S 347 — Investing in America's Small Manufacturers Act

Summary

Investing in America's Small Manufacturers Act This bill amends the Small Business Act to authorize the Small Business Administration (SBA) to guarantee 90% of a loan to a small business manufacturing concern. The SBA may not collect a guarantee fee on these loans of more than $350,000. For loans exceeding this amount, the fee shall be 50% of the guarantee fee that the SBA would otherwise collect for the loan. The SBA must provide training to small manufacturers in obtaining SBA assistance, including on the application process and partnering with participating lenders. This bill authorizes the SBA and its partners to establish partnerships to facilitate outreach to small manufacturers with respect to the application process for SBA loan guarantees. A state or local development company's debenture issued to a small manufacturer for an SBA loan guarantee may not exceed 50% of the project's cost, subject to certain exceptions.

Bill Text

• Introduced Introduced in Senate Current html February 09, 2017

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill increases the percentage of loans guaranteed for small business concerns that are manufacturers.

• 15 U.S.C. 636(a)(2)

  and (E) → (E), and (F)

  This change adds a new category (F) for loan guarantees specifically for manufacturers.

• 15 U.S.C. 636(a)(2)

  (F) Participation for manufacturers.-- (i) In general.--In an agreement to participate in a loan on a deferred basis under this subsection for a small business concern assigned to a North American Industry Classification System code for manufacturing or that is designated by the Administrator under clause (ii), the participation by the Administration shall be 90 percent.

  This establishes a 90% loan guarantee for manufacturing businesses under specific conditions.

• 15 U.S.C. 636(a)(18)

  With respect → Except as provided in subparagraph (C), with respect

  This change clarifies the terms under which guarantee fees are applied, specifically for manufacturers.

• 15 U.S.C. 636(a)(18)

  (C) Manufacturers.-- (i) In general.--Subject to clause (ii), with respect to a loan guaranteed under this subsection for a small business concern described in paragraph (2)(F)(i)-- (I) the Administration may not collect a guarantee fee under this paragraph for a loan of not more than $350,000; and (II) for a loan of more than $350,000, the Administration shall collect a guarantee fee under this paragraph equal to 50 percent of the guarantee fee that the Administration would otherwise collect for the loan.

  This provision exempts loans up to $350,000 from guarantee fees and reduces fees for larger loans for manufacturers.

• 15 U.S.C. 631 et seq.

  (35) Assistance for small manufacturers.--The Administrator shall ensure that each district office of the Administration provides training to small business concerns described in paragraph (2)(F)(i) in obtaining assistance under this subsection, including with respect to the application process and partnering with participating lenders under this subsection.

  This mandates training and assistance for small manufacturers to help them access funds more effectively.

• 15 U.S.C. 637

  subsection (c) → subsection (c) Assistance for Small Manufacturers in SCORE Program.-- (1) Definition.--In this subsection, the term 'SCORE program' means the Service Corps of Retired Executives authorized under subsection (b)(1)(B). (2) Volunteers.--Under the SCORE program, the Administrator shall recruit volunteers to assist small business concerns described in section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process and partnering with participating lenders under that section.

  This change establishes a program to recruit volunteers to support small manufacturers in accessing assistance.

• 15 U.S.C. 648(c)(3)

  (U) providing training to small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process and partnering with participating lenders under that section.

  This addition ensures training is specifically targeted to small manufacturers.

• 15 U.S.C. 656(b)

  (4) training to small business concerns owned and controlled by women that are small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process and partnering with participating lenders under that section.

  This provides targeted training for women-owned small manufacturers.

• 15 U.S.C. 697(a)

  (5)(A) Any debenture issued by a State or local development company to a small manufacturer (as defined in section 501(e)(6)) with respect to which a guarantee is made under this subsection shall be in an amount equal to not more than 50 percent of the cost of the project with respect to which such debenture is issued.

  This specifies the guarantee amount for debentures issued to small manufacturers.

• 15 U.S.C. 696(3)(C)(i)

  is not a small manufacturer (as defined in section 501(e)(6)) and

  This ensures funds are not allocated to businesses that do not classify as small manufacturers.

Action History

1. February 09, 2017

   Introduced in Senate

2. February 09, 2017

   Read twice and referred to the Committee on Small Business and Entrepreneurship.

Sponsors

• Christopher A. Coons · Primary

Subjects