The "Made in America Manufacturing Finance Act of 2025" increases loan limits for small manufacturers under the Small Business Act and the Small Business Investment Act.
Joni Ernst
Senator
IA
The "Made in America Manufacturing Finance Act of 2025" aims to bolster domestic manufacturing by increasing loan limits for small manufacturers through amendments to the Small Business Act and the Small Business Investment Act of 1958. Specifically, it raises the maximum loan amounts available to small manufacturers, with higher limits for those with third-party guarantees or those utilizing the loans for export purposes. These changes are intended to provide greater financial support to small manufacturing businesses operating within the United States.
New Bill Proposes Boosting Small U.S. Manufacturer Loans Up To $10 Million
Alright, let's break down the "Made in America Manufacturing Finance Act of 2025." In a nutshell, this bill is looking to give small U.S. manufacturers a bigger financial toolkit. It proposes upping the loan limits these businesses can get through two key government programs: the Small Business Act (SBA) and the Small Business Investment Act of 1958. The idea is to pump more capital into American factories to help them grow and compete.
More Cash on the Table: What the Numbers Mean
So, what kind of money are we talking about? Under Section 3, for loans through the Small Business Act's 7(a) program, the bill wants to raise the maximum loan for a small manufacturer to $7.5 million. If that loan is backed by a third-party guarantee, the ceiling goes up to $9 million, with a hefty $8 million chunk of that potentially usable for everyday operational costs like working capital, supplies, or even financing exports (as per paragraph (14) of 15 U.S.C. 636(a)). And if a small manufacturer is specifically looking to fund their export game, they could aim for a loan up to $10 million.
Think about a local company making specialized machine parts. Right now, they might be capped at a lower loan amount, limiting their ability to buy new equipment or hire more folks. This bill could mean they can finally afford that bigger CNC machine or expand their sales overseas.
Investing in Homegrown Production
It's not just SBA loans getting a boost. Section 4 of the bill targets the Small Business Investment Act of 1958. Here, the proposed change is to nearly double the loan limit for small manufacturers, taking it from the current $5.5 million all the way up to $10 million (amending section 502(2)(A)(iii) of that Act). This program often supports longer-term financing and equity investments, so a higher cap could help small factories undertake more significant expansion projects or invest in new technologies.