Philadelphia, PA- With eight days to go before the Export-Import Bank (Ex-Im) expires, U.S. Senator Bob Casey (D-PA), joined by the Chairman and President of the Ex-Im Bank, Fred Hochberg, pushed for reauthorization. At AgustaWestland, a business that has successfully shipped exports through Ex-Im financing, Casey called for reauthorization of the Ex-Im bank, which has supported $7 billion in export sales for Pennsylvania businesses since 2007- aiding 314 exporters in the state, including 193 small businesses.
“Access to foreign markets is critical to many firms’ survival, particularly manufacturers looking to sell their goods abroad,” Senator Casey said. “Small businesses looking to enter foreign markets can face any number of hurdles to competing abroad. Companies find themselves caught in a dynamic where foreign banks refuse to finance overseas products, while American banks cannot provide financing due to regulatory or legal hurdles. The Export-Import Bank is there in these circumstances to help these firms get the financing they need to compete. Congress should move to reauthorize the Ex-Im Bank before it expires at the end of this month.”
You can find data on the Export-Import Bank’s impact in Pennsylvania by zip code and congressional district here: http://customermap.exim.gov/state_map.cfm?state=PA
The Export-Import Bank of the United States (Ex-Im) has been the official export credit agency of the United States since 1934. Ex-Im helps finance U.S. exports in circumstances when alternative financing is not available. For example, in some cases, foreign banks may be unable to provide financing for products from overseas due to regulatory hurdles or financial limitations. The Ex-Im Bank fills these gaps through a variety of services to ensure competitive financing for U.S. exporters. Its main programs are loan guarantees, direct loans, working capital finance, and export credit insurance.
Because the Bank uses offsetting collections to cover the costs of its operations, Ex-Im has been self-sustaining for appropriations purposes since Fiscal Year 2008. Additionally, the Bank frequently contributes excess funds back to the Treasury, including $1.06 billion in FY 2013. However, Congress sets an annual cap on Ex-Im’s aggregate loan level. In FY2013, this cap was $130 billion. Ex-Im loans typically enjoy a very low default rate, and since 1992, Ex-Im has recovered 50 cents on the dollar for transactions that enter into default.
The Bank operates under a renewable charter. Historically, Congress has included provisions in the charter designed to ensure that Ex-Im financing must supplement, rather than crowd out, private capital. Ex-Im is also a participant in the OECD Arrangement on Officially Supported Export Credits, an international agreement that sets common rules for export finance agencies.
The Bank’s charter, last extended in September 2014, is set to expire on June 30, 2015. If Congress does not act to reauthorize the charter, the Bank’s doors will close.
In Pennsylvania, since 2007, the Bank has completed:
- Roughly $4 billion in transactions;
- Benefitting 314 Pennsylvania exporters, including 193 small businesses; and
- Supporting about $7 billion in export sales for Pennsylvania businesses.