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Questions and Answers About the Expiring Export-Import Bank

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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:

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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.

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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.

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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.

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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.

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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.

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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.

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Activism

Discrimination in City Contracts

The report was made public by Councilmember Carroll Fife, who brought it this week to the Council’s Life Enrichment Committee, which she chairs. Councilmembers, angry at the conditions revealed, unanimously approved the informational report, which is scheduled to go to an upcoming council meeting for discussion and action. The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

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Dr. Eleanor Ramsey (top, left) founder, and CEO of Mason Tillman Associates, which conducted the study revealing contract disparities, was invited by District 3 Councilmember Carroll Fife (top center) to a Council committee meeting attended by Oakland entrepreneur Cathy Adams (top right) and (bottom row, left to right) Brenda Harbin-Forte, Carol Wyatt, and councilmembers Charlene Wang and Ken Houston. Courtesy photos.
Dr. Eleanor Ramsey (top, left) founder, and CEO of Mason Tillman Associates, which conducted the study revealing contract disparities, was invited by District 3 Councilmember Carroll Fife (top center) to a Council committee meeting attended by Oakland entrepreneur Cathy Adams (top right) and (bottom row, left to right) Brenda Harbin-Forte, Carol Wyatt, and councilmembers Charlene Wang and Ken Houston. Courtesy photos.

Disparity Study Exposes Oakland’s Lack of Race and Equity Inclusion

Part 1

By Ken Epstein

A long-awaited disparity study funded by the City of Oakland shows dramatic evidence that city government is practicing a deeply embedded pattern of systemic discrimination in the spending of public money on outside contracts that excludes minority- and woman-owned businesses, especially African Americans.

Instead, a majority of public money goes to a disproportionate handful of white male-owned companies that are based outside of Oakland, according to the 369-page report produced for the city by Mason Tillman Associates, an Oakland-based firm that performs statistical, legal and economic analyses of contracting and hiring.

The report was made public by Councilmember Carroll Fife, who brought it this week to the Council’s Life Enrichment Committee, which she chairs. Councilmembers, angry at the conditions revealed, unanimously approved the informational report, which is scheduled to go to an upcoming council meeting for discussion and action.

The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

The amount of dollars at stake in these contracts was significant in the four areas that were studied, a total of $486.7 million including $214.6 million on construction, $28.6 million on architecture, and engineering, $78.9 million on professional services, and $164.6 million on goods and services.

While the city’s policies are good, “the practices are not consistent with policy,” said Dr. Eleanor Ramsey, founder and CEO of Mason Tillman Associates.

There have been four disparity studies during the last 20 years, all showing a pattern of discrimination against women and minorities, especially African Americans, she said. “You have good procurement policy but poor enforcement.”

“Most minority- and women-owned businesses did not receive their fair share of city-funded contracts,” she continued.  “Over 50% of the city’s prime contract dollars were awarded to white-owned male businesses that controlled most subcontracting awards. And nearly 65% of the city’s prime contracts were awarded to non-Oakland businesses.”

As a result, she said, “there is a direct loss of revenue to Oakland businesses and to business tax in the city…  There is also an indirect loss of sales and property taxes (and) increased commercial office vacancies and empty retail space.”

Much of the discrimination occurs in the methods used by individual city departments when issuing outside contracts. Many departments have found “creative” ways to circumvent policies, including issuing “emergency” contracts for emergencies that do not exist and providing waivers to requirements to contract with women- and minority-owned businesses, Ramsey said.

Many of the smaller contracts – 59% of total contracts issued – never go to the City Council for approval.

Some people argue that the contracts go to a few big companies because small businesses either do not exist or cannot do the work. But the reality is that a majority of city contracts are small, under $100,000, and there are many Black-, woman- and minority-owned companies available in Oakland, said Ramsey.

“Until we address the disparities that we are seeing, not just in this report but with our own eyes, we will be consistently challenged to create safety, to create equity, and to create the city that we all deserve,” said Fife.

A special issue highlighted in the disparity report was the way city departments handled spending of federal money issued in grants through a state agency, Caltrans. Under federal guidelines, 17.06%. of the dollars should go to Disadvantaged Business Enterprises (DBEs).

“The fact is that only 2.16% of all the dollars awarded on contracts (went to) DBEs,” Ramsey said.

Speaking at the committee meeting, City Councilmember Ken Houston said, “It’s not fair, it’s not right.  If we had implemented (city policies) 24 years ago, we wouldn’t be sitting here (now) waiving (policies).”

“What about us? We want vacations. We want to have savings for our children. We’re dying out here,” he said.

Councilmember Charlene Wang said that she noticed when reading the report that “two types of business owners that are consistently experiencing the most appalling discrimination” are African Americans and minority females.

“It’s gotten worse” over the past 20 years, she said. “It’s notable that businesses have survived despite the fact that they have not been able to do business with their own city.”

Also speaking at the meeting, Brenda Harbin-Forte, a retired Alameda County Superior Court judge, and chair of the Legal Redress Committee for the Oakland NAACP, said, “I am so glad this disparity study finally was made public. These findings … are not just troubling, they are appalling, that we have let  these things go on in our city.”

“We need action, we need activity,” she said. “We need for the City Council and others to recognize that you must immediately do something to rectify the situation that has been allowed to go on. The report says that the city was an active or inactive or unintentional or whatever participant in what has been going on in the city. We need fairness.”

Cathy Adams, president of the Oakland African American Chamber of Commerce, said, “The report in my opinion was very clear. It gave directions, and I feel that we should accept the consultant Dr. Ramsey’s recommendations.

“We understand what the disparities are; it’s going to be upon the city, our councilmembers, and our department heads to just get in alignment,” she said.

Said West Oakland activist Carol Wyatt, “For a diverse city to produce these results is a disgrace. The study shows that roughly 83% of the city contracting dollars went to non-minority white male-owned firms under so-called race neutral policies

These conditions are not “a reflection of a lack of qualified local firms,” she continued. “Oakland does not have a workforce shortage; it has a training, local hire, and capacity-building problem.”

“That failure must be examined and corrected,” she said. “The length of time the study sat without action, only further heightens the need for accountability.”

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Activism

Post Newspaper Invites NNPA to Join Nationwide Probate Reform Initiative

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

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iStock.
iStock.

By Tanya Dennis

The National Newspaper Publishers Association (NNPA) represents the Black press with over 200 newspapers nationwide.

Last night the Post announced that it is actively recruiting the Black press to inform the public that there is a probate “five-alarm fire” occurring in Black communities and invited every Black newspaper starting from the Birmingham Times in Alabama to the Milwaukee Times Weekly in Wisconsin, to join the Post in our “Year of Action” for probate reform.

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

Reporter Tanya Dennis says, “The adage that ‘When America catches a cold, Black folks catch the flu” is too true in practice; that’s why we’re engaging the Black Press to not only warn, but educate the Black community regarding the criminal actions we see in probate court: Thousands are losing generational wealth to strangers. It’s a travesty that happens daily.”

Venus Gist, a co-host of the reform group, states, “ Unfortunately, people are their own worst enemy when it comes to speaking with loved ones regarding their demise. It’s an uncomfortable subject that most avoid, but they do so at their peril. The courts rely on dissention between family members, so I encourage not only a will and trust [be created] but also videotape the reading of your documents so you can show you’re of sound mind.”

In better times, drafting a will was enough; then a trust was an added requirement to ‘iron-clad’ documents and to assure easy transference of wealth.

No longer.

As the courts became underfunded in the last 20 years, predatory behavior emerged to the extent that criminality is now occurring at alarming rates with no oversight, with courts isolating the conserved, and, I’ve  heard, many times killing conservatees for profit. Plundering the assets of estates until beneficiaries are penniless is also common.”

Post Newspaper Publisher Paul Cobb says, “The simple solution is to avoid probate at all costs.  If beneficiaries can’t agree, hire a private mediator and attorney to work things out.  The moment you walk into court, you are vulnerable to the whims of the court.  Your will and trust mean nothing.”

Zakiya Jendayi, a co-host of the Probate Reform Group and a victim herself, says, “In my case, the will and trust were clear that I am the beneficiary of the estate, but the opposing attorney said I used undue influence to make myself beneficiary. He said that without proof, and the judge upheld the attorney’s baseless assertion.  In court, the will and trust is easily discounted.”

The Black press reaches out to 47 million Black Americans with one voice.  The power of the press has never been so important as it is now in this national movement to save Black generational wealth from predatory attorneys, guardians and judges.

The next probate reform meeting is on March 5, from 7 – 9 p.m. PST.  Zoom Details:
Meeting ID: 825 0367 1750
Passcode: 475480

All are welcome.

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Activism

Community Celebrates Turner Group Construction Company as Collins Drive Becomes Turner Group Drive

The event drew family, friends, and longtime supporters of Turner Group Construction, along with a host of dignitaries. The mood was joyful and warm, filled with hugs, handshakes and belated New Year’s greetings. Guests enjoyed hors d’oeuvres and a festive display of gourmet cupcakes as they conversed about the street sign reveal. 

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The Turner Construction group members.
The Turner Construction group members.

By Carla Thomas 

It was a family affair on Friday, Jan. 23, at the corner of Hegenberger Road and Collins Drive in East Oakland as community members, local leaders, and elected officials gathered to celebrate the renaming of Collins Drive to Turner Group Drive. The renaming saluted the Turner Group’s 45-plus years of economic development and community investment.

The event drew family, friends, and longtime supporters of Turner Group Construction, along with a host of dignitaries. The mood was joyful and warm, filled with hugs, handshakes and belated New Year’s greetings. Guests enjoyed hors d’oeuvres and a festive display of gourmet cupcakes as they conversed about the street sign reveal.

Special guests included former Alameda County Supervisor Keith Carson, veteran broadcaster Valerie Coleman-Morris, Chevron Senior Public Affairs Representative Andrea Bailey, community leaders Cephus “Uncle Bobby” Johnson and Beatrice “Aunt Bea” Johnson of the Oscar Grant Foundation, and Oakland City Councilmembers Ken Houston, Carroll Fife, and Kevin Jenkins. Members of WEBCORE, the Nor Cal Carpenters Union, the National Association of Minority Contractors (NAMC), Swinerton and Alten construction companies, activists Elaine Brown and David Newton, and many others joined the celebration.

Inside the event tent, an emotional Oakland City Councilmember Ken Houston spoke of his deep connection to the Turner family.

“I grew up on the same street with the Turners,” he said. “When my father passed away, their parents and siblings embraced me like family. This is our city, and it’s an honor to name this street Turner Group Drive because of the love and effort this company and family have given. Many dreams came out of this building. I wouldn’t be where I am today without the Turners.”

Councilmember Kevin Jenkins, whose father once taught the Turner brothers, added, “Len Turner is an amazing person. He’ll help anyone.”

Oakland Mayor Barbara Lee praised the company’s legacy, noting its creation of the Construction Resource Center, which trains and mentors the next generation of builders and developers through partnerships across the region. “This is a great day for Oakland and a profound acknowledgment of the Turner Group’s contribution to our community,” she said.

Fife echoed that sentiment: “This is a day for celebrating Black excellence. The Turner Group has poured into people and the community, showing us what’s possible.”

Among the many family members in attendance was the Turners’ 92-year-old patriarch, whose presence underscored the strength of the family’s legacy.

A touching highlight of the event came when Coleman-Morris was honored for her lasting mentorship of LaTanya Hawkins, now program manager of the Construction Resource Center. In 1979, Hawkins, then a fourth-grader, wrote Coleman-Morris a letter seeking advice. Coleman responded with words of encouragement that inspired Hawkins to pursue her dreams. The two stayed in touch for decades. On stage, they embraced as Coleman reflected on “the power of small acts of kindness to change a life.”

Coleman-Morris also shared reflections on leadership and community spirit, saying, “If we change the way we look at things, the things we see will change.” She then recited the Serenity Prayer, reminding the crowd, “We are a powerful community, we just need to believe it.”

Company leaders Len and Lance Turner closed the ceremony with words of gratitude and humor. Len thanked his mother, wife, family, legal team, and longtime supporters including Carson, Geoffrey Pete, and the late Dorothy King of Everett & Jones Barbecue. He also acknowledged the challenges the company had overcome, saying, “Without all of this support, I wouldn’t be here today.”

Through Turner Group Construction and the Construction Resource Center, the Turners have created new opportunities for underrepresented groups in the construction industry and continue to inspire the next generation of builders.

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