Lawmakers submit bill to renew U.S. export credit agency charter

The Export-Import Bank, which provides support to U.S. exporters and the buyers of U.S. goods, is targeted for closure by some conservative Republicans who say it usurps the role of the private sector and provides "welfare" for big business.

The legislation kicks off a likely battle this year between the Chairman of the House Committee on Financial Services, Jeb Hensarling, one of the bank's strongest critics, and moderate Republicans, Democrats and business groups determined to keep Ex-Im open.

A bill introduced by Tennessee lawmaker Stephen Fincher and 57 fellow Republicans would give the bank five more years, but also cut its lending cap to $130 billion from $140 billion.

Other changes would increase Ex-Im's risk-sharing with the private sector, strengthen anti—corruption practices and increase capital buffers.

“The U.S. Ex-Im Bank has been a job-creator since its inception, yet it is in dire need of major reforms to ensure its ability to continue creating jobs at no expense to the taxpayer,” Fincher said in a statement.

“In reforming the Ex-Im Bank, we'll make its practices more accountable and transparent than ever before."

The Ex-Im Bank has been criticized for aiding big companies such as Boeing Co and Caterpillar Inc, but its supporters argue it also helps many small businesses that are unable to get export insurance from private banks.

"Thousands of exporters of all sizes across the country — as well as their employees and suppliers — need the certainty of a long-term reauthorization to continue growing and hiring amid tough global competition," the Exporters for Ex-Im Coalition said in a statement.

Companies which rely on Ex-Im financing to win projects overseas say uncertainty about the bank's future is hurting even firms not directly involved in exporting.

"We have a supply chain of about 7,000 companies in the United States," David Howell, senior vice president for nuclear automation and field services at Westinghouse Electric Company, which has used Ex-Im financing for nuclear power plants overseas. "They depend on that work."

But the conservative Heritage Action for America said Ex-Im served special interests.

"A better course would be to allow the Bank to expire and focus on an agenda that creates opportunity for everyone," said communications director Dan Holler.

(Reporting by Krista Hughes; Additional reporting by Susan Cornwell Editing by Andre Grenon, Bernard Orr)