WASHINGTON, D.C. – After visiting a number of Maine businesses that rely on the financial backing provided by the Export-Import Bank of the United States (Ex-Im Bank), U.S. Senator Angus King (I-Maine) announced today that he has cosponsored legislation to reauthorize the bank for an additional five years. The Ex-Im Bank, which will cease operations if Congress does not renew its charter by the end of this month, is the nation’s official export credit agency and a key export tool that helps companies in Maine and across the country sell their products in international markets.

“I’ve seen firsthand how the Ex-Im Bank can help businesses succeed. Not only does it support American manufacturers and help create jobs, but at the end of the day, it also returns a profit to the Treasury. Now that’s a government agency worth keeping around,” Senator King said. “And I think we need to do it in a long-term way rather than in Congress’s typical piecemeal fashion. Let’s renew the Bank for five years so that it can keep supporting American businesses without having to always worry about the next deadline around the corner.”

The U.S. House of Representatives is currently considering a short-term extension of the Ex-Im Bank’s charter. However, the legislation cosponsored by Senator King today is a long-term solution that would reauthorize the Bank for five years. It would also incrementally increase the Bank’s spending authority to $160 billion from $140 billion over a four-year period, require the Bank to submit reports to Congress detailing its business plan and risk exposure, and ensure the Bank’s loan loss ratio is less than two percent for any quarter in that fiscal year. The bill would also require a Government Accountability Office (GAO) study to be completed within one year to identify the risk to taxpayers of the Bank’s Medium-Term Program.

The Ex-Im Bank serves as the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets, which helps maintain and create jobs in the United States and contributes to a stronger national economy. If private banks are unwilling or unable, the Ex-Im Bank steps in and finances or insures the purchase of U.S. goods by foreign customers. It also helps U.S. companies stay competitive against their counterparts overseas that are financed by foreign governments.

In August, Senator King toured Auburn Manufacturing, Inc. (AMI) in Mechanic Falls, a manufacturer of high-performance textiles for extreme temperature protections, as well as Planson International Corporation, a global IT provider based in New Gloucester, both of which have drawn supports from the Ex-Im Bank. In fact, as seen below, the growth of Planson has been directly influenced by the financial products offered through the Ex-Im Bank.

Since 2007, the Ex-Im Bank has supported more than $264 million in exports from 13 companies in 12 communities in Maine. Nationally, it has supported nearly $189 billion in exports over the last five years. Unless Congress acts, however, the Ex-Im Bank’s charter is set to expire on September 30^th of this year – 21 days from now – and Maine businesses, like AMI and Planson, Inc., stand to suffer as a result.

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