Investing in Rural Manufacturing Act

To amend the Small Business Act to establish a rural manufacturing forgivable loan program, and for other purposes. 1. Short title This Act may be cited as the Investing in Rural Manufacturing Act 2. Rural manufacturing loans (a) In general Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (1) in paragraph (2)— (A) in subparagraph (A), by striking and (F) (F), and (G) (B) by adding at the end the following new subparagraph: (G) Participation in rural manufacturing loans In an agreement to participate in a loan on a deferred basis under paragraph (38), the participation by the Administration shall be 100 percent. ; and (2) by adding at the end the following new paragraph: (38) Rural manufacturing loans (A) In general The Administrator may guarantee a loan made under this paragraph to a covered applicant for the purpose of paying any eligible costs associated with the development of a business concern that manufactures goods essential to critical infrastructure sectors in rural areas. (B) Application A covered applicant shall submit an application for a loan under this paragraph which shall include a comprehensive business plan that includes a goal for the resulting number of jobs to be created at the site that will be developed or expanded with the proceeds of such loan. (C) Loan forgiveness A covered applicant shall be eligible for forgiveness of any indebtedness on a loan made under this paragraph as follows: (i) If the covered applicant has met 75 percent or more of the job creation goals of the comprehensive business plan described in subparagraph (B) not later than 5 years after the date of origination of the loan. (ii) If the Administrator makes a determination that the covered applicant only used loan proceeds for eligible costs, the covered applicant shall receive loan forgiveness in an amount— (I) less than or equal to an amount that is 50 percent of the total financing amount specified by the covered applicant; and (II) less than or equal to maximum amount allowable under paragraph (3)(A). (D) Identification of additional critical infrastructure sectors (i) Study Not later than 180 days after the date of enactment of this paragraph, the Administrator shall complete a study to identify any additional sectors to be included in the definition of the term critical infrastructure sector (ii) Provision of loans prior to completion of study The Administrator may guarantee a loan made under this paragraph before the completion of the study required under clause (i). (iii) Additional critical infrastructure sectors The Administrator may, at any time, take such actions as are necessary to identify additional sectors to be included in the definition of the term critical infrastructure sector (E) Definitions In this paragraph: (i) Covered applicant The term covered applicant (I) has a site located in rural area industrial park, manufactures goods that are essential to critical infrastructure sectors at such site, and intends to expand such site for purposes of employing a larger workforce at such site; or (II) is developing a site located in a rural area industrial park to manufacture goods that are essential to critical infrastructure sectors at such site. (ii) Critical infrastructure sector The term critical infrastructure sector (I) each of the 16 critical infrastructure sectors designated in Presidential Policy Directive 21, titled Critical Infrastructure Security and Resilience (II) any additional sectors identified pursuant to section 9002 of the National Defense Authorization Act for Fiscal Year 2021 ( 6 U.S.C. 652a (III) any additional sectors identified by the Administrator pursuant to subparagraph (D). (iii) Eligible costs The term eligible costs (I) payroll, construction, permitting, and other capital costs associated with— (aa) the development of a site located in a rural area industrial park for a business that manufactures goods that are essential to critical infrastructure sectors at such site; and (bb) the expansion of such a site for purposes of employing a larger workforce at such site; and (II) any other costs the Administrator determines to be appropriate. . (b) Authorization of appropriations There is authorized to be appropriated to the Administrator of the Small Business Administration $2,000,000,000, which shall be authorized to remain available until expended, to carry out paragraph (38) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (c) Rescission Of the unobligated balances of amounts made available under the heading Small Business Administration—Business Loans Program Account, CARES Act 15 U.S.C. 636(a)

Summary: Investing in Rural Manufacturing Act This bill authorizes the Small Business Administration to make loans for certain costs to businesses that manufacture goods essential to critical infrastructure sectors in rural areas. Businesses that meet at least 75% of their job creation goals under such loans may receive partial loan forgiveness.