bank can have outstanding.
Consideration in the Senate is critical to
assuring that U.S. businesses can compete in
the global marketplace, a marketplace where
foreign governments are aggressively supporting
their companies who are often competitors to
U.S. based businesses.
The views expressed in this blog are those of the authors and do not necessarily represent the views of the Center for National Policy.
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