SCHUMER ANNOUNCES, FOLLOWING HIS PUSH, CONGRESS IS SET TO RE-AUTHORIZE THE EXPORT-IMPORT BANK, ONE OF UPSTATE NY’S MORE IMPORTANT FED JOB-CREATION PROGRAMS – EX-IM BANK IS RESPONSIBLE FOR BILLIONS IN SALES & THOUSANDS OF JOBS ACROSS NY STATE
Fed Export-Import Bank is a Critical Tool For Small, Medium & Large Manufacturers Across NY State, Like GE in the Capital Region, Swarovski in the North Country, Harris Corp in Rochester, And Siemens Dresser Rand Plants in Western NY & The Southern Tier – Bank Enables Companies To Ship Products Abroad & Create Jobs At Home
Ex-Im Bank Expired in September 2014; Schumer Has Since Urged Colleagues To Come Together & Re-Authorize Program For 5 Years – Program is Critical To Manufacturing Growth & Preserving Good-Paying Jobs
Schumer: Re-Authorizing Ex-Im Bank Means Protecting and Creating Jobs in Upstate NY
U.S. Senator Charles E. Schumer today announced that, following his push, Congress is set to approve the re-authorization of the Export-Import (Ex-Im) Bank later this week – as a part of the House and Senate Transportation Bill – which helps support thousands of jobs and billions in sales for many small- and medium-sized businesses across Upstate New York. Schumer explained that the Ex-Im Bank provides financing to foreign companies in order to help them purchase U.S. goods. Many of those goods are produced at companies across New York State, including General Electric in Schenectady,Swarovski Lighting and Plattco Corporation in Plattsburgh, Siemens Dresser Rand Plants in Olean and Wellsville, Harris Corp in Rochester, and many more. Unfortunately, Congress let the Ex-Im Bank expire last September. Ever since, Schumer said hundreds of companies that rely on the bank to export their products have struggled to do so. Now that the bank is set to be re-authorized for another five years, Schumer said it can continue as a major driver of economic growth and manufacturing jobs across all of Upstate NY.
“The Ex-Im Bank has been one of the key tools in our toolbox for supporting and growing manufacturing jobs across New York State for a generation – which is why casting that critical resource aside and letting the Bank expire last year was short-sighted and wrong. I’m pleased to announce that today, after pushing my colleagues over the past year, Congress has voted to re-authorize the Export-Import Bank and once again make it clear we will do all we can to help level the playing field for our Upstate NY companies and support our manufacturing workers. Making it easier for companies – small, medium and large – to do business abroad will mean supporting good-paying, middle-class jobs back home,” said Schumer.
Schumer explained that the Ex-Im Bank is an independent federal government agency that plays an important role in the U.S. economy by helping foreign customers buy American-made products and equipment from companies like GE and numerous small- to mid-sized businesses across New York State. In some cases, the Ex-Im Bank also helps provide financing directly to U.S. companies that enables them to export manufactured goods and services, all with the objective of contributing to U.S. employment. Schumer explained that the Ex-Im Bank expired in September 2014, and has since urged his colleagues in Congress to reauthorize the bank.
Schumer said this re-authorization is good news for companies all across Upstate NY. According to Ex-Im Bank data, there are 270 businesses in the state of New York that directly benefited from Ex-Im Bank between 2007 and 2014; 163 of those are small businesses. This is a steady increase from the 236 overall exporters in New York recorded just six years ago in 2009. The bank has supported $6 billion in New York exports over the last five years.
In total, the bank supports over 200,000 jobs each year at no cost to the U.S. taxpayer, which means 1.2 million American jobs over the past five years. In FY2013, the Ex-Im Bank supported $37.4 billion in American exports, and small business accounted for nearly 90 percent of the bank’s transactions. Schumer also noted that what is not captured in all of these statistics is the myriad local suppliers and vendors that also benefit from the Ex-Im Bank. Even though they are not the direct beneficiary of financing, they indirectly benefit because it helps keep companies they supply to strong and growing.
Schumer said that not only does is the Ex-Im Bank help support a major job-creation, but it also helps put American businesses on a level playing field; U.S. exporters are often met by competition from foreign companies overseas that have a clear leg up because they are backed or wholly-owned by foreign governments. Through direct loan, loan guarantee, and insurance programs, Ex-Im Bank helps lessen risk for foreign buyers so that they may more easily purchase U.S. products, helping U.S. companies expand their businesses and sell their products all over the world.
If the Ex-Im Bank remained expired, Schumer said, many of these companies would have to find long-term alternative means of leveling the playing field and selling products overseas. Because many of these companies face competition overseas from countries that sponsor and heavily subsidize assist their foreign exporters, U.S. companies would have continue to be at a severe disadvantage. Many of these New York companies could have faced a severe decline in business if this were to continue. Countries like China, Japan and Germany all have much larger export credit agencies that receive government backing, and failure to reauthorize this U.S. institution is projected to shave 1% off of U.S. GDP growth per year for the first few years. A shutdown of the Ex-Im Bank could then lead to even greater GDP decline going forward, as companies here in the U.S. might be forced to relocate production overseas as an alternative to competing with foreign markets.
Extending this charter will renew Ex-Im Bank’s authority. Legislation was enacted in the 112th Congress to extend Ex-Im Bank's authority through the close of business on September 30, 2014.
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