Cramer, Warner Introduce Legislation Reauthorizing Export-Import Bank for 10 Years

Legislation Provides Historic Reauthorization, Longer-term Certainty

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WASHINGTON, D.C. - As of 2019, there were 115 Export Credit Agencies (ECA) globally, each competing to help industry within their country secure market access across the globe. China has two ECAs, both which support its Belt and Road Initiative, which facilitates Chinese global industrial development. According to the Center for Strategic and International Studies, "In 2022, it is estimated that the PRC's official medium- and long-term export credit support was $11 billion. In comparison, the United States' official medium- and long-term export credit support stood at $2.7 billion."

Since its inception as an ECA in 1934, the U.S. Export-Import Bank (EXIM) has been an essential financing tool for American companies to export goods and services.

To support American global competitiveness, U.S. Senators Kevin Cramer (R-ND) and Mark Warner (D-VA), members of the Senate Banking Committee, introduced legislation today to reauthorize the EXIM Bank for the next decade. Cramer's legislation allows for the longest reauthorization of the bank in history. This is his second time leading the charge to reauthorize the bank. In 2019, Cramer successfully secured the inclusion of language reauthorizing the EXIM Bank, reauthorizing the bank for seven years through Dec. 31. The 2019 reauthorization was the longest in history.

"Planning for production and manufacturing as we know, does not happen overnight, and reauthorizing EXIM for a decade really reflects that reality, and that's the sweet spot we're trying to hit here," said Cramer. "A ten-year authorization allows for greater certainty, and we know how important certainty is to investors. It gives American businesses a runway for making long-term plans without that looming threat of a lapse in authorization. That's what we saw in 2015 and we want to avoid that. We all know that across North Dakota and of course every state in our country, companies rely on EXIM to help export products. We don't have much of a business economy if we're not exporting, and that includes big and small companies. The introduction of this bill starts that process of working with our colleagues and stakeholders, who we listen to carefully, to build on EXIM's success. I know it seems early but it'll come faster than you think. We really need to work together to find the sweet spot, find the low-hanging fruit, find where compromise can be made so that we can give American businesses the competitive edge across the globe."

"Renewing the Export-Import Bank is critical for Virginia businesses to stay viable in a global economy with China and other foreign competitors," said Warner. "This bipartisan, commonsense bill will protect American jobs and provide stability for small businesses and manufacturers, while helping secure our economic and national security."

"The Senator has a unique understanding of the importance of stability that reauthorization provides with our EXIM bank," said Kristin Hedger, Vice President, Killdeer Mountain Manufacturing. "While we are strong what our nation's heartland manufacturers can provide, our opportunities to compete in a global setting are hindered when our competitors from around the world have the benefit of having their own EXIMs that function more aggressively and in a seemingly more reliable fashion."

"We at Leonardite Products have relied on the Export Import Bank credit policy for several years," said Cherie Harms, President and CEO, Leonardite Products of Williston, ND. "We are comfortable increasing our export trade to businesses in countries we are not completely familiar with. Knowing we have a guarantee, if there are geopolitical issues, in one of our customers' countries the Export Import Bank provides us with a competitive advantage over foreign competitors."

"The EXIM Bank is invaluable to the export successes of North Dakota businesses and continues to be a prime tool for rural states to operate on the international stage," said Drew Combs, Executive Director, North Dakota Trade Office. "Reauthorization of EXIM Bank is essential to making small and medium-sized businesses more competitive globally."

Cramer's 2019 reauthorization of EXIM expanded available financial offerings by included a key fix to ensure continuity for loan recipients. In 2015, approval of deals over $10 million was temporarily halted after the bank lost its quorum, disrupting jobs, slowing growth and sowing uncertainty among American small businesses. The reauthorization mandated the creation of the China and Transformational Exports Program (CTEP), which is specifically tasked with helping American companies compete with Chinese industries. Since 2014, North Dakota businesses have leveraged $55 million in EXIM Bank financing to expand into global markets and support jobs in the state.

This reauthorization legislation kicks off the negotiation process in the Senate Banking Committee. Cramer and Warner will work with colleagues, the administration, stakeholders, and committee leadership to garner input and refine the bill to reflect the opportunities and competitive challenges U.S. industry face globally.

Click here for bill text.