If approved in the Senate, legislation introduced several days ago will double the size of federal small business manufacturing loans from $5 million to $10 million.
According to Iowa Republican Senator Jodi Ernst, the Made in America Manufacturing Finance Act will make it more possible for small businesses to access the capital they need to invest in new equipment and hire new employees.
Ernst said the legislation will “unleash American industry by allowing small manufacturers to grow.” Co-sponsor of the bill, Delaware Democrat Senator Chris Coons, remarked that “every big business started out as a small business that just needed a little help to grow.”
The Made in America Manufacturing Finance Act, continued Coons, “builds on years of work to give small manufacturers access to the funding they need to invest in their American dream.”
According to recent statistics released by the Small Business Administration, loans for small manufacturing businesses have increased by 74% since January of this year. In the last four months the agency has approved over 1,100 loans with a total dollar value of $677 million. That’s up from the 650 loans given a green light by the SBA in early 2021, with a dollar value of $497 million.
In a separate statement, Kelly Loefler, Administrator of the SBA, said the legislation will “empower our small businesses to reclaim our economic independence and rebuild the foundation of American power.”
If the bill, which is working its way through Congress, passes, it will be the first time in 15 years that the SBA cap on such loans has been raised.
May 15, 2025
By Garry Boulard
Logo courtesy Small Business Administration
