President Obama has signed bipartisan legislation that allows the bank to continue financing U.S. exports through 2014. Mr. Obama said the move will help thousands of businesses sell their products and services oversees and create jobs at home.
Senator Mark Udall (D-Colorado) strongly supported the reauthorization as it made its way through Congress and the role it will play in job creation.
"Colorado businesses, whether big or small, compete globally and the bank has empowered many to sell their goods in new markets abroad and hire at home in Colorado. This is an important way to level the playing field so that American manufacturers have access to tools that help them successfully compete against global competitors."
Financing from the Export-Import Bank supported $157 million in global sales from Colorado business last year, including Abound Solar in Loveland, Southwest Windpower in Broomfield and Golden Aluminum in Ft. Lupton.
Key Elements of the 2012 Act:
- Increasing the Bank’s Portfolio Limit: The Bank’s financing authority is increased immediately to $120 billion and will be further stepped up to $140 billion, while requiring the Bank to submit a business plan and maintain a low default rate.
- Focusing the Bank’s Mission: The Bank will provide additional information on its business planning, default rates, and its support for small business and the U.S. textile industry. In addition, the GAO will evaluate the role of the Bank in the world economy, the Bank’s risk management, and its underwriting and fraud prevention procedures.
- Enhancing Transparency: The Bank will provide the public with an opportunity to comment on transactions of more than $100 million through Federal Register notification.
Lawmakers passed the legislation earlier this month amid resistance from conservatives who argued that the bank distorts the market. It was set to expire on May 31st.
