Most people have never heard of the Export-Import Bank, but it's a critical entity for companies that do business globally. It's a federal agency that many private companies rely on to insure that they will be paid for exports to other countries. The authorization that funds that agency runs out at the end of the month and, if that happens, the effects could be felt here in Maine.
The federal government has provided credit insurance to companies for over 80 years through the Export-Import Bank. GOP Sen. Susan Collins is dismayed that some fellow Republicans in the House that are threatening to derail reauthorization before Congress recesses for the elections.
She says, while she would like to see some changes in how the bank operates, there's no question that it's important for Maine companies, such as "Auburn manufacturing, which makes a high-temperature, high-tech textile," she says, "and that company has received help from the 'Ex-Im' bank twice that has allowed it to penetrate overseas markets."
Sen. Angus King, an independent, says in recent years there have been hundreds of millions of dollars in exports from Maine companies that have been facilitated by the bank through its credit insurance programs.
"If you sell goods from Maine into Sierra Leone, or a business in Sierra Leone owes you the money, you can’t bank that transaction because of the uncertainty of being able to collect from a foreign company," King says. "The Export-Import bank provides insurance." King says a lot of Maine jobs depend on the ability of companies to export products.
Congressman Mike Michaud, a Democrat, says he will support reauthorization if it is allowed to be considered by House Republican leaders."I am very supportive on re-authorizing it, but I am not too optimistic we will do a full reauthorization," Michaud says. "I’m expecting what might happen is the speaker will allow it to continue to the beginning of next year."
Fellow Democrat, Congresswoman Chellie Pingree, says the source of trouble has been a group party Republicans, and Pingree says she's confused as to why they would challenge the re-authorization when it is so important to so many businesses across the country.
"There is very little understanding of how it actually functions," Pingree says. "I think most people don’t even know the impacts back in their own districts. It would be crazy for Congress, in a short session like this, to do major damage to a financial institution that’s critical to our export-import business."
And Pingree says she hopes that if a re-authorization bill makes it to the floor, or is tacked onto the budget continuing resolution, that it not be just a short term fix. "I think it is really important that we keep the Export-Import Bank going and I think it’s crazy that they have taken this up as an issue to champion."
But Collins says it is not a strictly partisan issue, as some Democrats have also opposed the reauthorization.But she has made up her mind to support the bill and would support some amendments. "I intend to vote for the reauthorization, but I am open to reforms to concentrate the efforts of the bank even more in the direction of small and medium-sized businesses," Collins says.
King says it makes to sense that Republicans would oppose funding for the bank's operations, given its role in helping businesses. "This is ideology sort of run amok, in my view," he says. "It’s sort of like, 'Well, government shouldn’t do anything.' And, for some reason, people have picked this and said this is where they are going to put their foot down. It’s silly. It’s like take aim at foot and pull trigger."
King points out that the bank actually generates money for the government - over $1 billion last year - from the fees it charges for the insurance. If the bank is not re-authorized, it will continue to honor existing credit guarantees but could not issue any new guarantees until Congress allows it.
