I 
116TH CONGRESS 
1ST SESSION H. R. 3730 
To amend the Small Business Act and the Small Business Investment Act 
of 1958 to increase access to capital for small business concerns that 
are manufacturers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2019 
Mr. RYAN (for himself and Mr. REED) introduced the following bill; which was 
referred to the Committee on Small Business, and in addition to the 
Committee on Science, Space, and Technology, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Small Business Act and the Small Business 
Investment Act of 1958 to increase access to capital 
for small business concerns that are manufacturers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Strengthening Invest-
ment to Grow Manufacturing in America Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) 
Manufacturers 
contributed 
over 
$2,330,000,000,000 to the United States economy 
in the first quarter of 2018 and accounted for 12 
percent of United States gross domestic product in 
2017. 
(2) Manufacturing is one of the most important 
sectors of the United States economy with respect to 
employment. In 2013, the manufacturing sector sup-
ported over 17,000,000 indirect jobs in the United 
States, in addition to the 12,000,000 individuals 
who were directly employed in manufacturing. Com-
bined, these indirect and direct manufacturing jobs 
represented more than 20 percent of United States 
employment in 2013—more than any other sector. 
(3) While the United States has added over 
14,000,000 non-farm jobs since 2010, manufac-
turing job growth has lagged and added only ap-
proximately 900,000 jobs. Post-recession job recov-
ery averages since the 1940s indicate that another 
1,200,000 manufacturing jobs should have been cre-
ated during this period. 
(4) Small manufacturers are the backbone of 
the United States manufacturing industry, account-
ing for nearly half of all manufacturing jobs in the 
United States. Ensuring that small manufacturers 
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have adequate access to capital is critical to creating 
manufacturing jobs and the growth of the United 
States economy. 
(5) The 2015 Federal Reserve Small Business 
Credit Survey indicates that of the 52 percent of 
manufacturers that applied for financing during the 
survey period, 65 percent did so to expand their 
business or to pursue a new business opportunity. 
The survey also indicates that 42 percent of manu-
facturers received less financing than they requested, 
the primary result of which was delayed expansion 
of their business. 
(6) The loan guarantee programs of the Small 
Business Administration under section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) and title V 
of the Small Business Investment Act of 1958 (15 
U.S.C. 695 et seq.) encourage lenders to provide 
loans to creditworthy small businesses that would 
not otherwise obtain financing on reasonable terms 
and conditions and can serve as an excellent mecha-
nism by which to increase the availability of afford-
able credit to small manufacturers in the United 
States. 
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SEC. 3. SMALL MANUFACTURERS. 
(a) 
LOAN
GUARANTEE
PERCENTAGE.—Section 
7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) 
is amended— 
(1) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘and (E)’’ and insert-
ing ‘‘(E), and (F)’’; and 
(2) by adding at the end the following: 
‘‘(F) PARTICIPATION
FOR
MANUFACTUR-
ERS.— 
‘‘(i) IN GENERAL.—In an agreement 
to participate in a loan on a deferred basis 
under this subsection for a small business 
concern assigned to a North American In-
dustry Classification System code for man-
ufacturing or that is designated by the Ad-
ministrator under clause (ii), the participa-
tion by the Administration shall be 90 per-
cent. 
‘‘(ii) ADDITION OF ADVANCED MANU-
FACTURING
SECTORS.—After submitting 
notice to the Committee on Small Business 
and Entrepreneurship of the Senate and 
the Committee on Small Business of the 
House of Representatives, the Adminis-
trator may designate a North American 
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Industry Classification System code for 
purposes of clause (i) if the Administrator 
determines the code— 
‘‘(I) is not a manufacturing code 
under the North American Industry 
Classification System; and 
‘‘(II) corresponds to a sector in 
which manufacturing is a considerable 
component of the operations of a 
small business concern, as determined 
by the Administrator, including ad-
vanced manufacturing.’’. 
(b) GUARANTEE FEE REDUCTION.—Section 7(a)(18) 
of the Small Business Act (15 U.S.C. 636(a)(18)) is 
amended— 
(1) in subparagraph (A), by striking ‘‘With re-
spect’’ and inserting ‘‘Except as provided in sub-
paragraph (C), with respect’’; and 
(2) by adding at the end the following: 
‘‘(C) MANUFACTURERS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), with respect to a loan guaranteed 
under this subsection for a small business 
concern described in paragraph (2)(F)(i)— 
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‘‘(I) the Administration may not 
collect a guarantee fee under this 
paragraph for a loan of not more than 
$350,000; and 
‘‘(II) for a loan of more than 
$350,000, the Administration shall 
collect a guarantee fee under this 
paragraph equal to 50 percent of the 
guarantee fee that the Administration 
would otherwise collect for the loan. 
‘‘(ii) EXCEPTION.—The requirements 
of clause (i) shall not apply to loans made 
during a fiscal year if— 
‘‘(I) the budget of the President 
for that fiscal year, submitted to Con-
gress under section 1105(a) of title 
31, United States Code, includes a 
cost for the program established 
under this subsection that is above 
zero; and 
‘‘(II) the Administrator submits 
to Congress— 
‘‘(aa) notice regarding the 
determination of cost described 
in subclause (I); and 
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‘‘(bb) a detailed discussion 
indicating why not implementing 
clause (i) will cause the cost of 
the program established under 
this subsection to be not more 
than zero.’’. 
(c) CERTIFIED DEVELOPMENT COMPANY LOANS.— 
(1) MANUFACTURING LOAN AMOUNT.—Section 
502(2)(A)(iii) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by 
striking ‘‘$5,500,000’’ and inserting ‘‘10,000,000’’. 
(2) 
CONTRIBUTION
REQUIREMENT.—Section 
502(3)(C) of the Small Business Investment Act of 
1958 (15 U.S.C. 696(3)(C)) is amended— 
(A) in clause (iii), by striking ‘‘or’’ at the 
end; 
(B) by redesignating clause (iv) as clause 
(v); and 
(C) by inserting after clause (iii) the fol-
lowing: 
‘‘(iv) for a small manufacturer (as de-
fined in section 501(e)(7))— 
‘‘(I) at least 5 percent of the 
total cost of the project financed, if 
the small business concern has been in 
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operation for a period of 2 years or 
less; 
‘‘(II) at least 5 percent of the 
total cost of the project financed, if 
the project involves a limited or single 
purpose building or structure; 
‘‘(III) at least 10 percent of the 
total cost of the project financed if the 
project involves both of the conditions 
set forth in subclauses (I) and (II); or 
‘‘(IV) at least 5 percent of the 
total cost of the project financed, in 
all other circumstances, at the discre-
tion of the development company; or’’. 
(3) CREATION
OR
RETENTION
OF
JOBS
RE-
QUIREMENT.—Section 501(e) of the Small Business 
Investment Act of 1958 (15 U.S.C. 695(e)) is 
amended— 
(A) in paragraph (1), by striking ‘‘creates 
or retains’’ and all that follows and inserting 
‘‘creates or retains 1 job for every $75,000 
guaranteed by the Administration, except that 
the amount is $150,000 in the case of a project 
of a small manufacturer.’’; 
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(B) in paragraph (2), by striking ‘‘creates 
or retains’’ and all that follows and inserting 
‘‘creates or retains 1 job for every $75,000 
guaranteed by the Administration, except that 
the amount is $150,000 in the case of a project 
of a small manufacturer.’’; 
(C) by redesignating paragraph (6) as 
paragraph (7); and 
(D) by inserting after paragraph (5) the 
following: 
‘‘(6) For a loan for a project directed toward the cre-
ation of job opportunities under subsection (d)(1), the Ad-
ministrator shall publish on the website of the Administra-
tion the number of jobs created or retained under the 
project as of the date that is 2 years after the completion 
(as determined based on information provided by the de-
velopment company) of the project.’’. 
(4) BUILDING OCCUPANCY.—Section 502(5) of 
the Small Business Investment Act of 1958 (15 
U.S.C. 696(5)), is amended— 
(A) by striking ‘‘In addition’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in addition’’; and 
(B) by adding at the end the following: 
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‘‘(B) EXCEPTION.—With respect to an as-
sisted small business that is a small manufac-
turer (as defined in section 501(e)(7)), the 
small manufacturer may lease not more than 49 
percent of the project to 1 or more other ten-
ants, if the small manufacturer occupies perma-
nently and uses not less than a total of 51 per-
cent of the space in the project after the execu-
tion of any leases authorized under this section, 
without regard to whether the project is with 
respect to an existing building or new construc-
tion.’’. 
(5) 
COLLATERAL
REQUIREMENTS.—Section 
502(3)(E)(i) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(3)(E)(i)), is amended by 
adding at the end the following: ‘‘Additional collat-
eral shall not be required in the case of a small man-
ufacturer (as defined in section 501(e)(7)).’’. 
(6) DEBT REFINANCING.—Section 502(7)(B) of 
the Small Business Investment Act of 1958 (15 
U.S.C. 696(7)(B)) is amended in the matter pre-
ceding clause (i) by inserting ‘‘(or in the case of a 
small manufacturer (as defined in section 501(e)(7)) 
that does not exceed 100 percent of the project cost 
of the expansion)’’ after ‘‘cost of the expansion’’. 
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(B) in paragraph (20), by striking the pe-
riod at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(21) the term ‘manufacturing debenture’ 
means a deferred interest debenture that— 
‘‘(A) is issued at a discount; 
‘‘(B) has a 5-year maturity or a 10-year 
maturity; 
‘‘(C) requires no interest payment or an-
nual charge for the first 5 years; 
‘‘(D) is restricted to companies assigned to 
a North American Industry Classification Sys-
tem code for manufacturing; and 
‘‘(E) is issued at no cost (as defined in 
section 502 of the Credit Reform Act of 1990 
(2 U.S.C. 661a)) with respect to purchasing 
and guaranteeing the debenture.’’. 
(3) STARTUP
SMALL
MANUFACTURERS.—Sec-
tion 502(3)(C)(i) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(3)(C)(i)) is amended by 
inserting ‘‘is not a small manufacturer (as defined in 
section 501(e)(7)) and’’ after ‘‘small business con-
cern’’. 
(e) ADDITIONAL
LEVERAGE
FOR
MANUFACTUR-
ERS.—Section 303(b)(2) of the Small Business Invest-
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ment Act of 1958 (15 U.S.C. 683(b)(2)) is amended by 
adding at the end the following: 
‘‘(E) ADDITIONAL LEVERAGE BASE ON IN-
VESTMENT IN MANUFACTURERS.— 
‘‘(i) DEFINITION.—In this subpara-
graph, the term ‘covered small manufac-
turer’ means a small manufacturer (as de-
fined in section 501(e)(7)) that— 
‘‘(I) is located in a low or mod-
erate income geographic area; 
‘‘(II) is not less than 51 percent 
owned by 1 or more veterans (as de-
fined in section 101 of title 38, 
United States Code); 
‘‘(III) is not less than 51 percent 
owned by 1 or more socially disadvan-
taged individuals or economically dis-
advantaged individuals (within the 
meaning given such terms under sec-
tion 8(a) of the Small Business Act 
(15 U.S.C. 637(a))); 
‘‘(IV) is not less than 51 percent 
owned by 1 or more women; 
‘‘(V) is located in an area with 
above average unemployment; 
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‘‘(VI) is a smaller business con-
cern described in subparagraph (A) of 
section 103(12); 
‘‘(VII) is located in a rural area; 
‘‘(VIII) has increased its full 
time employment by not less than 25 
percent (not including any new em-
ployees added by an acquisition) since 
the small manufacturer receiving an 
initial financing under this title; or 
‘‘(IX) is engaged in researching, 
developing, or manufacturing tech-
nologies important to national secu-
rity. 
‘‘(ii) EXCLUSION
OF
AMOUNTS.—In 
calculating the outstanding leverage of a 
company for purposes of subparagraphs 
(A) and (B), the Administrator shall ex-
clude the amount of leverage outstanding 
to covered small manufacturers, not to ex-
ceed a total of $50,000,000.’’. 
SEC. 4. ASSISTANCE FOR SMALL MANUFACTURERS. 
(a) ASSISTANCE THROUGH SBA PROGRAMS.— 
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(1) AMENDMENTS
TO
THE
SMALL
BUSINESS 
ACT.—The Small Business Act (15 U.S.C. 631 et 
seq.) is amended— 
(A) in section 7(a) (15 U.S.C. 636(a)), by 
adding at the end the following: 
‘‘(36) ASSISTANCE FOR SMALL MANUFACTUR-
ERS.—The Administrator shall ensure that each dis-
trict office of the Administration partners with not 
less than 1 resource partner of the Administration, 
including a small business development center, a 
women’s business center described in section 29, the 
Service Corps of Retired Executives, and a Veteran 
Business Outreach Center, to provide training to 
small business concerns described in paragraph 
(2)(F)(i) in obtaining assistance under the programs 
under this subsection and title V of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 695 et 
seq.), including with respect to the application proc-
ess under such programs and partnering with par-
ticipating lenders under this subsection.’’; 
(B) in section 8 (15 U.S.C. 637), by strik-
ing subsection (c) and inserting the following: 
‘‘(c) ASSISTANCE FOR SMALL MANUFACTURERS IN 
SCORE AND SMALL BUSINESS DEVELOPMENT CENTER 
PROGRAMS.— 
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‘‘(1) DEFINITION.—In this subsection, the term 
‘SCORE program’ means the Service Corps of Re-
tired 
Executives 
authorized 
under 
subsection 
(b)(1)(B). 
‘‘(2) VOLUNTEERS.—Under the SCORE pro-
gram, the Administrator may recruit volunteers to 
assist small business concerns described in section 
7(a)(2)(F)(i) in obtaining assistance under section 
7(a) and title V of the Small Business Investment 
Act of 1958 (15 U.S.C. 695 et seq.), including with 
respect to the application process under such pro-
grams and partnering with participating lenders 
under such section 7(a).’’; 
(C) 
in 
section 
21(c)(3) 
(15 
U.S.C. 
648(c)(3))— 
(i) in subparagraph (T), by striking 
‘‘and’’ at the end; 
(ii) in the first subparagraph des-
ignated as subparagraph (U), as added by 
section 862 of division A of the John S. 
McCain National Defense Authorization 
Act for Fiscal Year 2019 (Public Law 
115–232), by striking the period at the 
end and inserting a semicolon; 
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(iii) by redesignating the second sub-
paragraph designated as subparagraph 
(U), as added by section 5 of the Small 
Business Innovation Protection Act of 
2017 (Public Law 115–259; 132 Stat. 
3665), as subparagraph (V); 
(iv) in subparagraph (V), as so redes-
ignated, by striking the period at the end 
and inserting ‘‘; and’’; and 
(v) by adding at the end the following: 
‘‘(W) providing training to small business 
concerns described in section 7(a)(2)(F)(i) in 
obtaining assistance under section 7(a) and title 
V of the Small Business Investment Act of 
1958 (15 U.S.C. 695 et seq.), including with re-
spect to the application process under such pro-
grams and partnering with participating lenders 
under such section 7(a).’’; 
(D) in section 29(b) (15 U.S.C. 656(b))— 
(i) in paragraph (2), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (3), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
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ness Investment Act of 1958 (15 U.S.C. 695 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 511. ASSISTANCE FOR SMALL MANUFACTURERS. 
‘‘The Administrator shall ensure that each district of-
fice of the Administration partners with not less than 1 
resource partner of the Administration, including a small 
business development center described in section 21 of the 
Small Business Act (15 U.S.C. 648), a women’s business 
center described in section 29 of the Small Business Act 
(15 U.S.C. 656), the Service Corps of Retired Executives, 
and a Veteran Business Outreach Center, to provide train-
ing to small business concerns described in section 
7(a)(2)(F)(i) of the Small Business Act (15 U.S.C. 
636(a)(2)(F)(i)) in obtaining assistance under the pro-
gram carried out under this title, including with respect 
to the application process under that program and 
partnering with development companies under this title.’’. 
(b) PARTNERING WITH NIST.—The Small Business 
Administration and its resource partners may establish 
partnerships with the Hollings Manufacturing Extension 
Partnership Program of the National Institute of Stand-
ards and Technology and its affiliated centers to facilitate 
outreach to small manufacturers in providing training and 
guidance with respect to the application process for loans 
guaranteed by the Administration. 
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SEC. 5. FEDERAL LOAN GUARANTEES FOR INNOVATIVE 
TECHNOLOGIES IN MANUFACTURING. 
(a) TRANSFER OF EXISTING PROGRAM.—The Ste-
venson-Wydler Technology Innovation Act of 1980 (15 
U.S.C. 3701 et seq.) is amended— 
(1) by striking section 26 (15 U.S.C. 3721); 
and 
(2) by redesignating sections 27 and 28 (15 
U.S.C. 3722 and 3723) as sections 26 and 27, re-
spectively. 
(b) AUTHORITY OF SBA.— 
(1) DEFINITIONS.—In this subsection— 
(A) the term ‘‘Administrator’’ means the 
Administrator of the Small Business Adminis-
tration; 
(B) the term ‘‘business loan programs of 
the Administration’’ means the programs under 
section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) and title V of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 695 et 
seq.); and 
(C) the term ‘‘small manufacturer’’ means 
a small business concern described in section 
7(a)(2)(F)(i) of the Small Business Act, as 
amended by this Act. 
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(2) AUTHORIZATION.—To the extent the Ad-
ministrator determines that the assistance available 
to small manufacturers under section 26 of the Ste-
venson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3721), as in effect on the day before the 
date of enactment of this Act, is not available under 
the business loan programs of the Administration, 
the Administrator shall ensure that the business 
loan programs of the Administration provide ade-
quate support for innovative technologies in manu-
facturing. 
(3) REPORTING.—The Administrator shall sub-
mit to the Committee on Small Business and Entre-
preneurship of the Senate and the Committee on 
Small Business of the House of Representatives a 
report regarding any determination or activity of the 
Administrator under paragraph (2). 
(c) SAVINGS CLAUSE.—Any loan guarantee issued 
under section 26 of the Stevenson-Wydler Technology In-
novation Act of 1980 (15 U.S.C. 3721), as in effect on 
the day before the date of enactment of this Act, shall 
remain in full force and effect under the terms, and for 
the duration, of the loan guarantee agreement. 
Æ 
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