[Congressional Record Volume 160, Number 123 (Friday, August 1, 2014)]
[Extensions of Remarks]
[Pages E1307-E1309]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   EXPORT-IMPORT BANK REAUTHORIZATION

                                 ______
                                 

                               speech of

                           HON. MAXINE WATERS

                             of california

                    in the house of representatives

                           Wednesday 30, 2014

  Ms. WATERS. Mr. Speaker, I submit the following letters in support of 
the Export-Import Bank:
  1. Letter from Steve Wilburn, President and CEO, FirmGreen, July 21, 
2014
  2. Letter from Greenery Solutions, Inc, June 23, 2014
  3. Letter from Brek Manufacturing to Ranking Member Maxine Waters
  4. Letter from Hansen Engineering Company, July 23, 2014
  5. Statement from Fritz-Pak, June 17, 2014
  6. Letter from Boyle Energy Services & Technology, Inc, July 22, 2014

                                                    July 21, 2014.
     Hon. Maxine Waters,
     Ranking Member, Committee on Financial Services, House of 
         Representatives,
     Washington, DC.
       Dear Ranking Member Waters: I would like to take this 
     opportunity to thank the Ranking Member, Chairman Hensarling, 
     all the Committee Members and staff, for the opportunity of 
     testifying before the House Committee on Financial Services 
     on June 25, 2014.
       It was an extreme honor to appear before the Committee. 
     Only in America can a disabled Veteran small business owner 
     like me, hope to share the national stage with a multi-
     billion international conglomerate, and have my voice heard 
     on such a critical issue as the Reauthorization of the Export 
     Import Bank of the United States (Ex-Im Bank US).
       I remain deeply concerned over the continuing negative 
     comments and name calling emanating from many members of 
     Congress concerning the Reauthorization of the Export Import 
     Bank of the United States. I believe such public comments are 
     harming US Exporters and helping to embolden our overseas 
     competitors. As stated in my testimony, ``Words have 
     consequences.'' FirmGreen lost an order worth $57 million due 
     to the uncertainty created by a vocal minority of 
     Congressional critics opposed to Ex-Bank Reauthorization.
       I feel that the current economic recovery occurring in the 
     US is fragile. We are experiencing mounting trade deficits. I 
     firmly believe that the decades-long decline and 
     deterioration of the once formidable United States industrial 
     and manufacturing base is having a negative effect on our 
     economy and our national security.
       In 1970, more than a quarter of U.S. employees worked in 
     manufacturing. Today, the number is only one in 10. Over 76 
     percent of current jobs in the US are in the Service Sector.
       Ensuring the viability of our manufacturing and industrial 
     sectors is critical to providing jobs that pay good wages, is 
     important to the recovery of our struggling economy and is 
     vital to the defense of our Republic.
       In my opinion, we cannot continue to be a global power 
     capable of responding to serious threats to US interests 
     worldwide, without the support of a strong industrial 
     manufacturing base.
       According to declassified CIA reports, China has overtaken 
     Japan and is now second to the United States in terms of 
     Gross Domestic Product (GDP). In recent years, led by a 
     strong expansion of its Industrial and Manufacturing Base. 
     China has more than doubled the USA's rate of growth in GDP.
       According to the CIA's World Fact Book, as of 2013, China 
     and the European Union are ahead of the United States in 
     Exports. More troubling than the shrinking dollar amount of 
     US exports, is a growing trade deficit in ``manufactured'' 
     goods.
       In order for US Exporters to recover from the recent 
     economic downturn and create jobs, they must have access to 
     sufficient working capital and credit support. Since the near 
     total collapse of the Global Banking system in 2008, Export 
     Credit Agencies (ECA's) and Development Finance Institutions 
     (DFI's) have played an increasingly important role in 
     financing exports.
       While US commercial banks are still recovering, sources of 
     capital for US exporters have become constrained. On the 
     world stage, nations and private clients seeking to import 
     manufactured goods and technology have increasingly looked to 
     the competitively priced financial products provided by ECA's 
     and DFI's. Chinese, Japanese and Korean competitors to 
     FirmGreen, and other US Exporters have easy access to very 
     attractive finance terms being offered by the Chinese, 
     Japanese and Korean ECA's.
       FirmGreen's export potential has been directly affected by 
     the uncertainty of reauthorization of Ex-Im Bank US and the 
     aggressive finance terms offered by the Korean ExIm Bank 
     (KEXIM). (See Attached Letter from Greenergy, Solutions, 
     Inc.).
       In many of the international markets where FirmGreen 
     competes, ECAs are providing the only project finance 
     available. In the energy infrastructure marketplace, fully 
     nine out of 10 projects that get done on a true project 
     finance basis have ECA support.
       ``JBIC remains a global leader for energy and 
     infrastructure project finance; KEXIM is rising in 
     prominence, particularly in energy; Chinese institutions are 
     also very active and increasingly willing to work with other 
     International finance providers as opposed to going it alone 
     as they have done in the past.'' (Source Baker and McKenzie 
     2013 Report on the Rise of ECA's and DFI's).
       The Export-Import Bank of the United States allows US 
     Manufacturers, such as FirmGreen, to compete on an equal 
     basis with the project finance terms being offered by foreign 
     ECA's and DFI's. Ex-Im Bank US provides valuable comfort to 
     US commercial banks, allowing them to provide the longer 
     tenor loans that are essential for many US Exporters, and 
     vital for FirmGreen's creditworthy energy and infrastructure 
     projects.
       In summation, as a combat decorated Veteran, small business 
     owner, job creator, exporter and concerned citizen, I believe 
     that we should not unilaterally disarm and abandon the very 
     governmental agency that allows US Manufactures and other US 
     Exporters to fairly compete on the world's trading stage.
       I strongly urge members of Congress to support the 
     Reauthorization of Export-Import Bank of the United States.
           Respectfully Submitted,
                                                    Steve Wilburn,
                                                   President, CEO.

[[Page E1308]]

                                  ____
                                  
                                                    June 23, 2014.
     Mr. Steve Wilburn,
     Chief Executive Officer, FirmGreen, Inc., Newport Beach, CA.
       Dear Mr. Wilburn: In view of the uncertainty of the 
     reauthorization of the Exim Bank, and project finance 
     structure you proposed had become problematic, we have made 
     the decision in May this year not to proceed with your 
     project offering.
       Our previous partner-developer has provided us assurance of 
     the certainty of obtaining satisfactory finance from the 
     Export Import Bank of Korea for our Cavite Biomass-Waste-to-
     Energy Project.
       With previous discussion with you, we had the impression 
     that your company, FirmGreen can provide the best technology 
     for our project, but without terms similar to what being 
     offered by the Exim Bank of Korea, it will be impossible for 
     our company to conclude a transaction.
       If you can produce a Letter of Interest (LOI) from the Exim 
     Bank of the of the United States by June 30, 2014, our 
     company will reconsider using FirmGreen technology for the 
     project and reconsider retaining FirmGreen as the project 
     Technical Operator for this important project.
       The roadmap to obtaining the long term project finance 
     commitment on favorable terms is critical in our decision 
     making process.
       We hope that this all be worked out to the satisfaction of 
     both our companies.
           Very truly yours,
                                                  Ruth P. Briones,
                           President/CEO, Greenergy Solutions Inc.
                                  ____
                                  
                                                  August 26, 2014.
     Hon. Maxine Waters.
       Dear Ranking Member Waters: Brek Manufacturing Company is a 
     small business in California with 170 employees, who have a 
     critical interest in foreign sale of Boeing Commercial 
     Aircraft. The Export-Import Bank plays an important role as 
     an intermediary in the sale of these aircraft. This letter is 
     to express our support for the Ex-Im bank, as it is key to 
     securing additional sales of Boeing Commercial Aircraft.
       Our company produces approximately 40 percent of our output 
     to Boeing Commercial Aircraft customers, with the other 60 
     percent representing military customers.
       With the decrease of the military business available, it is 
     critical that the commercial sales be kept as high as 
     possible to preserve the industrial infrastructure that this 
     company and that of other companies in our industry 
     represent.
       Our representatives who support the military must also be 
     concerned with the Ex-Im Bank because of the role it plays in 
     supporting jobs in companies like this one, large and small, 
     across the country.
       Although our company is not a household name like Boeing, 
     we supply critical aircraft structural components which are 
     key to successful, safe air transport and air defense. There 
     are many others like us who represent thousands of high 
     skilled and well paid positions with good benefits.
       Please express our support for the Ex-Im Bank to your 
     colleagues. We are counting on them to do the right thing and 
     support American manufacturing jobs.
           Regards,
                                                William A. Conrad,
                                            Director of Contracts.
                                  ____
                                  
                                                    July 23, 2014.
     Hon. Maxine Waters,
     Ranking Member, House Financial Services Committee.
       Dear Congresswoman Waters, Hansen Engineering Company is 
     one of many small businesses in the South Bay area of Los 
     Angeles California that is dependent on Boeing contracts to 
     support our business.
       Hansen Engineering is a manufacturer of machined aerospace 
     parts and assemblies with 90% of our contracts supporting 
     Boeing aircraft either directly or indirectly through other 
     prime aerospace companies throughout the world. My company 
     staffs approximately 60 employees who live in the South Bay 
     and surrounding areas and depend upon the support of Boeing 
     for the wellbeing of their families. Without the 
     reauthorization of the Ex-Im Bank it would have a big impact 
     on the health of our business, its employees and their 
     families.
       This is a critical time for manufacturing and small 
     businesses in America. Without the Export-Import Bank, many 
     of Boeing's customers could decide to purchase commercial 
     airplanes produced outside of the United States. Hansen 
     Engineering Company is in strong support of legislation to 
     approve the reauthorization of the Export-Import Bank of the 
     United States.
       Thank you for your support of the Export-Import Banking 
     reauthorization initiative.
           Sincerely,

                                                     Greg Lay,

                                                   Vice President,
     Hansen Engineering Company.
                                  ____


                           [June 17th, 2014]

                 How Ex-Im Bank Helped Save My Business

         (By Gabriel Ojeda, President of Fritz-Pak Corporation)

       In 1998, I began the American Dream. I had been working for 
     another company for over 14 years when I decided it was time 
     that I work for myself. I was managing the concrete 
     admixtures division there, and when it came up for sale, I 
     borrowed money from everywhere I could and purchased it. I 
     incorporated my new business, Fritz-Pak Corporation, in the 
     state of Texas, where we are proud to manufacture all of our 
     products to this day.
       Concrete admixtures are chemicals used in construction to 
     make handling, placing, and creating high performance 
     concrete easily and efficiently. The most obvious examples 
     are retarders and accelerators. During the summer, concrete 
     will start to set faster due to the heat, so you use a 
     retarder to slow down the setting time. In the winter, 
     concrete will set slower due to the cold, so you use an 
     accelerator to speed it up. Those are just two examples, and 
     in total, we sell about 40 different specialty products.
                                  ____

       Back in 1998, the sales distribution was only 15% 
     international. To be honest, I only maintained the 
     international accounts I inherited from the original sale of 
     the business. We were fortunate that concrete construction in 
     the USA started to take off, so I didn't really have a need 
     to expand internationally. I grew the business from less than 
     $1 million in sales to over $3 million by 2007. However, the 
     recession that began in '07/'08 hit the construction industry 
     hard.
       Data from the US Geological Survey shows that US cement 
     consumption in 2007 was 117 million metric tons (MMT), 
     falling to 99 MMT in 2008 and 72 MMT in 2009. Likewise, our 
     sales fell from over $3 million to under $2 million. Concrete 
     construction in the US was deteriorating rapidly, along with 
     our profits, sales, and our workforce. After a particularly 
     hard round of layoffs in 2009, we were in complete survival 
     mode, and I was beginning to consider selling the company.
       With the American construction market failing, my son came 
     to me with the idea to start promoting our products overseas 
     to compensate for the loss in revenue. Expanding 
     internationally had always appealed to us, but trying to come 
     up with a cost efficient and safe method for selling our 
     products in other countries during the worst recession in our 
     lifetime seemed like a pipe dream. How can we sell $50,000 
     worth of goods to customers half way around the world we've 
     never even met? How can we increase our payment cycle from 30 
     days to 60 days when we are struggling just to make payroll 
     every month?
       However, after speaking with our bankers at Comerica, we 
     were put in touch with Export-Import Bank. With the help of 
     Ex-Im, we were able to insure our international receivables 
     at minimal cost. With an affordable safety net, we were able 
     to sell more volume with increased terms to compensate for 
     international shipping. During the past 5 years, we've grown 
     our international sales from 15 percent to over 35 percent of 
     our business. Partners in over 30 different countries 
     including Brazil, Russia, India, and Taiwan. Most recently, 
     we exhibited our products at the BAUMA International Trade 
     Fair in Munich, Germany. In addition, our products were used 
     in the construction of the Sochi Winter Olympics in Russia.
       So what is Fritz-Pak Corporation today? We're an American 
     manufacturer of the best concrete admixtures in the world, 
     and we sell them as far north as Yellowknife, Canada and as 
     far south as Wellington, New Zealand. We may be small, but we 
     think big. In an age where everything seems to be made some 
     place else, we're thriving here in the USA. And it is in no 
     small part due to the services provided by Ex-Im Bank.
                                  ____

                                           Boyle Energy Services &


                                             Technology, Inc.,

                                    Manchester, NH, July 22, 2014.
     Hon. Maxine Waters,
     House of Representatives, Washington, DC.
       Dear Mrs. Waters, Ma'am, BES&T needs every effort you and 
     your team can expend to help with the Re-Authorization of the 
     Export Import Bank of the United States.
       You see we are at a great moment in time. Our company, 
     through our exporting, has invented a technology and been 
     awarded US Patents for that technology which dramatically 
     reduces the cost of commissioning energy facilities being 
     built anywhere in the world. In fact we have recently been 
     awarded an Innovation in Energy Award by the Coalition for 
     Global Leadership for this technology. We are about to break 
     through from being a small business to a midsize company 
     working globally. Our revenues are going up dramatically by 
     our ability to export our unique services, engineering and 
     field equipment that helps our clients save millions of 
     dollars.
       I have a small line of credit from the Bank of America. I 
     would not be able to support bid bonds and other financial 
     work on the project without EXIM support. At present BOA does 
     not have a means of securing the collateral against our 
     credit while it is in foreign countries, nor does it support 
     financing foreign receivables without EXIM. It is my 
     experience that most US domestic banks behave the same way. 
     While it might be possible to search for a new bank we do not 
     have the resources, time, nor network to re-qualify a bank 
     with what we do. It would be disastrous to us. BOA has taken 
     10 years to understand our business.
       Since undertaking our R&D program in 2003-2008 we have gone 
     from 4 million in revenue in 2003 to nearly 30 million now. 
     We have gone from 10 employees to nearly 50. But ma'am these 
     are not minimum wage jobs. We pay the top salaries in the 
     world for what our people do. We pay 100 percent blue cross 
     blue shield health insurance, 401K, life insurance etc. I 
     have high school graduates who are considered by the energy 
     industry as

[[Page E1309]]

     the best people in the world at what they do making more than 
     $150,000 per year. BES&T is poised to triple in size again. 
     Additionally we gave over $150,000 to charity this year in 
     celebration of our 20th anniversary as a company. We feel it 
     is our civic duty to help those in need as we excel around 
     the world.
       We represent what America does best. We innovate through 
     entrepreneurialism. We take that innovation and we run with 
     it all over the world and here in the US. We hire our friends 
     and neighbors who buy homes and cars and send their kids to 
     college. We promote good will in the countries we work and 
     make friends around the world.
       I grew up on welfare in Massachusetts, needed school 
     lunches to get through the day and chose to go into the Navy 
     as an enlisted Boiler Technician for 6 years. At every turn I 
     have leveraged the support of the United States and the 
     states in which I lived to create a positive American life 
     for me and for others. Our business is a direct result of the 
     training I got during my enlistment. Now we rely on the EXIM 
     bank for help while we push forward once more. I feel an 
     incredible sense of pride and patriotism that the Export 
     Import Bank of the United States stands with me and my 
     employees. Its one of the great tools for small business in 
     the country.
       Several years ago I had the privilege to meet Chairman 
     Hochberg at an outreach meeting hosted by Senator Shaheen of 
     New Hampshire. Since then I have been invited by the Chairman 
     to voice my opinion to him and the board of directors on a 
     wide variety of subjects relating to the banks support of 
     small business. What I can tell you is this, from the top 
     office of the Chairman to the people who work for the bank. 
     EXIM bank is committed to working and improving services for 
     small businesses. I have been witness to countless 
     improvements on behalf of small companies and the Chairman 
     listens to the small business community and so does the 
     board. They are committed to working with us, and it shows.
       Mrs. Waters if there were a better, or cheaper way we would 
     have done it. Small businesses always look for that edge. 
     Right now our work with EXIM is highly valuable to our global 
     growth. We work in 17 countries tonight. American women, men 
     and equipment. We rely on EXIM for credit insurance and for 
     our line of credit with BOA. We have never defaulted nor had 
     a claim. We pay heavy fees and costs for this privilege. EXIM 
     is a partner for us in our success.
       I would ask you to convince the Chairman that this platform 
     will hurt us, badly. I buy millions of dollars of equipment 
     year on year to help with our exporting. We buy from vendors 
     in Texas, and Tennessee, and California. All of these people 
     would be hurt as well.
       This is not a fight we should be undertaking at this time 
     in our recovery. BES&T will continue to add jobs, and pay our 
     taxes on the profits we incur. We will take care of our 
     people and our neighbors. We will honor your trust and 
     support.
       If I may of any assistance to either you or Chairman 
     Hensarling in this matter please call upon me at once.
       Please re-authorize the EXIM bank its good for America, and 
     BES&T.
           Respectfully,
                                                 Michael P. Boyle,
     President/CEO.

                          ____________________