I 
115TH CONGRESS 
1ST SESSION H. R. 1186 
To amend the Small Business Act and the Small Business Investment Act 
of 1958 to increase the percentage of loans guaranteed for small business 
concerns that are manufacturers. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 16, 2017 
Mr. RYAN of Ohio (for himself, Ms. KAPTUR, Mr. POCAN, and Ms. SLAUGH-
TER) 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 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 amend the Small Business Act and the Small Business 
Investment Act of 1958 to increase the percentage of 
loans guaranteed 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 ‘‘Investing in America’s 
Small Manufacturers Act’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In 2015, manufacturers contributed over 
$2,000,000,000,000 to the United States economy 
and accounted for over 12 percent of United States 
gross domestic product. 
(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) ASSISTANCE THROUGH SBA PROGRAMS.—The 
Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) in section 7(a) (15 U.S.C. 636(a)), by add-
ing at the end the following: 
‘‘(35) ASSISTANCE FOR SMALL MANUFACTUR-
ERS.—The Administrator shall ensure that each dis-
trict office of the Administration provides training to 
small business concerns described in paragraph 
(2)(F)(i) in obtaining assistance under this sub-
section, including with respect to the application 
process and partnering with participating lenders 
under this subsection.’’; 
(2) in section 8 (15 U.S.C. 637), by striking 
subsection (c) and inserting the following: 
‘‘(c) ASSISTANCE FOR SMALL MANUFACTURERS IN 
SCORE PROGRAM.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘SCORE program’ means the Service Corps of Re-
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tired 
Executives 
authorized 
under 
subsection 
(b)(1)(B). 
‘‘(2) VOLUNTEERS.—Under the SCORE pro-
gram, the Administrator shall 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 and partnering 
with participating lenders under that section.’’; 
(3) in section 21(c)(3) (15 U.S.C. 648(c)(3))— 
(A) in subparagraph (S), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (T), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(U) 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 and partnering 
with participating lenders under that section.’’; 
(4) in section 29(b) (15 U.S.C. 656(b))— 
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(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) training to small business concerns owned 
and controlled by women that are small business 
concerns described in section 7(a)(2)(F)(i) in obtain-
ing 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 applica-
tion process and partnering with participating lend-
ers under that section.’’; and 
(5) in section 32 (15 U.S.C. 657b), by adding 
at the end the following: 
‘‘(g) ASSISTANCE FOR SMALL MANUFACTURERS.— 
The Associate Administrator shall ensure that Veterans 
Business Outreach Centers 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 In-
vestment Act of 1958 (15 U.S.C. 695 et seq.), including 
with respect to the application process and partnering with 
participating lenders under that section.’’. 
(d) PARTNERING WITH NIST.—The Small Business 
Administration and its resource partners may establish 
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