Who's Behind Successful Exports? →

Picture taken for the USNews.com, feat. the U.S. Export-Import Bank's Chairman and President, Fred Hochberg.

Since July 1, 2015, the charter of Export-Import Bank of the United States (Ex-Im Bank) has been expired, putting stop to many new international trade transactions. After 16 re-authorizations, and 81 years of servicing not only the American-based enterprises, but also the U.S. product importers worldwide, the Ex-Im Bank has never faced the lapse in authority until now.

Congress seems to be drowning in the debates between the believers, and non-believers. Non-believers see Ex-Im Bank in a different light, as a part of crony capitalism that only big shots, like Boeing Co., and General Electric (GE) benefit from. Even though these two multinational corporations have financing to back up their ongoing trades, in the long run they might have to seek for help outside the U.S. 

The thing is, every nation has their own export-import bank in place, so it is hard to imagine the U.S.A without one. This country exports such a vast amount of unique products that are higher in quality. Canceling Ex-Im Bank's charter would impact 95% of buyers of the U.S. products, who reside outside the country.

In the fiscal year 2014, Ex-Im Bank transferred $675 million, generated through fees, and interest, to the U.S. Treasury, showing that this government agency not only sustains itself, but helps the American economy. At a low interest rate of 0.175 percent, Ex-Im loans were affordable to small, and medium-size businesses. Providing credit insurance, and guarantees to the commercial banks, who otherwise are not willing to back the working capital for the export-import trades, Ex-Im Bank has established the need for re-authorization by the Congress.

The Export-Import Bank is a self-sustaining federal export credit agency that was first initiated by Franklin Delano Roosevelt in 1934. Its mission has always been to support job growth, and putting it out of business would mean putting 160,000 people out of their jobs. 

Over 300,000 exporters around the nation are anxiously waiting for the outcome in September. Even though Boeing, and GE take a great advantage of the financial services of this credit agency, the rest of the U.S. exporters also have the advantage of gaining a more competitive position in global markets.