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Creates a federal "Scale-Up Manufacturing Investment Program" to help small and technology-intensive U.S. manufacturers access growth capital and remain or expand production in the United States. The bill amends several federal statutes governing small business investment, bank and holding company regulation, bankruptcy, and the Community Reinvestment Act so regulators will consider investments in eligible manufacturing-focused funds when evaluating financial institutions. The aim is to mobilize private capital into funds that back early-stage and scaling manufacturers, reduce incentives for companies to move production overseas, and align bank regulatory review (including CRA assessments) to support those investments. The text shown highlights a new CRA consideration; other statutory insertions would implement the program across relevant financial and small-business law frameworks.
The strength of the United States manufacturing sector is critical to the economy and the global competitiveness of the United States.
United States manufacturers support 17,600,000 jobs in the United States and account for 12 percent of the gross domestic product of the United States.
Access to capital is essential to growth and innovation in the manufacturing sector.
Small, emerging manufacturers face unique challenges scaling commercial production in the United States, driving many young manufacturers to other countries.
Structural barriers exist in the United States that prevent key investments in first-commercial manufacturing facilities.
Who is affected and how:
Manufacturing and industrial facility operators: Directly targeted—small and technology-intensive manufacturers could gain better access to growth capital and investor networks that help them scale production domestically. This could improve survival and expansion prospects for firms that struggle to finance plant, equipment, and commercialization.
Small manufacturers: Likely to be principal beneficiaries if they meet fund eligibility criteria; may see increased financing options and technical support from specialized funds.
Community banks, depository institutions, and other lenders: Face a new regulatory incentive to invest in or allocate capital to qualifying manufacturing-focused funds because CRA examinations must consider such investments. That could change portfolio allocation decisions, risk appetite, and compliance activities.
Investment funds and private investors: Funds that focus on scaling U.S. manufacturing could become more attractive recipients of bank capital and other institutional investments; fund managers will need to satisfy program eligibility and reporting requirements.
Regulators and examiners (banking agencies): Must update CRA examination guidance and assessment frameworks to incorporate the new consideration; oversight workload may increase.
Local communities and workers: If successful, the program could support job retention and creation in manufacturing communities, especially where small and advanced manufacturing is concentrated. The effect size depends on the volume of new capital mobilized and firms’ ability to convert capital into new domestic production.
Risks and tradeoffs:
Overall, the bill primarily affects manufacturers, banks, investment funds, and regulators by changing incentives and the regulatory environment to promote private investment in scaling U.S. manufacturing. The ultimate economic impact depends heavily on the detailed implementing rules and the scale of private participation.
Adds new provisions to Title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.), creating or authorizing the 'Scale-Up Manufacturing Investment Program' at the end of Title III.
Inserts new text into subsection 13(d)(1)(E) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(d)(1)(E)) by adding material before the existing text of that subparagraph.
Inserts new text into 11 U.S.C. 109(b)(2) by adding material before the existing paragraph text, modifying the list or conditions of entities ineligible under that subsection.
Adds a new subsection (e) to 12 U.S.C. 2903 (Section 804 of the Community Reinvestment Act) requiring the appropriate Federal financial supervisory agency to consider investments in one or more participating investment funds under part D of title III of the Small Business Investment Act of 1958 as a factor when assessing a financial institution's record under subsection (a).
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Read twice and referred to the Committee on Small Business and Entrepreneurship.
Introduced July 23, 2025 by Cory Anthony Booker · Last progress July 23, 2025
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Introduced in Senate