Export-Import Bank's charter expires for the first time since its founding

(Image credit: Alex Wong/Getty Images)

For the first time since its founding in 1934, the Export-Import Bank's charter expired at midnight on Tuesday. The federal agency, known colloquially as Ex-Im, helps U.S. businesses export products and provides loans and credit insurance to companies when private lenders view their ventures as too risky.

Though Ex-Im generated a surplus of $675 million to the Treasury last year, conservative advocates of small government saw the agency as an example of the government's over-involvement in business and thus advocated for letting the bank's charter expire.

Although the agency's ability to issue new loans ended at midnight, Ex-Im will likely remain up and running through Sept. 30, when its funding is estimated to run out — though there is a chance that Congress could reauthorize funding when it comes back in session next week. If Congress does not vote to reauthorize Ex-Im, companies say they would lose a competitive edge against Europe and China, where governments offer companies significant financial help.