Reauthorization of Export-Import Bank, Transportation Funding Encouraging News for Small Businesses
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, on Senate passage of a five-year infrastructure funding bill that includes reauthorization of the Export-Import Bank
The U.S. Senate recently passed legislation reauthorizing the Export-Import Bank's charter as part of a five-year transportation funding bill, bringing much-needed relief to small businesses. Since the bank's charter expired on June 30, it has been unable to provide new loans or make new transactions through its credit insurance program, which has impaired the ability of small exporters to grow and do business abroad.
Many small businesses rely on the bank because commercial lenders typically don't support small businesses in this area. In fact, nearly 90 percent of the Export-Import Bank's transactions in 2014 were for American small businesses. The bank fills in the gaps offered by traditional financing by partnering with private-sector lenders to provide loans, loan guarantees and credit to aid foreign purchasers in buying American-made goods. Additionally, the bank offers credit insurance so small business owners don't have to worry about non-payment from foreign buyers. Without it, small business owners say they wouldn't be able to compete internationally.
In addition to reviving the Export-Import Bank, the legislation sets federal policy and funding levels for highways, transit, passenger rail and bridge programs and reauthorizes the Highway Trust Fund through 2020, which will benefit small businesses that rely on the shipping industry and well-maintained roads to access consumers. Additionally, rebuilding America's roads and bridges offers tremendous business opportunities to entrepreneurs. Not only do they participate in building projects and their supply chain, they run the hotels, coffee shops, restaurants and other businesses that serve people working on those projects.
Reauthorization of the Export-Import Bank and the Highway Trust Fund will help small businesses gain access to customers and vendors at home and abroad while at the same time creating demand for the goods and services small businesses have to sell. We're glad lawmakers have reauthorized funding for these measures that can greatly bolster small businesses.
About Small Business Majority
Small Business Majority is a national small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing America's 28 million small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable economy. We are a team of more than 30 working from our 11 offices in Washington, D.C. and 9 states, with a network of more than 45,000 small business owners and more than 2,000 business organizations, along with a formal strategic partnership program of more than 125 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about issues including taxes, healthcare, access to capital, entrepreneurship, workforce development, clean energy and immigration. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.