Trading Good Works

Thus you shall live with us, and the land shall be open before you;

live and trade in it and acquire property in it –

(Genesis 34:10)

A suggested strategy for growing a small business is to increase the sell of products made here in the U.S. to foreign customers. By definition, an export is an international trade where goods produced in one country are shipped to another country for future sale or trade. For manufacturers, the transaction is beneficial to the producing country by adding to the nation’s gross output. Becoming an exporter is a good idea, but the activity involves a lot of risks.

One agency that may be able to provide guidance and services in reducing those risks for American manufacturers is the Export-Import Bank of the United States (EX-IM Bank). Founded in 1934, the mission of the bank is to create and sustain U.S. jobs by financing sales of U.S. exports to international buyers. EX-IM Bank helps businesses by providing services such as:

• Protection against buyer non-payment
• Getting financing
• Selling to foreign customers on credit terms
• Borrowing against export-related assets
• Issuing performance and bid-bonds
• Financing a foreign buyer’s purchase

To learn more about these solutions, visit http://www.exim.gov/what-we-do

Like many government programs, there is a current debate on whether or not to reauthorize. The bank’s charter is set to expire on June 30^th. Supported by the National Association of Manufacturers, there is an urgent social media campaign to inform the public of the good works that EX-IM Bank is doing in supporting the American economy. During 2014, about 90% of the bank’s transactions benefited small businesses in the global supply chains of large manufacturers like Boeing, GE, and Caterpillar (http://www.nam.org/Issues/The-Ex-Im-Bank/). In job numbers, that represents about 164,000 export-related jobs in the United States.

EX-IM bank has benefited small businesses across the country. A local success story is BCH Trading, headquartered in Hot Springs. An exporter of southern, yellow pine lumber, by taking advantage of the bank’s working capital guarantees, this $10M business indirectly supports over 50 sawmill-related jobs http://www.exim.gov/about/success-stories/ex-im-bank-supported-loan-helps-arkansas-firm-sell-wood-overseas.

Trading and exporting are proven strategies for growing businesses. American manufacturers benefit because the jobs stay here even though the products are traded or sold globally. I am asking that anyone who supports job creators to take action by calling their representative at 202-224-3121 and urging Congress to reauthorize the charter for EX-IM Bank. What are your thoughts on EX-IM Bank or other trade discussions?  Feel free to comment or send me an email to latanyua.robinson@gmail.com. If you like this post and want to catch up on some of my previous discussions, please visit the full Purposed Work blog at http://ltr-latrobe-mfg.blogspot.com/.