Catoctin Creek cited as example of exporter benefiting from EX-IM policies
EX-IM Bank (The Export-Import Bank of the United States) is a government-supported bank that provides lending for US companies doing exports. Normally, an organization like this is mostly ignored by the general public, but for small businesses like ours, it is a crucial tool for encouraging US exports. In particular, the bank makes low cost insurance policies to guarantee invoices from foreign suppliers. This is important because it is usually necessary to extend credit terms to our foreign suppliers, but we cannot bear the risk if one of those suppliers fails to pay us for our goods. EX-IM fills in the gap with a low-cost insurance policy that allows us to extend terms, and vets for us the foreign company for credit-worthiness.
The EX-IM Bank is one of the organizations that could be de-funded by a lackluster, do-nothing congress. Luckily for Catoctin Creek, our senators from Virginia are helping to fight the good fight:
“At a time when U.S. exporters and manufacturers are already suffering from substantial economic uncertainty in Europe, they should not be subjected to additional uncertainty manufactured by Washington. The Export-Import Bank supports hundreds of thousands of American jobs tied to exports and helps businesses across Virginia export hundreds of millions of dollars in goods and services each year,” said Sens. Warner and Kaine. “The Export-Import Bank levels the playing field for U.S. exporters – many of them small businesses – by matching the financing that other governments provide to their exporters, and it does so at no cost to the taxpayer. In fact, over the last two decades, the Ex-Im Bank has actually helped reduce the deficit by generating nearly $7 billion more than it costs to operate.”
The Senators noted, “The Bank has operated for more than 80 years and has been reauthorized 16 times with bipartisan support under 13 different Presidents, Republican and Democrat. Congressional leadership should be ashamed for allowing this important job-creating tool to expire for the first time in its history.”
Read the full story, here, and be sure to voice your support with your local congress and senators.