Announcement by the Acting Chair

Floor Speech

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Mr. STUTZMAN. Mr. Chairman, I rise today in support of private lenders crowded out by the Export-Import Bank.

I thank my friend from South Carolina (Mr. Mulvaney) for his work reforming the Export-Import Bank and for introducing this particularly important reform.

This amendment is pro-American, pro-jobs, and is entirely consistent with the policy of Ex-Im's lapsed authorization.

Last year, Mr. Chairman, and earlier this year, I worked in good faith to reform the Export-Import Bank. The Bank's authorization lapsed in large part because the White House and the Bank's proponents would not take yes for an answer. They refused to work with us on changes, just like they are again tonight, that would prevent any single business from dominating the Bank's activity or to prevent the Bank from crowding out private lenders. That latter point is the one that this amendment will address.

This amendment requires loan applicants receiving more than $10 million to certify that they had originally sought out and been denied by two private lenders. This requirement doesn't block anyone from getting a loan. It only requires that they go to traditional banks first.

This provision is similar to one required for some Small Business Administration financing as well.

Mr. Chairman, one of my central objections to government lending programs is their capacity to destroy and replace private markets. The government inevitably misallocates resources and jobs, ultimately making our industries less competitive and reducing jobs in the long term.

Apparently, the authors of the Bank's prior reauthorization also agree to that point because, according to the Ex-Im's charter, it is ``the policy of the United States that the Bank in the exercise of its functions should supplement and encourage and not compete with private capital.'' Let me emphasize that last part, that the Bank should not compete with private capital. Unfortunately, I have heard from lenders in Indiana who say that, absent Ex-Im, they would be financing more exports.

If the Bank is going to exist at all, the role of the Bank should only be as a lender of last resort. The Bank is only intended to fill gaps in the private lending market. Any larger role the Bank plays is a violation of its own charter. Worse, granting the Bank a larger role would exacerbate market distortions that will, ultimately, fail countries and the businesses that rely on them.

This amendment simply ensures that the Export-Import Bank stays within its bounds. If the Bank is truly a lender of last resort, this amendment will not affect its lending. If it is, in fact, competing with private lenders despite clear congressional intent, then this amendment will start to correct the problem.

Mr. Chairman, the world is watching. Developing countries are deciding whether to pursue American-style capitalism or Chinese-style central planning. As Speaker Ryan put it last week on this House floor, we should be exporting democratic capitalism, not crony capitalism. If this Bank is going to be reauthorized, we should at least make a real effort to let private lenders have the first opportunity to finance exports.

I know that many of Ex-Im's proponents agree that the Bank is not a long-term solution to foreign competition. Even Ex-Im Chair Fred Hochberg agrees, telling us earlier this year in committee that, in a perfect world, there would be no export credit agency of the United States. If our priority is long-term economic growth and employment, then we must not be tempted to rely on central planned exports the way that China and Europe do.

Mr. Chairman, this is a commonsense amendment, and I ask my colleagues to support it.

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