,,ii #aafth ,,congress #ast ,session ,s4 #baca ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #af1 #bjai,mr4 ,coons 7for himself1 ,mr4 ,scott of ,south ,carolina1 ,mr4 ,gardner1 and ,ms4 ,rosen7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to amend the ,small ,business ,act and the ,small ,business ,investment ,act of #aieh to increase access to capital for small business concerns that are manufacturers4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,investment to ,grow ,manufacturing in ,america ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,manufacturers contributed over #b1ccj1jjj1jjj1jjj to the ,united ,states economy in the first quarter of #bjah and accounted for #ab percent of ,united ,states gross domestic product in #bjag4 7#b7 ,manufacturing is one of the most important sectors of the ,united ,states economy with respect to employment4 ,in #bjac1 the manufacturing sector supported over #ag1jjj1jjj indirect jobs in the ,united ,states1 in addition to the #ab1jjj1jjj individuals who were directly employed in manufacturing4 ,combined1 these indirect and direct manufacturing jobs represented more than #bj percent of ,united ,states employment in #bjac--more than any other sector4 7#c7 ,while the ,united ,states has added over #ad1jjj1jjj non-farm jobs since #bjaj1 manufacturing job growth has lagged and added only approximately #ijj1jjj jobs4 ,post-recession job recovery averages since the #aidjs indicate that another #a1bjj1jjj manufacturing jobs should have been created during this period4 7#d7 ,small manufacturers are the backbone of the ,united ,states manufacturing industry1 accounting for nearly half of all manufacturing jobs in the ,united ,states4 ,ensuring that small manufacturers have adequate access to capital is critical to creating manufacturing jobs and the growth of the ,united ,states economy4 7#e7 ,the #bjae ,federal ,reserve ,small ,business ,credit ,survey indicates that of the #eb percent of manufacturers that applied for financing during the survey period1 #fe percent did so to expand their business or to pursue a new business opportunity4 ,the survey also indicates that #db percent of manufacturers received less financing than they requested1 the primary result of which was delayed expansion of their business4 7#f7 ,the loan guarantee programs of the ,small ,business ,administration under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 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 mechanism by which to increase the availability of affordable credit to small manufacturers in the ,united ,states4 #c4 ,small manufacturers 7a7 ,loan guarantee percentage ,section #g7;a77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#b77 is amended-- 7#a7 in subparagraph 7,a71 in the matter preceding clause 7i71 by striking and 7,e7 and inserting 7,e71 and 7,f72 and 7#b7 by adding at the end the following3 7,f7 ,participation for manufacturers 7i7 ,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 ,industry ,classification ,system code for manufacturing or that is designated by the ,administrator under clause 7ii71 the participation by the ,administration shall be #ij percent4 7ii7 ,addition of advanced manufacturing 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 ,representatives1 the ,administrator may designate a ,north ,american ,industry ,classification ,system code for purposes of clause 7i7 if the ,administrator determines the code-- 7,i7 is not a manufacturing code under the ,north ,american ,industry ,classification ,system2 and 7,,ii7 corresponds to a sector in which manufacturing is a considerable component of the operations of a small business concern1 as determined by the ,administrator1 including advanced manufacturing4 4 7b7 ,guarantee fee reduction ,section #g7;a77#ah7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ah77 is amended-- 7#a7 in subparagraph 7,a71 by striking ,with respect and inserting ,except as provided in subparagraph 7,c71 with respect2 and 7#b7 by adding at the end the following3 7,c7 ,manufacturers 7i7 ,in general ,subject to clause 7ii71 with respect to a loan guaranteed under this subsection for a small business concern described in paragraph 7#b77;,f77i7-- 7,i7 the ,administration may not collect a guarantee fee under this paragraph for a loan of not more than #cej1jjj2 and 7,,ii7 for a loan of more than #cej1jjj1 the ,administration shall collect a guarantee fee under this paragraph equal to #ej percent of the guarantee fee that the ,administration would otherwise collect for the loan4 7ii7 ,exception ,the requirements of clause 7i7 shall not apply to loans made during a fiscal year if-- 7,i7 the budget of the ,president for that fiscal year1 submitted to ,congress under section #aaje7;a7 of title #ca1 ,united ,states ,code1 includes a cost for the program established under this subsection that is above zero2 and 7,,ii7 the ,administrator submits to ,congress-- 7aa7 notice regarding the determination of cost described in subclause 7,i72 and 7bb7 a detailed discussion indicating why not implementing clause 7i7 will cause the cost of the program established under this subsection to be not more than zero4 4 7c7 ,certified development company loans 7#a7 ,manufacturing loan amount ,section #ejb7b77;,a77iii7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7b77;,a77iii77 is amended by striking #e1ejj1jjj and inserting #aj1jjj1jjj4 7#b7 ,contribution requirement ,section #ejb7c77;,c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7c77;,c77 is amended-- 7,a7 in clause 7iii71 by striking or at the end2 7,b7 by redesignating clause 7iv7 as clause 7v72 and 7,c7 by inserting after clause 7iii7 the following3 7iv7 for a small manufacturer 7as defined in section #eja7;e77#g77-- 7,i7 at least #e percent of the total cost of the project financed1 if the small business concern has been in operation for a period of #b years or less2 7,,ii7 at least #e percent of the total cost of the project financed1 if the project involves a limited or single purpose building or structure2 7,,iii7 at least #aj percent of the total cost of the project financed if the project involves both of the conditions set forth in subclauses 7,i7 and 7,,ii72 or 7,,iv7 at least #e percent of the total cost of the project financed1 in all other circumstances1 at the discretion of the development company2 or 4 7#c7 ,creation or retention of jobs requirement ,section #eja7;e7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie7;e77 is amended-- 7,a7 in paragraph 7#a71 by striking creates or retains and all that follows and inserting creates or retains #a job for every #ge1jjj guaranteed by the ,administration1 except that the amount is #aej1jjj in the case of a project of a small manufacturer42 7,b7 in paragraph 7#b71 by striking creates or retains and all that follows and inserting creates or retains #a job for every #ge1jjj guaranteed by the ,administration1 except that the amount is #aej1jjj in the case of a project of a small manufacturer42 7,c7 by redesignating paragraph 7#f7 as paragraph 7#g72 and 7,d7 by inserting after paragraph 7#e7 the following3 7#f7 ,for a loan for a project directed toward the creation of job opportunities under subsection 7d77#a71 the ,administrator shall publish on the website of the ,administration the number of jobs created or retained under the project as of the date that is #b years after the completion 7as determined based on information provided by the development company7 of the project4 4 7#d7 ,building occupancy ,section #ejb7e7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7e771 is amended-- 7,a7 by striking ,in addition and inserting the following3 7,a7 ,in general ,except as provided in subparagraph 7,b71 in addition 2 and 7,b7 by adding at the end the following3 7,b7 ,exception ,with respect to an assisted small business that is a small manufacturer 7as defined in section #eja7;e77#g771 the small manufacturer may lease not more than #di percent of the project to #a or more other tenants1 if the small manufacturer occupies permanently and uses not less than a total of #ea percent of the space in the project after the execution of any leases authorized under this section1 without regard to whether the project is with respect to an existing building or new construction4 4 7#e7 ,collateral requirements ,section #ejb7c77;,e77i7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7c77;,e77i771 is amended by adding at the end the following3 ,additional collateral shall not be required in the case of a small manufacturer 7as defined in section #eja7;e77#g7744 7#f7 ,debt refinancing ,section #ejb7g77;,b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7g77;,b77 is amended in the matter preceding clause 7i7 by inserting 7or in the case of a small manufacturer 7as defined in section #eja7;e77#g77 that does not exceed #ajj percent of the project cost of the expansion7 after cost of the expansion4 7#g7 ,amount of guaranteed debenture ,section #ejc7;a7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fig7;a77 is amended by adding at the end the following3 7#e7 ,any debenture issued by a ,state or local development company to a small manufacturer 7as defined in section #eja7;e77#g77 with respect to which a guarantee is made under this subsection shall be in an amount equal to not more than #ej percent of the cost of the project with respect to which such debenture is issued1 without regard to whether good cause has been shown4 4 7d7 ,manufacturing debentures 7#a7 ,in general ,section #cjc of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fhc7 is amended by adding at the end the following3 7l7 ,manufacturing debentures ,in addition to any other authority under this ,act1 on and after the first day of the first fiscal year beginning after the date of enactment of this subsection1 a small business investment company may issue manufacturing debentures4 4 7#b7 ,definitions ,section #ajc of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #ffb7 is amended-- 7,a7 in paragraph 7#ai71 by striking and at the end2 7,b7 in paragraph 7#bj71 by striking the period at the end and inserting a semicolon2 and 7,c7 by adding at the end the following3 7#ba7 the term manufacturing debenture means a deferred interest debenture that-- 7,a7 is issued at a discount2 7,b7 has a #e-year maturity or a #aj-year maturity2 7,c7 requires no interest payment or annual charge for the first #e years2 7,d7 is restricted to companies assigned to a ,north ,american ,industry ,classification ,system code for manufacturing2 and 7,e7 is issued at no cost 7as defined in section #ejb of the ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a77 with respect to purchasing and guaranteeing the debenture4 4 7#c7 ,startup small manufacturers ,section #ejb7c77;,c77i7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7c77;,c77i77 is amended by inserting is not a small manufacturer 7as defined in section #eja7;e77#g77 and after small business concern4 7e7 ,additional leverage for manufacturers ,section #cjc7;b77#b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fhc7;b77#b77 is amended by adding at the end the following3 7,e7 ,additional leverage base on investment in manufacturers 7i7 ,definition ,in this subparagraph1 the term covered small manufacturer means a small manufacturer 7as defined in section #eja7;e77#g77 that-- 7,i7 is located in a low or moderate income geographic area2 7,,ii7 is not less than #ea percent owned by #a or more veterans 7as defined in section #aja of title #ch1 ,united ,states ,code72 7,,iii7 is not less than #ea percent owned by #a or more socially disadvantaged individuals or economically disadvantaged individuals 7within the meaning given such terms under section #h7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;a7772 7,,iv7 is not less than #ea percent owned by #a or more women2 7,v7 is located in an area with above average unemployment2 7,,vi7 is a smaller business concern described in subparagraph 7,a7 of section #ajc7ab72 7,,vii7 is located in a rural area2 7,,viii7 has increased its full time employment by not less than #be percent 7not including any new employees added by an acquisition7 since the small manufacturer receiving an initial financing under this title2 or 7,,ix7 is engaged in researching1 developing1 or manufacturing technologies important to national security4 7ii7 ,exclusion of amounts ,in calculating the outstanding leverage of a company for purposes of subparagraphs 7,a7 and 7,b71 the ,administrator shall exclude the amount of leverage outstanding to covered small manufacturers1 not to exceed a total of #ej1jjj1jjj4 4 #d4 ,assistance for small manufacturers 7a7 ,assistance through ,,sba programs 7#a7 ,amendments to the ,small ,business ,act ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7,a7 in section #g7;a7 7#ae ,u4,s4,c4 #fcf7;a771 by adding at the end the following3 7#cf7 ,assistance for small manufacturers ,the ,administrator shall ensure that each district office of the ,administration partners with not less than #a resource partner of the ,administration1 including a small business development center1 a women's business center described in section #bi1 the ,service ,corps of ,retired ,executives1 and a ,veteran ,business ,outreach ,center1 to provide training to small business concerns described in paragraph 7#b77;,f77i7 in obtaining assistance under the programs under this subsection and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 including with respect to the application process under such programs and partnering with participating lenders under this subsection4 2 7,b7 in section #h 7#ae ,u4,s4,c4 #fcg71 by striking subsection 7c7 and inserting the following3 7c7 ,assistance for small manufacturers in ,,score and small business development center programs 7#a7 ,definition ,in this subsection1 the term ,,score program means the ,service ,corps of ,retired ,executives authorized under subsection 7b77#a77;,b74 7#b7 ,volunteers ,under the ,,score program1 the ,administrator may recruit volunteers to assist small business concerns described in section #g7;a77#b77;,f77i7 in obtaining assistance under section #g7;a7 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 including with respect to the application process under such programs and partnering with participating lenders under such section #g7;a74 2 7,c7 in section #ba7;c77#c7 7#ae ,u4,s4,c4 #fdh7;c77#c77-- 7i7 in subparagraph 7,t71 by striking and at the end2 7ii7 in the first subparagraph designated as subparagraph 7,u71 as added by section #hfb of division ,a of the ,john ,s4 ,mc,cain ,national ,defense ,authorization ,act for ,fiscal ,year #bjai 7,public ,law #aae-bcb71 by striking the period at the end and inserting a semicolon2 7iii7 by redesignating the second subparagraph designated as subparagraph 7,u71 as added by section #e of the ,small ,business ,innovation ,protection ,act of #bjag 7,public ,law #aae-bei2 #acb ,stat4 #cffe71 as subparagraph 7,v72 7iv7 in subparagraph 7,v71 as so redesignated1 by striking the period at the end and inserting 2 and2 and 7v7 by adding at the end the following3 7,w7 providing training to small business concerns described in section #g7;a77#b77;,f77i7 in obtaining assistance under section #g7;a7 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 including with respect to the application process under such programs and partnering with participating lenders under such section #g7;a74 2 7,d7 in section #bi7;b7 7#ae ,u4,s4,c4 #fef7;b77-- 7i7 in paragraph 7#b71 by striking and at the end2 7ii7 in paragraph 7#c71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7#d7 training to small business concerns owned and controlled by women that are small business concerns described in section #g7;a77#b77;,f77i7 in obtaining assistance under section #g7;a7 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 including with respect to the application process under such programs and partnering with participating lenders under such section #g7;a74 2 and 7,e7 in section #cb 7#ae ,u4,s4,c4 #feg;b71 by adding at the end the following3 7h7 ,assistance for small manufacturers ,the ,associate ,administrator shall ensure that ,veterans ,business ,outreach ,centers assist small business concerns described in section #g7;a77#b77;,f77i7 in obtaining assistance under section #g7;a7 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 including with respect to the application process under such programs and partnering with participating lenders under such section #g7;a74 4 7#b7 ,amendments to the ,small ,business ,investment ,act of #aieh ,title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 is amended by adding at the end the following3 #eaa4 ,assistance for small manufacturers ,the ,administrator shall ensure that each district office of the ,administration partners with not less than #a resource partner of the ,administration1 including a small business development center described in section #ba of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh71 a women's business center described in section #bi of the ,small ,business ,act 7#ae ,u4,s4,c4 #fef71 the ,service ,corps of ,retired ,executives1 and a ,veteran ,business ,outreach ,center1 to provide training to small business concerns described in section #g7;a77#b77;,f77i7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#b77;,f77i77 in obtaining assistance under the program carried out under this title1 including with respect to the application process under that program and partnering with development companies under this title4 4 7b7 ,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 ,standards 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 ,administration4 #e4 ,federal loan guarantees for innovative technologies in manufacturing 7a7 ,transfer of existing program ,the ,stevenson-,wydler ,technology ,innovation ,act of #aihj 7#ae ,u4,s4,c4 #cgja et seq47 is amended-- 7#a7 by striking section #bf 7#ae ,u4,s4,c4 #cgba72 and 7#b7 by redesignating sections #bg and #bh 7#ae ,u4,s4,c4 #cgbb and #cgbc7 as sections #bf and #bg1 respectively4 7b7 ,authority of ,,sba 7#a7 ,definitions ,in this subsection-- 7,a7 the term ,administrator means the ,administrator of the ,small ,business ,administration2 7,b7 the term business loan programs of the ,administration means the programs under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq472 and 7,c7 the term small manufacturer means a business concern described in section #g7;a77#b77;,f77i7 of the ,small ,business ,act1 as amended by this ,act4 7#b7 ,authorization ,to the extent the ,administrator determines that the assistance available to small manufacturers under section #bf of the ,stevenson-,wydler ,technology ,innovation ,act of #aihj 7#ae ,u4,s4,c4 #cgba71 as in effect on the day before the date of enactment of this ,act1 is not available under the business loan programs of the ,administration1 the ,administrator shall ensure that the business loan programs of the ,administration provide adequate support for innovative technologies in manufacturing4 7#c7 ,reporting ,the ,administrator shall submit to the ,committee on ,small ,business and ,entrepreneurship 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 7#b74 7c7 ,savings clause ,any loan guarantee issued under section #bf of the ,stevenson-,wydler ,technology ,innovation ,act of #aihj 7#ae ,u4,s4,c4 #cgba71 as in effect on the day before the date of enactment of this ,act1 shall remain in full force and effect under the terms1 and for the duration1 of the loan guarantee agreement4