U.S. House Lawmakers Vote To Expand Manufacturing Loan Program

The U.S. House of Representatives has unanimously approved bipartisan legislation that, if also approved by the U.S. Senate and signed into law by President Donald Trump, would double the U.S. Small Business Administration’s loan limit from $5 million to $10 million for domestic manufacturers. According to bill sponsor Rep. Roger Williams (R-Texas), the legislation aims to unlock more capital for small manufacturers seeking to buy machinery, expand their factories, upgrade equipment, and scale production.

More specifically, the legislation would offer increased limit guarantees for 7(a) and 504 loans to small manufacturers with production facilities located entirely in the United States.

“These entrepreneurs are the backbone of our industrial base, and their success fuels our nation,” Rep. Williams said in a press release. The press release also argued that, because manufacturing is capital-intensive, these increased limits will lower barriers for small businesses to scale and compete, driving job creation, boosting local economies, and strengthening national manufacturing capacity.

In the House, the bill was cosponsored by Reps. Dan Meuser (R-Penn.), Nathaniel Moran (R-Texas), Craig Goldman (R-Texas), Tony Wied (R-Wis.), Troy Downing (R-Mont.), Brad Finstad (R-Minn.), Jake Ellzey (R-Texas), Brian Jack (R-Ga.), Nick LaLota (R-N.Y.), Beth Van Duyne (R-Texas), and Derek Schmidt (R-Kan.). In the upper chamber of Congress, Sens. Joni Ernst (R-Iowa) and Chris Coons (D-Delaware) are leading the companion legislation.

Stay tuned to Connecting the Dots as this legislation makes its way through the U.S. Senate.