Zero Motorcycles, a beneficiary of $3 million in Ex-Im financing, pushed competitor Brammo out of the market. Brammo was purchased by Polaris, which received $6.3 million in Ex-Im financing.
New Report on Export-Import Bank Finds Problems With Transparency, Cronyism
By Heritage Foundation Melissa Quinn——Bio and Archives--June 2, 2015
A new report that takes a deep dive into the Export-Import Bank’s transactions found that in addition to heavily subsidizing large corporations, the government agency benefited some small businesses while pushing others out of the market. It also rewarded a former employee who pleaded guilty for bribery with a six-figure salary and bonuses.
Open the Books, an online database of local, state and federal spending founded by Adam Andrzejewski, examined data from the Export-Import Bank available from 2007 and 2014. It found that the bank backed more than $172 billion in loans, loan guarantees and insurance contracts provided to close to 7,000 exporters. Taxpayers, according to the report, are on the hook for $140 billion in financing.
Ex-Im provides taxpayer-backed loans and loan guarantees to foreign countries and companies for the purchase of United States exports. The bank’s charter expires at the end of June, and Ex-Im’s reauthorization has created a sharp divide between congressional Republicans.
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