SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Growth Opportunity Act of 2007''.

SEC. 2. GRANTS FOR STATES TO ESTABLISH REVOLVING LOAN FUNDS TO PROVIDE 
              LOANS TO SMALL MANUFACTURERS.

    (a) Definitions.--In this section:
            (1) Center.--The term ``Center'' means a Regional Center 
        for the Transfer of Manufacturing Technology described in 
        section 25 of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278k).
            (2) Manufacturing extension partnership program.--The term 
        ``Manufacturing Extension Partnership program'' means the 
        program under sections 25 and 26 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278k and 278l).
            (3) Revolving loan fund.--The term ``revolving loan fund'' 
        means a revolving loan fund described in subsection (d).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (5) Small manufacturer.--The term ``small manufacturer'' 
        means a manufacturer with less than $50,000,000 in annual 
        sales.
    (b) Grants Authorized.--
            (1) In general.--The Secretary is authorized to award 
        grants to States to establish revolving loan funds.
            (2) Maximum amount.--The Secretary may not award a grant 
        under this section in an amount that exceeds $10,000,000.
            (3) Multiple grant awards.--A State may not receive more 
        than 1 grant under this section in any fiscal year.
    (c) Criteria for the Awarding of Grants.--
            (1) Matching funds.--The Secretary may not make a grant to 
        a State under this section unless the State agrees to provide 
        contributions in an amount equal to not less than 25 percent of 
        the Federal funds provided under the grant.
            (2) Administrative costs.--A State receiving a grant under 
        this section may only use such amount of the grant for the 
        costs of administering the revolving loan fund as the Secretary 
        shall provide in regulations.
            (3) Preference.--In awarding grants each year, the 
        Secretary shall give preference to States that have not 
        previously been awarded a grant under this section.
            (4) Application.--
                    (A) In general.--Each State seeking a grant under 
                this section shall submit to the Secretary an 
                application therefor in such form and in such manner as 
                the Secretary considers appropriate.
                    (B) Content.--Each application submitted under 
                subparagraph (A) shall contain the following:
                            (i) Evidence that the applicant can 
                        establish and administer a revolving loan fund.
                            (ii) The applicant's need for a grant under 
                        this section.
                            (iii) The impact that receipt of a grant 
                        under this section would have on the applicant.
    (d) Revolving Loan Funds.--
            (1) In general.--A State receiving a grant under this 
        section shall establish, maintain, and administer a revolving 
        loan fund in accordance with this subsection.
            (2) Deposits.--A revolving loan fund shall consist of the 
        following:
                    (A) Amounts from grants awarded under this section.
                    (B) All amounts held or received by the State 
                incident to the provision of loans described in 
                subsection (e), including all collections of principal 
                and interest.
            (3) Expenditures.--Amounts in the revolving loan fund shall 
        be available for the provision and administration of loans in 
        accordance with subsection (e).
            (4) Administration.--A State may enter into an agreement 
        with a Center to administer a revolving loan fund.
    (e) Loans.--
            (1) In general.--A State receiving a grant under this 
        section shall use the amount in the revolving loan fund to make 
        the following loans:
                    (A) Stage-1 loans.--A stage-1 loan means a loan 
                made to a small manufacturer in an amount not to exceed 
                $50,000, for new product development to conduct the 
                following:
                            (i) Patent research.
                            (ii) Market research.
                            (iii) Technical feasibility testing.
                            (iv) Competitive analysis.
                    (B) Stage-2 loans.--A stage-2 loan means a loan 
                made to a small manufacturer in an amount not to exceed 
                $100,000 to develop a prototype of and test a new 
                product.
            (2) Loan terms and conditions.--The following shall apply 
        with respect to loans provided under paragraph (1):
                    (A) Duration.--Except as provided in subparagraph 
                (B), loans shall be for a period not to exceed 10 
                years.
                    (B) Prepayment.--A recipient of a loan may prepay 
                such loan before the end of the duration of such loan 
                without penalty.
                    (C) Interest rate.--Loans shall bear interest at a 
                rate of 3.5 percent annually.
                    (D) Accrual of interest.--Loans shall accrue 
                interest during the entire duration of the loan.
                    (E) Payment of interest.--A State may not require a 
                recipient of a loan to make interest payments on such 
                loan during the first 3 years of such loan.
                    (F) Collateral.--No collateral or personal guaranty 
                shall be required for receipt of a loan.
                    (G) Secured interest in intellectual property.--
                Each loan shall be secured by an interest in any 
                intellectual property developed by the recipient of 
                such loan through the use of amounts from such loan.
                    (H) Development of business plans and budgets.--
                Each recipient of a loan shall develop, in cooperation 
                with a Center, a business plan and a budget for the use 
                of loan amounts.
                    (I) Preference for loan applicants that participate 
                in the manufacturing extension partnership program.--In 
                selecting small manufacturers to receive a loan, a 
                recipient of a grant under this section shall give 
                preference to small manufacturers that are participants 
                in the Manufacturing Extension Partnership program.
                    (J) Location of product development.--Each 
                recipient of a loan shall commit to developing and 
                manufacturing the product for which a loan is sought in 
                the State that provides the loan for the duration of 
                the loan if such product is developed during such 
                duration.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out the provisions of this 
section, $52,000,000 for each of fiscal years 2008 through 2014, of 
which--
            (1) $50,000,000 shall be for providing grants under this 
        section; and
            (2) $2,000,000 shall be for the costs of administering 
        grants awarded under this section.
Growth Opportunity Act of 2007 - Authorizes the Secretary of Commerce to award grants to states to establish revolving loan funds to provide loans to small manufacturers (less than $50 million in annual sales) for new product development. Limits grants to $10 million each and requires states to contribute at least 25% of the grant funds provided.
A bill to authorize the Secretary of Commerce to award grants to States to establish revolving loan funds to provide loans to small manufacturers to develop new products, and for other purposes.