Last week, after a torturous delay, the US Export Import Bank was reauthorized for five years. It is a blessing for the US economy. 59 countries that we compete with every day have a bank that supports their countries' exports. We finally got our team resurrected. Thankfully. Here are four reasons we should make the Ex-Im permanent.
1) Pumps Up Exports
The bank is a lending machine with over $100 billion in loans on the books now with 2,600 different new loans made this year. Thousands of deals happened because of the deals Ex-Im supported. Loans get deals done because cash is tight around the world. 97% of the worlds consumers are overseas and we need to sell where there are people buying. This is an effective tool used by our economic rivals - the Chinese Bank is 5 times the size of our Ex-Im because they realize how important this tool is to be successful in the global economy.
2) Job Creation
Because Ex-Im is so effective, US companies get orders. $17 billion more shipments happened because Ex-Im is getting the job done. When we get orders we have to make things and grow things and ship things. You need people to make this happen. Lots of people. Matter of fact over 109,000 jobs were supported this year and over 1.4 million jobs over the past seven years. We need more Ex-Im action so we grow our middle class.
3) Small Business Catalyst
88+% of the authorizations were to small business comprising 41% of deal value. This is a direct benefit to small business however it is understating the positive impact on small business. For example, when Boeing ships an airplane or Caterpillar ships a tractor and GE ships a locomotive overseas, they used Marlin Steel wire baskets to make their products. We are a small company that are tied at the hip with the big guys. Like many small businesses, we count on orders from big guys so when the big guys win, we win. We are all in this together so when GE cuts a global deal and our EXIM banks supports the deal that helps little companies across the nation.
4) Help U.S. Taxpayer
The Ex-Im is a profit machine. This year Ex-Im gave the tax payers a $431 million dividend we can spend on other priorities. In the last two decades, Ex-Im has paid $billion to the US Treasury. Ex-Im is a careful steward of our money. It has a default rate of under 0.24% a threshold most banks would love to aspire. Not many government entities make a profit for the US Taxpayer - we should embrace the ones that are steady performers for the US Taxpayer.