The Export-Import Bank of the United States is the official export credit agency for the US federal government.

The Export-Import Bank of the United States is the official export credit agency of the United States federal government

The US Export-Import Bank, a federal agency that provides insurance, credit and other financial services to exporters faces controversy over its reauthorization. The agency will have to stop issuing new loans and insurance cover of shipments from 30 Jun 2015 if Congress fails to reauthorize.

“I am still confident that we are going to get reauthorized,” said chairman and president of the agency Mr Fred Hochberg implying positivity of reauthorization, adding “The fact that we create jobs, we send money to the Treasury, and 90 percent of our customers are small businesses making our argument compelling.”

Conservative Republican groups are targeting congressional members who support or are indecisive about the agency, calling it “crony capitalism” benefiting major corporates, with television advertisements to de-popularise the agency.

Business groups are countering with several advertisements on television and radio in many congressional districts.

The agency returned about $675 million to the Treasury last year and its loan delinquency rate is less than 1 percent which is lower than many private lenders, said supporters.

Companies in Massachusetts exported $27.5 billion in merchandise last year, which is about 5 percent of the state’s economic output. Since 2007, the agency has provided $1 billion in insurance and financed 173 state companies which exports more than $4 billion of products. Fate of the agency therefore will have tremendous impact to the state.

If the agency program is shut down, “It’s like we’re unilaterally disarming on exports,” said James Brett, president of the New England Council, a Boston-based business lobby group in Washington, referring that many countries offer similar programs.

Founded during the Great Depression, the agency supported the struggling economy while helping US firms to market goods abroad. It provided $20.5 billion in loans, insurance coverage and other financial assistance in about 3,700 deals with companies, according to the Congressional Research Service.