Since 2007, 253 Ohio Businesses, Including 178 Small Businesses, Have Received Ex-Im Support

 

Brown Releases County-By-County Report Compiled By the Export-Import Bank Illustrating Impact to Ohio Economy If Charter Is Not Extended

 

WASHINGTON, D.C.— On Wednesday, U.S. Sen. Sherrod Brown (D-OH) held a news conference call to call for a reauthorization of the Export-Import Bank. Without Congressional action, Ex-Im’s authorization will expire on September 30th, leaving future funding for Ohio businesses hanging in the balance.

Since 2007, more than 250 Ohio businesses, including 178 small businesses, have received critical financial assistance from the Export-Import (Ex-Im) Bank to support $2 billion of exports, which help Ohio companies grow and create jobs. But if Congress does not act, the Ex-Im bank – which operates at no cost to taxpayers – will no longer be able to operate and 205,000 export-related American jobs will be at risk.

“The Export-Import Bank lets small business owners focus on exporting their products, instead of worrying about their financing,” Brown said. “The Export-Import Bank provides small and mid-sized businesses – particularly manufacturers – the assistance they need to help boost their exports. We know that companies that export their products around the world create jobs, pay higher wages to employees, and are more likely to stay in business. That is why Congress must take immediate action to reauthorize the Export-Import Bank and ensure this crucial agency can continue to provide assistance to Ohio businesses.”

Brown was joined by John Granby, Senior Vice President at LION, a Dayton manufacturer that produces safety and training gear for fire and rescue teams, law enforcement, and military personnel.  LION has utilized the Ex-Im Bank to help fund business expansion into foreign markets. Granby highlighted the need for swift reauthorization. 

“We are a privately held mid-sized manufacturer of specialty clothing and provide approximately 350 jobs in total related to our products in our Kentucky manufacturing operations and Dayton Ohio corporate headquarters.  We are one of the last apparel companies still making the majority of our products in the US.  One of our biggest customers is a government agency in a foreign country to whom we have supplied 18,000-20,000 products since 2006.  Our company uses EX-IM bank's Trade Credit Insurance to reduce the substantial financial risk related to the sale of our products on open credit,” John Granby, Vice President Government Relations said. “Trade credit financing also allows our company to count as collateral the accounts receivables related to our export sales.  We have foreign competitors who may be using trade credit insurance from their home country and EX-IM bank trade credit insurance is very important for helping us compete on foreign bid opportunities.    Furthermore, the ability to obtain EX-IM loan guarantee to foreign governments could also be a very significant factor for us on export opportunities in certain situations.   The EX-IM bank supports US jobs and the EX-IM bank must absolutely be reauthorized if Congress cares about supporting US jobs.  Those who are opposed to the EX-IM bank are absolutely ignorant about the important role it plays in supporting US jobs.”

The Ex-Im Bank fills gaps in private export financing. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services. By charging fees and interest on all loan-related transactions, Ex-Im Bank is self-sustaining and annually covers all operation and loan costs, and in recent years has contributed revenues to the U.S. Treasury General Fund.

Reauthorization of the agency is supported nationally by the U.S. Chamber of Commerce and the National Association of Manufacturers. In Ohio, business organizations such as the Columbus Chamber of Commerce and the Dayton Development Coalition support the reauthorization of the Ex-Im Bank.

“As laid out by Columbus 2020 in its Columbus Global Connect brochure, in 2013 the Columbus Region exported $9.3 billion worth of goods and services.  Currently, one in 14 jobs in the Columbus Region is tied to exports, and 4,000 jobs are created for every $1 billion in exports. These jobs are also well-paying, as wages for export-oriented economic base jobs in the Columbus Region are 69 percent higher than the average,” Michael Dalby, President and CEO, Columbus Chamber of Commerce said. “The Columbus Region is positioned with great potential to increase its share of exports. If Ex-Im is not reauthorized before September 30, Columbus Region companies would be put at a disadvantage in global markets, resulting immediately in lost sales and lost jobs. Columbus businesses of all sizes would be deprived of a substantial financing source at a time when boosting exports is increasingly vital to growing our nation’s economy and jobs. The Columbus Chamber urge Ex-Im’s swift reauthorization.”

“In the just the past five years, the Ex-Im Bank has assisted more than $100 million in foreign sales by Dayton region companies, creating jobs and boosting small businesses,” Jeff Hoagland, President and CEO, Dayton Development Coalition said. “It’s an important tool for Ohio companies to maintain global competitiveness.” 

As a member of the Senate Manufacturing Caucus, Brown has introduced a package of key legislative proposals aimed at bolstering the competiveness of U.S. manufacturers and boosting domestic manufacturing. He also serves as a member of the President’s Export Council, working to advance the National Export Initiative (NEI) and reach President Barack Obama’s goal to double exports by 2015.                                                                  

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