Export-Import Bank Overview
The Export-Import Bank of the United States of America is a federally funded institution which facilitates the growth of exports in the United States and strengthens economic ties with developing nations. Created by President Roosevelt in 1934, the Export-Import (Ex-Im) Bank, “a wholly owned U.S. government corporation, is the official export credit agency (ECA) of the United States.” Ex-Im Bank provides the following: “(1) direct loans; (2) loan guarantees; (3) working capital finance; and (4) export credit insurance”
Issues with Charter Renewal in Congress Throughout its history, the charter of Ex-Im Bank has been continually reapproved, generally with strong support from both sides of the aisle in Congress. Most recently, the bank was reapproved on May 30, 2012, with both parties offering support. However, in 2015, the trend of reapproving the charter without much debate came to an end. For different reasons, members of both congress oppose the bank. While most Democrats and moderate Republicans support Ex-Im Bank as beneficial to the United States economy, conservative and Tea Party Republicans find that the bank is a system of “corporate welfare” …show more content…
Each fiscal year, Ex-Im Bank has a quota of funding that needs to be allocated to small businesses, which it often does not quite meet. Because of this, the Bank has been criticized as a system of “corporate welfare.” Boeing, a large aircraft company, was shown to receive 40% of Ex-Im’s assistance in FY2014, while the combination of all small businesses received only 25%. Many hold the view that when Ex-Im Bank does not focus on small businesses in the United States, it has a detrimental effect on the creation of jobs in America. Since many politicians include on their platforms the need for American jobs to be created, this negative aspect of Ex-Im Bank is rather
The Export-Import Bank of the United States of America is a federally funded institution which facilitates the growth of exports in the United States and strengthens economic ties with developing nations. Created by President Roosevelt in 1934, the Export-Import (Ex-Im) Bank, “a wholly owned U.S. government corporation, is the official export credit agency (ECA) of the United States.” Ex-Im Bank provides the following: “(1) direct loans; (2) loan guarantees; (3) working capital finance; and (4) export credit insurance”
Issues with Charter Renewal in Congress Throughout its history, the charter of Ex-Im Bank has been continually reapproved, generally with strong support from both sides of the aisle in Congress. Most recently, the bank was reapproved on May 30, 2012, with both parties offering support. However, in 2015, the trend of reapproving the charter without much debate came to an end. For different reasons, members of both congress oppose the bank. While most Democrats and moderate Republicans support Ex-Im Bank as beneficial to the United States economy, conservative and Tea Party Republicans find that the bank is a system of “corporate welfare” …show more content…
Each fiscal year, Ex-Im Bank has a quota of funding that needs to be allocated to small businesses, which it often does not quite meet. Because of this, the Bank has been criticized as a system of “corporate welfare.” Boeing, a large aircraft company, was shown to receive 40% of Ex-Im’s assistance in FY2014, while the combination of all small businesses received only 25%. Many hold the view that when Ex-Im Bank does not focus on small businesses in the United States, it has a detrimental effect on the creation of jobs in America. Since many politicians include on their platforms the need for American jobs to be created, this negative aspect of Ex-Im Bank is rather