A new report from the American Action Forum points out the importance of the Export-Import Bank to small businesses across the country. (h/t Shopfloor blog) The bank’s charter is scheduled to expire at the end of June. Business leaders in our trade-dependent state have been vocal in supporting reauthorization.
The AAF report finds:
The bank’s overarching mission is to boost American-made exports and therein spur growth in jobs and income. In its activities, bank financing largely reflects the structure of U.S. trade itself in which the largest dollar volumes are concentrated among large firms despite the vast majority of exporters being small and medium sized companies.
Association of Washington Business president Kris Johnson frequently points out that “More than 230 Washington employers rely on the bank’s services, including 152 small businesses.” To put a face on the importance of the Ex-Im bank to our economy, AWB has produced an informative series of videos featuring Washington state employers.
Shopfloor presents the national perspective.
As Congress continues to debate the future of Ex-Im Bank, it’s clear that a bipartisan majority supports its reauthorization….
In FY2014, the Ex-Im Bank supported about $5 billion in exports directly from small businesses, or nearly 25 percent of its total dollar volume. Although they only account for about a quarter of the dollar volume, Ex-Im Bank’s direct small business support accounts for the overwhelming majority of the Bank’s authorizations. In FY 2014, the Bank approved more than 3,300 small business authorizations—nearly 90 percent of the total number of Ex-Im Bank authorizations.
As we have written,
Washington’s economy is highly dependent on global trade. The state ranks second in the nation in exports per capita. According to the Washington Council on International Trade, 40 percent of the jobs in the state are related to trade in some way.
The Export-Import Bank contributes to that trade activity here, making its reauthorization an important element in our economic future.