I 
111TH CONGRESS 
1ST SESSION H. R. 2936 
To create a program to guarantee loans made to manufacturing companies 
in order to promote increased domestic lending to the United States 
manufacturing industry. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2009 
Mr. LIPINSKI (for himself, Mr. TIM MURPHY of Pennsylvania, Mr. TONKO, 
Mr. EHLERS, Mr. DINGELL, Ms. KAPTUR, Mr. COSTELLO, and Mr. MAN-
ZULLO) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To create a program to guarantee loans made to manufac-
turing companies in order to promote increased domestic 
lending to the United States manufacturing industry. 
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 ‘‘Bill to Underwrite In-
creased Lending to Domestic (BUILD) Manufacturing 
Act’’ or the ‘‘BUILD Manufacturing Act’’. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
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(1) MANUFACTURING
COMPANY.—The term 
‘‘manufacturing company’’ means a company en-
gaged in the mechanical, physical, or chemical trans-
formation or production of materials, substances, or 
components into new products. 
(2) TALF.—The term ‘‘TALF’’ means the 
Term Asset-Backed Securities Loan Facility estab-
lished by the Board of Governors of the Federal Re-
serve System and announced on March 3, 2009. 
SEC. 3. FINDINGS. 
The Congress finds the following: 
(1) Manufacturing is a crucial component of the 
United States economy, creating wealth through the 
value-added production of quality goods. 
(2) Manufacturing employed 13.5 million Amer-
icans in 2008. 
(3) The manufacturing sector comprises 13.6 
percent of the United States national GDP, totaling 
$1.6 trillion in value as of 2007, and generates ap-
proximately two-thirds of the Nation’s exports. 
(4) Domestic manufacturing is vital to our Na-
tion’s national security, is a source of long-term 
strategic advantage, and ensures a reliable and dedi-
cated source of production for essential materials 
and goods. 
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(5) The current economic crisis has had par-
ticularly negative effects on the manufacturing sec-
tor, leading to sharp reductions in employment, out-
put, and factory operating rates. 
(6) Continued reductions in the domestic manu-
facturing sector would result in increased depend-
ence on foreign factories, greater job loss, and de-
clines in long-term competitiveness of the United 
States economy. 
(7) The recovery and expansion of the United 
States manufacturing sector is being hampered by 
an absence of affordable and available credit, caused 
by the financial sector and subprime crisis. 
(8) While the United States Treasury has made 
available significant financial resources for recovery 
of the United States financial sector, lending to com-
mercial and private entities has not followed suit. 
(9) Available and affordable credit will be cru-
cial to the recovery of the manufacturing sector, en-
abling renewed capital and asset purchases, facility 
expansions, investment in new product lines, and in-
creased hiring and employment. 
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SEC. 4. SENSE OF THE CONGRESS ON LENDING TO THE DO-
MESTIC MANUFACTURING SECTOR. 
It is the sense of the Congress that the President, 
acting through the Secretary of the Treasury, should use 
all available powers to encourage financial institutions 
that are in receipt of Federal financial support to imme-
diately increase lending to the domestic manufacturing 
sector. 
SEC. 5. MANUFACTURING LOAN GUARANTEE PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is hereby established 
within the Department of the Treasury a program to 
be known as the ‘‘Manufacturing Loan Guarantee 
Program’’ (hereinafter referred to in this section as 
the ‘‘Program’’). 
(2) HEAD OF THE PROGRAM.—The Program 
shall be headed by the Administrator of the TALF 
(hereinafter referred to in this section as the ‘‘Ad-
ministrator’’). 
(b) LOAN GUARANTEE PROGRAM.— 
(1) PURPOSE.—The purpose of the Program 
under this section is to guarantee loans made to 
manufacturing companies. 
(2) APPLICATION.—An insured depository insti-
tution (as such term is defined in section 3(c) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(c))) 
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sured depository institution’s future participa-
tion in the Program if the Administrator finds 
that such institution has engaged in fraud or 
abuse with respect to the Program, or has con-
sistently made loans guaranteed under the Pro-
gram that are not repaid by the borrower in ac-
cordance with the terms of the loan. 
(5) LOAN
ELIGIBILITY.—A loan can only be 
guaranteed under the Program if at meets the fol-
lowing requirements: 
(A) NET
WORTH
LIMITATION
ON
LOAN 
AMOUNT.—The amount of such loan is less 
than 1.5 times the gross net worth of the man-
ufacturing company receiving the loan. 
(B) USE OF LOAN.—Such loan is only used 
for the purchase of capital, assets, energy effi-
ciency upgrades, productivity enhancements, or 
building expenses, paying payroll expenses, or 
paying operating costs. Such loan is not used to 
pay down existing debt, pay outstanding obliga-
tions, or to pay for an increase in salary 
amounts for executives of the manufacturing 
company receiving the loan. 
(C) SPECIFIC TERM REQUIREMENTS.—The 
term of such loan is no more than— 
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(i) 30 years, in the case of a loan used 
to purchase real estate or to pay for build-
ing expenses; 
(ii) the lesser of 15 years or the useful 
life of the machinery or equipment, in the 
case of a loan used to purchase machinery 
or equipment; and 
(iii) 5 years, in the case of any other 
loan. 
(D) INTEREST
RATES.—Notwithstanding 
the provisions of the constitution of any State 
or the laws of any State limiting the rate or 
amount of interest which may be charged, 
taken, received, or reserved, the maximum legal 
rate of interest on such loan shall not sub-
stantively differ from the current average mar-
ket yield on outstanding marketable obligations 
of similar privately held loans with remaining 
periods to maturity comparable to such loan. 
(6) MULTIPLE GUARANTEES PERMITTED; AG-
GREGATE DOLLAR AMOUNT LIMITATION.—A single 
manufacturing company is permitted to have more 
than one loan guaranteed under this section, but the 
aggregate amount of all such loans guaranteed for 
a single manufacturing company may be no more 
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than $50,000,000. The Administrator shall have the 
discretion to raise such limit from $50,000,000 to 
$75,000,000 for a particular manufacturing com-
pany if the Administrator determines doing so will 
advance the purpose of this section. 
(7) GOVERNMENT GUARANTEE.— 
(A) LEVEL
OF
PARTICIPATION.—Loans 
guaranteed under the Program shall be guaran-
teed in the following percentages: 
(i) for loans under $10,000,000, 70 
percent; 
(ii) for loans between $10,000,000 
and $30,000,000, 65 percent; and 
(iii) for loans over $30,000,000, 60 
percent. 
(B) PERCENTAGE ADJUSTMENTS.— 
(i) IN GENERAL.—The Administrator 
shall have the power to adjust loan guar-
antee percentages for loans guaranteed 
under the Program in order to maximize 
lending and minimize default rates of par-
ticipating manufacturers. Any such adjust-
ments must further the goals of the Pro-
gram. 
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(ii) TIMING OF ADJUSTMENTS.—Ad-
justments under clause (i) may not be 
made before the date that is 3 months 
after the date of the enactment of this Act, 
and may not be made more often than 
every 3 months. 
(iii) 
EQUAL
ADJUSTMENTS
RE-
QUIRED.—Adjustments under clause (i) 
must adjust each percentage under sub-
paragraphs (A)(i), (A)(ii), and (A)(iii) by 
the same amount. 
(iv) MINIMUM
LEVELS.—In making 
an adjustment under clause (i), the Admin-
istrator shall seek to ensure that such ad-
justment will result in the maintained in-
terest of insured depository institutions in 
participating in the Program. 
(C) PAYMENT OF ACCRUED INTEREST.— 
(i) IN GENERAL.—Any insured deposi-
tory institution making a claim for pay-
ment on the guaranteed portion of a loan 
guaranteed under the Program shall be 
paid the accrued interest due on the loan 
from the earliest date of default to the 
date of payment of the claim at a rate not 
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to exceed the rate of interest on the loan 
on the date of default, minus one percent. 
(ii) LOANS SOLD ON SECONDARY MAR-
KET.—If a loan described in clause (i) is 
sold on the secondary market, the amount 
of interest paid to an insured depository 
institution described in that clause from 
the earliest date of default to the date of 
payment of the claim shall be no more 
than the agreed upon rate, minus one per-
cent. 
(8) REGULATIONS.—The Administrator shall 
promulgate any regulations needed to carry out this 
section. 
(9) FUNDING.— 
(A) IN GENERAL.—$20,000,000,000 of the 
funds made available to the TALF, or any suc-
cessor entity, shall be used to carry out the 
Program, of which $10,000,000,000 shall be 
used to guarantee loans made to manufacturing 
companies employing less then 500 individuals. 
(B) 
ADMINISTRATIVE
COSTS.—Of 
the 
amount described in paragraph (A), not more 
than $1,000,000 per year may be used to pay 
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for salaries and other administrative fees asso-
ciated with carrying out the Program. 
(c) SENSE OF THE CONGRESS ON SMALL BUSINESS 
PARTICIPATION.—It is the sense of the Congress that the 
Administrator should encourage insured depository insti-
tutions taking part in the Program to focus on lending 
to small- and medium-sized manufacturers. 
(d) REPORTS REQUIRED.— 
(1) ADMINISTRATOR REPORTS.—Not later than 
180 days after the date of the enactment of this Act, 
and yearly thereafter, the Administrator shall sub-
mit a report to the Congress, and make such report 
available on a website, detailing all loans guaranteed 
under the Program, the effect of such guarantees on 
the manufacturing industry of the United States, 
and the overall effectiveness of the Program. 
(2) GAO REPORTS.—Notwithstanding section 
714(b) of title 31, United States Code, not later 
than 1 year after the date of the enactment of this 
Act, and yearly thereafter through the end of 2011, 
the Comptroller General of the United States shall 
transmit a report to the Congress detailing— 
(A) the implementation of this section; 
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