Small businesses seeking to increase their overseas sales are supposed to be the primary beneficiaries of loan guarantees by the U.S. Export-Import Bank, although a new analysis by a nonprofit government watchdog finds most of the funds are going to corporate giants and corrupt foreign regimes.
"Small businesses, supposedly the intended beneficiary of the Export-Import Bank, received only $54.8 billion of the over $234 billion in total assistance since 2007, or about 23 percent" of the bank's total funding, according to the report by Open The Books, a Chicago-based nonprofit that monitors government spending.
"The Export-Import Bank has been nicknamed 'Boeing's Bank' by critics, and it is easy to see why. From 2007-2021, the aircraft giant received 33 percent of all of the Export-Import Bank's assistance, totaling over $66.4 billion, while the second largest vendor received just over $5 billion. That's more than all small businesses received combined," the OTB report said.
"Boeing subsidiary Boeing Satellite Systems International reaped another $1.4 billion in assistance. Major international airline companies like Ryanair, Emirates Airlines, and Air Canada have all received assistance for Boeing purchases. Boeing employs a small army of 18 lobbyists to advocate for the Export-Import Bank.".
"Ranked 149th in the world on a scale from least to most corrupt by Transparency International in 2020, importers in Nigeria received over $570 million from the Export-Import Bank," the OTB report said.
"Second to only the United States in GDP , businesses in China nonetheless received more than $6.4 billion in U.S. Export-Import Bank assistance. Even amidst Donald Trump's trade war with China, $128,062,638.20 flowed to China from 2017 to 2020," the report observed.
"Human Rights Watch warned in 2021 that Turkish president Recep Tayyip Erdogan has been 'dismantling human rights protections and democratic norms in Turkey on a scale unprecedented in the 18 years he has been in office.' Still, the Export-Import Bank has sent over $6.2 billion to Turkey since 2007."
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