Yesterday the U.S. Senate approved a highway bill that will fund America’s roads, bridges and mass-transit systems while also reviving the U.S. Export Import Bank charter. It was a fantastic day for American business owners and now the next step is to gain approval by the White House.
The Senate approved the bill by a landslide, 83 for to 16 against which will fund the highway bill and extend the Ex-Im Bank’s charter. The $305 billion legislation cleared the Senate just after the House approved the bill. President Obama is expected to make his decision in the next few days.
The highway bill was somewhat of a necessity because America’s aging infrastructure is in serious need of an upgrade but we are more focused on the Ex-Im Bank’s reauthorization. The Ex-Im Bank’s shutdown has had a serious impact on American businesses that export globally, and since the shutdown businesses have been struggling.
“It proves to the American people that we can get things done,” said House Transportation Committee Chairman Bill Shuster, a Pennsylvania Republican. (cnb.cx/1N1GOdk)
The Ex-Im bank is vital for small and large manufacturers alike because of the all important financing it offers when American companies do business with foreign entities. This program is the only way small manufacturers can stay competitive with foreign businesses and if the bill passes, the charter would stay operational until Sept. 30, 2019. There were some changes made to the Ex-Im Bank like a lower lending limit, but it’s better than the U.S.A being the only major trading nation without an Export Credit Agency
The negatives of ending the Ex-IM bank’s charter was seen almost immediately. Boeing and General Electric, which employ thousands of people across the country, began to move their operations oversees to look for financing from foreign Export Credit Agencies. These moves cost America hundreds of jobs at home, affecting not only businesses, but the local communities that rely on these manufacturers for jobs. Not only were these employees let go, but Boeing and GE’s business keeps hundreds of supply chain professionals in business and as they moved, so too did these jobs.
Small businesses, which make 90% of the Ex-Im Banks transactions, have also suffered from shutdown of the charter. These manufacturers are really the heart of manufacturing in America and crushing their ability to stay competitive has done immense damage to our nation’s economy and competitiveness in overseas markets. With Boeing and GE, they have the option and the capital to up and move to take advantage of Export Credit Agencies, but for these small manufacturers they don’t have this option. The small businesses are really the ones that are hurt the most from shutting down a program such as the Export – Import Bank.
It is a fantastic day for manufacturers of all sizes in America. We just hope this trend can continue once the bill makes its way to the White House. Check back soon for more developments surrounding the reauthorization of the Export-Import Bank.
To learn more about the Ex-Im Bank: https://mfgtalkradio.com/losing-american-jobs-as-ex-im-bank-sits-idol/