Tag: Export-Import Bank

On Ex-Im Bank the Facts are Clear

Yesterday a post on National Review’s The Corner blog contains some clear inaccuracies regarding the Export-Import Bank and what it means to manufacturers, both large and small.

This post would have you believe that the Bank only helps large companies when in fact the Bank is doing more and more every year for small manufacturers. In fact, more than 85 percent of the Bank’s transactions in 2011 were in direct support of small businesses. Thousands of small and medium-sized manufacturer rely heavily on the Ex-Im Bank to be able to compete globally. Without the Bank many of these companies will lose out on deals to overseas competitors, costing jobs here at home.

The Corner post also misses a key fact that Ex-Im Bank actually makes money for the taxpayers. It’s difficult to make the argument that Ex-Im is a costly program when over the past five years the Bank has returned more than $3.4 billion to the Treasury. The numbers show the facts loud and clear. And if the Bank isn’t reauthorized it would actually increase the deficit, and an offset would be needed to fill the void left from the money Ex-Im returns to Treasury. 

The bottom line is our competitors overseas are outpacing us when it comes to export financing. Our competitiveness, jobs and ability to grow exports will be hurt if the Bank is not reauthorized. The Bank is essential to the engine that drives our economy, small businesses. Just click here to read first-hand testimonials about what the Bank means to these businesses.

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Senate to Vote on Export-Import Bank Reauthorization

Shortly the Senate will vote on an amendment to reauthorize the Export-Import Bank which is critical to the goal of doubling exports and jobs. The Bank assists thousands of small and medium-sized manufacturers reach new markets and sell their products around the globe that might otherwise not be possible.

If Congress fails to act and reauthorize the Bank we will be left in the dust by our competitors who are providing hundreds of billions more in export financing. Just in 2010 alone the export credit agencies in Brazil and China provided 10 times more financing to their exporters, as a share of GDP. Washington needs to act to put manufacturers in the United States on a level playing field.

We hope that senators will vote for exports and jobs today and approve the reauthorization of the Ex-Im Bank.

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Export-Import Bank Means Jobs for Small Businesses

Tomorrow the Senate is expected to vote on an amendment which will reauthorize the Export-Import Bank. Last week the NAM issued a Key Vote letter on the amendment.

The facts are crystal clear that the Ex-Im Bank supports jobs and helps small and medium-sized manufacturers in the U.S. grow exports. More than 85 percent of the Ex-Im Bank’s transactions directly support small business.

The Washington Post’s Olga Khazan reports on what the Bank means to Patton Electronics based in Gaithersburg, MD:

Bobby Patton is the embodiment of the idea that increasing exports can help grow jobs. His Gaithersburg telecom company, Patton Electronics, first began selling routers and other devices to overseas customers during the 1990s. As exports began to comprise a greater percentage of his revenue, his bank began to take notice.

“Our local bank didn’t want to lend against those international receivables the way they lend against domestic receivables,” he said.

The threat of Congress failing to reauthorize the Bank has caused Mr. Patton to put on hold expansion plans:

Meanwhile, Patton said, his local bank has already put the brakes on his plan to expand to a new manufacturing facility.

“We have a contract to acquire a new building and move into a new manufacturing facility, and the bank is saying they don’t want to add more debt if Ex-Im is going to be changing what they’re doing on international borrowing,” he said. “They don’t want to add more risk.”

Also, CBS Evening News ran a segment this past weekend featuring small manufacturers Air Tractor based in Olney, Texas. Air Tractor uses the Ex-Im Bank to help export their products all over the world and if the Bank is failed to be reauthorized it could negatively impact their business.

Manufacturers urge senators to stand up for jobs and exports tomorrow and vote for the reauthorization of the Ex-Im Bank.

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Timmons and Wetherington: Ex-Im Bank boosts small business

Today the Washington Times ran an op-ed from National Association of Manufacturers President and CEO Jay Timmons and BTE Technologies President Chuck Wetherington about the importance of the Export-Import Bank to small businesses. The Bank allows small companies, like BTE, to level the playing field against our competitors overseas.

The financing provided by the Bank allows these companies to export to new markets throughout the world. For instance the Bank has helped BTE grow to export to nearly 40 different countries.

From the Washington Times piece:

Today, BTE exports to China, Russia, Japan, Korea, most of the European Union and other countries – almost 40 in total. With the assistance of Ex-Im Bank, BTE is negotiating a deal to export to Saudi Arabia in the near future – a relationship that would contribute upward of 10 percent of the company’s total product revenues.

BTE is not alone. Many other small businesses have sought the assistance of Ex-Im Bank and reaped the benefits of expanded market access. In fact, most of the bank’s activities directly support small businesses. In today’s global economy, seeking out opportunities abroad is indispensable.

As members of Congress consider the reauthorization of the Bank we ask them they take into careful consideration the Bank’s success in helping small and medium manufacturers grow. If we are to continue to create jobs and reach the goal of doubling exports the Ex-Im Bank must play a role to help level the playing field for manufacturers in the United States.

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Bloomberg View: Reauthorize the Ex-Im Bank

What’s often lost in the ongoing debate over the reauthorization of the Export-Import Bank is how we are being out-paced by our global compeittors when it comes to export financing. If we are truly going to meet the goal of doubling exports by 2014 then the Ex-Im Bank will play an important role and its lending limit must be increased.

The editorial staff at Bloomberg View agrees that the Bank must be reauthorized posting an editorial yesterday titled, “Export-Import Bank Is U.S. Growth Engine That Can Do More: View.” In the piece they state how we are being left behind by our competitors including China.

Equipping the bank with the tools it needs to help U.S. exporters (USTBTOT) has long made sense, but it’s even more critical now, as emerging markets begin making aggressive use of trade financing. Rather than adhering to international standards set by the Organization for Economic Cooperation and Development, countries such as Brazil and China are offering much more generous terms to give their own exporters an advantage. China has begun offering lower interest rates or longer repayment terms than international guidelines allow. In 2010, China supplied $45 billion in long-term export loans and loan guarantees, while the U.S. provided just $13 billion, according to a Bloomberg Government analysis. Last year, the U.S. for the first time agreed to match China’s cheaper financing terms to get the Pakistani government to buy those GE trains.

They stress that it would be “irresponsible” to not reauthorize the Bank.

Given the weak recovery and the need for exports to power economic growth, it would be irresponsible to pull the plug on the Export-Import Bank.

The time is now for Congress to move forward with reauthorizing the Ex-Im Bank for our economy and jobs.

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Brookings Official: Export-Import Bank Necessary to Double Exports

With each passing day we get closer and closer to the Export-Import Bank reaching its lending cap and not being able to guarantee loans. This puts in jeopardy many projects that manufacturers have planned for later this year which will impact jobs at companies of all sizes.

Yesterday Devashree Saha, senior policy analyst for Brooking Metropolitan Policy Program, blogged about the importance of the Ex-Im Bank at The New Republic, specifically singling out what it means to small and medium-sized companies.

Most important though, the Ex-Im Bank addresses a critical market failure. The bank operates as a “lender of last resort” responding to risks shunned by private sector finance. To that end, the bank focuses on exports by small- and medium-sized companies that otherwise would find it difficult to access private sector funding, including those with riskier but innovative technologies.

Saha also discusses how we are being out paced by our global competition when it comes to export financing, a fact that threatens our nation’s competitiveness.

The United States faces a tough global market for exports. ECAs of other countries–especially ECAs in emerging economies that offer aggressive below-market loans to gain an edge in the global marketplace skirting Organization for Economic Cooperation and Development (OECD) rules–provide several times more export assistance as a share of GDP than the United States does. 

Given these realities, reauthorizing and reforming the Ex-Im Bank’s financing operations for exports is a priority. Without it, meeting President Obama’s National Export Initiative goal to double exports by 2015 will be difficult.

The facts are clear that the Ex-Im Bank needs to be reauthorized and the lending limit increased to continue growing exports and ensure our nation’s competitiveness.

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Help Urge Congress to Reauthorize the Export-Import Bank

We are getting closer and closer to the expiration of the Export-Import Bank’s charter and even closer to the Bank reaching its lending limit. The Ex-Im Bank is essential to small and medium-sized manufacturers and throughout the entire supply chain of larger manufacturers.

Just last year the Bank supported more than 290,000 manufacturing jobs. In order for manufacturers to continue to grow our exports and create jobs the Ex-Im Bank needs to be reauthorized and the lending limit raised as soon as possible.  

The Bank operates at no cost to the taxpayer, returning more than $3.4 billion to the Treasury over the past five years. We can’t afford for Congress to do nothing.

Please contact your Representative today and urge support for the “Securing American Jobs Through Exports Act of 2011” (H.R. 2072). Click here to send an email to your Representative today.

For additional information on the Export-Import Bank and to hear how the Bank has helped some small manufacturers please visit www.nam.org/exim.

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Manufacturers Urge Congress to Reauthorize the Export-Import Bank

This morning National Association of Manufacturers President and CEO Jay Timmons, Vice President for International Economic Affairs Frank Vargo, National Small Business Association President Todd McCracken, Marlin Steel Wire Products President and NAM Board Member Drew Greenblatt and Patton Electronics President and CEO Bobby Patton sat down with reporters to discuss importance of the reauthorization of the Export-Import Bank.

NAM President and CEO Jay Timmons speaks to reporters about the Ex-Im Bank along with Patton Electronics President and CEO Bobby Patton, Marlin Steel Wire Products President Drew Greenblatt and National Small Business Association President Todd McCracken.

NAM President and CEO Jay Timmons speaks to reporters along with Patton Electronics President and CEO Bobby Patton, Marlin Steel Wire Products President Drew Greenblatt and National Small Business Association President Todd McCracken.

As we’ve mentioned before on this blog the Ex-Im Bank’s charter is set to expire at the end of May leaving much uncertainty for small manufacturers all over the country that use the Bank’s services. “Our competition is not standing still and we can’t either,” said NAM President and CEO Jay Timmons. Our main competitors provide one trillion dollars in export financing assistance per year compared to just $32 billion for the U.S.

Many manufacturers are already seeing the impact and the chill from the uncertainty surrounding the reauthorization, the Reuters story, “US manufacturers press Congress on EximBank renewal” cites Drew Greenblatt from Marlin Steel Wire:

Drew Greenblatt, president of Marlin, a steel wire manufacturer in Baltimore, said he already felt a “chilling effect” on his export sales because of the possibility that Exim could have to stop making loans in four to five weeks.

If Exim financing is not available to match terms provided by other state agencies, customers are “just going to stop talking to me and buy from Germany,” Greenblatt said.

It’s important that members of Congress understand the need to act on the reauthorization as soon as possible and not wait until the last possible minute which will put our competitiveness at risk and give the competition a leg up. From the Dow Jones story, “Business Groups Urge Congress To Act On Ex-Im Bank, See Risk of March Cap Hit” which cites NSBA President Todd McCracken:

“Even if they’re only cut off for a few weeks or month from the export financing they need, they may lose their customer for a generation or even permanently as a result of that, which could affect jobs and economic growth for the foreseeable future,” said Todd McCracken, president of the nonprofit organization representing small businesses. “We think this is a very significant threat to exporters and our economy right now, the indecision we face around the Export-Import bank.”

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Jay Timmons Talks Manufacturing with Don & Roma Show in Chicago

NAM President and CEO Jay Timmons appeared on the Don & Roma radio show on WLS 890 in Chicago today to discuss the promise of manufacturing and the multiplier effect of creating manufacturing jobs.

During the conversation, Mr. Timmons focused extensively on the need to eliminate the 20% cost disadvantage that manufacturers in the U.S. face compared to their global competitors. He highlighted the burdensome tax system in the U.S., flawed energy policy, and regulatory issues that have a distorting effect on our economy.

Additionally, Mr. Timmons spoke extensively on the need to reauthorize and strengthen the Export-Import Bank, which assists in financing the export of U.S. goods and services from thousands of American companies. It’s a vital tool for exports and job creation. Other nations are vigorously supporting their export industries and Mr. Timmons commented on the pertinent question, “Why should the U.S. not be able to get a share of that? We need to compete on the same level that our competitors are.”

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Stating the Case for the Export-Import Bank

On Friday President Obama spoke at the Boeing Company’s facility in Everett, WA and called on Congress to reauthorize the Export-Import Bank of the United States. The President also rolled out several new initiatives to help companies grow exports.

The Ex-Im Bank plays an important role in our country’s ability to export. Thousands of small businesses all over the country benefit from the Bank, last year the Bank supported $41 billion in exports from 3600 companies, which supports tens of thousands of manufacturing jobs.

If Congress fails to reauthorize the Bank our competition will simply pass us by. We already trail many of our competitors by a large margin. Germany, France and India all provided at least seven times more export assistance as a share of GDP than the U.S. in 2010. If we don’t reauthorize Ex-Im and increase the current lending limit we simply won’t reach the goal of doubling exports by 2014 and jobs will be hurt.

It’s just not President Obama calling for the Banks reauthorization, in the past week a few conservative commentators have called for the Banks’s reauthorization.

Just today conservative talk show host Hugh Hewitt wrote a column for on the WashingtonExaminer.com titled “Right Should Support Export-Import Bank” stating that the Bank should be reauthorized as an enterprise the federal government ought to be doing and does well:

For nearly 80 years, Ex-Im has been contributing to that originalist policy, and it would be a terrible triumph of an absolutist ideological tilt to strike even partially at one of the things the federal government not only ought to be doing, but which it has been doing and doing well under both Republicans and Democrats.

Hewitt continues on the success of Ex-Im:

Ex-Im is a success, one which conservatives can support proudly and from which they can draw lessons on the right functioning of the federal power with which to argue against the abuses and distortions of that power.

And last week on Townhall.com George Landrith, president of Frontiers of Freedom, in a post titled “A Conservative’s take on the Ex-Im Bank” he talks about the benefits of the Bank and how doesn’t cost the taxpayers a dime:

The Ex-Im Bank does not compete with private financial institutions, but rather fills-in banking gaps so that U.S. goods can be exported to nations where commercial financing is insufficient. The Ex-Im Bank doesn’t cost taxpayers a dime. Rather, it makes money from the fees charged to foreign buyers which get pumped back into the U.S. Treasury and helps reduce the deficit. 

The Ex-Im Bank has a 75 year track-record and the Congressional Budget Office projects in the coming years, the Ex-Im Bank will pump $900 million into the U.S. Treasury – not to mention the hundreds of billions of dollars of U.S. made goods that will be exported and the hundreds of thousands of American jobs that will be supported. In 2011 alone, the bank facilitated sales abroad that supported 290,000 American jobs.

Landrith refutes the argument from critics that the Ex-Im Bank is government interference in the private sector or picking winners and losers

Virtually every other nation offers export loan assistance. In fact, China and many other nations actually offer aggressive, below market loans to induce foreign buyers to purchase their goods. When the U.S. competes on quality and price, it wins the competition. That is precisely why nations like China intervene and offer cut rate financing with very generous terms so that they can undercut U.S. firms. Europe does this as well.

As a conservative, I would like to see free markets expanded. We should enter into more free market reform agreements with our trading partners. We should reform our tax code and our regulatory regime to ensure we are competitive.

But nixing the Ex-Im Bank now without international financing reform agreements does nothing to promote free markets. It merely undermines U.S. manufacturing, kills high-paying American jobs, and erodes our ability to compete in a worldwide marketplace

We urge Congress to reauthorize the Bank and increase its lending limit as soon as possible, without the Bank we will be left behind by our competition and manufacturers across the country will suffer the consequences.

We urge Congress to reauthorize the Bank and increase its lending limit as soon as possible, without the Bank we will be left behind by our competition and manufacturers across the country will suffer the consequences.

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