Rebuttal of Export-Import Bank

Rebuttal to Project 2025: Export-Import Bank Vision

The Project 2025 vision for the Export-Import Bank (Ex-Im Bank), which advocates for reducing or eliminating its role in the U.S. economy, overlooks the critical importance of this institution in supporting American businesses, especially small- and medium-sized enterprises (SMEs). The Ex-Im Bank plays a vital role in leveling the playing field for U.S. companies competing in global markets, supporting job creation, and promoting economic growth by providing loans, guarantees, and insurance to facilitate U.S. exports. Proposals to scale back or dismantle the Ex-Im Bank would harm American competitiveness, undermine efforts to grow domestic industries, and disproportionately affect smaller businesses that rely on the bank’s support to compete internationally.

The Export-Import Bank is not a handout for large corporations, as critics often claim. Instead, it serves as a key tool in U.S. trade policy, helping American businesses export their goods and services, particularly in industries where foreign competitors receive substantial government-backed financial support. By reducing or eliminating the Ex-Im Bank, the Project 2025 vision would weaken the U.S. economy and jeopardize American jobs.

Supporting U.S. Competitiveness in Global Markets

One of the primary functions of the Export-Import Bank is to provide financing for U.S. businesses that want to sell their goods and services abroad. This financing is critical for companies competing in global markets, where many foreign governments actively support their domestic industries with state-backed financing. In fact, more than 80 foreign countries have their own export credit agencies (ECAs) that provide financial assistance to help their industries sell products internationally. By reducing the role of the Ex-Im Bank, Project 2025 would effectively handicap American businesses in this competitive landscape, leaving them at a disadvantage compared to their foreign rivals.

U.S. companies often face difficulties securing financing from private banks to support exports, particularly when dealing with emerging markets or high-risk countries. The Ex-Im Bank steps in to fill this gap, providing loans and guarantees that allow American businesses to make sales that would otherwise be impossible. This support is especially crucial for SMEs, which may not have the resources or connections to secure financing on their own. Without the Ex-Im Bank, these smaller firms would struggle to compete in international markets, leading to lost business opportunities and a decline in U.S. exports.

Moreover, the Ex-Im Bank helps American companies compete on a level playing field with foreign firms that receive financial support from their own governments. By offering financing at competitive rates, the Ex-Im Bank ensures that U.S. businesses are not undercut by foreign competitors with access to cheaper, government-subsidized loans. Dismantling the Ex-Im Bank, as proposed in Project 2025, would leave American companies vulnerable to losing deals to foreign firms backed by aggressive ECAs, eroding U.S. competitiveness in global markets.

Supporting U.S. Jobs and Economic Growth

The Export-Import Bank plays a direct role in supporting American jobs by enabling U.S. companies to export their products. According to the Ex-Im Bank, its financing helped support 1.7 million American jobs over the past decade, with the majority of these jobs coming from manufacturing industries. When U.S. companies are able to sell their goods and services abroad, they can grow their businesses, increase production, and hire more workers.

Small and medium-sized businesses, in particular, benefit from the Ex-Im Bank’s services. Contrary to the narrative that the bank primarily serves large corporations, nearly 90% of the bank’s transactions in recent years have supported SMEs. These smaller businesses often lack the resources and expertise to navigate complex international markets and secure financing for exports. The Ex-Im Bank provides the financial tools and support necessary for SMEs to expand their reach and compete on the global stage. Reducing or eliminating the Ex-Im Bank’s role would disproportionately harm these businesses, stifling their growth and reducing job creation.

In addition to supporting jobs, the Ex-Im Bank generates significant economic returns. The bank operates at no cost to taxpayers, as it is fully funded through the fees and interest it collects from its loans. In fact, the Ex-Im Bank has returned billions of dollars to the U.S. Treasury over the years, making it a net positive for the federal budget. The Project 2025 proposal to scale back the Ex-Im Bank would not save money for taxpayers—instead, it would reduce an important revenue stream and harm U.S. economic growth by limiting export opportunities.

Addressing Market Gaps and Supporting High-Risk Markets

The Ex-Im Bank plays a critical role in filling gaps in the private financing market, particularly for transactions involving high-risk countries or industries. Private lenders are often unwilling to provide financing for deals in emerging markets or regions with political instability, even though these markets present significant opportunities for U.S. exporters. The Ex-Im Bank steps in to provide the necessary financing and insurance, ensuring that American businesses can enter these markets and compete on a global scale.

Without the Ex-Im Bank, U.S. companies would be forced to either abandon potential export opportunities in high-risk markets or pay significantly higher rates to secure private financing. This would limit the ability of U.S. businesses to expand globally and reduce the country’s overall export potential. The Ex-Im Bank’s role in mitigating risk is particularly important for SMEs, which may not have the resources or capacity to absorb the higher costs and risks associated with exporting to emerging markets.

Counteracting Foreign Competition and Protecting U.S. Strategic Interests

Dismantling or reducing the Ex-Im Bank, as proposed in Project 2025, would leave American companies exposed to aggressive foreign competition. Foreign export credit agencies, such as those in China and the European Union, actively support their industries with substantial financial backing, giving their companies a competitive advantage in securing international contracts. In particular, China’s export credit agencies have provided massive loans to support infrastructure and development projects around the world, helping Chinese companies dominate sectors such as telecommunications, energy, and transportation.

By weakening the Ex-Im Bank, Project 2025 would allow foreign competitors—many of whom receive government-subsidized financing—to gain a foothold in strategic industries at the expense of U.S. businesses. This would not only result in lost business opportunities for American companies but also undermine U.S. strategic interests by allowing foreign competitors to dominate key global markets.

The Ex-Im Bank serves as a counterbalance to foreign export credit agencies, ensuring that U.S. companies can compete fairly in international markets. Reducing its role would effectively cede ground to foreign competitors, eroding America’s leadership in global trade and compromising the country’s long-term economic security.

Conclusion: The Export-Import Bank is Vital for U.S. Competitiveness and Economic Growth

The Project 2025 vision for the Export-Import Bank, which seeks to reduce or eliminate its role in supporting U.S. exports, is misguided and shortsighted. The Ex-Im Bank plays a critical role in helping American businesses—particularly small and medium-sized enterprises—compete in global markets, create jobs, and drive economic growth. Far from being a tool that only benefits large corporations, the Ex-Im Bank supports thousands of U.S. businesses across a wide range of industries, ensuring that they can access the financing they need to export their goods and services.

Scaling back or dismantling the Ex-Im Bank would harm U.S. competitiveness, reduce job creation, and undermine America’s ability to compete in an increasingly globalized economy. At a time when foreign competitors are ramping up support for their industries, the U.S. should be strengthening institutions like the Ex-Im Bank, not weakening them. Instead of reducing its role, policymakers should recognize the vital importance of the Export-Import Bank in promoting U.S. exports, supporting jobs, and ensuring long-term economic growth.