President Obama signed legislation Wednesday reauthorizing the Export-Import Bank, raising its lending cap from $100 billion to $140 billion by 2014. The Export-Import bank is an avenue through which the government can promote export sales and help thousands of US business sell goods and services overseas and create new jobs at home. The bank’s charter, set to expire at the end of the month, is now extended through September 2014.
Bloomberg News reports:
The measure represents an election-year victory for Obama, who had pressed for the bank’s reauthorization to help aid export sales and job growth. He has set a goal of doubling U.S. exports to $3.14 trillion a year by the end of 2014, from $1.57 trillion in 2009.
Other sources convey that:
The President believes that a critical component of building stronger and more durable domestic economic growth is ensuring that U.S. workers and businesses can compete successfully in global markets. Doing so requires promoting U.S. export of goods and services overseas, which is why the President launched the National Export Initiative (NEI) in 2010, with the goal of doubling U.S. exports over five years while supporting two million new export-related jobs. This legislation will allow the Export-Import Bank to continue financing U.S. exports to meet global competition.
America continues to make historic progress under the NEI, despite challenges in the global economy. U.S. exports over the past 12 months are higher than any previous 12-month period in history, reaching $2.15 trillion, over 36% above the level of exports in 2009. This record-breaking level of exports supported 9.7 million exports-related jobs in 2011, an increase of 1.2 million exports-related jobs since 2009.
Lawmakers passed the legislation earlier this month amid resistance from House Republicans who dismissed the bill as “corporate welfare” and argued that the bank distorts the market. The bank had support from numerous business groups. The Export-Import Bank makes subsidized loans, loan guarantees, and sales insurance available to American exporters to help them sell their products overseas. Last year it provided about $32 billion in loans, loan guarantees and credit financing, helping support 290,000 jobs.