What Does Ex-Im Bank’s Financial Services Offer to Kentucky Companies?

There are KY companies that use the Ex Im Banks’ various financial services; some of which include loan services, or export credit or accounts receivable insurance to protect their overseas sales. They pay for these services, they are not free. Small and Medium companies are the majority of businesses that are using these services in some very difficult physical parts of the world. Sometimes, their overseas buyers need loans or guarantees in order to buy American goods and services. The developing world markets are especially in need of this type of financing as the private sector isn’t able to offer financing. The main reason for this type of financing is that it is needed to compete with our foreign competitors who are located in China, Japan, Europe, and many other countries. They take the level playing field and tilt it up for their country’s companies benefit. If the Ex IM Bank ceased these programs, due to unavailability of this financing, our US SMEs would be at financial disadvantage. That disadvantage can mean whether our companies get the order or not, and if not, then those production jobs are not used, etc. There are more and more Small and Medium companies exploring the process of Exporting and we as DEC members are encouraging it, but there are certain market conditions and tools that enable them to be successful in their selling and if they do not have them, the US will be watching the foreign companies grow stronger and allow more foreign cheaper imports. The Ex Im Bank is one tool of US advantage that our companies should be using. Then there is the question of corporate welfare, well, this tool costs the US company fees and so far the Ex Im Bank has been making profit and providing an economical service to help all of us.