May 01, 2015 - 2:15pm

Here Are 6 Things You Should Read Before Writing About the Export-Import Bank

The Wall Street Journal’s Kim Strassel is usually quite good on business policy issues. It’s disappointing to read her column where she embraces a false narrative Export-Import Bank opponents are feeding opinion makers, blogs, and social media.

For any columnist, reporter, writer, pundit, Tweeter, YouTuber, Tumblr-er, or Facebooker, planning to cover Ex-Im in the future, here are a few items that will give you a more balanced view, help you see that Ex-Im isn’t a “bank to nowhere,” but a means for supporting 164,000 American workers and $27.5 billion in exports and help you understand why Congress should pass a long-term reauthorization:

  1. Shutting down Ex-Im would mean many smaller and mid-sized firms couldn’t even export because commercial banks generally won’t accept foreign receivables as collateral for small businesses loans. That’s why scores of small and medium-sized businesses from across the country are urging Congress to renew Ex-Im.
  2. For example, Bobby Patton, President and CEO of Patton Electronics, says that if Ex-Im isn't reauthorized his business will shrink by 70%.
  3. Closing Ex-Im would shut American companies out of huge business opportunities overseas because support from an official export credit agency such as Ex-Im is required for a company even to bid on nearly all overseas infrastructure projects.
  4. Ending Ex-Im would put U.S. companies selling expensive capital goods such as aircraft, locomotives, and turbines at a unique competitive disadvantage because their foreign competitors all enjoy ample financing from their home-country export credit agencies — enough to easily knock U.S. companies out of the competition.
  5. This is especial true of the nuclear power sector, where deals always require support from an official export credit agency such as Ex-Im. Since the U.S. nuclear industry is dependent on exports—almost no new nuclear plants are being built in the United States while other countries are building dozens—closing Ex-Im could put nuclear suppliers out of business or force them offshore.
  6. Outside the beltway, support for Ex-Im is broad and growing. Governors of both parties urge Ex-Im reauthorization. Mayors, county, and state leaders understand why Ex-Im must be reauthorized.

Tell Congress to reauthorize the Export-Import Bank.

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