Small Manufacturers Get Access to $10 Million Loans: New Bill Doubles Federal Financing Caps

The Made in America Manufacturing Finance Act is pretty straightforward: it’s designed to pump significantly more capital into U.S.-based manufacturing. The bill creates a special class of business called a “small manufacturer” and then dramatically raises the ceiling on how much money they can borrow through key federal loan programs, like the popular Section 7(a) loans.

The All-American Manufacturer Test

To qualify for this new financial boost, a company has to pass a strict two-part test (SEC. 2). First, the business must be primarily engaged in manufacturing—think NAICS Sectors 31, 32, or 33. This covers everything from food processing to high-tech aerospace parts. Second, and this is the non-negotiable part, all of the company’s production facilities must be located within the United States. If you run a small machine shop in Ohio but have even one small assembly line operating overseas, you are instantly disqualified from the higher loan limits. The intent here is clearly to reward and incentivize 100% domestic production.

Doubling the Money for Domestic Growth

For most small businesses, the maximum standard 7(a) loan is capped at $3.75 million. This bill essentially throws that cap out the window for qualifying small manufacturers (SEC. 3). For them, the maximum loan limit jumps to a massive $7.5 million. This isn't just a small increase; it's a doubling of the available capital for things like buying equipment, expanding factory floor space, or hiring new staff.

This boost also applies to other specific financing programs. For instance, the limit on export financing loans—money used to help manufacturers sell their goods overseas—is doubled from $5 million up to $10 million for these domestic businesses. Furthermore, the maximum loan amount available under the Small Business Investment Act (Section 502) is also increased from $5.5 million to $10 million (SEC. 4). If you’re a domestic manufacturer needing to invest millions in a new, automated assembly line, this bill makes it significantly easier to get that capital with federal backing.

Who Wins and Who Doesn't

The clear winners here are the small manufacturers who have kept their operations entirely within the U.S. This bill provides them with a clear, competitive advantage in accessing large-scale capital compared to their counterparts who might have some international production facilities. For a founder looking to scale up a domestic operation, having access to an extra $5 million in federally backed financing can be a total game-changer. It means the difference between steady growth and rapid expansion.

However, it's important to note who is left out. Manufacturers who rely on even a small amount of international production for their supply chain won't qualify for these increased limits. Also, the vast majority of small businesses—the service providers, retailers, and restaurants—will still be stuck under the standard $3.75 million cap. This legislation is laser-focused on one sector: manufacturing that is fully contained within the U.S. borders.