What This Bill Does
This bill creates a new loan program for manufacturing businesses in rural areas. The program allows the government to guarantee loans to businesses that make goods needed for critical infrastructure (the essential services and systems a country depends on). Businesses can get part or all of their loan forgiven if they meet job creation goals.
Who It Affects
Manufacturers in rural areas that make products for critical infrastructure sectors. The Small Business Administration, which runs small business lending programs. Lenders who provide the actual loans to these businesses.
Key Provisions
• The government can guarantee 100 percent of loans made to eligible manufacturers in rural areas who are developing or expanding manufacturing sites (Sec. 2(a)(1)).
• A business applying for a loan must submit a business plan that includes a goal for how many jobs will be created at the site (Sec. 2(a)(2)).
• A business can have its loan forgiven if it meets at least 75 percent of its job creation goals within 5 years of receiving the loan (Sec. 2(a)(2)).
• The forgiven loan amount cannot exceed 50 percent of the total loan amount or the maximum amount allowed under existing Small Business Administration rules (Sec. 2(a)(2)).
• The Small Business Administration must study whether to add additional industries to the definition of "critical infrastructure sector" within 180 days of the law taking effect (Sec. 2(a)(2)).
What Changes
If this bill becomes law, rural manufacturers in designated industrial parks can access a new government-guaranteed loan program with the possibility of loan forgiveness. The definition of industries eligible for this program may expand after a study is completed. The Small Business Administration receives $2,000,000,000 in funding to carry out this program.
Important Definitions
"Covered applicant": A business located in a rural area industrial park that manufactures goods essential to critical infrastructure sectors and either is expanding its site or developing a new site.
"Critical infrastructure sector": The 16 sectors named in a presidential policy document from February 12, 2013, plus any additional sectors identified through a required study or by the Small Business Administration.
"Eligible costs": Payroll, construction, permitting and other capital costs connected to developing or expanding a manufacturing site in a rural industrial park, plus any other costs the Small Business Administration determines appropriate.
"Rural area industrial park": Not specified in bill text.
I
118TH CONGRESS
1ST SESSION
H. R. 414
To amend the Small Business Act to establish a rural manufacturing
forgivable loan program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 2023
Mr. FINSTAD (for himself, Ms. CRAIG, Mr. AMODEI, Mr. JOHNSON of Ohio,
and Mr. CARTER of Georgia) introduced the following bill; which was re-
ferred to the Committee on Small Business, and in addition to the Com-
mittee on Appropriations, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To amend the Small Business Act to establish a rural manu-
facturing forgivable loan program, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Investing in Rural
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Manufacturing Act’’.
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SEC. 2. RURAL MANUFACTURING LOANS.
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(a) IN GENERAL.—Section 7(a) of the Small Busi-
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ness Act (15 U.S.C. 636(a)) is amended—
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(1) in paragraph (2)—
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(A) in subparagraph (A), by striking ‘‘and
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(F)’’ and inserting ‘‘(F), and (G)’’; and
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(B) by adding at the end the following new
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subparagraph:
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‘‘(G) PARTICIPATION IN RURAL MANUFAC-
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TURING LOANS.—In an agreement to partici-
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pate in a loan on a deferred basis under para-
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graph (38), the participation by the Adminis-
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tration shall be 100 percent.’’; and
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(2) by adding at the end the following new
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paragraph:
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‘‘(38) RURAL MANUFACTURING LOANS.—
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‘‘(A) IN
GENERAL.—The Administrator
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may guarantee a loan made under this para-
15
graph to a covered applicant for the purpose of
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paying any eligible costs associated with the de-
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velopment of a business concern that manufac-
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tures goods essential to critical infrastructure
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sectors in rural areas.
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‘‘(B) APPLICATION.—A covered applicant
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shall submit an application for a loan under
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this paragraph which shall include a com-
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prehensive business plan that includes a goal
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for the resulting number of jobs to be created
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•HR 414 IH
at the site that will be developed or expanded
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with the proceeds of such loan.
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‘‘(C) LOAN FORGIVENESS.—A covered ap-
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plicant shall be eligible for forgiveness of any
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indebtedness on a loan made under this para-
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graph as follows:
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‘‘(i) If the covered applicant has met
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75 percent or more of the job creation
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goals of the comprehensive business plan
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described in subparagraph (B) not later
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than 5 years after the date of origination
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of the loan.
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‘‘(ii) If the Administrator makes a de-
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termination that the covered applicant only
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used loan proceeds for eligible costs, the
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covered applicant shall receive loan forgive-
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ness in an amount—
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‘‘(I) less than or equal to an
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amount that is 50 percent of the total
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financing amount specified by the cov-
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ered applicant; and
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‘‘(II) less than or equal to max-
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imum amount allowable under para-
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graph (3)(A).
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‘‘(D) IDENTIFICATION
OF
ADDITIONAL
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CRITICAL INFRASTRUCTURE SECTORS.—
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‘‘(i) STUDY.—Not later than 180 days
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after the date of enactment of this para-
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graph, the Administrator shall complete a
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study to identify any additional sectors to
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be included in the definition of the term
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‘critical infrastructure sector’ under this
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paragraph.
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‘‘(ii) PROVISION OF LOANS PRIOR TO
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COMPLETION
OF
STUDY.—The Adminis-
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trator may guarantee a loan made under
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this paragraph before the completion of the
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study required under clause (i).
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‘‘(iii) ADDITIONAL
CRITICAL
INFRA-
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STRUCTURE SECTORS.—The Administrator
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may, at any time, take such actions as are
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necessary to identify additional sectors to
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be included in the definition of the term
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‘critical infrastructure sector’ under this
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paragraph.
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‘‘(E) DEFINITIONS.—In this paragraph:
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‘‘(i) COVERED APPLICANT.—The term
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‘covered applicant’ means a business
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that—
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‘‘(I) has a site located in rural
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area industrial park, manufactures
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goods that are essential to critical in-
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frastructure sectors at such site, and
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intends to expand such site for pur-
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poses of employing a larger workforce
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at such site; or
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‘‘(II) is developing a site located
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in a rural area industrial park to
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manufacture goods that are essential
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to critical infrastructure sectors at
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such site.
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‘‘(ii) CRITICAL INFRASTRUCTURE SEC-
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TOR.—The term ‘critical infrastructure
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sector’ means—
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‘‘(I) each of the 16 critical infra-
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structure sectors designated in Presi-
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dential Policy Directive 21, titled
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‘Critical Infrastructure Security and
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Resilience’ and published on February
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12, 2013;
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‘‘(II) any additional sectors iden-
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tified pursuant to section 9002 of the
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National Defense Authorization Act
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•HR 414 IH
for Fiscal Year 2021 (6 U.S.C. 652a);
1
and
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‘‘(III)
any
additional
sectors
3
identified by the Administrator pursu-
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ant to subparagraph (D).
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‘‘(iii) ELIGIBLE COSTS.—The term ‘el-
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igible costs’ means—
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‘‘(I) payroll, construction, permit-
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ting, and other capital costs associ-
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ated with—
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‘‘(aa) the development of a
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site located in a rural area indus-
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trial park for a business that
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manufactures goods that are es-
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sential to critical infrastructure
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sectors at such site; and
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‘‘(bb) the expansion of such
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a site for purposes of employing
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a larger workforce at such site;
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and
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‘‘(II) any other costs the Admin-
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istrator determines to be appro-
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priate.’’.
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(b) AUTHORIZATION OF APPROPRIATIONS.—There is
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authorized to be appropriated to the Administrator of the
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•HR 414 IH
Small Business Administration $2,000,000,000, which
1
shall be authorized to remain available until expended, to
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carry out paragraph (38) of section 7(a) of the Small
3
Business Act (15 U.S.C. 636(a)), as added by subsection
4
(a).
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(c) RESCISSION.—Of the unobligated balances of
6
amounts made available under the heading ‘‘Small Busi-
7
ness Administration—Business Loans Program Account,
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CARES Act’’, for carrying out paragraphs (36) and (37)
9
of section 7(a) of the Small Business Act (15 U.S.C.
10
636(a)), $2,000,000,000 are hereby rescinded.
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Æ
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