Congress votes to renew Export-Import Bank

Congress Tuesday approved the renewal of a charter for the Export-Import Bank of the United States, keeping alive an independent federal agency that has provided billions in loans and loan guarantees for exporters in the United States.

Kiss Products Inc., a Port Washington manufacturer and distributor of nail products, uses the bank to insure payments from foreign buyers. That insurance allows the company, which makes about 20 percent of its revenues from exports, to give its foreign customers time to pay, and also helps the business increase the number of items it sells abroad.

"Most companies, when they buy from us, they need time to sell to their customers and collect money from them," Kim said. "Without the Export-Import Bank's help," transactions "would have to be prepaid, and no buyer would do that."

The Export-Import Bank, which takes no money from taxpayers, provides export financing for about 2 percent of U.S. exports, amounting to $32 billion in loans, loan guarantees and credit financing in 2011. The bank also provides financing for foreign buyers of U.S. goods and services.

On Long Island, the bank has backed about $252.8 million in loans since 2007.

In the past, the bank has had its charter renewed with little notice, but this year conservative groups like the Club for Growth have pushed for the bank to be abolished, saying it distorts markets. President Barack Obama, who says one of his goals has been to double exports by 2014, has advocated for its renewal and is expected to sign the measure.

Ex-Im Bank's premiums for export credit insurance tend to be lower than those of private insurers, Kim said.

In addition, the bank's insurance allows Kiss Products, which employs about 350 people, to get larger lines of credit from domestic banks with its foreign receivables. Ordinarily those expected payments have no value as collateral. With Ex-Im Bank's backing, they can be valued at about 85 percent, Kim said. -- With AP