First EXIM Satellite-related Deal Since 2015, Counters Foreign Competition

WASHINGTON (EXIM PR) – The Board of Directors of the Export-Import Bank of the United States (EXIM) unanimously approved $80.7 million in EXIM financing to support launch services by SpaceX and also U.S.-brokered launch and initial in-orbit insurance for Hispasat Canarias S.L.U., a subsidiary of Hispasat, S.A., of Spain. These EXIM-supported services will help Hispasat to deploy a new satellite, Amazonas Nexus. The EXIM financing, which may take the form of a direct loan or a loan guarantee, is estimated to support approximately 500 American jobs in California, Florida, Texas, and Virginia.

The transaction is the first EXIM financing of a satellite-related export since 2015, before EXIM was forced to pause board-approved transactions for several years due to the lack of a board quorum. Today’s announcement marks an important step in EXIM’s re-emergence following the agency’s historic seven-year reauthorization by Congress in 2019. EXIM’s support is needed for this transaction to provide long-term financing for Hispasat that was unavailable from commercial lenders. EXIM’s support also counters potential export credit agency support for a French launch-services competitor, Arianespace.

by Douglas Messier
Managing Editor

With the economy grinding to a halt, the Commercial Spaceflight Federation (CSF) is seeking billions of dollars from the federal government to keep the rockets launching on time.

In a March 18 letter sent to Congressional leaders, CSF President Eric Stallmer proposed establishing “a $5 billion grant and/or low-interest loan program to ensure the continued availability of critical aerospace infrastructure, capability, personnel, and mission readiness to maintain assured access to space for national security, civil, and commercial space missions.

Washington, D.C. (Ex-Im Bank PR) – President Donald J. Trump signed legislation today that reauthorized the Export-Import Bank of the United States (EXIM) for a historic length of seven years. The bipartisan legislation approved by Congress achieved two important goals: providing certainty to American businesses and workers that EXIM is fully open for business, and giving clear direction to focus on the economic and national security challenges from China. 

“I thank President Trump for making history today by signing into law the longest reauthorization of EXIM in the agency’s 85-year history,” said EXIM President and Chairman Kimberly A. Reed. “The legislation signed into law by the President also directs EXIM to focus on the important economic and national security challenges posed by China, which at my direction, EXIM has prioritized since my confirmation in May. I am proud to have the support of President Trump and Congress in this undertaking.”

Continuing our look at the U.S.-China Economic and Security Review Commission’s 2019 Report to Congress, we examine China’s growing commercial space industry. [Full Report]

by Douglas Messier
Managing Editor

China is using aggressive state-backed financing to capture increasing shares of the commercial launch and satellite markets, making it more difficult for American companies to compete and threatening to hollow out the U.S. industrial base.

China is also leverage “military-civil” fusion to create a burgeoning commercial space sector by providing substantial state support. Nearly 90 new space companies have been created since 2014, most of which enjoy the support of the Chinese military, defense industrial base, or state-owned research and development institutions.

The U.S. Senate has put the Export-Import Bank back in full operation by confirming the nominations of Spencer Bachus, Judith DelZoppo and Kimberley Reed to fill open positions on the bank’s Board of Directors. Reed will serve as the board’s president. The bank, which helps U.S. companies finance purchases by foreign buyers, has been limited to approving deals worth $10 million or less over the past several years by a […]

We’re disappointed that the @EximBankUS nominees have expired and were not included in the final package. The Ex-Im bank helps support 2.4mil jobs in the U.S. #aerospace industry and plays a key role in our economy. Ex-Im needs leaders committed to its continued success. — Aerospace Industries (@AIAspeaks) January 4, 2019 With the new Congress, the president’s nominations to fill open seats on the Export-Import Bank have expired and need […]

Donald Trump’s practice of nominating people to run agencies they oppose (Rick Perry), have no discernible expertise in (Perry again), or have no understanding of what they actually do (ditto) finally seems to have hit a brick wall.

The Senate Banking Committee rejected the White House’s nomination of former New Jersey Congressman Scott Garrett to chair the Export-Import Bank, which helps U.S. companies finance sales of products to foreign buyers. The bank has been used by aviation, space and satellite companies such as Boeing and SpaceX.

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Arlington, Va. (AIAA PR) — The Aerospace Industries Association is launching a multi-tiered campaign reiterating the importance of the long-term health of the U.S. Export-Import Bank ahead of an important nomination hearing for the Bank leadership.

This week, AIA President and CEO David F. Melcher sent a letter to the Senate Banking, Housing, and Urban Affairs Committee, calling on them to restore a working quorum on the Bank’s Board of Directors by confirming four of the nominees and rejecting confirmation of Scott Garrett. Concurrently, AIA is launching an ad campaign highlighting the importance of confirming an Ex-Im Chairman that believes in the important mission Ex-Im plays in the American economy. Nominee Scott Garrett has a long history of actions and statements designed to destroy the agency, demonstrating he is not the leader Ex-Im needs or American industry deserves.

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Statement by AIA President and CEO David F. Melcher urging President Trump to withdraw the nomination of Congressman Scott Garrett to chair the Export-Import Bank of the United States and submit nominations for a full Board of Directors that will support the Bank’s key mission.

Arlington, Va. — Since the reauthorization of the U.S. Export-Import Bank (Ex-Im) in 2015, AIA has continually stressed the need to establish a quorum on the five member Ex-Im Board of Directors and make the Bank fully functional to ensure America’s aerospace and defense industry — which supports 2.4 million American workers — can compete on a level playing field.  That is why we initially met President Trump’s announcement in April of his support for Ex-Im and its mission with great optimism.

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Engine for Growth:
Analysis and Recommendations for U.S. Space Industry Competitiveness

Aerospace Industries Association
May 2017
[Full Report]

Policy Recommendations
for Strengthening U.S. Space Competitiveness

1. Level the Playing Field

Provide a responsive regulatory environment for commercial space activities. The list of commercial space activities is varied and growing, ranging from traditional applications such as satellite telecommunications to emerging ones like space resource utilization. At the same time, the U.S. space industry is governed by multiple federal agencies with disparate regulatory interests, including the Federal Communications Commission, the Federal Aviation Administration and Departments of State and Commerce. These agencies often suffer from funding and staffi ng shortages, a situation that creates bottlenecks in licensing processes and slows responsiveness to technological and market changes. The new Administration should work closely with Congress to ensure that the appropriate space regulatory agencies are fully resourced and staffed.
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