Another View -- Michael P. Boyle: For this NH business, the Export-Import Bank is critical
BOYLE ENERGY Services & Technology (BES&T), based in Manchester, offers patented commissioning and pre-commissioning solutions to power, refinery and other large industrial facilities around the world. For the past eight years, BES&T has grown substantially by creating value for our clients. During this time of great growth, the Export-Import Bank of the United States (Ex-Im Bank) has serviced BES&T with outstanding support.
The Ex-Im Bank has provided our banking partners with the security to back our critical, highly competitive work, and the business assets generated. The value of having Ex-Im Bank support has allowed BES&T to navigate entering and successfully competing in difficult markets internationally. That business otherwise would be awarded to companies in countries that receive preferential consideration.
I have personally served on the Ex-Im Bank’s Advisory Committee for two years with a team of exceptional men and women from various aspects of American commerce. Over those two years of service, I witnessed the leadership of the Ex-Im Bank work diligently to the benefit of small business.
BES&T pays significant fees as part of our business with Ex-Im bank. These fees generate excess returns to the bank and support the reserves used to protect against losses. The excess income from company-paid fees is sent back to the U.S. Treasury. This element of our government is working for the American people, as well as the clients it serves. This is clearly not the definition of corporate welfare.
While there is an ongoing debate in Congress over the future of the Ex-Im Bank, the small businesses attempting to expand into global markets need the support of a national credit agency that provides loans, guarantees and insurance where no other financial institution will back them. Ex-Im Bank is critical to the incubation of U.S. competition in the global marketplace for small business America, and for the people whose jobs depend on this work. The Ex-Im Bank fosters the repatriation of American profits earned aboard, from which taxes are paid into the U.S. Treasury and value is added to the American taxpayers’ investment.
As the Founder and CEO of Boyle Energy, I was asked to testify in front of the House of Representatives, and I have met with leaders from both parties about how 90 percent of Ex-Im Bank authorized companies are U.S. small businesses and how their loans will be repaid in full.
Here in New Hampshire, I have participated in roundtable discussions with members of our federal delegation about the 0.175 percent default rate of the Ex-Im Bank, which is three times better than any Federal Reserve loan delinquency rate. I also spoke of how the U.S. is 10th in export investment behind South Korea, Canada, Germany, Brazil and others, based upon total GDP.Government accountability is integral to a healthy economy, and I believe in government providing only those services that add value to the American people. The Ex-Im Bank has met this standard for more than 80 years.
The Ex-Im Bank reauthorization is a simple question of choosing to expand the American economic productivity and viability, or choosing to bolster the competitive advantage of foreign companies and the strength of overseas jobs. I urge every American who has a job or wants a job to join this debate.
New Hampshire is lucky to have Sens. Jeanne Shaheen and Kelly Ayotte championing a nonpartisan movement for reauthorization, but I ask that you demand the same of all congressional leaders and presidential candidates. Demand that congressional delegates work together in support of the Bank’s reauthorization, to keep U.S. businesses competitive. The future of small business growth in the highly competitive international marketplace of today’s economy is intrinsic to the reauthorization.
Michael P. Boyle is founder and CEO of Boyle Energy Services & Technology in Manchester.