Lawmakers' Inaction on Export-Import Bank Disappointing News for Small Exporters
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, on lawmakers' failure to reauthorize the Export-Import Bank's charter ahead of June 30 deadline
With one week left to extend the life of the Export-Import Bank, Congress has yet to act on extending the bank's charter, which is disappointing news for small exporters. If Congress fails to reauthorize the bank's charter before June 30, it can no longer continue providing new loans or making new transactions through its credit insurance program, which would be devastating to small exporters and entrepreneurs looking to expand their businesses to international markets.
The Export-Import Bank is an important resource for small businesses because it gives them an edge by leveling the playing field between small firms and their larger counterparts. 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. If the bank's charter is not reauthorized, it will be unable to make new transactions and offer resources like these to small businesses.
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 2013 were for American small businesses. Additionally, the bank financed more small business exports in the last five years than in the previous 11 years combined. Without it, small business owners say they wouldn't be able to compete internationally.
A vast 98 percent of America's 300,000 exporters are small businesses. Lawmakers need to reauthorize the Export-Import Bank now and ensure our nation's small exporters have the tools they need to thrive.
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.