[Congressional Record Volume 161, Number 92 (Wednesday, June 10, 2015)]
[Senate]
[Pages S4057-S4058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1996. Mr. VITTER submitted an amendment intended to be proposed to
amendment SA 1463 proposed by Mr. McCain to the bill H.R. 1735, to
authorize appropriations for fiscal year 2016 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. EXPORT CREDIT INSURANCE PROGRAM.
(a) Findings.--
(1) In general.--Congress finds that--
(A) the Export-Import Bank of the United States
administers--
(i) the Working Capital Loan Guarantee Program, which--
(I) facilitates finance for businesses, in particular small
businesses, that have exporting potential but need working
capital funds to produce or market goods or services for
export;
(II) provides repayment guarantees to lenders on short- and
medium-term working capital loans made to qualified
exporters, which loans are secured by export-related accounts
receivable and inventory;
(III) provides a guarantee of up to 90 percent of the
principal and interest on a loan
[[Page S4058]]
made to an exporter by a private lender for export-related
accounts receivable; and
(IV) provides a guarantee of up to 75 percent for export-
related inventory;
(ii) the Global Credit Express Loan Program, which provides
direct working capital loans to small businesses for a 6- or
12-month revolving line of credit of not more than $500,000;
and
(iii) the Export Credit Insurance Program, which--
(I) extends credit terms to foreign customers;
(II) insures against nonpayment by international buyers;
(III) covers both commercial and political losses with a 95
percent guarantee; and
(IV) arranges financing through a lender by using insured
receivables as additional collateral;
(B) the export loan programs of the Export-Import Bank of
the United States described in clauses (i), (ii), and (iii)
of subparagraph (A) are less appealing to small businesses
due to lending restrictions on loans under those programs,
which provide that--
(i) the loans may not be used when the export product being
financed has less than 50 percent United States content;
(ii) the loans may not be used to finance sales to foreign
military buyers, with which a growing number of small
businesses are contracting; and
(iii) contracts and purchase orders supported by letters of
credit may not be used in determining the borrowing base; and
(C) the Small Business Administration administers--
(i) the Export Working Capital Program, established under
section 7(a)(14) of the Small Business Act (15 U.S.C.
636(a)(14)), which provides short-term working capital,
including revolving lines of credit, of not more than
$5,000,000 with a 90 percent guarantee;
(ii) the International Trade Loan Program, established
under section 7(a)(16) of the Small Business Act (15 U.S.C.
636(a)(16)), which provides financing of not more than
$5,000,000 with a 90 percent guarantee for fixed assets, or
to improve a competitive position that has been adversely
affected by import competition; and
(iii) the Export Express Program, established under
7(a)(34) of the Small Business Act (15 U.S.C. 636(a)(34)),
under which--
(I) exporters are provided with a streamlined method to
obtain financing backed by the Small Business Administration
for loans and lines of credit of not more than $500,000;
(II) lenders use their own credit decision process and loan
documentation;
(III) the Small Business Administration determines
eligibility and provides a loan approval in 36 hours or less;
and
(IV) the guarantee is 90 percent for a loan that is not
more than $350,000 and 75 percent for a loan that is more
than $350,000 and not more than $500,000.
(2) Additional findings.--Congress further finds that--
(A) the export loan programs of the Small Business
Administration described in clauses (i), (ii), and (iii) of
paragraph (1)(C)--
(i) are not restricted by the limitations described in
clauses (i), (ii), and (iii) of paragraph (1)(B); and
(ii) should be commended for their flexibility, quick
turnaround times, and the one-on-one assistance from Small
Business Administration personnel in structuring loan deals,
negotiating payment terms, and ensuring that the financial
needs of small businesses are met;
(B) the Export-Import Bank of the United States only has
Regional Export Finance Managers co-located in 12 Department
of Commerce United States Export Assistance Centers, whereas
the Small Business Administration--
(i) has Regional Export Finance Managers co-located in 20
United States Export Assistance Centers; and
(ii) currently has Regional Export Finance Managers co-
located in 10 additional United States Export Assistance
Center locations that the Export-Import Bank of the United
States does not, including in--
(I) Arlington, Virginia;
(II) Boston, Massachusetts;
(III) Charlotte, North Carolina;
(IV) Cleveland, Ohio;
(V) Denver, Colorado;
(VI) Los Angeles, California;
(VII) New Orleans, Louisiana;
(VIII) Philadelphia, Pennsylvania;
(IX) Portland, Oregon; and
(X) St. Louis, Missouri;
(C) the Small Business Jobs Act of 2010 (15 U.S.C. 631
note) increased the maximum loan size under the 2 largest
export loan programs administered by the Small Business
Administration to $5,000,000, which could cover approximately
80 percent of all small business export loans currently
guaranteed by taxpayers through the Export-Import Bank of the
United States;
(D) the export loan programs administered by the Small
Business Administration and the export loan programs
administered the Export-Import Bank of the United States
are--
(i) duplicative of each other, except for the Export Credit
Insurance Program of the Export-Import Bank of the United
States; and
(ii) under the current structure, competing against each
other for small business clients; and
(E) the Export Credit Insurance Program of the Export-
Import Bank of the United States is a vital component of
export loan programs.
(3) Declaration of policy.--It is hereby declared to be the
policy of this section--
(A) that, should the statutory authority for the export
loan programs administered by the Export-Import Bank of the
United States lapse, the Small Business Administration shall
serve the small business clients of the Export-Import Bank of
the United States under existing statutory authority of the
Small Business Act (15 U.S.C. 631 et seq.);
(B) to create an Export Credit Insurance Program within the
Small Business Administration similar to the Export Credit
Insurance Program of the Export-Import Bank of the United
States; and
(C) to ensure that small business exporters are served by
the programs of the Small Business Administration.
(b) Export Credit Insurance Program.--Section 22 of the
Small Business Act (15 U.S.C. 649) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Export Credit Insurance Program.--
``(1) In general.--The Administrator shall establish a
program under which the Administration shall provide
insurance for the exports of small business concerns,
including insurance against nonpayment by international
buyers.
``(2) Regulations.--Not later than 90 days after the date
of enactment of this subsection, the Administrator shall
promulgate regulations to carry out the program established
under paragraph (1), which shall be, to the maximum extent
practicable, substantially similar to the Export Credit
Insurance Program of the Export-Import Bank of the United
States, as in effect on the day before the date of enactment
of this subsection.''.
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