Press Release of Senator Crapo
Crapo's Export-Import Bank reauthoriation legislation passes Banking COMMITTEE
Contact: Susan Wheeler
Washington, DC – Idaho Senator Mike Crapo’s Export-Import Bank reauthorization legislation passed the Senate Banking Committee by voice vote today, clearing the way for Senate floor action. The Export-Import Bank is the official export credit agency of the United States and the current authorization for the Bank ends on September 30. Crapo is chairman of the Senate Banking Subcommittee on International Trade that oversees operations of the Ex-Im Bank.
“Financing is a key element in global trade competition and extending the Bank’s programs for five years is a vital and integral component in supporting the export of American-made goods and American-provided services for both small and large companies,” Crapo said. “At the same, time we need to ensure that the Bank’s support for transactions not only helps U.S. exports but does not negatively impact domestic companies.”
Crapo noted the current system still has problems, citing loan guarantees involving semiconductors, steel, ethanol and soda ash. Leaders with Idaho-based Micron Technology also provided Crapo with industry insight into some of the current circumstances with the Ex-Im Bank.
"This is a great outcome for Micron, and we thank Sen. Crapo for his leadership on this important issue," said Steve Appleton, Chairman, CEO and President of Micron Technology, Inc. "This legislation provides greater fairness through transparency in the US Export-Import Bank economic impact analysis process. It allows for public notification of loan changes and designation of sensitive export industries and products." Crapo’s legislation makes the operating and loan process at the Ex-Im Bank more transparent in several ways and involves interested stakeholders throughout the process. First, it would require the Bank to maintain a list of sensitive areas where export financing is unlikely to be provided. Second, it requires detailed information to the public regarding the proposed financing at an early stage and in an adequate way so that input can be brought to bear by those who have the expertise on the specific proposal and industries involved. Third, it establishes protections against circumvention of U.S. trade remedy orders.
“There is also a lot of concern that the Bank has not met its 20 percent small business mandate and this legislation builds upon structural changes to make sure the small business community has an advocate to advance its needs and address its concerns,” Crapo added. “It establishes a Small Business Division, headed by a Senior Vice President who will report directly to the Bank President. It also establishes a Small Business Committee, chaired by the Senior Vice President of the Small Business Division. And, it requires Ex-Im to authorize banks to process medium-term transactions on behalf of Ex-Im to facilitate the approval of such transactions.”
“Under the leadership of Senators Mike Crapo and Richard Shelby, the Senate Banking Committee did an excellent job of listening to smaller exporting companies and responding to their concerns,” said James Morrison, President of the Small Business Exporters Association of the United States. “The bill contains a number of innovations that will help these companies. For example, it will create a permanent Senior Vice President for Small Business at Ex-Im Bank, who will be authorized to develop a strong cadre of small business specialists, and to review small business applications for Ex-Im Bank financing that might otherwise be turned down. SBEA is proud to endorse this bill. It’s good for small business.”
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