S.Amdt. 6309

This amendment aims to increase loan limits for small manufacturers by modifying the Small Business Act and the Small Business Investment Act of 1958.

Changes and Additions:

• Definition of Small Manufacturer: It defines a small manufacturer as a small business concern whose primary business is in North American Industrial Classification System sectors 31, 32, or 33, and whose production facilities are all located in the United States.

• Increased Loan Limits:

  • Under Section 7(a) of the Small Business Act, it raises the loan limit for small manufacturers to $7,500,000 (or if the gross loan amount exceeds $10,000,000).
  • It increases the limit to $9,000,000 (or if the gross loan amount exceeds $10,000,000) for certain cases, with no more than $8,000,000 used for working capital, supplies, or export financings.
  • It increases the limit in Section 7(a)(14)(B)(i) to $10,000,000 for small manufacturers.
  • Under the Small Business Investment Act of 1958, it increases the limit from $5,500,000 to $10,000,000.

• Accountability and Oversight:

  • The Inspector General of the Small Business Administration must conduct an analysis within 2 years of enactment to check projected and early default rates and determine if these increases introduce additional risk.
  • The Administrator of the Small Business Administration must provide annual reports for 5 years regarding larger loans to small manufacturers, including data on jobs created or retained and whether these loans prevented job losses.