Ex-Im Bank Supports Jobs
American Workers and Their Families Benefit from Ex-Im: U.S. export sales financed through Ex-Im Bank have supported 1.4 million jobs.
Small Businesses: In FY2015, 90 percent of transactions were with small businesses. Plus, tens of thousands of small business suppliers benefit from partnerships with large exporters.
Taxpayers: Ex-Im has generated $7 billion for taxpayers in the 20 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 — the U.S. Ex-Im Bank estimates there are at least 85 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. Since 2015, Ex-Im financed $44 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’s default rate is less than one quarter of one percent, and 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. It’s also important to note that 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.
U.S. Workers Are Paying The Price For Congress’ Inaction On Fully Restoring Ex-Im.
A supermajority in Congress has already voted in support of fully restoring the Bank.
Ex-Im Bank recently estimated there are now about 40 deals stuck in the pipeline, worth more than $30 billion that are stuck in the pipeline without a Board quorum to approve them. These lost opportunities don’t just impact the manufacturers directly, but the countless supply chain companies of all shapes and sizes across the U.S. who support them.
American companies are losing out to foreign competitors because they cannot access export credit. For example: ‘
- Pennsylvania-produced Mack Trucks cannot close two multimillion dollar sales.
- The Nuclear Energy Institute says awards for several nuclear contracts – including the construction of new plants in India, Vietnam, and Mexico – all hinge on the availability of Ex-Im financing. Without it, these projects will be lost to foreign competitors like France and Russia, whose own nuclear companies will build and maintain new nuclear assets in these countries for several decades to come.
- Boeing and Orbital ATK have lost satellite sales.
- In order to continue serving its customers and bid on existing projects, GE Power announced that it would move 500 jobs from Texas, South Carolina and Maine to France, Hungary and China, where it could continue offering customers ECA financing to purchase its products.
- Small manufacturers have also been impacted, including W.S. Darley & Co., a small Illinois fire equipment manufacturer, which has projects on hold to sell more than $70 million of Wisconsin- and Michigan-produced goods to sub-Saharan Africa and China.
