Scale-Up Manufacturing Investment Company Act of 2025

This bill creates a new Small Business Administration program to help cutting‑edge manufacturers grow from prototypes to full production in the United States. The SBA would “match” private money by providing financing support to approved, privately run investment funds. Those funds would then invest in small and emerging manufacturers to build first factories, add new production lines, or bring new manufacturing technologies into use. The goal is to keep high‑tech manufacturing and good jobs in the U.S. by filling a funding gap that often pushes start‑ups to scale up overseas .

Key financing rules include: up to $1 of federal leverage for every $1 of private capital; no more than $500 million in federal leverage to any one fund per year (and $1 billion total across all funds per year); and each approved fund must have at least $250 million in private capital. The SBA charges a leverage fee between 3% and 5.5%. Banks can invest in these funds (with limits), and such investments can count toward Community Reinvestment Act credit. The SBA may guarantee fund-issued debt with the full faith and credit of the United States. Funds must spread risk (no single investment larger than 10% of the fund) and can use federal leverage for no more than half of any one project. The SBA will conduct regular exams and require audited valuations. The agency will also increase outreach to businesses owned by socially and economically disadvantaged individuals, women, veterans, and people with disabilities .

Who it affects and how

• Small and emerging manufacturers: Gain access to larger, blended financing to build first factories or adopt advanced production technologies in the U.S. .
• Investment funds: Can apply for an SBA license; SBA provides status within 90 days and a decision within 180 days. After licensing, SBA leverage can start within 60 days, matched $1‑for‑$1 with private capital (subject to caps and fees) .
• Banks and communities: Banks may invest (within set limits) and receive CRA consideration; investments aim to strengthen local manufacturing and jobs .

Quick reference

• Who is eligible to receive investments: Small and emerging “advanced” manufacturers meeting SBA size standards .
• What changes: SBA-backed leverage to private funds; stricter oversight; risk-spreading rules; targeted outreach to underrepresented business owners .
• Key limits: $500M leverage per fund/year; $1B total/year; fund must have ≥$250M private capital; leverage fee 3%–5.5%; leverage ≤50% of any one project; any single company investment ≤10% of fund .
• Timing notes: SBA gives application status in 90 days, final decision in 180 days; leverage may begin within 60 days after licensing. If a credit council is set up, it will hold an annual briefing starting no later than 18 months after enactment .