I 

111TH CONGRESS 

2D SESSION H. R. 5991 

To establish small metalworking business financial assistance programs, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2010 

Mr. MURPHY of Connecticut (for himself and Mr. RYAN of Ohio) introduced 

the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Ways and Means, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To establish small metalworking business financial assistance 

programs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘American Metalworking Manufacturers Support Act’’. 

6 (b) FINDINGS.—Congress finds the following: 

7 (1) There are roughly 35,000 metalworking 

8 companies with approximately 2 million employees 


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1 throughout the country who manufacture critical 

2 products for the defense, aerospace, medical, auto3 motive, agriculture, and construction industries, 

4 among many others. 

5 (2) Uncertainty surrounding the timeliness of 

6 paid receivables, and a need for steady cash flow for 

7 day-to-day operations and investments creates chal8 lenges for small middle market manufactures who 

9 are a critical part of the industrial supply chain. 

10 (3) In the current financial environment, most 

11 lending institutions will not provide loans to metal12 working companies. 

13 (4) The U.S. Government should help foster an 

14 environment that encourages metalworking in Amer15 ica by supporting small middle market manufactur16 ers. 

17 (5) The Federal Government currently 

18 incentivizes larger businesses and private contractors 

19 to use small businesses and tax credits are impor20 tant criteria to foster growth among small middle 

21 market manufacturers. 


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1 TITLE I—SMALL METAL2 WORKING BUSINESS ASSIST3 ANCE PROGRAMS 

4 SEC. 101. DEFINITIONS. 

5 For purposes of this subtitle: 

6 (1) COST.—The term ‘‘cost’’ has the same 

7 meaning as is given the term ‘‘cost’’ in section 

8 502(5) of the Federal Credit Reform Act of 1990 (2 

9 U.S.C. 661a(5)). 

10 (2) SMALL METALWORKING BUSINESS.—The 

11 term ‘‘small metalworking business’’ means a small 

12 business concern, as defined under section 3(a) of 

13 the Small Business Act (15 U.S.C. 632(a)), whose 

14 primary purpose is the domestic manufacturing and 

15 production of parts, components, or assemblies by 

16 using metalworking and forming technologies, in17 cluding metal stamping, fabricating, slide forming, 

18 fine blanking, laser cutting, punching, deep drawing, 

19 swaging, roll forming, spinning, machining, grinding, 

20 rotary machining, cold heading, forging, casting, 

21 wire electrical discharge machining, conventional 

22 electrical discharge machining, and computer numer23 ical control machining. 

24 (3) GUARANTEE.—The term ‘‘guarantee’’ has 

25 the same meaning as is given the term ‘‘loan guarVerDate Mar 15 2010 20:13 Aug 03, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5991.IH H5991

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1 antee’’ in section 502(3) of the Federal Credit Re2 form Act of 1990 (2 U.S.C. 661a(3)). 

3 (4) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of the Treasury. 

5 SEC. 102. LOANS AUTHORIZATION. 

6 (a) LOANS AUTHORIZED.—Funding as may be nec7 essary, not to exceed $10,000,000,000 for costs under this 

8 section shall be available to the Secretary, without further 

9 appropriation or fiscal year limitation, for the costs of 

10 such program. All funds received by the Secretary in con11 nection with loans made pursuant to paragraph (b) shall 

12 be paid into the general fund of the Treasury for reduction 

13 of the public debt. 

14 (b) TERMS AND CONDITIONS OF LOANS.— 

15 (1) IN GENERAL.—A loan made pursuant to 

16 this section— 

17 (A) shall be for a maximum amount of 

18 $3,000,000; 

19 (B) shall be for a maximum period of 18 

20 months, after which the Secretary shall require 

21 any small metalworking business receiving a 

22 loan to repay the loan in full; and 

23 (C) shall not obligate the recipient of such 

24 loan to pay any interest. 


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1 (2) ADDITIONAL TERMS AND CONDITIONS.— 

2 The Secretary may establish additional terms and 

3 conditions with respect to loans made under this sec4 tion. 

5 (c) APPLICATION.—An eligible small metalworking 

6 business that seeks a loan under this section shall submit 

7 an application to the Secretary at such time, in such man8 ner, and containing such information as the Secretary may 

9 require. 

10 SEC. 103. SMALL METALWORKING BUSINESS STABILIZA11 TION PROGRAM. 

12 (a) DEFINITIONS.—In this section— 

13 (1) the term ‘‘Administrator’’ means the Ad14 ministrator of the Small Business Administration; 

15 (2) the term ‘‘qualifying small business loan’’ 

16 means a loan made under section 7(a) of the Small 

17 Business Act (15 U.S.C. 636(a)) to a small metal18 working business before the date of enactment of 

19 this Act; 

20 (3) the term ‘‘small metalworking business’’ 

21 means a small business concern, as defined under 

22 section 3(a) of the Small Business Act (15 U.S.C. 

23 632(a)), whose primary purpose is the domestic 

24 manufacturing and production of parts, components, 

25 or assemblies by using metalworking and forming 


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1 technologies, including metal stamping, fabricating, 

2 slide forming, fine blanking, laser cutting, punching, 

3 deep drawing, swaging, roll forming, spinning, ma4 chining, grinding, rotary machining, cold heading, 

5 forging, casting, wire electrical discharge machining, 

6 conventional electrical discharge machining, and 

7 computer numerical control machining; and 

8 (4) the term ‘‘stabilization loan’’ means a loan 

9 under the program established under subsection (b) 

10 made by the Administrator either in cooperation 

11 with a bank or other financial institution through an 

12 agreement to participate on a deferred (or guaran13 teed) basis or directly. 

14 (b) ESTABLISHMENT OF A LOAN PROGRAM.—Subject 

15 to the availability of appropriations, the Administrator 

16 shall carry out a program to provide stabilization loans 

17 to viable (as such term is defined pursuant to regulations 

18 prescribed by the Administrator) small metalworking busi19 nesses that have a qualifying small business loan and are 

20 experiencing immediate financial hardship. 

21 (c) TECHNICAL ASSISTANCE.—The Administrator 

22 shall establish a technical assistance program to assist a 

23 bank or other financial institution that has an agreement 

24 with the Administrator to provide stabilization loans. 


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1 (d) APPLICATION.—To be eligible for a stabilization 

2 loan, a small metalworking business shall submit to the 

3 Administrator an application at such time, in such man4 ner, and containing such information as the Administrator 

5 may require. 

6 (e) USE OF FUNDS.—A stabilization loan shall be 

7 used to make periodic payments of principal and interest, 

8 either in full or in part, on a qualifying small business 

9 loan for— 

10 (1) amounts payable during a period of time 

11 not to exceed 6 months; or 

12 (2) a period of time during which the total 

13 amount of such periodic payments does not exceed 

14 $50,000, 

15 whichever is less. 

16 (f) LOAN TERMS.—A stabilization loan shall— 

17 (1) carry a 100 percent guaranty; and 

18 (2) have interest fully subsidized for the period 

19 of repayment. 

20 (g) REPAYMENT.—Repayment of a stabilization loan 

21 shall— 

22 (1) be amortized over a period of time not to 

23 exceed 5 years; and 

24 (2) begin not later than 12 months after the 

25 end of the month or other period for which the last 


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1 periodic payment (as referred to in subsection (d)) 

2 is made. 

3 (h) COLLATERAL.—The Administrator may accept 

4 any available collateral, including subordinated liens, to 

5 secure a stabilization loan. 

6 (i) FEES.—The Administrator may not charge any 

7 processing fees, origination fees, application fees, points, 

8 brokerage fees, bonus points, prepayment penalties, or 

9 other fees for a stabilization loan. 

10 (j) SUNSET.—An application submitted under sub11 section (c) for a stabilization loan may not be accepted 

12 after December 31, 2010. 

13 TITLE II—REVENUE PROVISION 

14 SEC. 201. SMALL BUSINESS METALWORKING CREDIT. 

15 (a) IN GENERAL.—Subpart D of part IV of sub16 chapter A of chapter 1 of the Internal Revenue Code of 

17 1986 is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 45R. SMALL METALWORKING BUSINESS CREDIT. 

20 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

21 small metalworking business credit for any taxable year 

22 is an amount equal to 30 percent of the amounts paid 

23 or incurred for metal parts, components, or assemblies 

24 produced for the taxpayer under a contract between the 

25 taxpayer and an eligible small metalworking business. 


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1 ‘‘(b) ELIGIBLE SMALL METALWORKING BUSINESS.— 

2 For purposes of this section, the term ‘eligible small met3 alworking business’ means any person— 

4 ‘‘(1) who is unrelated to the taxpayer, 

5 ‘‘(2) who is engaged in the trade or business of 

6 metalworking in the United States, and 

7 ‘‘(3) who is a small business as defined under 

8 section 3(a) of the Small Business Act (15 U.S.C. 

9 632(a)). 

10 ‘‘(c) DEFINITION AND SPECIAL RULE.—For pur11 poses of this section— 

12 ‘‘(1) METALWORKING.—For purposes of this 

13 section, the term ‘metalworking’ means the produc14 tion of parts, components, or assemblies by using 

15 metalworking and forming technologies, including 

16 metal stamping, fabricating, slide forming, fine 

17 blanking, laser cutting, punching, deep drawing, 

18 swaging, roll forming, spinning, machining, grinding, 

19 rotary machining, cold heading, forging, casting, 

20 wire electrical discharge machining, conventional 

21 electrical discharge machining, and computer numer22 ical control machining. 

23 ‘‘(2) RELATED PERSON.—A person shall be 

24 treated as related to another person if they bear a 


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1 relationship to such other person described in sec2 tion 267(b) or 707(b). 

3 ‘‘(3) ELECTION NOT TO TAKE CREDIT.—No 

4 credit shall be determined under subsection (a) for 

5 any amount if the taxpayer elects not to have this 

6 section apply to such amount.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 38(b) of such Code is amended by 

9 striking ‘‘plus’’ at the end of paragraph (34), by 

10 striking the period at the end of paragraph (35) and 

11 inserting ‘‘, plus’’, and by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(36) the small metalworking business credit 

14 determined under section 45R(a).’’. 

15 (2) The table of sections for subpart D of part 

16 IV of subchapter A of chapter 1 of such Code is 

17 amended by adding at the end the following new 

18 item: 

‘‘Sec. 45R. Small metalworking business credit.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 

Æ 


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