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 Busi-
ness, and in addition to the Committee on Ways and Means, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Metalworking Manufacturers Support Act’’. 
(b) FINDINGS.—Congress finds the following: 
(1) There are roughly 35,000 metalworking 
companies with approximately 2 million employees 
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throughout the country who manufacture critical 
products for the defense, aerospace, medical, auto-
motive, agriculture, and construction industries, 
among many others. 
(2) Uncertainty surrounding the timeliness of 
paid receivables, and a need for steady cash flow for 
day-to-day operations and investments creates chal-
lenges for small middle market manufactures who 
are a critical part of the industrial supply chain. 
(3) In the current financial environment, most 
lending institutions will not provide loans to metal-
working companies. 
(4) The U.S. Government should help foster an 
environment that encourages metalworking in Amer-
ica by supporting small middle market manufactur-
ers. 
(5) 
The 
Federal 
Government 
currently 
incentivizes larger businesses and private contractors 
to use small businesses and tax credits are impor-
tant criteria to foster growth among small middle 
market manufacturers. 
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TITLE 
I—SMALL 
METAL-
WORKING BUSINESS ASSIST-
ANCE PROGRAMS 
SEC. 101. DEFINITIONS. 
For purposes of this subtitle: 
(1) COST.—The term ‘‘cost’’ has the same 
meaning as is given the term ‘‘cost’’ in section 
502(5) of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a(5)). 
(2) SMALL
METALWORKING
BUSINESS.—The 
term ‘‘small metalworking business’’ means a small 
business concern, as defined under section 3(a) of 
the Small Business Act (15 U.S.C. 632(a)), whose 
primary purpose is the domestic manufacturing and 
production of parts, components, or assemblies by 
using metalworking and forming technologies, in-
cluding metal stamping, fabricating, slide forming, 
fine blanking, laser cutting, punching, deep drawing, 
swaging, roll forming, spinning, machining, grinding, 
rotary machining, cold heading, forging, casting, 
wire electrical discharge machining, conventional 
electrical discharge machining, and computer numer-
ical control machining. 
(3) GUARANTEE.—The term ‘‘guarantee’’ has 
the same meaning as is given the term ‘‘loan guar-
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antee’’ in section 502(3) of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a(3)). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
SEC. 102. LOANS AUTHORIZATION. 
(a) LOANS AUTHORIZED.—Funding as may be nec-
essary, not to exceed $10,000,000,000 for costs under this 
section shall be available to the Secretary, without further 
appropriation or fiscal year limitation, for the costs of 
such program. All funds received by the Secretary in con-
nection with loans made pursuant to paragraph (b) shall 
be paid into the general fund of the Treasury for reduction 
of the public debt. 
(b) TERMS AND CONDITIONS OF LOANS.— 
(1) IN GENERAL.—A loan made pursuant to 
this section— 
(A) shall be for a maximum amount of 
$3,000,000; 
(B) shall be for a maximum period of 18 
months, after which the Secretary shall require 
any small metalworking business receiving a 
loan to repay the loan in full; and 
(C) shall not obligate the recipient of such 
loan to pay any interest. 
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(2) ADDITIONAL
TERMS
AND
CONDITIONS.— 
The Secretary may establish additional terms and 
conditions with respect to loans made under this sec-
tion. 
(c) APPLICATION.—An eligible small metalworking 
business that seeks a loan under this section shall submit 
an application to the Secretary at such time, in such man-
ner, and containing such information as the Secretary may 
require. 
SEC. 103. SMALL METALWORKING BUSINESS STABILIZA-
TION PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration; 
(2) the term ‘‘qualifying small business loan’’ 
means a loan made under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) to a small metal-
working business before the date of enactment of 
this Act; 
(3) the term ‘‘small metalworking business’’ 
means a small business concern, as defined under 
section 3(a) of the Small Business Act (15 U.S.C. 
632(a)), whose primary purpose is the domestic 
manufacturing and production of parts, components, 
or assemblies by using metalworking and forming 
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technologies, including metal stamping, fabricating, 
slide forming, fine blanking, laser cutting, punching, 
deep drawing, swaging, roll forming, spinning, ma-
chining, grinding, rotary machining, cold heading, 
forging, casting, wire electrical discharge machining, 
conventional electrical discharge machining, and 
computer numerical control machining; and 
(4) the term ‘‘stabilization loan’’ means a loan 
under the program established under subsection (b) 
made by the Administrator either in cooperation 
with a bank or other financial institution through an 
agreement to participate on a deferred (or guaran-
teed) basis or directly. 
(b) ESTABLISHMENT OF A LOAN PROGRAM.—Subject 
to the availability of appropriations, the Administrator 
shall carry out a program to provide stabilization loans 
to viable (as such term is defined pursuant to regulations 
prescribed by the Administrator) small metalworking busi-
nesses that have a qualifying small business loan and are 
experiencing immediate financial hardship. 
(c) TECHNICAL ASSISTANCE.—The Administrator 
shall establish a technical assistance program to assist a 
bank or other financial institution that has an agreement 
with the Administrator to provide stabilization loans. 
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(d) APPLICATION.—To be eligible for a stabilization 
loan, a small metalworking business shall submit to the 
Administrator an application at such time, in such man-
ner, and containing such information as the Administrator 
may require. 
(e) USE OF FUNDS.—A stabilization loan shall be 
used to make periodic payments of principal and interest, 
either in full or in part, on a qualifying small business 
loan for— 
(1) amounts payable during a period of time 
not to exceed 6 months; or 
(2) a period of time during which the total 
amount of such periodic payments does not exceed 
$50,000, 
whichever is less. 
(f) LOAN TERMS.—A stabilization loan shall— 
(1) carry a 100 percent guaranty; and 
(2) have interest fully subsidized for the period 
of repayment. 
(g) REPAYMENT.—Repayment of a stabilization loan 
shall— 
(1) be amortized over a period of time not to 
exceed 5 years; and 
(2) begin not later than 12 months after the 
end of the month or other period for which the last 
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periodic payment (as referred to in subsection (d)) 
is made. 
(h) COLLATERAL.—The Administrator may accept 
any available collateral, including subordinated liens, to 
secure a stabilization loan. 
(i) FEES.—The Administrator may not charge any 
processing fees, origination fees, application fees, points, 
brokerage fees, bonus points, prepayment penalties, or 
other fees for a stabilization loan. 
(j) SUNSET.—An application submitted under sub-
section (c) for a stabilization loan may not be accepted 
after December 31, 2010. 
TITLE II—REVENUE PROVISION 
SEC. 201. SMALL BUSINESS METALWORKING CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45R. SMALL METALWORKING BUSINESS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
small metalworking business credit for any taxable year 
is an amount equal to 30 percent of the amounts paid 
or incurred for metal parts, components, or assemblies 
produced for the taxpayer under a contract between the 
taxpayer and an eligible small metalworking business. 
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‘‘(b) ELIGIBLE SMALL METALWORKING BUSINESS.— 
For purposes of this section, the term ‘eligible small met-
alworking business’ means any person— 
‘‘(1) who is unrelated to the taxpayer, 
‘‘(2) who is engaged in the trade or business of 
metalworking in the United States, and 
‘‘(3) who is a small business as defined under 
section 3(a) of the Small Business Act (15 U.S.C. 
632(a)). 
‘‘(c) DEFINITION
AND SPECIAL RULE.—For pur-
poses of this section— 
‘‘(1) METALWORKING.—For purposes of this 
section, the term ‘metalworking’ means the produc-
tion of parts, components, or assemblies by using 
metalworking and forming technologies, including 
metal stamping, fabricating, slide forming, fine 
blanking, laser cutting, punching, deep drawing, 
swaging, roll forming, spinning, machining, grinding, 
rotary machining, cold heading, forging, casting, 
wire electrical discharge machining, conventional 
electrical discharge machining, and computer numer-
ical control machining. 
‘‘(2) RELATED
PERSON.—A person shall be 
treated as related to another person if they bear a 
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relationship to such other person described in sec-
tion 267(b) or 707(b). 
‘‘(3) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be determined under subsection (a) for 
any amount if the taxpayer elects not to have this 
section apply to such amount.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(36) the small metalworking business credit 
determined under section 45R(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45R. Small metalworking business credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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