ICYMI: Illinois Businesses In Danger Of Losing Projects Because Of Ex-Im Lapse
On Friday, the Chicago Tribune published an article highlighting the consequences of an Ex-Im Bank lapse on businesses in Illinois.
The article describes the destructive impact of the Bank’s lapse on Illinois’ small businesses, harming their ability to win export deals and expand their markets. According to the article, “By allowing the bank’s charter to lapse, Congress essentially cut off a crucial financial lifeline for American businesses, notably smaller companies, trying to tap into foreign markets or expand their footprint globally.”
Highlights from the article can be found below.
Family-Owned Business Will Lose Over $500,000 Because Of Ex-Im Lapse. “Tom Anderson, chief executive of Digital Check, said the firm anticipates losing $300,000 in revenue in the Indian market and $250,000 in the British market, because it cannot access new lines of credit from Ex-Im. The family-owned company says developing new business in fast-growing export markets has proven difficult. ‘Our concern is our ability to stay competitive in the global markets and avoid any impact on our exports and even our workforce and employees,’ Anderson said. The company exports its digital check scanners to nearly 100 countries in Asia, Europe, the Middle East, Latin America and Africa.” (David Heberling, “Illinois Exporters Upset As Ex-Im Bank Suspends Lending,” Chicago Tribune, 8/14/15)
Without Ex-Im, U.S. Firm May Lose Multi-Million Dollar Solar Panel Project. “Weldy Lamont officials said the planned rollout of the solar project in Senegal is in limbo. The company had planned on securing loans and insurance from Ex-Im. ‘It’s a setback. We have to re-evaluate everything now,’ said Frank Gogliotti, project engineer at Weldy Lamont. The company specializes in electricity transmission and distribution projects like building substations and power lines. Gogliotti said Weldy Lamont is currently executing a five-year $350 million project in Ghana that was made possible in part with financing and guarantees from Ex-Im.” (David Heberling, “Illinois Exporters Upset As Ex-Im Bank Suspends Lending,” Chicago Tribune, 8/14/15)
Without Ex-Im, Family-Owned Business May Be Forced To Raise Prices. “Private insurance is too expensive and, honestly, the terms are pretty bad,” Olle Mannertorp, the CEO, said…’It is going to be challenging. Our (operating) costs are up between 8 and 9 percent on average,’ said Jim Emme, chief executive of Now Health Group…He said the company can only absorb the additional costs for a year before passing them on to customers, adding that private insurance costs about 50 percent more than what typically is offered at Ex-Im.” (David Heberling, “Illinois Exporters Upset As Ex-Im Bank Suspends Lending,” Chicago Tribune, 8/14/15)
Ex-Im Lapse Presents An “Unnecessary Hurdle” For Small Businesses To Compete. “Officials at Oak Brook-based Vector Packaging termed the lapse at Ex-Im as ‘an unnecessary hurdle’ for smaller companies and said it will cripple U.S. firms from competing against rivals whose governments provide concessionary financing and insurance similar to Ex-Im. ‘We primarily compete against EU and East Bloc enterprises, who support businesses with such insurance,’ said Peter Lancaster, chief executive of Vector Packaging. The company exports to food packaging businesses mostly in Latin America. Exports make up a little less than half of Vector’s business.” (David Heberling, “Illinois Exporters Upset As Ex-Im Bank Suspends Lending,” Chicago Tribune, 8/14/15)