Tonight, for the first time in history, right-wing Republicans including Congressman Steve Knight are allowing the expiration of the job-creating, economy boosting Export-Import Bank.
The Ex-Im Bank, which has a long history of bipartisan support, offers loans for American companies selling their products abroad. Without the Ex-Im Bank, American businesses both big and small would have less incentive to manufacture their goods here, meaning manufacturers could ship jobs overseas.
Since 2007, the Ex-Im Bank has supported 1,150 California exporters and provided $199 million in financing in the 25th Congressional District alone.
“Global competitors like China are chomping at the bit waiting for the Ex-Im Bank to close at midnight,” said Barb Solish of the Democratic Congressional Campaign Committee. “Knight’s abdication of duty means that businesses across the 25th District and the nation could stop exporting and even go out of business. It’s an unacceptable position that pushes Knight further to the extreme right than he already is.”
Background
Knight Opposes Reauthorization Of The Export-Import Bank. According to Heritage Action, Knight has publicly opposed the reauthorization of the Export-Import Bank. [Heritage Action, accessed 6/30/15]
Export-Import Bank Provides Loans For U.S. Companies That Do Business Overseas. The Export-Import Bank “provides loans and loan guarantees for projects involving U.S companies doing business overseas… The idea behind the bank is that is a U.S. company wants to sell an airplane or other product to a foreign buyer, and no private lender will provide financing, the Ex-Im bank can provide the loan or guarantee the loan, allowing completion of the sale.” [USA Today, 5/21/15]
Export-Import Bank Is Being Targeted By Far Right Groups But Has Previously Received Bipartisan Support. “Over the past several years, Ex-Im has emerged from relative anonymity to become a top target for conservative Republicans… It’s a stunning fate for the obscure government financier — the bank was renewed by Congress in 2006 without even a roll-call vote in either chamber. And while the bank is warning lawmakers the expiration jeopardizes $9 billion in financing and nearly 200 projects, the right is set for a celebration Tuesday night when the calendar turns and Ex-Im temporarily loses the ability to arrange new loans for the first time in its 81-year history.” [Politico, 6/30/15]
Not Reauthorizing The Export-Import Bank Could Send American Jobs Overseas. “And without an Export-Import Bank at all … there’d be little incentive for American manufacturers to actually make their goods in the United States. They could move to other countries with export credit agencies that would support their exports. The implicit threat in this narrative: the loss of American jobs.” [PBS, 9/15/14]
2007 – 2015: Export-Import Bank Supported 1154 Exporters In California, Totaling $27 Billion In Export Value. [Export-Import Bank Website, accessed 6/30/15]
2007 – 2015: Export-Import Bank Authorized $199 Million In Financing For Exporters In California’s 25th District. [Export-Import Bank Website, accessed 6/30/15]