Connect with us

Business

Questions and Answers About the Expiring Export-Import Bank

Published

on

Secretary of State John Kerry addresses a gathering of the Export-Import Bank at the Omni-Shoreham Hotel in Washington, Thursday, April 24, 2014. (AP Photo)

Secretary of State John Kerry addresses a gathering of the Export-Import Bank at the Omni-Shoreham Hotel in Washington, Thursday, April 24, 2014. (AP Photo)

ERICA WERNER, Associated Press

WASHINGTON (AP) — The Export-Import Bank expires Tuesday at midnight for the first time since the small federal agency was created during the Depression to help U.S. businesses export their products. Congress failed to renew the bank’s charter because of opposition from Republicans who say it amounts to corporate welfare. However, the shutdown may end up being only temporary.

Some questions and answers about the Export-Import Bank, and its future:

___

Q: What does the Export-Import Bank do?

A: The federal Export-Import Bank’s principal role is to guarantee commercial bank loans made to foreign businesses and governments to buy U.S. products. That means U.S. taxpayers would pick up the tab if, say, a company in South America defaulted on a commercial bank loan it got to buy a Caterpillar tractor.

The Export-Import Bank also makes direct loans and provides export credit insurance to protect against losses to companies from non-repayment of loans.

The bank says that last year it authorized $20 billion worth of transactions which supported $27.5 billion of U.S. exports and 164,000 U.S. jobs. And it says it has a default rate of less than 1 percent.

___

Q: Why is the Export-Import Bank needed?

A: That’s the question at the heart of the current debate in Congress.

Opponents, including conservative lawmakers, groups like the Heritage Foundation and the GOP’s presidential candidates, say it isn’t needed at all. They point out that the vast majority of U.S. exporting is conducted without government support. They argue that the Export-Import Bank primarily supports big businesses that don’t really need the help, such as Boeing and GE. And they say the bank amounts to “crony capitalism” and the government picking winners and losers.

“Where is the fairness in giving Washington politicians and bureaucrats the power to pick who gets helped and who gets hurt?” asked GOP Rep. Jeb Hensarling of Texas, chairman of the House Financial Services Committee and a leading opponent of the bank.

But supporters like the U.S. Chamber of Commerce and National Association of Manufacturers say the Export-Import Bank plays a critical role in stepping in where commercial lenders can’t. Government backing can be needed because of the huge amounts of money involved in big purchases such as aircraft, or to help U.S. companies protect against the risk of default from a little-known buyer in a foreign country.

Supporters also note that foreign competitors such as China have foreign credit agencies more generous than the Export-Import Bank, and so U.S. businesses would be at a competitive disadvantage without it.

“We ought to reauthorize the bank and provide certainty to businesses and their workers who depend on it to level the playing field against foreign competitors,” said House Minority Whip Steny Hoyer, D-Md.

___

Q: Whom does the Export-Import Bank help?

A: Opponents argue that the bank primarily helps big businesses — and that is true if you measure its spending in dollars. Of the $20.5 billion in financing and insurance authorized by the bank in 2014, just over $5 billion of that was for small business exporters, according to bank officials.

However, supporters note that if you count the number of transactions, many more small businesses are helped than big ones. It’s just that the amounts spent on them are much smaller.

___

Q: What will happen when the Export-Import Bank’s charter expires?

A: The bank will lose its ability to make new loans when its charter expires Tuesday at midnight. However, it will stay in business to service outstanding loans. Supporters warn that even a short-term shutdown could disrupt some deals that are in the pipeline, but any impacts would likely go unnoticed by the vast majority of the public.

___

Q: Why is Congress letting the Export-Import Bank’s charter expire, and will lawmakers revive it?

A: Congress has renewed the Export-Import Bank’s charter on a bipartisan basis with little controversy over the years. But recently, the obscure agency has become something of a conservative purity test, with tea party-backed lawmakers and groups attacking it and rallying fellow Republicans to defy the business community and turn against it. That’s caused leading Republicans who once supported the bank, such as House Majority Leader Kevin McCarthy, R-Calif., to oppose it. The GOP’s presidential candidates also have lined up against it. Amid that opposition, it was easier for congressional leaders to let the bank expire than to try to take action to renew it.

However, lawmakers of both parties say the bank commands enough support to pass Congress, and it looks like it could do just that in July. Supporters plan to try to attach it to must-pass highway legislation in the Senate, which could also get it through the House.

“Looks to me like they have the votes, and I’m going to give them the opportunity,” Senate Majority Leader Mitch McConnell, R-Ky., told The Associated Press on Monday.

___

Associated Press writer Laurie Kellman contributed to this report.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bay Area

Mayor Breed Proposes Waiving City Fees for Night Markets, Block Parties, Farmers’ Markets, Other Outdoor Community Events

Mayor London N. Breed introduced legislation on April 26 to encourage and expand outdoor community events. The first will waive City fees for certain events, making them less costly to produce. The second will simplify the health permitting for special event food vendors through the creation of an annual permit. Both pieces of legislation are part of the Mayor’s broader initiative to bring vibrancy and entertainment to San Francisco’s public right of ways and spaces.

Published

on

Outdoor community events are integral to San Francisco’s vibrant culture and sense of community. iStock image.
Outdoor community events are integral to San Francisco’s vibrant culture and sense of community. iStock image.

Mayor’s Press Office

Mayor London N. Breed introduced legislation on April 26 to encourage and expand outdoor community events.

The first will waive City fees for certain events, making them less costly to produce. The second will simplify the health permitting for special event food vendors through the creation of an annual permit. Both pieces of legislation are part of the Mayor’s broader initiative to bring vibrancy and entertainment to San Francisco’s public right of ways and spaces.

Outdoor community events are integral to San Francisco’s vibrant culture and sense of community. These events include night markets, neighborhood block parties and farmers markets, and bolster the City’s economy by supporting local businesses and attracting tourists eager to experience San Francisco’s unique charm and food scene.

They offer residents, workers and visitors, opportunities to engage with local artists, musicians, and food vendors while enjoying the San Francisco’s stunning outdoor spaces and commercial corridors.

The legislation will allow for more and new community gatherings and for local food vendors to benefit from the City’s revitalization.

“San Francisco is alive when our streets are filled with festivals, markets, and community events,” said Breed. “As a city we can cut fees and streamline rules so our communities can bring joy and excitement into our streets and help revitalize San Francisco.”

Fee Waiver Legislation

The events that can take advantage of the new fee waivers are those that are free and open to the public, occupy three or fewer city blocks, take place between 8 a.m. and 10 p.m., and have the appropriate permitting from the ISCOTT and the Entertainment Commission.

The applicant must be a San Francisco based non-profit, small business, Community Benefit District, Business Improvement District, or a neighborhood or merchant association. Fees eligible for waiver include any application, permit, and inspection/staffing fees from San Francisco Municipal Transportation Agency, Department of Public Health, Fire Department, Entertainment Commission, and Police Department.

Currently, it can cost roughly anywhere between $500-$10,000 to obtain permits for organized events or fairs, depending on its size and scope. Organizations and businesses are limited to a maximum of 12 events in one calendar year for which they can receive these fee waivers.

Food Vendor Streamlining Legislation

The second piece of legislation introduced will help special event food vendors easily participate in multiple events throughout the year with a new, cost-effective annual food permit. Food vendors who participate in multiple events at multiple locations throughout the year will no longer need to obtain a separate permit for each event. Instead, special event food vendors will be able to apply and pay for a single annual permit all at once.

“Many successful food businesses either begin as pop-up vendors or participate in special events to grow their business,” says Katy Tang, Director of the Office of Small Business. “Giving them the option for an annual special event food permit saves them time and money.”

Currently, food vendors are required to get a Temporary Food Facility (TFF) permit from the Department of Public Health (DPH) in order to participate in a special event, among permits from other departments.

Currently, each special event requires a new permit from DPH ranging from $124-$244, depending on the type of food being prepared and sold. Last year, DPH issued over 1,500 individual TFF permits. With the new annual permit, food vendors selling at more than four to six events each year will benefit from hundreds of dollars in savings and time saved from fewer bureaucratic processes.

“This legislation is a step in the right direction to make it easier for food vendors like me to participate in citywide events,” said Dontaye Ball, owner of Gumbo Social. “It saves on time, money and makes it more effective. It also creates a level of equity.”

Continue Reading

Bay Area

Faces Around the Bay: Sidney Carey

Sidney Carey was born in Dallas, Texas. He moved with his family to West Oakland as a baby. His sister is deceased; one brother lives in Oakland. Carey was the Choir Director at Trinity Missionary Baptist Church for 18 years.

Published

on

Courtesy of Sidney Lane.
Courtesy of Sidney Lane.

By Barbara Fluhrer

Sidney Carey was born in Dallas, Texas. He moved with his family to West Oakland as a baby. His sister is deceased; one brother lives in Oakland.

Carey was the Choir Director at Trinity Missionary Baptist Church for 18 years.

He graduated from McClymonds High with a scholarship in cosmetology and was the first African American to complete a nine-month course at the first Black Beauty School in Oakland: Charm Beauty College.

He earned his License, and then attended U.C., earning a secondary teaching credential. With his Instructors License, he went on to teach at Laney College, San Mateo College, Skyline and Universal Beauty College in Pinole, among others.

Carey was the first African American hair stylist at Joseph and I. Magnin department store in Oakland and in San Francisco, where he managed the hair stylist department, Shear Heaven.

In 2009, he quit teaching and was diagnosed with Congestive Heart Failure.  He was 60 and “too old for a heart transplant”.  His doctors at California Pacific Medical Center (CPMC) went to court and fought successfully for his right to receive a transplant.  One day, he received a call from CPMC, “Be here in one hour.”  He underwent a transplant with a heart from a 25-year- old man in Vienna, Austria

Two years later, Carey resumed teaching at Laney College, finally retiring in 2012.

Now, he’s slowed down and comfortable in a Senior Residence in Berkeley, but still manages to fit his 6/4” frame in his 2002 Toyota and drive to family gatherings in Oakland and San Leandro and an occasional Four Seasons Arts concert.

He does his own shopping and cooking and uses Para Transit to keep constant doctor appointments while keeping up with anti-rejection meds. He often travels with doctors as a model of a successful heart-transplant plant recipient: 14 years.

Carey says, “I’m blessed” and, to the youth, “Don’t give up on your dreams!”

Continue Reading

Business

Maximizing Your Bank Branch Experience

In a world of online tools that let you make banking transactions with the touch of a button, the idea of visiting a branch might seem unnecessary. However, if you haven’t visited your local branch recently, you might be surprised by what it has to offer. Your branch is much more than a place to deposit and withdraw money – it can offer the opportunity to build valuable relationships with people who can help you achieve financial independence.

Published

on

Diedra Porché, National Head of Community Banking, JPMorgan Case & Co.
Diedra Porché, National Head of Community Banking, JPMorgan Case & Co.

Sponsored by JPMorgan Chase & Co.

In a world of online tools that let you make banking transactions with the touch of a button, the idea of visiting a branch might seem unnecessary.

However, if you haven’t visited your local branch recently, you might be surprised by what it has to offer. Your branch is much more than a place to deposit and withdraw money – it can offer the opportunity to build valuable relationships with people who can help you achieve financial independence.

Diedra Porché, Head of Community and Business Development at Chase, talks about how the bank model has evolved to maximize the branch experience for customers; how connecting with your local branch team can help you think differently about money and investing for your future.

How can a customer feel connected to a bank branch?

I love that question because we ask ourselves the same thing every day. Being part of the community means meeting with local leaders to find out what they need from us and then designing our branches around that. For example, at some of our community branches we have what we call a living room where we can host financial workshops, small business pop-up shops or nonprofit organization meetings. We also hire locally. You feel much more connected talking about financial aspirations with people from your community who went to the same high school, place of worship or maybe frequented the same recreation center down the street when they grew up.

How can I build a relationship with my bank?  

Customers should feel comfortable sharing their goals, needs and wants with their banker. Also, it helps to remember the Community Manager is there to help solve your finance challenges and build a roadmap for success. You might have a short-term or long-term goal to open a business, build your credit, become debt-free, buy a home, or save for retirement, and our community team can help. At Chase, we strive to make dreams possible for everyone, everywhere, every day. Your financial future starts with building those relationships.

How can customers change negative perceptions they have about managing their money?

Far too often, customers are intimidated when they visit a bank. Our goal is to demystify banking and money myths empowering people to make the right decisions. For example, a big myth is assuming you need a lot of money to have a bank account. You don’t! Another myth is you need to carry a balance on your credit card to build credit — actively using your credit card can demonstrate that you can use credit responsibly but carrying a balance won’t necessarily improve your credit score. Finally, understanding mobile and online banking safety is key. There are so many safeguards and protections in place to guard your personal information and funds.

What’s an easy step one can take to shift their financial behavior right now?

Cultivating self-awareness is a good first step. Start by taking inventory of your spending. Be honest with yourself about what you need and what you want. Too often, people confuse the two, which leads to bad decisions. Rent is something you need to pay. An extra pair of shoes is something you may want but before you buy them ask yourself if that’s the best use of your hard-earned money. Too often, our beliefs and our fears shape our financial realities. If any of those beliefs are limiting your financial behavior, it’s important to question and examine them, and then decide you’re open to learning something different.

What’s one perception about banking that you’d like to change?

I think folks are surprised there are so many resources available and accessible both at our branches and online, it’s always a good idea to visit a nearby branch and speak to a Community Manager or banker. Outside of what we offer in-branch, our teams also work with local neighborhood partners who provide a variety of services to support the community, businesses and residents. I received a unique piece of feedback from an employee who started with the bank and had lived in the same community his whole life. When he visited his local community branch, he said, “Diedra, when I walked in, I felt dignified.” Every time I recount that story, it warms my heart because that’s what we want — we want our centers to belong to the community.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.