Today, U.S. Rep. Ed Perlmutter (CO-07), a member of the House Financial Services committee, introduced an amendment to reauthorize the Export-Import Bank through 2015 and increase the lending threshold. This amendment is the House companion to the Senate provision supported by CO Senator Michael Bennet.
The Export-Import Bank of the United States helps finance the export of U.S. products to markets abroad. Without Congressional action, there is a risk of shutting down the bank which is an important job creation vehicle.
"This is about jobs," said Perlmutter. With this amendment we can promote job creation, grow our economy through increased exports and promote manufacturing right here in Colorado and America. Rather than cutting scarce discretionary funds for housing programs to help hardworking Americans achieve the American dream, we should be focusing on raising new sources of revenue."
The amendment was introduced to a bill in the House Financial Services Committee which House Republicans are requiring to find an additional $3 billion in cuts for FY12 and $30 billion over ten years because the Ryan Tea Party spending plan went below what was agreed to during prior budget/deficit negotiations. The Perlmutter amendment to reauthorize the Export Import Bank would generate at a minimum $900 million in additional revenue over five years and does not cost the taxpayers a dime. In fact over the last five years, it returned $2 billion to taxpayers.
Despite broad and bipartisan support from both Republicans and Democrats, as well as small and large businesses across the country, House Financial Services Committee Republicans blocked Perlmutter's amendment. Attached is a letter of support signed by 40 Members of Congress.
The Ex-Im Bank is an important lending source for Colorado businesses who create jobs here in Colorado. Since the beginning of 2011, the Ex-Im Bank backed nearly $60 million in loans to Colorado businesses. Nationwide, the Export-Import Bank helped sustain some 290,000 American jobs in over 3,600 companies at no cost to the taxpayer. Over the past five years Ex-Im has generated almost $2 billion in revenue to the Treasury.
Small businesses account for 87% of Ex-Im's transactions. And for each small business, there are other small businesses who are part of their supply chain.
Borrowers have defaulted on less than 2% of all loans backed by Ex-Im since its inception in 1934, a default rate lower than commercial banks.