This Act may be cited as the “Strengthening Investment to Grow Manufacturing in America Act”.

Congress finds the following:

(a) Loan guarantee percentage.—Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is amended—

(1) in subparagraph (A), in the matter preceding clause (i), by striking “and (E)” and inserting “(E), and (F)”; and

(2) by adding at the end the following:

“(F) PARTICIPATION FOR MANUFACTURERS.—

“(i) 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 (ii), the participation by the Administration shall be 90 percent.

“(ii) 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 Representatives, the Administrator may designate a North American Industry Classification System code for purposes of clause (i) if the Administrator determines the code—

“(I) is not a manufacturing code under the North American Industry Classification System; and

“(II) corresponds to a sector in which manufacturing is a considerable component of the operations of a small business concern, as determined by the Administrator, including advanced manufacturing.”.

(b) Guarantee fee reduction.—Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) is amended—

(1) in subparagraph (A), by striking “With respect” and inserting “Except as provided in subparagraph (C), with respect”; and

(2) by adding at the end the following:

“(C) MANUFACTURERS.—

“(i) IN GENERAL.—Subject to clause (ii), with respect to a loan guaranteed under this subsection for a small business concern described in paragraph (2)(F)(i)—

“(I) the Administration may not collect a guarantee fee under this paragraph for a loan of not more than $350,000; and

“(II) for a loan of more than $350,000, the Administration shall collect a guarantee fee under this paragraph equal to 50 percent of the guarantee fee that the Administration would otherwise collect for the loan.

“(ii) EXCEPTION.—The requirements of clause (i) shall not apply to loans made during a fiscal year if—

“(I) the budget of the President for that fiscal year, submitted to Congress under section 1105(a) of title 31, United States Code, includes a cost for the program established under this subsection that is above zero; and

“(II) the Administrator submits to Congress—

“(aa) notice regarding the determination of cost described in subclause (I); and

“(bb) a detailed discussion indicating why not implementing clause (i) will cause the cost of the program established under this subsection to be not more than zero.”.

(c) Certified development company loans.—

(1) MANUFACTURING LOAN AMOUNT.—Section 502(2)(A)(iii) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by striking “$5,500,000” and inserting “10,000,000”.

(2) CONTRIBUTION REQUIREMENT.—Section 502(3)(C) of the Small Business Investment Act of 1958 (15 U.S.C. 696(3)(C)) is amended—

(A) in clause (iii), by striking “or” at the end;

(B) by redesignating clause (iv) as clause (v); and

(C) by inserting after clause (iii) the following:

“(iv) for a small manufacturer (as defined in section 501(e)(7))—

“(I) at least 5 percent of the total cost of the project financed, if the small business concern has been in operation for a period of 2 years or less;

“(II) at least 5 percent of the total cost of the project financed, if the project involves a limited or single purpose building or structure;

“(III) at least 10 percent of the total cost of the project financed if the project involves both of the conditions set forth in subclauses (I) and (II); or

“(IV) at least 5 percent of the total cost of the project financed, in all other circumstances, at the discretion of the development company; or”.

(3) CREATION OR RETENTION OF JOBS REQUIREMENT.—Section 501(e) of the Small Business Investment Act of 1958 (15 U.S.C. 695(e)) is amended—

(A) in paragraph (1), by striking “creates or retains” and all that follows and inserting “creates or retains 1 job for every $75,000 guaranteed by the Administration, except that the amount is $150,000 in the case of a project of a small manufacturer.”;

(B) in paragraph (2), by striking “creates or retains” and all that follows and inserting “creates or retains 1 job for every $75,000 guaranteed by the Administration, except that the amount is $150,000 in the case of a project of a small manufacturer.”;

(C) by redesignating paragraph (6) as paragraph (7); and

(D) by inserting after paragraph (5) the following:

“(6) For a loan for a project directed toward the creation of job opportunities under subsection (d)(1), 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 2 years after the completion (as determined based on information provided by the development company) of the project.”.

(4) BUILDING OCCUPANCY.—Section 502(5) of the Small Business Investment Act of 1958 (15 U.S.C. 696(5)), is amended—

(A) by striking “In addition” and inserting the following:

“(A) IN GENERAL.—Except as provided in subparagraph (B), in addition”; and

(B) by adding at the end the following:

“(B) EXCEPTION.—With respect to an assisted small business that is a small manufacturer (as defined in section 501(e)(7)), the small manufacturer may lease not more than 49 percent of the project to 1 or more other tenants, if the small manufacturer occupies permanently and uses not less than a total of 51 percent of the space in the project after the execution of any leases authorized under this section, without regard to whether the project is with respect to an existing building or new construction.”.

(5) COLLATERAL REQUIREMENTS.—Section 502(3)(E)(i) of the Small Business Investment Act of 1958 (15 U.S.C. 696(3)(E)(i)), is amended by adding at the end the following: “Additional collateral shall not be required in the case of a small manufacturer (as defined in section 501(e)(7)).”.

(6) DEBT REFINANCING.—Section 502(7)(B) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)(B)) is amended in the matter preceding clause (i) by inserting “(or in the case of a small manufacturer (as defined in section 501(e)(7)) that does not exceed 100 percent of the project cost of the expansion)” after “cost of the expansion”.

(7) AMOUNT OF GUARANTEED DEBENTURE.—Section 503(a) of the Small Business Investment Act of 1958 (15 U.S.C. 697(a)) is amended by adding at the end the following:

“(5) Any debenture issued by a State or local development company to a small manufacturer (as defined in section 501(e)(7)) with respect to which a guarantee is made under this subsection shall be in an amount equal to not more than 50 percent of the cost of the project with respect to which such debenture is issued, without regard to whether good cause has been shown.”.

(d) Manufacturing debentures.—

(1) IN GENERAL.—Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 683) is amended by adding at the end the following:

“(l) Manufacturing debentures.—In addition to any other authority under this Act, on and after the first day of the first fiscal year beginning after the date of enactment of this subsection, a small business investment company may issue manufacturing debentures.”.

(2) DEFINITIONS.—Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662) is amended—

(A) in paragraph (19), by striking “and” at the end;

(B) in paragraph (20), by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

“(21) the term ‘manufacturing debenture’ means a deferred interest debenture that—

“(A) is issued at a discount;

“(B) has a 5-year maturity or a 10-year maturity;

“(C) requires no interest payment or annual charge for the first 5 years;

“(D) is restricted to companies assigned to a North American Industry Classification System code for manufacturing; and

“(E) is issued at no cost (as defined in section 502 of the Credit Reform Act of 1990 (2 U.S.C. 661a)) with respect to purchasing and guaranteeing the debenture.”.

(3) STARTUP SMALL MANUFACTURERS.—Section 502(3)(C)(i) of the Small Business Investment Act of 1958 (15 U.S.C. 696(3)(C)(i)) is amended by inserting “is not a small manufacturer (as defined in section 501(e)(7)) and” after “small business concern”.

(e) Additional leverage for manufacturers.—Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended by adding at the end the following:

“(E) ADDITIONAL LEVERAGE BASE ON INVESTMENT IN MANUFACTURERS.—

“(i) DEFINITION.—In this subparagraph, the term ‘covered small manufacturer’ means a small manufacturer (as defined in section 501(e)(7)) that—

“(I) is located in a low or moderate income geographic area;

“(II) is not less than 51 percent owned by 1 or more veterans (as defined in section 101 of title 38, United States Code);

“(III) is not less than 51 percent owned by 1 or more socially disadvantaged individuals or economically disadvantaged individuals (within the meaning given such terms under section 8(a) of the Small Business Act (15 U.S.C. 637(a)));

“(IV) is not less than 51 percent owned by 1 or more women;

“(V) is located in an area with above average unemployment;

“(VI) is a smaller business concern described in subparagraph (A) of section 103(12);

“(VII) is located in a rural area;

“(VIII) has increased its full time employment by not less than 25 percent (not including any new employees added by an acquisition) since the small manufacturer receiving an initial financing under this title; or

“(IX) is engaged in researching, developing, or manufacturing technologies important to national security.

“(ii) EXCLUSION OF AMOUNTS.—In calculating the outstanding leverage of a company for purposes of subparagraphs (A) and (B), the Administrator shall exclude the amount of leverage outstanding to covered small manufacturers, not to exceed a total of $50,000,000.”.

(a) Assistance through SBA programs.—

(1) AMENDMENTS TO THE SMALL BUSINESS ACT.—The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(A) in section 7(a) (15 U.S.C. 636(a)), by adding at the end the following:

“(36) ASSISTANCE FOR SMALL MANUFACTURERS.—The Administrator shall ensure that each district office of the Administration partners with not less than 1 resource partner of the Administration, including a small business development center, a women’s business center described in section 29, the Service Corps of Retired Executives, and a Veteran Business Outreach Center, to provide training to small business concerns described in paragraph (2)(F)(i) in obtaining assistance under the programs under this subsection and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process under such programs and partnering with participating lenders under this subsection.”;

(B) in section 8 (15 U.S.C. 637), by striking subsection (c) and inserting the following:

“(c) Assistance for small manufacturers in SCORE and small business development center programs.—

“(1) DEFINITION.—In this subsection, the term ‘SCORE program’ means the Service Corps of Retired Executives authorized under subsection (b)(1)(B).

“(2) VOLUNTEERS.—Under the SCORE program, the Administrator may recruit volunteers to assist small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process under such programs and partnering with participating lenders under such section 7(a).”;

(C) in section 21(c)(3) (15 U.S.C. 648(c)(3))—

(i) in subparagraph (T), by striking “and” at the end;

(ii) in the first subparagraph designated as subparagraph (U), as added by section 862 of division A of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), by striking the period at the end and inserting a semicolon;

(iii) by redesignating the second subparagraph designated as subparagraph (U), as added by section 5 of the Small Business Innovation Protection Act of 2017 (Public Law 115–259; 132 Stat. 3665), as subparagraph (V);

(iv) in subparagraph (V), as so redesignated, by striking the period at the end and inserting “; and”; and

(v) by adding at the end the following:

“(W) providing training to small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process under such programs and partnering with participating lenders under such section 7(a).”;

(D) in section 29(b) (15 U.S.C. 656(b))—

(i) in paragraph (2), by striking “and” at the end;

(ii) in paragraph (3), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(4) training to small business concerns owned and controlled by women that are small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process under such programs and partnering with participating lenders under such section 7(a).”; and

(E) in section 32 (15 U.S.C. 657b), by adding at the end the following:

“(h) Assistance for small manufacturers.—The Associate Administrator shall ensure that Veterans Business Outreach Centers assist small business concerns described in section 7(a)(2)(F)(i) in obtaining assistance under section 7(a) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), including with respect to the application process under such programs and partnering with participating lenders under such section 7(a).”.

(2) AMENDMENTS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958.—Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following:

(b) 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 Administration.

(a) Transfer of existing program.—The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.) is amended—

(1) by striking section 26 (15 U.S.C. 3721); and

(2) by redesignating sections 27 and 28 (15 U.S.C. 3722 and 3723) as sections 26 and 27, respectively.

(b) Authority of SBA.—

(1) DEFINITIONS.—In this subsection—

(A) the term “Administrator” means the Administrator of the Small Business Administration;

(B) the term “business loan programs of the Administration” means the programs under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.); and

(C) the term “small manufacturer” means a business concern described in section 7(a)(2)(F)(i) of the Small Business Act, as amended by this Act.

(2) AUTHORIZATION.—To the extent the Administrator determines that the assistance available to small manufacturers under section 26 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3721), as in effect on the day before the date of enactment of this Act, is not available under the business loan programs of the Administration, the Administrator shall ensure that the business loan programs of the Administration provide adequate support for innovative technologies in manufacturing.

(3) 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 (2).

(c) Savings clause.—Any loan guarantee issued under section 26 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3721), as in effect on the day before the date of enactment of this Act, shall remain in full force and effect under the terms, and for the duration, of the loan guarantee agreement.