Seeks Export Infrastructure Financing Solutions
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Because of the import boom, some U.S. exporters are struggling to find space and capacity to export. The U.S. Biden administration has taken notice and is seeking export infrastructure financing solutions.
In December 2021, America’s export credit agency, the U.S. Export-Import Bank, reached out to ports and others to explore the idea of financing domestic projects. Beyond export credit insurance, working capital guarantees, and term financing to support international buyers purchasing U.S. products, Executive Order 14017 on America’s Supply Chains recommended that EXIM consider providing financing to establish or expand U.S. manufacturing facilities and infrastructure projects that facilitate exports.
Comments on the idea and “hypothetical criteria” were collected in January 2022. “We’re currently compiling comments that we received, and we will be continuing our dialogue with stakeholders in the weeks ahead. We were heartened that more than 90 percent of respondents expressed support for the program,” said an EXIM spokesperson.
One criterion was outlined as: “EXIM may consider projects between 25 percent to 50 percent export nexus for support. For example, 25 percent of a project’s production (e.g. goods produced at an EXIM-supported manufacturing facility) or capacity (e.g. 25 percent of the traffic at a port) would need to be for export for the transaction to eligible. This export connection could stretch back through a supply chain and account for “indirect exports.” If a company sells 50 percent of its product to a domestic company, that in turn uses 50 percent of the supplier’s inputs for exports, this transaction would meet the 25 percent threshold.
EXIM’s domestic infrastructure idea may attract a lot of interest if projects can access funds without Buy American procurement restrictions.
In addition to the nation’s supply chain partners – and ultimately consumers and communities – multiple industries, especially construction-related sectors, all serve to benefit from sustained investment in ports.
Photo: Port of Tampa Bay, Florida's busiest gateway by tonnage, was selected as an INFRA grant recipient in 2020 for a terminal expansion. Credit: Port Tampa Bay
