Ex-Im Bank Supports Jobs
American Workers and Their Families Benefit from Ex-Im: Ex-Im supported 1.3 million jobs across the U.S. in the last six years. And it has had a broader impact on the manufacturing sector, which totals more than 17 million jobs.
Small Businesses: About 90 percent of transactions last year benefited small businesses. Plus, tens of thousands of small business suppliers benefit from partnerships with large exporters.
Taxpayers: Ex-Im has generated $2.7 billion for taxpayers in the last six years, mostly through fees collected from foreign customers. Eliminating Ex-Im would end up increasing the U.S. deficit.
Tweet This: In the last 6 years, the Ex-Im Bank has supported 1.3 million U.S. jobs.
Ex-Im Bank Helps U.S. Exporters Compete
Critical to U.S. Competitiveness: Other countries provide substantial support for their exporters — there are at least 59 foreign export credit agencies around the world. Those export credit agencies work aggressively, often hand-in-hand with the government, to support domestic industries. European and Asian governments provide several times more financing to their countries’ exporters, and they’re not likely to stop if Ex-Im goes away. Unilateral disarmament will hurt U.S. exports and kill American jobs.
U.S. Jobs Rely on Exports: With 95 percent of the world’s customers living outside the United States, exports are the key to America’s future prosperity and jobs. Nearly one-third of U.S. economic growth since mid-2009 has been driven by exports. Ex-Im is a key reason that U.S. exports are growing. In 2013, Ex-Im supported $37 billion of U.S. sales to customers in other countries.
Tweet This: Without Ex-Im, U.S. companies will lose to foreign companies.
Ex-Im Bank Steps In When Private-Sector Banks Can’t
Provides Financing for U.S. Customers Abroad: Ex-Im offers loans and guarantees to foreign purchasers of U.S. manufactured goods who meet strict lending qualifications when private-sector lenders can’t or won’t provide financing. Ex-Im, by law, cannot and does not compete with commercial lenders. Its mission is to fill gaps in commercial financing.
Provides Peace of Mind for Exporters: When selling internationally, small business exporters can reduce the commercial and political risks of exporting with Ex-Im Bank’s export credit insurance. Exporters pay a fee for Ex-Im Bank to give them peace of mind that they will be covered if something happens to their foreign buyer, either for political reasons (if a conflict or war breaks out) or for commercial reasons (like bankruptcy).
Fills Market Gaps: Ex-Im complements, rather than competes with, private sector lenders. Ex-Im fills an important gap during credit crises and offers a viable option for developing nations that don’t have other credit options.
Is Transparent to the Public: In 2012, Congress tightened Ex-Im policies and procedures. Public oversight is stronger than ever.
Ensures High Standards, Low Risk: Ex-Im Bank works hard to keep its default rate under 2 percent — the level that Congress has set as a goal. Ex-Im manages risk through careful analysis of every pending loan. It is so good at risk analysis that in the 80 years it’s been in business its default rate has averaged less than two percent – a better record than many commercial lenders. And last year, Ex-Im’s default rate was less than 1 percent. Most Ex-Im loans and guarantees are backed by collateral of real goods, so the bank can repossess the assets and redeploy them to new customers if the need arises.
Tweet This: Ex-Im Bank helps when private banks sector can’t. Congress should reauthorize it.