The U.S. Export-Import Bank has approved a White House-backed plan aimed at unsnarling American supply chains – which could lead to substantial financing for a host of new projects, including ones in the energy, semiconductor and biotech sectors, according to Reuters and Bloomberg.
What’s going on: The credit agency’s board voted Thursday to approve the Make More in America initiative, “which will allow companies to tap existing medium- and long-term loans and loan guarantees for export-oriented domestic manufacturing projects as part of President Joe Biden’s push to bolster U.S. supply chains,” according to EXIM President and Chair Reta Jo Lewis.
- The plan was developed in response to the supply chain executive order Biden signed in February.
Why it’s important: “The agency plans to prioritize financing for green projects, from renewable power ventures to clean energy manufacturing,” according to Bloomberg.
- However, the project “will be open to all sectors … [to] help revitalize American manufacturing, improve the resiliency of our supply chains, and level the playing field for American companies competing in overseas markets,” according to the EXIM website .
- “[E]nvironmentalists and natural gas advocates say the initiative could also bolster a host of LNG export terminals proposed along the U.S. Gulf Coast, especially given the Biden administration’s efforts to supplant Russian energy in Europe with U.S. supplies,” according to Bloomberg.
The NAM’s view: Bloomberg cites the NAM, noting, “The National Association of Manufacturers said [the proposal] could provide ‘critical capital’ enabling small- and medium-sized companies to expand facilities and upgrade machinery.”