WASHINGTON, D.C. — More than 350 Ohio businesses – including 226 small businesses – have received direct financial assistance from the Export-Import (Ex-Im) Bank to support $3 billion of exports from 2007-2015. But if Congress does not act by June 30, authorization for the Ex-Im Bank – which operates at no cost to taxpayers and actually generates revenue for the U.S. Treasury – will expire, putting export-related American jobs at risk. During a news conference call today, U.S. Sen. Sherrod Brown (D-OH) called for reauthorization of the Ex-Im Bank.
“In today’s global economy, we need to support Ohio businesses trying to sell their products around the globe,” Brown said. “The Export-Import Bank not only fills gaps in private export financing, its benefits pay dividends throughout the economy – spurring more manufacturing, more exports, and more jobs. That’s why reauthorizing the Ex-Im Bank is essential – if we don’t act by June 30, U.S. businesses will lose an important tool that helps them sell their goods around the world.”
Brown joined president and CEO of Davenport Aviation Joao Simoes, an aircraft parts distribution company in Columbus that has utilized the Ex-Im Bank to help fund business expansion into foreign markets. Simoes highlighted the need for swift reauthorization and how any delay could threaten jobs.
“We consider the Ex-Im Bank a critical tool to help our company grow.” Simoes said. “Our company’s first sale in 2009 was an export to Africa that was only possible because we were able to secure backing from the Ex-Im Bank to finance that order.”
Last year alone, the Ex-Im Bank supported more than $27 billion in exports and 164,000 American jobs. That includes more than $250 million in Ohio – more than 60 percent of which were transactions done by small businesses. Brown released a county-by-county report detailing Ohio businesses that have relied on Ex-Im Bank funding from 2007-2015.
The Ex-Im 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, the 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.