U.S. Small Businesses Need Ex-Im To Be Reauthorized

Thanks to the 64 senators who voted in favor of reauthorizing Ex-Im in a vote last night, U.S. exporters know they are backed by a strong, bipartisan majority in the Senate.

It is now imperative that the House demonstrates its support for U.S. exporters and workers by reauthorizing Ex-Im before they head home for the August recess. If they don’t, they’ll be responsible for lost economic growth and jobs.

If Congress lets Ex-Im lapse permanently, companies like Texas-based Air Tractor, Pennsylvania-based Precision Custom Components, and California-based Combustion Associates Inc. may be forced to cut its workforce.
See below for quotes from bank users who are already facing negative consequences from Ex-Im’s lapse.

In Ex-Im Bank Fight, Texas Has Most To Lose, And Fiercest Bank Opponents

“Air Tractor Inc, a maker of crop-dusting and fire-fighting aircraft, would not be able to find replacement financing for the small Ex-Im bank loans of $750,000 to $1 million that foreign customers use to purchase its planes, said Tyler Schroeder, a financial analyst with the firm…Air Tractor would likely have to cut 65 to 70 of its 270 workers.” (David Lawder, “In Ex-Im Bank Fight, Texas Has Most To Lose, And Fiercest Bank Opponents,” Reuters, 6/4/2015)

Why The U.S. Nuclear Industry Is Eager To Save This Obscure, Government-Run Bank

“For Stouch, who works at the Pennsylvania company that makes nuclear parts and employs 260 people, it’s shocking that Congress would let the bank’s charter lapse – and he’s a self-identified fiscal conservative. ‘Potentially we’ve got over 100 jobs at stake, linked to either our or our customers’ ability to export these products,’ Stouch says, listing instances where his company was able to seal deals only with backing from the Export-Import https://exportersforexim.org/files/2015/07/bank.” (Jared Gilmour, “Why The U.S. Nuclear Industry Is Eager To Save This Obscure, Government-Run https://exportersforexim.org/files/2015/07/bank,” The Christian Science Monitor, 7/2/15)

Export-Import Bank’s Cloudy Future Raises Worries Of Job Losses

“‘It’s going to be devastating for us,’ said Don Nelson, chief executive of ProGauge Technologies Inc., a Bakersfield manufacturer of oil industry equipment. ‘Basically, we just won’t be able to export anymore.’” (Jim Puzzanghera, “Export-Import https://exportersforexim.org/files/2015/07/bank’s cloudy future raises worries of job losses,” Los Angeles Times, 6/26/15)

Entrepreneurs Who Do Biz Overseas Await Bank’s Future

“Susan Axelrod admittedly got into business by accident. The Long Island, New York, housewife began making quiches in her home kitchen in 1973, and grew her company, Love & Quiches Gourmet, in part by exporting her products to places such as Qatar and Japan…If the bank’s charter is not reauthorized, ‘the U.S. is going to lose our exporting power,’ Axelrod said. ‘China and other exporting countries are chomping at the bit to take that business.’ She said as much as 30 percent of her business comes from international markets.” (Kate Rogers, “Entrepreneurs Who Do Biz Overseas Await Bank’s Future,” CNBC, 6/29/15)

As Export-Import Bank Charter Expires, Backers Warn Of Economic Damage

“Dick Rogovin, chief legal counsel at U.S. Bridge, a Cambridge, Ohio, manufacturer, said a nearly $100-million sale to Ghana is in jeopardy without Export-Import https://exportersforexim.org/files/2015/07/bank assistance. ‘We have already received a very disturbing message … that one of our competitors from China has informed our customer that they cannot secure financing for our bridges and therefore they should consider another source,’ said Rogovin, whose company has about 150 employees. ‘Ex-Im Bank was going to guarantee a long-term loan to Ghana,’ he said. ‘There is no U.S.  domestic commercial bank that will perform the same service.’” (Jim Puzzanghera, “As Export-Import https://exportersforexim.org/files/2015/07/bank charter expires, backers warn of economic damage,” Los Angeles Times 7/2/2015)

Export-Import Bank Goes On Hiatus

“Steven Wilburn, the chief executive of FirmGreen Inc., said his California-based renewable energy company lost a $57 million contract to South Korea because of the Export-Import https://exportersforexim.org/files/2015/07/bank’s uncertain future. he said he could lose millions of dollars more in contracts in the philippines if the bank’s charter lapses for long. ‘It’s just too critical an agency right now to abandon,’ Wilburn said. He said there’s irony in Congress voting last week in favor of trade promotion authority — a bill that allows President Barack Obama to ink major pacts in the Asia-Pacific and Europe — while this week allowing a mechanism that makes international trade work to expire. Congress, he said, is promoting trade in theory ‘while at the same time we’re withdrawing from the finance of trade.’” (Eric Bradner, “Export Import https://exportersforexim.org/files/2015/07/bank goes on hiatus,” CNN Politics6/30/15)

Congress Plans No Votes On Export Import Bank As Authorization Set To Run Out

“Killing Ex-Im, as the bank is known, would not kill Frame’s company. ‘But it would certainly put a dent in our capabilities and would have a ripple effect on people here and backward through our machine shops and material suppliers,’ he said…This will come as bad news to a number of large and small businesses in Minnesota. Since 2007, Ex-Im Bank has helped 217 companies in the state secure $3 billion in foreign sales, the government said.” (Jim Spencer, “Congress Plans No Votes On Export-Import https://exportersforexim.org/files/2015/07/bank as authorization set to run out,” Star Tribune, 6/27/15)

Who Killed The Ex-Im Bank? How Conservatives And The Koch Network Brought Down An Agency

“Hedger’s Killdeer Mountain Manufacturing (KMM), headquartered in a town with a population of 751 people, makes parts for airplanes…Some of Boeing’s foreign customers, in turn, use the Ex-Im Bank to finance the purchase of planes. And with the aid of those low-interest loans, Boeing – and by extension Hedger’s company – remain more competitive in the global aircraft market against the likes [of] France’s Airbus. ‘These are small, heartland towns, and generally we’re the biggest employer in our towns,’ says Hedger, who runs four manufacturing facilities in the state. ‘It’s important that while we recognize we’re heartland communities, we’re competing against the whole international competition scale.’” (Ginger Gibson, “Who Killed The Ex-Im Bank? How Conservatives And The Koch Network Brought Down An Agency,” International Business Times, 7/2/15)

Area Companies Anxiously Watch Future Of Export-Import Bank

“Lawmakers could reinstate the bank’s charter this month, but until then, companies like Warren Distribution, the Omaha manufacturer that used the bank to insure its shipments, have to go elsewhere…’Especially for medium-sized businesses, it gives them the opportunity to expand into international markets that they wouldn’t otherwise have,’ said Warren Distribution Credit Manager Jim Hushka.” (Cole Epley, “Area Companies Anxiously Watch Future Of Export-Import https://exportersforexim.org/files/2015/07/bank,” Omaha World-Herald, 7/8/15)

How Export-Import Bank Shutdown Could Affect SoCal Businesses

“‘I think we would seriously be in jeopardy of cutting down on our staff and projects’ without Ex-Im Bank financing,’ said company president Kusum Kavia, who added that many of the manufacturer’s materials come from other companies in Riverside County, so there would be a ripple effect. ‘We are just shocked that this could ever happen to the United States, where small businesses like myself are not able to compete in the global economy.’” (Ben Bergman, “How Export-Import https://exportersforexim.org/files/2015/07/bank shutdown could affect socal businesses,” Southern California Public Radio, 7/7/15)

The Big Number

“The financing halt means companies like W.S. Darley & Co., an Itasca, Ill., maker of fire trucks and equipment, will find it difficult to compete, especially in emerging markets, said Peter Darley, chief operating officer. In 2013, the bank provided a direct loan to the Lagos state government in Nigeria to underwrite a $15.7 million purchase from the Illinois company. For that contract, W.S. Darley bid against companies with backing from export-import https://exportersforexim.org/files/2015/07/banks in china and europe. if funding for the u.s. ex-im bank dried up permanently, it would put contracts in the pipeline in jeopardy, mr. darley said.” (Kimberly Johnson, “The Big Number,” The Wall Street Journal7/13/15)

Demand A Vote On The Ex-Im Bank

“For ElectraTherm, this would be a disaster. We use our Ex-Im bank credit line to fund working capital that we need to buy materials and fulfill our foreign orders. We could not obtain commercial financing from any other source, because many banks just will not lend against foreign receivables and are uncomfortable supporting new technologies from a small business like ElectraTherm. But Ex-Im has the expertise to evaluate foreign buyers and markets and extend this credit where warranted. And the bank’s microscopic default rate of just 0.175 percent – far lower than commercial loan defaults – shows how careful and responsible its practices are.” (Steve Olson, “Demand A Vote On The Ex Im https://exportersforexim.org/files/2015/07/bank,” Reno Gazette-Journal, 7/15/15)

Senate Clears Path For Ex-Im Renewal

“Hartzell Propeller president and GAMA chairman of the board Joe Brown agreed. ‘Why would we create a self-inflected wound?’ Brown noted the June 30 lapse of the bank’s charter already is harming general aviation businesses. ‘It’s terrible,’ he said. ‘I’m extremely concerned.’ Two of Hartzell’s customers have grown through the downturn on the strength of exports thanks to Ex-Im backing, he noted, and added this lapse of the Ex-Im’s reauthorization hits the heart of their businesses. At Hartzell, Brown said the company has been taking measures such as temporary shutdowns, reductions in overtime and other actions to prepare for the loss of business from cuts in Ex-Im coupled with a slower economy. ‘The prudent thing to do is assume there is downside risk,’ he said.” (Kerry Lynch, “Senate Clears Path For Ex-Im Renewal,” Aviation International News, 7/27/15)