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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investing in America's Small 
Manufacturers Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 2015, manufacturers contributed over 
        $2,000,000,000,000 to the United States economy and accounted 
        for over 12 percent of United States gross domestic product.
            (2) Manufacturing is one of the most important sectors of 
        the United States economy with respect to employment. In 2013, 
        the manufacturing sector supported over 17,000,000 indirect 
        jobs in the United States, in addition to the 12,000,000 
        individuals who were directly employed in manufacturing. 
        Combined, these indirect and direct manufacturing jobs 
        represented more than 20 percent of United States employment in 
        2013--more than any other sector.
            (3) While the United States has added over 14,000,000 non-
        farm jobs since 2010, manufacturing job growth has lagged and 
        added only approximately 900,000 jobs. Post-recession job 
        recovery averages since the 1940s indicate that another 
        1,200,000 manufacturing jobs should have been created during 
        this period.
            (4) Small manufacturers are the backbone of the United 
        States manufacturing industry, accounting for nearly half of 
        all manufacturing jobs in the United States. Ensuring that 
        small manufacturers have adequate access to capital is critical 
        to creating manufacturing jobs and the growth of the United 
        States economy.
            (5) The 2015 Federal Reserve Small Business Credit Survey 
        indicates that of the 52 percent of manufacturers that applied 
        for financing during the survey period, 65 percent did so to 
        expand their business or to pursue a new business opportunity. 
        The survey also indicates that 42 percent of manufacturers 
        received less financing than they requested, the primary result 
        of which was delayed expansion of their business.
            (6) The loan guarantee programs of the Small Business 
        Administration under section 7(a) of the Small Business Act (15 
        U.S.C. 636(a)) and title V of the Small Business Investment Act 
        of 1958 (15 U.S.C. 695 et seq.) encourage lenders to provide 
        loans to creditworthy small businesses that would not otherwise 
        obtain financing on reasonable terms and conditions and can 
        serve as an excellent mechanism by which to increase the 
        availability of affordable credit to small manufacturers in the 
        United States.

SEC. 3. SMALL MANUFACTURERS.

    (a) Loan Guarantee Percentage.--Section 7(a)(2) of the Small 
Business Act (15 U.S.C. 636(a)(2)) is amended--
            (1) in subparagraph (A), in the matter preceding clause 
        (i), by striking ``and (E)'' and inserting ``(E), and (F)''; 
        and
            (2) by adding at the end the following:
                    ``(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.
                            ``(ii) Addition of advanced manufacturing 
                        sectors.--After submitting notice to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives, the Administrator may 
                        designate a North American Industry 
                        Classification System code for purposes of 
                        clause (i) if the Administrator determines the 
                        code--
                                    ``(I) is not a manufacturing code 
                                under the North American Industry 
                                Classification System; and
                                    ``(II) corresponds to a sector in 
                                which manufacturing is a considerable 
                                component of the operations of a small 
                                business concern, as determined by the 
                                Administrator, including advanced 
                                manufacturing.''.
    (b) Guarantee Fee Reduction.--Section 7(a)(18) of the Small 
Business Act (15 U.S.C. 636(a)(18)) is amended--
            (1) in subparagraph (A), by striking ``With respect'' and 
        inserting ``Except as provided in subparagraph (C), with 
        respect''; and
            (2) by adding at the end the following:
                    ``(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.
                            ``(ii) Exception.--The requirements of 
                        clause (i) shall not apply to loans made during 
                        a fiscal year if--
                                    ``(I) the budget of the President 
                                for that fiscal year, submitted to 
                                Congress under section 1105(a) of title 
                                31, United States Code, includes a cost 
                                for the program established under this 
                                subsection that is above zero; and
                                    ``(II) the Administrator submits to 
                                Congress--
                                            ``(aa) notice regarding the 
                                        determination of cost described 
                                        in subclause (I); and
                                            ``(bb) a detailed 
                                        discussion indicating why not 
                                        implementing clause (i) will 
                                        cause the cost of the program 
                                        established under this 
                                        subsection to be not more than 
                                        zero.''.
    (c) Assistance Through SBA Programs.--The Small Business Act (15 
U.S.C. 631 et seq.) is amended--
            (1) in section 7(a) (15 U.S.C. 636(a)), by adding at the 
        end the following:
            ``(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.'';
            (2) in section 8 (15 U.S.C. 637), by striking subsection 
        (c) and inserting the following:
    ``(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)(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.'';
            (3) in section 21(c)(3) (15 U.S.C. 648(c)(3))--
                    (A) in subparagraph (S), by striking ``and'' at the 
                end;
                    (B) in subparagraph (T), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(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.'';
            (4) in section 29(b) (15 U.S.C. 656(b))--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(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.''; and
            (5) in section 32 (15 U.S.C. 657b), by adding at the end 
        the following:
    ``(g) Assistance for Small Manufacturers.--The Associate 
Administrator shall ensure that Veterans Business Outreach Centers 
assist 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.''.
    (d) Partnering With NIST.--The Small Business Administration and 
its resource partners may establish partnerships with the Hollings 
Manufacturing Extension Partnership Program of the National Institute 
of Standards and Technology and its affiliated centers to facilitate 
outreach to small manufacturers in providing training and guidance with 
respect to the application process for loans guaranteed by the 
Administration.

SEC. 4. DEVELOPMENT COMPANY DEBENTURES.

    (a) Amount of Guaranteed Debenture.--Section 503(a) of the Small 
Business Investment Act of 1958 (15 U.S.C. 697(a)) is amended by adding 
at the end the following:
    ``(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.
    ``(B) Subparagraph (A) shall not apply to debentures issued during 
a fiscal year if--
            ``(i) the cost to the Federal Government of making 
        guarantees under this section is above zero; and
            ``(ii) the Administrator submits to Congress--
                    ``(I) notice regarding the determination of cost 
                described in clause (i); and
                    ``(II) a detailed discussion indicating why not 
                implementing subparagraph (A) will cause the cost to 
                the Federal Government of making guarantees under this 
                section to be not more than zero.''.
    (b) Startup Small Manufacturers.--Section 502(3)(C)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 696(3)(C)(i)) is amended by 
inserting ``is not a small manufacturer (as defined in section 
501(e)(6)) and'' after ``small business concern''.

SEC. 5. FEDERAL LOAN GUARANTEES FOR INNOVATIVE TECHNOLOGIES IN 
              MANUFACTURING.

    (a) Transfer of Existing Program.--The Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.) is amended--
            (1) by striking section 26 (15 U.S.C. 3721); and
            (2) by redesignating sections 27 and 28 (15 U.S.C. 3722 and 
        3723) as sections 26 and 27, respectively.
    (b) Authority of SBA.--
            (1) Definitions.--In this subsection--
                    (A) the term ``Administrator'' means the 
                Administrator of the Small Business Administration;
                    (B) the term ``business loan programs of the 
                Administration'' means the programs under section 7(a) 
                of the Small Business Act (15 U.S.C. 636(a)) and title 
                V of the Small Business Investment Act of 1958 (15 
                U.S.C. 695 et seq.); and
                    (C) the term ``small manufacturer'' means a 
                business concern described in section 7(a)(2)(F)(i) of 
                the Small Business Act, as amended by this Act.
            (2) Authorization.--To the extent the Administrator 
        determines that the assistance available to small manufacturers 
        under section 26 of the Stevenson-Wydler Technology Innovation 
        Act of 1980 (15 U.S.C. 3721), as in effect on the day before 
        the date of enactment of this Act, is not available under the 
        business loan programs of the Administration, the Administrator 
        shall ensure that the business loan programs of the 
        Administration provide adequate support for innovative 
        technologies in manufacturing.
            (3) Reporting.--The Administrator shall submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives a report regarding any determination or 
        activity of the Administrator under paragraph (2).
    (c) Savings Clause.--Any loan guarantee issued under section 26 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3721), as in effect on the day before the date of enactment of this 
Act, shall remain in full force and effect under the terms, and for the 
duration, of the loan guarantee agreement.