Sec. 3. Small manufacturers
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Section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) ) is amended— in subparagraph (A), in the matter preceding clause (i), by striking and
(E)and inserting (E), and
(F); and by adding at the end the following: 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. 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— is not a manufacturing code under the North American Industry Classification System; and 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. . Section 7(a)(18) of the Small Business Act ( 15 U.S.C. 636(a)(18) ) is amended— in subparagraph (A), by striking With respect and inserting Except as provided in subparagraph (C), with respect ; and by adding at the end the following: Subject to clause (ii), with respect to a loan guaranteed under this subsection for a small business concern described in paragraph (2)(F)(i)— the Administration may not collect a guarantee fee under this paragraph for a loan of not more than $350,000; and 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. The requirements of clause
(i)shall not apply to loans made during a fiscal year if— 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 the Administrator submits to Congress— notice regarding the determination of cost described in subclause (I); and 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. . 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 . Section 502(3)(C) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(3)(C) ) is amended— in clause (iii), by striking or at the end; by redesignating clause
(iv)as clause (v); and by inserting after clause
(iii)the following: for a small manufacturer (as defined in section 501(e)(7))— 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; at least 5 percent of the total cost of the project financed, if the project involves a limited or single purpose building or structure; 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 at least 5 percent of the total cost of the project financed, in all other circumstances, at the discretion of the development company; or . Section 501(e) of the Small Business Investment Act of 1958 ( 15 U.S.C. 695(e) ) is amended— 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. ; 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. ; by redesignating paragraph
(6)as paragraph (7); and by inserting after paragraph
(5)the following: 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. . Section 502(5) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(5) ), is amended— by striking In addition and inserting the following: Except as provided in subparagraph (B), in addition ; and by adding at the end the following: 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. . 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)). . 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 . 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: 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. . Section 303 of the Small Business Investment Act of 1958 ( 15 U.S.C. 683 ) is amended by adding at the end the following: 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. . Section 103 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ) is amended— in paragraph (19), by striking and at the end; in paragraph (20), by striking the period at the end and inserting a semicolon; and by adding at the end the following: the term manufacturing debenture means a deferred interest debenture that— is issued at a discount; has a 5-year maturity or a 10-year maturity; requires no interest payment or annual charge for the first 5 years; is restricted to companies assigned to a North American Industry Classification System code for manufacturing; and 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. . 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 . 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: In this subparagraph, the term covered small manufacturer means a small manufacturer (as defined in section 501(e)(7)) that— is located in a low or moderate income geographic area; is not less than 51 percent owned by 1 or more veterans (as defined in section 101 of title 38, United States Code); 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) )); is not less than 51 percent owned by 1 or more women; is located in an area with above average unemployment; is a smaller business concern described in subparagraph
(A)of section 103(12); is located in a rural area; 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 is engaged in researching, developing, or manufacturing technologies important to national security. 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. .
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Sec. 3
Small manufacturers
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