Hundreds of millions of dollars in financing that helps N.C. companies export products overseas could be at risk after Senate Republicans blocked an attempt by Democrats to reauthorize financing for the U.S. Export-Import Bank.
The bank is an independent federal agency that dates back to the 1930s and provides bridge loans and credit guarantees to finance the overseas sale of American products.
The Sanford yarn manufacturer received a $40 million loan guarantee in November that will allow the company to hire 50 new employees and increase foreign sales. Frontier Spinning Mills, which has $750 million in sales and employs about 1,100 people, provides cotton for clothing companies such as Hanes.
CEO John Bakane said the Export-Import Bank has been key to the company’s export growth to Central America, Mexico and China.
“Bottom line over the last three years we’ve doubled our sales and increased employment by about 50 percent, or 400 jobs, and invested almost $40 million in plant and equipment,” said Bakane, during a conference call set up by U.S. Sen. Kay Hagan.