Sponsors (7)
The bill aims to expand and clarify targeted SBA support for small manufacturers—potentially increasing access to capital and improving oversight—while creating eligibility exclusions, administrative burdens, taxpayer credit exposure, and short-term uncertainty about loan limits.
Small manufacturers (NAICS 31-33) gain access to larger or clarified SBA loan capacity, increasing available capital for expansion and helping preserve jobs and investment.
Small manufacturers and agencies gain clearer statutory eligibility for domestic-manufacturing set-asides and preferences, making it easier for SBA and state governments to administer programs consistently.
Taxpayers and policymakers receive independent, evidence-based oversight (Inspector General study and multi-year reporting) on whether higher loan limits affect default risk and on job impacts, improving future SBA policy choices.
Small U.S.-headquartered firms that have some production abroad will be excluded from the new "small manufacturer" subclass and lose access to prioritized SBA support.
The legislation creates short-term legal and market uncertainty about SBA loan caps (notably the intended $5.5M limit), which could delay financing decisions and slow business investment while Congress or courts resolve the ambiguity.
Raising or expanding loan limits increases federal credit exposure and could raise taxpayer costs if defaults rise under the larger caps.
Based on analysis of 6 sections of legislative text.
Creates a “small manufacturer” category, raises SBA 7(a)/investment loan caps for those firms, and requires IG and SBA reports on loan risks and job impacts.
Introduced May 1, 2025 by Joni Ernst · Last progress May 1, 2025
Creates a new statutory category called “small manufacturer” (manufacturing firms in NAICS 31–33 with all production facilities in the U.S.) and raises maximum SBA loan limits for those firms under the 7(a) program and certain small‑investment provisions. Requires the SBA Inspector General to analyze first‑year loans made under the new limits and requires the SBA Administrator to file annual reports for five years on larger loans to small manufacturers and their job impacts. Also includes a likely typographical error that removes a numeric loan cap in an investment‑loan provision, which could create legal ambiguity unless corrected; deadlines are set for an IG report (within two years) and annual Administrator reports for the year of enactment and the next four years.