Export bank unveils new small-business initiative

At an event at the U.S. Chamber of Commerce, Gary Locke, the Commerce secretary, said the push to increase exports by small business — and exports in general — was part of the administration’s plan to spur job creation. 

“The more that American companies export, the more they produce,” Locke said, “the more they produce, the more people they need. And that means more jobs.”

To that end, the export bank is looking to increase access to credit for small-business exporters, assist insurers that help cover a small business’ risk if a foreign client does not pay for their merchandise and to help smaller suppliers that sell parts and other materials to larger exporters. 

As Fred Hochberg, the bank’s chairman and president, put it, the initiative would make certain “that small business is front-and-center in our efforts to increase exports and grow our economy.”

On Thursday, the bank’s new programs were welcomed on Capitol Hill, where they were endorsed by both the top Democrat and Republican on the Senate Small Business Committee.

Sen. Mary Landrieu (D-La.) said that major small-business legislation passed last year made changes to the Small Business Administration’s export financing programs. “I am pleased to see that the administration is taking steps to improve and modernize complementary financing programs at other key agencies,” she added.

Sen. Olympia Snowe (R-Maine), meanwhile, said that “commercial credit remains tight, particularly for small businesses seeking to sell their goods and services to foreign buyers. That is why today’s announcement of increased lending to small businesses by the U.S. Export-Import Bank is so welcome.”

President Obama announced his goal of doubling exports by 2015 at his State of the Union address last January, where he also said he would launch a National Export Initiative to work toward that goal.

For its part, the Export-Import Bank works to help American businesses export their goods to international markets by, among other things, providing export insurance and both direct loans and loan guarantees. 

At the Chamber event, several of the panelists — who also included Tom Donohue, the Chamber’s president; Ron Kirk, the U.S. trade representative; Karen Mills; the head of the Small Business Administration; and Jay Timmons, the soon-to-be president of the National Association of Manufacturers — signaled that small businesses had room to grow when it came to exporting.

Locke, for instance, pointed out that only 1 percent of American companies are currently exporting. Of those, he said, well over half are only exporting to one country, usually Canada or Mexico. 

“And most of these are small- to medium-sized businesses,” Locke added. 

As for Mills, she hinted that small-business owners at times need a little nudge to start considering exporting their goods.

“Frankly, there’s a fear factor to exporting and there’s an education factor,” Mills said, adding: “Together with our partners here at this table, we are in the business of counseling and educating across the country.”