Manufacturers Urge Reauthorization of Export-Import Bank
Youngstown Business Journal – The Export-Import Bank, an independent federal agency designed to help fund small businesses so they can gain a foothold in foreign markets, is integral to Ohio’s economy and should be reauthorized by Congress quickly, officials say.
“The Export-Import Bank is an important supplier to Ohio manufacturers,” said Eric Burkland, president of the Ohio Manufacturers’ Association. “It’s broadly used.”
Burkland joined U.S. Sen. Sherrod Brown, D-Ohio, and Fred Hochberg, president of the Export-Import Bank, on a conference call with reporters Wednesday and urged Congress to reauthorize the agency’s lending authority, which expires May 31.
Companies in Ohio use the bank for additional financing that is directed toward supporting its exporting power, Burkland said. In particular, companies such as Summitville Tiles in Columbiana County use the bank to insure its foreign receivables, thereby allowing the company to secure additional liquidity through lines of credit with its lender.
Summitville, which has 200 employees at various locations in Columbiana County, manufactures ceramic tile and exports its products . For example, Summitville manufactures all the floor tiles found at any KFC restaurant around the world, Burkland said.
“Summitville uses Ex-Im’s foreign credit insurance program to insure foreign receivables,” Burkland said. “It allows the company to include outstanding foreign receivables on its borrowing base for its U.S. lending bank,” he said.
Other manufacturers across the state rely on the bank for other important financial mechanisms such as working capital guarantees, he said.
The Export-Import Bank’s Hochberg stated that Ohio remains a hot spot for export growth. “Since 2009, our support for Ohio business is up 125%,” more than double the national average of 60%, he reported.
“Our role is to level the playing field to create jobs here,” Hochberg said. “Good, middle-class jobs.”
The bank is fully funded by service fees and interest payments from participating companies, so no taxpayer dollars are ever put at risk, Hochberg said. “It’s a key way of generating job growth at no cost to the taxpayer,” he said.
