By: Thomas Lodico
With a majority of the media attention focused on the 2016 presidential race, very little attention has been focused on the re-authorization of The Export-Import Bank, (EXIM). In essence, this independent agency focuses on helping businesses with loans from big banks. Specifically, the Export-Import Bank charges a fee to businesses to find loans from big banks, such as Goldman-Sachs, with a promise of 85% of the loan to be repaid with interest. The Export-Import Bank was founded under Franklin Roosevelt to help small businesses find loans to support their businesses overseas. Yet over the years, problems with the bank has grown and its renewal by the July 1st deadline might find more opposition in Congress then supporters would hope.
The EXIM Bank’s mission is to support American jobs by finding private loans for American business, which sounds good to many on paper, but certain politicians from both the Republican and Democratic party have shown some concerns with the re-authorization.
Senator Elizabeth Warren, who has been a longtime supporter of the EXIM Bank, has expressed concern about the re-authorization of the Bank by raising questions about who gets their loans approved. Specifically, Warren has expressed concern with the connection of large corporations and the majority of loan approval they receive from the EXIM Bank. Warren would like to see the re-authorization of the bank come with more support for American small businesses overseas.
Republicans on the other hand are more divided on the issue of re-authorization, due partially to the fact that some Tea Party conservatives look at all government programs as unnecessary and consequently have fought against re-authorization of the EXIM Bank. Many Tea Party activists have been outspoken in wanting to see the end of most government programs that they deem wasteful.
The EXIM Bank has a rough road ahead, but with support from high-ranking Democrats and Republicans, reauthorization is a highly possible result.