U.S. Rep. Steve Stivers (R-OH) recently called on Congress to re-authorize the Export-Import Bank, commonly called the Ex-Im Bank, which provides loans to help foreign companies buy U.S. goods when commercial lending is not available.
Congress has until June 30 to reauthorize the bank or it will shut down.
“We should reauthorize the Ex-Im Bank as soon as possible,” Stivers told the Ripon Advance in a written statement. “Failing to reauthorize the Ex-Im Bank will most certainly hurt jobs at companies like Davenport Aviation in my district, as well as others across the country. For decades, Ex-Im Bank has filled gaps in private sector financing, which would have otherwise resulted in losing export sales by small U.S. companies.”
The Reform Exports and Expand the American Economy Act, which would reauthorize the bank, was introduced in January. Supporters of the Export-Import Bank of the United States are accelerating efforts to keep it in business as the deadline looms while critics call the bill a form of corporate welfare providing subsidies for big exporters who do not need taxpayer help.
“There is no doubt we need to reform the Ex-Im Bank,” Stivers said. “We need to implement more transparency, accountability and oversight, which is why I am a co-sponsor of a bill that will require 31 significant reforms. These reforms will make the bank more solvent and self-sufficient in order to reduce any burden to taxpayers, while fostering job-growth.”
Stivers said the bank should be reformed and reauthorized because it supports many U.S. companies that do business overseas and failing to reauthorize the Ex-Im Bank will most certainly mean lost jobs.
“There are 59 other countries that have an equivalent institution, and eliminating the Ex-Im Bank would only hurt the American economy, businesses and jobs,” Stivers said. “The worst thing for us to do is to unilaterally disarm the bank and put our job creators at a competitive disadvantage.”
Stivers said he believes the bank’s support of U.S. companies is an example of how the government can help facilitate job growth without contributing to the national debt or squeezing private business.
“For decades, the Ex-Im Bank has filled gaps in private sector financing which would have otherwise resulted in lost export sales by U.S. companies,” Stivers said.
He said not reauthorizing the bank could mean up to 164,000 lost jobs at American companies and 15,300 lost jobs in Ohio.
“If the Ex-Im Bank is not reauthorized, it will have a significant impact on my district,” Stivers said. “Since 2007, the Ex-Im Bank has helped to support over $20 million in American-made exports from my district. We also have companies, such as JD Equipment and Showa Aluminum, who rely on the Ex-Im Bank. Combined, these companies account for hundreds of jobs in my district.”
Several news sources said it looks like the issue will come down to a showdown in Congress.
“Right now, the chances do not look very high since the committee is divided on the issue,” Stivers said. “However, if the Senate passes a bill to reauthorize the Ex-Im Bank, the Speaker has indicated he would bring it to the House floor for a vote. In that case, I would offer reform amendments. I believe we would have the votes to pass reforms and reauthorization if it was brought to the floor.”
The bank, created in 1934 by President Franklin Delano Roosevelt, is designed to promote U.S. sales abroad by helping provide financial support and guarantees for exports on deals where considerable uncertainties, economic, financial or political, exist. The bank can provide comfort for high-risk projects that the private financial sector would otherwise not touch.