II 

108TH CONGRESS 

1ST SESSION S. 1886

To amend the Small Business Act and the Small Business Act of 1958 

to establish the National Office for the Development of Small Manufacturers, to increase the level of assistance available for small manufacturers, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 18, 2003

Mr. DASCHLE (for Mr. KERRY) introduced the following bill; which was read 

twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL

To amend the Small Business Act and the Small Business 

Act of 1958 to establish the National Office for the 

Development of Small Manufacturers, to increase the 

level of assistance available for small manufacturers, 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; TABLE OF CONTENTS. 

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

5 ‘‘Manufacturing Assistance, Development, and Education 

6 in America Act’’ or the ‘‘MADE in America Act’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of small manufacturer. 

TITLE I—NATIONAL OFFICE FOR THE DEVELOPMENT OF SMALL 

MANUFACTURERS 

Sec. 101. Establishment of office. 

TITLE II—INVESTING IN THE FUTURE OF MANUFACTURING 

Sec. 201. Increased access to capital. 

Sec. 202. Loans and investments in small manufacturers. 

TITLE III—EXPORT ASSISTANCE FOR SMALL MANUFACTURERS 

Sec. 301. Small Business Foreign Patent Protection Grant Pilot Program.

3 SEC. 2. DEFINITION OF SMALL MANUFACTURER. 

4 (a) SMALL BUSINESS ACT.—Section 3(j) of the Small 

5 Business Act (15 U.S.C. 632(j)) is amended by striking 

6 ‘‘For the purposes of section 7(b)(2) of this Act, the term’’ 

7 and inserting ‘‘As used in this Act—

8 ‘‘(1) the term ‘small manufacturer’ means a 

9 small business concern (as defined in subsection 

10 (a))—

11 ‘‘(A) whose primary business is classified 

12 in sector 31, 32, or 33 of the North American 

13 Industrial Classification System; and 

14 ‘‘(B) whose production facilities are all lo15 cated in the United States; and 

16 ‘‘(2) the term’’. 
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1 (b) SMALL BUSINESS INVESTMENT ACT OF 1958.—

2 Section 103 of the Small Business Investment Act of 1958 

3 (15 U.S.C. 662) is amended—

4 (1) in paragraph (16), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (17), by striking the period at 

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(18) the term ‘small manufacturer’ means a 

10 small business concern (as defined in section 3(a) of 

11 the Small Business Act)—

12 ‘‘(A) whose primary business is classified 

13 in sector 31, 32, or 33 of the North American 

14 Industrial Classification System; and 

15 ‘‘(B) whose production facilities are all lo16 cated in the United States.’’. 

17 TITLE I—NATIONAL OFFICE FOR 

18 THE DEVELOPMENT OF 

19 SMALL MANUFACTURERS 

20 SEC. 101. ESTABLISHMENT OF OFFICE. 

21 (a) IN GENERAL.—The Small Business Act (15 

22 U.S.C. 631 et seq.) is amended—

23 (1) by redesignating section 36 as section 37; 

24 and 

25 (2) by inserting after section 35 the following: 
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1 ‘‘SEC. 36. NATIONAL OFFICE FOR DEVELOPMENT OF SMALL 

2 MANUFACTURERS. 

3 ‘‘(a) ESTABLISHMENT.—There is established in the 

4 Administration the National Office for the Development 

5 of Small Manufacturers (referred to in this section as the 

6 ‘Office’) to cultivate and develop small manufacturers 

7 through a variety of means. 

8 ‘‘(b) ASSOCIATE ADMINISTRATOR FOR SMALL MANU9 FACTURING.—

10 ‘‘(1) APPOINTMENT.—The Office shall be ad11 ministered by the Associate Administrator for Small 

12 Manufacturing (referred to in this section as the 

13 ‘Associate Administrator’), who shall be appointed 

14 under section 4(b)(1). 

15 ‘‘(2) RESPONSIBILITIES.—In administering the 

16 Office, the Associate Administrator, who shall be an 

17 appointee in the Senior Executive Service, shall—

18 ‘‘(A) oversee and coordinate the formula19 tion, execution, and promotion of policies and 

20 programs of the Administration that provide as21 sistance to small manufacturers, including the 

22 creation of the Manufacturing Corps; 

23 ‘‘(B) direct Federal agencies and depart24 ments to provide information regarding their 

25 manufacturing resources and programs, and to 
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1 take appropriate action to enhance assistance to 

2 small manufacturers; 

3 ‘‘(C) coordinate the activities, and delivery 

4 of such activities, of Federal agencies and de5 partments relating to manufacturing; 

6 ‘‘(D) coordinate the activities of Federal 

7 agencies with manufacturing activities of the 

8 States; and 

9 ‘‘(E) consult with and report to the Ad10 ministrator regarding the fulfillment of respon11 sibilities under this subsection. 

12 ‘‘(c) MANUFACTURING CORPS.—

13 ‘‘(1) ESTABLISHMENT.—The Administrator 

14 shall establish a program within the Office to be 

15 known as the Manufacturing Corps to focus on the 

16 education and training of the existing and potential 

17 workforce of small manufacturers. 

18 ‘‘(2) ADMINISTRATION.—The Manufacturing 

19 Corps shall be administered by the Associate Admin20 istrator. 

21 ‘‘(3) RESPONSIBILITIES.—The Manufacturing 

22 Corps shall address the pressing need for more 

23 skilled workers by promoting vocational, technical, 

24 and academic education relating to the manufac25 turing sector.
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1 ‘‘(4) CURRICULUM DEVELOPMENT.—

2 ‘‘(A) OUTREACH.—The Associate Adminis3 trator shall regularly seek input from small 

4 manufacturers regarding the human capital 

5 needs of the manufacturing industry. 

6 ‘‘(B) COOPERATION.—The input received 

7 under subparagraph (A) shall be used to de8 velop, and annually update, a detailed manufac9 turing training curriculum for each State 

10 through the cooperative effort of small manu11 facturers and educational institutions. 

12 ‘‘(d) MANUFACTURING TRAINING BLOCK GRANTS.—

13 ‘‘(1) GRANTS AUTHORIZED.—The Adminis14 trator, in consultation with the Associate Adminis15 trator, shall award block grants to States, which 

16 shall allocate grant funds to individuals and eligible 

17 entities to develop and implement manufacturing 

18 training programs. 

19 ‘‘(2) FUNDING FORMULA.—

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (C), the amount of a formula grant re22 ceived by a State under this subsection shall be 

23 equal to an amount determined in accordance 

24 with the following formula: 
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1 ‘‘(i) The annual amount made avail2 able under subsection (i) for the Manufac3 turer Corps Program shall be divided on a 

4 pro rata basis, based on the percentage of 

5 the population of each State, as compared 

6 to the population of the United States. 

7 ‘‘(ii) If the pro rata amount calculated 

8 under clause (i) for any State is less than 

9 the minimum funding level under subpara10 graph (C), the Administration shall deter11 mine the aggregate amount necessary to 

12 achieve that minimum funding level for 

13 each such State. 

14 ‘‘(iii) The aggregate amount cal15 culated under clause (ii) shall be deducted 

16 from the amount calculated under clause 

17 (i) for States eligible to receive more than 

18 the minimum funding level. The deductions 

19 shall be made on a pro rata basis, based 

20 on the population of each such State, as 

21 compared to the total population of all 

22 such States. 

23 ‘‘(iv) The aggregate amount deducted 

24 under clause (iii) shall be added to the 

25 grants of those States that are not eligible 
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1 to receive more than the minimum funding 

2 level in order to achieve the minimum 

3 funding level for each such State, except 

4 that the eligible amount of a grant to any 

5 State shall not be reduced to an amount 

6 below the minimum funding level. 

7 ‘‘(B) GRANT DETERMINATION.—The 

8 amount of a grant that a State is eligible to 

9 apply for under this subsection shall be the 

10 amount determined under subparagraph (A), 

11 subject to any modifications required under 

12 subparagraph (C), and shall be based on the 

13 amount available for the fiscal year in which 

14 performance of the grant commences, but not 

15 including amounts distributed in accordance 

16 with subparagraph (D). The amount of a grant 

17 received by a State under any provision of this 

18 subparagraph shall not exceed the amount of 

19 matching funds from sources other than the 

20 Federal Government, as required under para21 graph (7). 

22 ‘‘(C) MINIMUM FUNDING LEVEL.—Each 

23 State shall receive a block grant under this sub24 section in an amount not less than—
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1 ‘‘(i) $200,000 for any fiscal year in 

2 which the total amount appropriated for 

3 grants under this subsection is not more 

4 than $25,000,000; 

5 ‘‘(ii) $300,000 for any fiscal year in 

6 which the total amount appropriated for 

7 grants under this subsection is more than 

8 $25,000,000, but not more than 

9 $50,000,000; 

10 ‘‘(iii) $400,000 for any fiscal year in 

11 which the total amount appropriated for 

12 grants under this subsection is more than 

13 $50,000,000, but not more than 

14 $75,000,000; and 

15 ‘‘(iv) $500,000 for any fiscal year in 

16 which the total amount appropriated for 

17 grants under this subsection is more than 

18 $75,000,000. 

19 ‘‘(D) DISTRIBUTIONS.—Subject to sub20 paragraph (C), if any State does not apply for, 

21 or use, its full funding eligibility for a fiscal 

22 year, the Administration shall distribute the re23 maining funds as supplemental grants to any 

24 State, as the Administration determines, in its 

25 discretion, to be appropriate. 
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1 ‘‘(3) ELIGIBLE ENTITIES.—Secondary, voca2 tional, and postsecondary schools that receive public 

3 funding, manufacturing extension partnerships, 

4 small business development centers, women’s busi5 ness centers, and similar nonprofit organizations 

6 shall be eligible to receive grant funds from States 

7 under this subsection. 

8 ‘‘(4) USE OF FUNDS.—

9 ‘‘(A) IN GENERAL.—Grants awarded under 

10 this section may only be used to develop and 

11 implement vocational, technical, or academic 

12 training programs to educate and enhance the 

13 skills of—

14 ‘‘(i) individuals working in the field of 

15 manufacturing; and 

16 ‘‘(ii) students who are interested in 

17 working in the field of manufacturing. 

18 ‘‘(B) SECONDARY SCHOOLS.—Secondary 

19 schools may use funds received under this sub20 section to develop and conduct vocational and 

21 technology training to high school students to 

22 prepare students who are not planning to at23 tend college immediately after graduation for 

24 employment in the field of manufacturing. 

25 Schools are encouraged to partner with small
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1 manufacturers to address their skilled worker 

2 needs and to provide employment opportunities 

3 for students after graduation. 

4 ‘‘(C) CONTINUING EDUCATION.—Manufac5 turing extension partnerships, small business 

6 development centers, women’s business centers, 

7 and similar nonprofit organizations may use 

8 funds received under this subsection to assist 

9 existing manufacturing workers to improve 

10 their skills and advance their technical abilities. 

11 ‘‘(5) STUDENT LOAN REPAYMENT PROGRAM.—

12 ‘‘(A) IN GENERAL.—States may use grant 

13 funds received under this subsection to encour14 age recent college graduates to work for a small 

15 manufacturer by repaying a portion of their 

16 student loans during the period of such employ17 ment. 

18 ‘‘(B) MAXIMUM AMOUNTS.—A State may 

19 make payments of not more than $300 per 

20 month toward the student loan principal and in21 terest of any college graduate who has com22 mitted to work for a small manufacturer for a 

23 4-year period beginning not sooner than the 

24 date on which the graduate submits an applica25 tion under paragraph (6)(B). Aggregate pay-
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1 ments to any individual under this paragraph 

2 may not exceed $25,000. 

3 ‘‘(C) RENEWAL.—After the initial 4-year 

4 term established under subparagraph (B) has 

5 been completed, the State may annually renew 

6 its commitment under subparagraph (B) for 

7 successive 1-year periods if the college graduate 

8 commits to continue working for the small man9 ufacturer. 

10 ‘‘(D) MAXIMUM COMPENSATION.—Individ11 uals whose gross annual compensation (includ12 ing bonuses) from the small manufacturer is 

13 greater than $60,000 are ineligible to partici14 pate in the student loan repayment program 

15 authorized by this paragraph. 

16 ‘‘(6) APPLICATION.—

17 ‘‘(A) INSTITUTIONAL APPLICANTS.—Any 

18 eligible entity desiring funding under this sub19 section shall submit a proposal to the appro20 priate representative of the State in which it is 

21 located. 

22 ‘‘(B) INDIVIDUAL APPLICANTS.—Any col23 lege graduate desiring to participate in the stu24 dent loan repayment program authorized under 

25 paragraph (5) shall submit an application to 
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1 the appropriate representative of the State in 

2 which the graduate resides in such form as such 

3 representative may reasonably require. 

4 ‘‘(C) CRITERIA.—States may determine 

5 which applicants receive funding under this 

6 subsection based upon specific needs and avail7 able resources. 

8 ‘‘(7) MATCHING REQUIREMENT.—

9 ‘‘(A) YEARS 1 AND 2.—During each of the 

10 first and second years of the grant program es11 tablished under this subsection, each State re12 ceiving a block grant under this subsection shall 

13 provide $1 in non-Federal funding for each $3 

14 received in Federal funding under this section. 

15 ‘‘(B) YEARS 3 AND 4.—During each of the 

16 third and fourth years of the grant program es17 tablished under this subsection, each State re18 ceiving a block grant under this subsection shall 

19 provide $1 in non-Federal funding for each $2 

20 received in Federal funding under this section. 

21 ‘‘(C) YEARS 5 THROUGH 10.—During each 

22 of the fifth through tenth years of the grant 

23 program established under this subsection, each 

24 State receiving a block grant under this sub25 section shall provide $1 in non-Federal funding 
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1 for each $1 received in Federal funding under 

2 this section. 

3 ‘‘(8) STATE REPORTING REQUIREMENT.—Each 

4 State receiving a grant under this subsection shall 

5 provide sufficient information to the Administration 

6 about the distribution of grant funds to complete the 

7 report required under subsection (e). 

8 ‘‘(9) DEFINED TERM.—As used in this sub9 section, the term ‘State’ has the meaning given the 

10 term in section 34(a). 

11 ‘‘(e) BUSINESSLINC MANUFACTURING.—

12 ‘‘(1) IN GENERAL.—In accordance with this 

13 subsection, the Administrator may make grants to 

14 and enter into cooperative agreements with any coa15 lition of private entities, public entities, or any com16 bination of private and public entities—

17 ‘‘(A) to expand business-to-business rela18 tionships between large and small manufactur19 ers; and 

20 ‘‘(B) to provide large and small manufac21 turers, directly or indirectly, with online infor22 mation and a database of companies that are 

23 interested in mentor-protege programs or com24 munity-based, statewide, or local business devel25 opment programs. 
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1 ‘‘(2) MATCHING REQUIREMENT.—Subject to 

2 subparagraph (B), the Administrator may make a 

3 grant to a coalition under paragraph (1) only if the 

4 coalition provides for activities described in para5 graph (1)(A) or (1)(B) an amount, either in kind or 

6 in cash, equal to the grant amount. 

7 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

8 There are authorized to be appropriated to carry out 

9 this subsection $2,000,000 for each of the fiscal 

10 years 2004 through 2008, which shall remain avail11 able until expended. 

12 ‘‘(f) WEBSITE FOR SMALL MANUFACTURERS.—The 

13 Associate Administrator shall establish a website that con14 tains information for small manufacturers regarding—

15 ‘‘(1) entrepreneurial development assistance; 

16 ‘‘(2) access to capital; 

17 ‘‘(3) specific outreach programs; 

18 ‘‘(4) contracting opportunities; and 

19 ‘‘(5) research and development projects. 

20 ‘‘(g) MENTOR-PROTEGE PROGRAM.—The Associate 

21 Administrator shall establish a mentor-protege program 

22 that pairs small manufacturers with larger, more experi23 enced manufacturers to provide guidance regarding—

24 ‘‘(1) management practices; 

25 ‘‘(2) domestic and foreign marketing;
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1 ‘‘(3) efficiency improvements; and 

2 ‘‘(4) product development. 

3 ‘‘(h) REPORT.—

4 ‘‘(1) IN GENERAL.—The Administrator, in con5 sultation with the Associate Administrator, shall 

6 submit an annual report on the implementation of 

7 this section to the Committee on Small Business and 

8 Entrepreneurship of the Senate and the Committee 

9 on Small Business of the House of Representatives. 

10 ‘‘(2) CONTENTS.—Each report submitted under 

11 paragraph (1) shall include, for the reporting pe12 riod—

13 ‘‘(A) the number of persons assisted under 

14 this section, categorized by type of assistance 

15 received; 

16 ‘‘(B) the number of persons described 

17 under subparagraph (A) who had previously re18 ceived assistance under this section; 

19 ‘‘(C) the number of persons described in 

20 subparagraph (A) who are working in the man21 ufacturing sector; 

22 ‘‘(D) the number and amount of grants 

23 awarded under this section, categorized by type 

24 of recipient; 
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1 ‘‘(E) the number of small manufacturers 

2 receiving grant funds under this section; and 

3 ‘‘(F) the net increase in manufacturing 

4 jobs available at the small manufacturers de5 scribed in subparagraph (E). 

6 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated $275,000,000 for each 

8 of the fiscal years 2005 through 2014 to carry out sub9 sections (c) and (d).’’. 

10 (b) CONFORMING AMENDMENTS.—Section 4(b)(1) of 

11 the Small Business Act (15 U.S.C. 633(b)(1)) is amend12 ed—

13 (1) by striking ‘‘five Associate Administrators’’ 

14 and inserting ‘‘6 Associate Administrators’’; and 

15 (2) by adding at the end the following: ‘‘One of 

16 the Associate Administrators shall be the Associate 

17 Administrator for Small Manufacturing, who shall 

18 administer the National Office for the Development 

19 of Small Manufacturers established under section 

20 36.’’. 

21 TITLE II—INVESTING IN THE 

22 FUTURE OF MANUFACTURING

23 SEC. 201. INCREASED ACCESS TO CAPITAL. 

24 (a) WORKING CAPITAL LOANS.—Section 7(a) of the 

25 Small Business Act (15 U.S.C. 636(a)) is amended—
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1 (1) in paragraph (3)—

2 (A) by inserting ‘‘TOTAL AMOUNT OF

3 LOANS.—’’ before ‘‘No loan’’; 

4 (B) by amending subparagraph (A) to read 

5 as follows: 

6 ‘‘(A) if the total amount outstanding and 

7 committed (by participation or otherwise) to the 

8 borrower under section 7(a) would exceed 

9 $1,000,000 (or if the gross loan amount would 

10 exceed $2,000,000), except as provided in sub11 paragraphs (B) and (D) and paragraph (14), 

12 plus an amount not to exceed the maximum 

13 amount of a development company financing 

14 under title V of the Small Business Investment 

15 Act of 1958 (15 U.S.C. 695 et seq.), and the 

16 Administration shall report to Congress in its 

17 annual budget request and performance plan on 

18 the number of small business concerns that 

19 have financings under this subsection and 

20 under title V of the Small Business Investment 

21 Act of 1958, and the total amount and general 

22 performance of such financings;’’; 

23 (C) in subparagraph (B)—

24 (i) by striking ‘‘$1,250,000’’ and in25 serting ‘‘$1,300,000’’; and 
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1 (ii) by striking ‘‘and’’ at the end; 

2 (D) in subparagraph (C), by striking the 

3 period at the end and inserting ‘‘; and’’; and 

4 (E) by adding at the end the following: 

5 ‘‘(D) to a small manufacturer if the total 

6 amount outstanding and committed to the bor7 rower from the business loan and investment 

8 fund established by this Act would exceed 

9 $2,000,000 (or if the gross loan amount would 

10 exceed $4,000,000).’’; and 

11 (2) in paragraph (14), by adding at the end the 

12 following: 

13 ‘‘(D) The total amount of financings under this 

14 paragraph that are outstanding and committed (by 

15 participation or otherwise) to the borrower from the 

16 business loan and investment fund established under 

17 this Act may not exceed $1,300,000 and the gross 

18 loan amount under this paragraph may not exceed 

19 $2,600,000.’’. 

20 (b) DISASTER LOANS.—Section 7(b)(3) of the Small 

21 Business Act (15 U.S.C. 636(b)) is amended by inserting 

22 after subparagraph (F) the following: 

23 ‘‘(G) LIMITATION ON SALES OF LOANS.—The 

24 Administration may not sell a loan under this sub25 section as part of an asset sale. 
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1 ‘‘(H) SMALL MANUFACTURERS.—

2 ‘‘(i) MAXIMUM LOAN AMOUNT.—Notwith3 standing subparagraph (E), the Administration 

4 may make a disaster loan to a small manufac5 turer under this paragraph, either directly or in 

6 cooperation with banks or other lending institu7 tions through agreements to participate on an 

8 immediate or deferred basis, in an amount 

9 greater than $1,500,000, if the total amount 

10 outstanding and committed to the borrower 

11 does not exceed $5,000,000. 

12 ‘‘(ii) REFINANCING DISASTER LOANS.—

13 Any loan made to a small manufacturer under 

14 this subparagraph that was outstanding on the 

15 date of the disaster may be refinanced by a 

16 small manufacturer that is also eligible to re17 ceive a loan under this subsection. The refi18 nanced amount shall be considered to be part of 

19 the new loan for purposes of this subsection 

20 and shall be in addition to any other loan eligi21 bility for that small manufacturer under this 

22 Act and the Small Business Investment Act of 

23 1958. With respect to a refinancing under this 

24 clause, payments of principal shall be deferred,
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1 and interest shall not accrue during the 6-

2 month period following the date of refinancing. 

3 ‘‘(iii) REFINANCING BUSINESS DEBT.—

4 ‘‘(I) IN GENERAL.—Any business debt 

5 of a small manufacturer that was out6 standing on the date of the disaster may 

7 be refinanced by the small manufacturer if 

8 it is also eligible to receive a loan under 

9 this subsection. With respect to a refi10 nancing under this clause, payments of 

11 principal shall be deferred, and interest 

12 shall not accrue during the 6-month period 

13 following the date of refinancing. 

14 ‘‘(II) RESUMPTION OF PAYMENTS.—

15 At the end of the 6-month period described 

16 in subclause (I), the payment of periodic 

17 installments of principal and interest shall 

18 be required with respect to such loan, in 

19 the same manner and subject to the same 

20 terms and conditions as would otherwise be 

21 applicable to any other loan made under 

22 this subsection. 

23 ‘‘(iv) AUTHORITY TO INCREASE OR WAIVE

24 SIZE STANDARDS AND SIZE REGULATIONS.—
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1 ‘‘(I) IN GENERAL.—At the discretion 

2 of the Administrator, the Administrator 

3 may increase or waive otherwise applicable 

4 size standards or size regulations with re5 spect to businesses applying for disaster 

6 loans under this subparagraph. 

7 ‘‘(II) EXEMPTION FROM ADMINISTRA8 TIVE PROCEDURES.—The provisions of 

9 subchapter II of chapter 5, of title 5, 

10 United States Code, shall not apply to any 

11 increase or waiver by the Administrator 

12 under subclause (I).’’. 

13 (c) MICROLOANS.—Section 7(m) of the Small Busi14 ness Act (15 U.S.C. 636(m)) is amended—

15 (1) in paragraph (1)—

16 (A) in subparagraph (A)—

17 (i) in clause (iii), by striking ‘‘and’’ at 

18 the end; 

19 (ii) in clause (iv), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

21 (iii) by adding at the end the fol22 lowing: 

23 ‘‘(v) to assist small manufacturers.’’; and 
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1 (B) in subparagraph (B)(iii), by inserting 

2 ‘‘(or $50,000 if the borrower is a small manu3 facturer)’’ after ‘‘$35,000’’; and 

4 (2) in paragraph (3)(E)—

5 (A) by striking ‘‘In no case shall an inter6 mediary’’ and inserting ‘‘An intermediary may 

7 not’’; and 

8 (B) by inserting before the period at the 

9 end the following: ‘‘, unless the borrower is a 

10 small manufacturer. An intermediary may not 

11 make a loan to a small manufacturer under this 

12 section of more than $50,000, or have out13 standing or committed to any small manufac14 turer more than $50,000’’. 

15 SEC. 202. LOANS AND INVESTMENTS IN SMALL MANUFAC16 TURERS. 

17 (a) MANUFACTURING LOANS.—

18 (1) JOB CREATION OR RETENTION STAND19 ARDS.—Section 501 of the Small Business Invest20 ment Act of 1958 (15 U.S.C. 695) is amended—

21 (A) in subsection (d)(2), by inserting ‘‘in22 creasing the productive capacity of small manu23 facturers,’’ after ‘‘area’’; and 

24 (B) by striking the undesignated para25 graph at the end and inserting the following: 
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1 ‘‘(e) JOB CREATION OR RETENTION.—A project 

2 being funded by the debenture is deemed to satisfy the 

3 job creation or retention requirement under subsection 

4 (d)(1) if the project creates or retains—

5 ‘‘(1) 1 job opportunity for every $50,000 guar6 anteed by the Administration; or 

7 ‘‘(2) in the case of a manufacturing project, 1 

8 job opportunity for every $100,000 guaranteed by 

9 the Administration.’’. 

10 (2) MAXIMUM AMOUNT.—Section 502(2) of the 

11 Small Business Investment Act of 1958 (15 U.S.C. 

12 696(2)) is amended to read as follows: 

13 ‘‘(2) MAXIMUM AMOUNT.—Loans made by the 

14 Administration under this section shall be limited 

15 to—

16 ‘‘(A) $1,000,000 for each small business 

17 concern if the loan proceeds will not be directed 

18 toward a goal or project described in subpara19 graph (B) or (C); 

20 ‘‘(B) $1,300,000 for each small business 

21 concern if the loan proceeds will be directed to22 ward 1 or more of the public policy goals de23 scribed under section 501(d)(3); and 
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1 ‘‘(C) $4,000,000 for each small business 

2 concern if the loan proceeds will be directed to3 ward manufacturing projects.’’. 

4 (3) RULE OF CONSTRUCTION.—Section 502 of 

5 the Small Business Investment Act of 1958 (15 

6 U.S.C. 696) is amended by adding at the end the 

7 following: 

8 ‘‘(7) RULE OF CONSTRUCTION.—A loan under 

9 this section shall not be construed to be limited by 

10 any loan guaranteed by the Administration under 

11 subsection (a) or (b) of section 7 of the Small Busi12 ness Act (15 U.S.C. 636(a) and (b)).’’. 

13 (b) SMALL BUSINESS INVESTMENT COMPANIES.—

14 Section 303(b)(4) of the Small Business Investment Act 

15 of 1958 (15 U.S.C. 683(b)(4)) is amended—

16 (1) in subparagraph (A), by striking ‘‘(as deter17 mined by the Administrator)’’ and all that follows 

18 and inserting ‘‘may not exceed $115,000,000.’’; and 

19 (2) by amending subparagraph (B) to read as 

20 follows: 

21 ‘‘(B) EXCEPTIONS.—

22 ‘‘(i) MAJORITY OF FINANCINGS IN

23 SMALL MANUFACTURERS.—If the licensee 

24 certifies in writing that not less than 50 

25 percent of the aggregate dollar amount of
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1 its financings are to small manufactur2 ers—

3 ‘‘(I) the maximum amount of 

4 outstanding leverage issued to any 1 

5 company shall be $150,000,000; and 

6 ‘‘(II) the maximum amount of 

7 outstanding leverage issued to compa8 nies that are under common control 

9 shall be $185,000,000. 

10 ‘‘(ii) COMPANIES UNDER COMMON

11 CONTROL.—The Administrator may, on a 

12 case-by-case basis— 

13 ‘‘(I) approve an amount of lever14 age that exceeds the amount described 

15 in clause (i) and subparagraph (A) for 

16 companies under common control; and 

17 ‘‘(II) impose such additional 

18 terms and conditions as the Adminis19 trator determines to be appropriate to 

20 minimize the risk of loss to the Ad21 ministration in the event of default.’’. 

22 (c) NEW MARKET VENTURE CAPITAL PROGRAM.—

23 (1) PURPOSES.—Section 352 of the Small Busi24 ness Investment Act (15 U.S.C. 689a) is amended—
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1 (A) in paragraph (1), by inserting ‘‘and 

2 small manufacturers’’ after ‘‘enterprises’’; and 

3 (B) in paragraph (2), by inserting ‘‘and 

4 small manufacturers’’ after ‘‘enterprises’’. 

5 (2) MAXIMUM GUARANTEE FOR SMALL MANU6 FACTURERS.—Section 355(d)(1) of the Small Busi7 ness Investment Act (15 U.S.C. 689d(d)(1)) is 

8 amended—

9 (A) by striking ‘‘does not exceed 150 per10 cent’’ and inserting ‘‘does not exceed—

11 ‘‘(A) 150 percent’’; and 

12 (B) by striking the period at the end and 

13 inserting ‘‘; and 

14 ‘‘(B) 200 percent of the private capital of 

15 the company, if the New Markets Venture Cap16 ital company certifies in writing that not less 

17 than 50 percent of its investments are in small 

18 manufacturers.’’. 

19 (d) AUTHORIZATION OF ADDITIONAL APPROPRIA20 TIONS.—Section 368 of the Small Business Investment 

21 Act of 1958 (15 U.S.C. 689q) is amended—

22 (1) by redesignating subsection (b) as sub23 section (c); and 

24 (2) by inserting after subsection (a) the fol25 lowing: 
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1 ‘‘(b) AUTHORIZATION OF ADDITIONAL APPROPRIA2 TIONS.—In addition to the authorizations under sub3 section (a), there are authorized to be appropriated for 

4 each of fiscal years 2005 and 2006, to remain available 

5 until expended, the following sums: 

6 ‘‘(1) Such subsidy budget authority as may be 

7 necessary to guarantee $75,000,000 of debentures 

8 under this part. 

9 ‘‘(2) $15,000,000 to make grants under this 

10 part.’’. 

11 TITLE III—EXPORT ASSISTANCE 

12 FOR SMALL MANUFACTURERS 

13 SEC. 301. SMALL BUSINESS FOREIGN PATENT PROTECTION 

14 GRANT PILOT PROGRAM. 

15 Section 9 of the Small Business Act (15 U.S.C. 638) 

16 is amended by adding at the end the following: 

17 ‘‘(x) SMALL BUSINESS FOREIGN PATENT PROTEC18 TION GRANT PILOT PROGRAM.—

19 ‘‘(1) GRANTS AUTHORIZED.—The Adminis20 trator shall make grants from the Fund established 

21 under paragraph (5) for the purpose of assisting 

22 small business concerns in seeking foreign patent 

23 protection in accordance with this subsection.

24 ‘‘(2) NUMBER AND AMOUNT OF GRANTS.—
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1 ‘‘(A) MAXIMUM AMOUNT.—The amount of 

2 a grant made to any small business concern 

3 under this subsection may not exceed $25,000, 

4 and no awardee may receive more than 1 grant 

5 under this subsection. 

6 ‘‘(B) RESERVED AMOUNTS.—

‘‘(i) IN GENERAL.—Not less than 1 7 ⁄2

8 of all amounts awarded under this section 

9 shall be reserved for recipients of awards 

10 under the Small Business Innovation Re11 search Program or the Small Business 

12 Technology Transfer Program. 

13 ‘‘(ii) EXCEPTION.—Any amount re14 served for grants under clause (i) for any 

15 fiscal year that has not been obligated by 

16 July 1st of such fiscal year, may be used 

17 for grants under this subsection to any 

18 small business concern. 

19 ‘‘(3) GRANT PURPOSES.—Grant amounts 

20 awarded under this subsection shall be used by 

21 grantees to underwrite costs associated with initial 

22 foreign patent applications for technologies or prod23 ucts developed by small business concerns, and for 

24 which an application for United States patent pro25 tection has already been filed. 
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1 ‘‘(4) CONSIDERATIONS.—In awarding grants 

2 under this subsection, the Director of the Office of 

3 Technology shall consider—

4 ‘‘(A) the size and financial need of the ap5 plicant; 

6 ‘‘(B) the potential foreign market for the 

7 technology; 

8 ‘‘(C) the timeframes for filing foreign pat9 ent applications; and 

10 ‘‘(D) such other factors as the Adminis11 trator deems relevant. 

12 ‘‘(5) ESTABLISHMENT OF REVOLVING FUND.—

13 There is established in the Treasury of the United 

14 States a revolving fund, which shall be—

15 ‘‘(A) known as the ‘Small Business For16 eign Patent Protection Grant Fund’ (referred 

17 to in this subsection as the ‘Fund’);

18 ‘‘(B) administered by the Office of Tech19 nology of the Administration, in consultation 

20 with the National Office for Development of 

21 Small Manufacturers; and 

22 ‘‘(C) used solely to fund grants under this 

23 subsection and to pay the costs to the Adminis24 tration of administering those grants. 

25 ‘‘(6) ROYALTY FEES.—
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1 ‘‘(A) IN GENERAL.—Each recipient of a 

2 grant under this subsection shall pay a fee to 

3 the Administration, to be deposited into the 

4 Fund, based on the export sales receipts or li5 censing fees, if any, from the product or tech6 nology that is the subject of the foreign patent 

7 petition. 

8 ‘‘(B) ANNUAL INSTALLMENTS BASED ON

9 RECEIPTS.—The fee required under subpara10 graph (A)—

11 ‘‘(i) shall be paid to the Administra12 tion in annual installments, based on the 

13 export sales receipts or licensing fees de14 scribed in subparagraph (A) that are col15 lected by the grant recipient in that cal16 endar year; 

17 ‘‘(ii) shall not be required to be paid 

18 in any calendar year in which no export 

19 sales receipts or licensing fees described in 

20 subparagraph (A) are collected by the 

21 grant recipient; and 

22 ‘‘(iii) shall not exceed, in total, the 

23 lesser of—
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1 ‘‘(I) 5 percent of the total export 

2 sales receipts and licensing fees re3 ferred to in subparagraph (A); or 

4 ‘‘(II) 4 times the amount of the 

5 grant received. 

6 ‘‘(7) ADMINISTRATIVE PROVISIONS.—Not later 

7 than 180 days after the date of enactment of this 

8 subsection, the Administrator shall—

9 ‘‘(A) issue such regulations as are nec10 essary to carry out this subsection; and 

11 ‘‘(B) establish appropriate application and 

12 other administrative procedures, as the Admin13 istrator deems necessary. 

14 ‘‘(8) REPORT.—The Administrator shall, not 

15 later than January 31, 2008, submit a report to 

16 Congress on the grants authorized by this sub17 section, which report shall include, categorized by 

18 year and total—

19 ‘‘(A) the number of grant recipients under 

20 this subsection since the date of enactment of 

21 this subsection; 

22 ‘‘(B) the number and amount of sales or li23 censing fees of such grant recipients that have 

24 made foreign sales (or granted licenses to make 
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1 foreign sales) and a brief description of each 

2 technology or product; 

3 ‘‘(C) the number of technologies or prod4 ucts developed under the Small Business Inno5 vation Research Program or the Small Business 

6 Technology Transfer Program, and the 

7 amounts of such sales (or licenses); 

8 ‘‘(D) the total amount of fees paid into the 

9 Fund by recipients of grants under this sub10 section in accordance with paragraph (6); 

11 ‘‘(E) recommendations for any adjustment 

12 in the percentages specified in paragraph 

13 (6)(B)(iii)(I) or the amount specified in para14 graph (6)(B)(iii)(II) necessary to reduce to zero 

15 the cost to the Administration of making grants 

16 under this subsection; 

17 ‘‘(F) any recommendations regarding the 

18 grant amount; and 

19 ‘‘(G) any recommendations of the Adminis20 trator regarding improvements to the programs, 

21 whether authorization for grants under this 

22 subsection should be extended, and any nec23 essary legislation related to such an extension. 

24 ‘‘(9) STAFFING.—The Administrator shall en25 sure that there are sufficient staff in the Office of 
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1 Technology, including not fewer than 2 full-time em2 ployees, to carry out the grant program established 

3 under this subsection. 

4 ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—

5 There are authorized to be appropriated to the 

6 Fund, to remain available until expended— 

7 ‘‘(A) $2,500,000 for fiscal year 2005; 

8 ‘‘(B) $5,000,000 for fiscal year 2006; 

9 ‘‘(C) $7,500,000 for fiscal year 2007; and 

10 ‘‘(D) $10,000,000 for each of fiscal years 

11 2008 and 2009.’’.

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