Rep. Rick Larsen, D-Wash., and Rep. Don Manzullo, R-Ill., today introduced a bill to reauthorize the U.S. Export-Import (Ex-Im) Bank to avoid a credit crunch in trade finance and grow U.S. exports. The bank, whose authority expires May 31, helps finance sales of U.S. goods overseas.
"Exports create jobs in Washington state and across the nation. The Export-Import Bank is an essential tool that allows our exporters, large and small, to sell their products overseas," Larsen said. "The Export-Import Bank has been a huge success story, financing billions of dollars of U.S. exports each year and supporting hundreds of thousands of jobs. Failing to reauthorize the Ex-Im Bank would have disastrous consequences for American manufacturers."
"I represent one of the most export-intensive districts in the nation, and the Export-Import bank fills a vital gap in trade finance," Manzullo said. "Directly, Ex-Im helped sustain and expand jobs at many companies in the 16th District of Illinois by providing $143 million in desperately needed export credit assistance since 2007. Indirectly, Ex-Im helped dozens of local suppliers to aerospace, heavy equipment, and power generation manufacturers. This was all done at no net cost to the taxpayer. We cannot allow export credit to dry up for these manufacturers. Passage of this bipartisan, bicameral legislation represents a win-win for good paying jobs and the taxpayer during these tough economic times."
Larsen added: "Not only does the Ex-Im Bank not cost American taxpayers a single dollar, it returns a profit to the U.S. Treasury helping us reduce our deficit. The bank is important for large manufacturers like Boeing, but also small and medium manufacturers that are seeking to grow their exports overseas. I am pleased to join Congressman Manzullo in introducing this straightforward bipartisan bill to keep America open for business. In addition I would like to thank Senator Cantwell for her leadership on this legislation in the Senate."
In 2011, the Ex-Im bank supported nearly 290,000 export-related jobs in the United States, helping to finance more than $41 billion in sales from more than 3,600 American companies.
The Export-Import Bank Reauthorization Act of 2012:
Extends the Bank's authority through September 30, 2015;
Adjusts the Bank's aggregate loan, guarantee and insurance authority by $10 billion a year to $140 billion by 2015;
Directs the Bank to review its current domestic content requirement to ensure the bank is driven at promoting U.S.-produced exports and creating U.S. jobs;
Strengthens Congressional oversight of the Bank, requiring it to submit a 5-year strategic plan and yearly evaluations and reporting;
Improves the Bank's transparency by requiring the Bank to provide more notice and details to the public about transactions over $100 million;
Strengthens risk oversight so risk to taxpayers is fully considered and mitigated; and
Enhances restrictions against financing for entities that do business with Iran.
The text of the bill as introduced can be found here. A section-by-section breakdown of the bill can be found here. The legislation was first introduced in the Senate as an amendment to the JOBS Act by Sens. Maria Cantwell, D-Wash., Tim Johnson, D-S.D., Lindsey Graham, R-S.C., and Richard Shelby, R-Ala.
The Export-Import Bank helps finance billions of dollars in sales from U.S. companies to overseas customers. In Washington's 2nd Congressional District, which Larsen represents, the Ex-Im Bank has supported more than $21 billion in exports since 2007. In Illinois's 16th Congressional District, which Manzullo represents, the bank has supported more than $143 million in exports since 2007.
For information on Ex-Im-supported exports from Washington's 2nd Congressional District, visit: http://www.exim.gov/congmap/#/WA-2. For information on Ex-Im-supported exports to Illinois' 16th Congressional District, visit: http://www.exim.gov/congmap/#/IL-16.