Gardner bill would make affordable loans more available to small manufacturers

The Small Business Administration (SBA) would be able to make more affordable loans available to small manufacturers under bipartisan legislation recently introduced by U.S. Sen. Cory Gardner (R-CO).

The bill would authorize the SBA to increase its maximum guarantee on loans to small businesses under its flagship loan guarantee programs, the 7(a) and 504 programs.

“It’s important that small manufacturers have access to the capital they need to jumpstart their businesses, and our bill will do just that,” Gardner said. “The Investing in America’s Small Manufacturers Act makes it easier for small manufacturers to obtain loans that will enable them to hire and grow their workforce and boost local communities in Colorado and throughout the country.”

The bill would reduce the fees small manufacturers incur, and it would direct SBA to help small manufacturers navigate the application process.

U.S. Sen. Chris Coons (D-DE), who introduced the bipartisan bill with Gardner, said small manufacturers are the backbone of the U.S. manufacturing industry and account for nearly half of all manufacturing jobs in the United States.

Lack of available access in the manufacturing sector has disproportionately impacted small manufacturers, however, due to the capital-intensive nature of the industry and the need to finance inventories over long periods of time.

Speaking in support of the bill, Robert Atkinson, the president of the Information Technology and Innovation Foundation (ITIF), said boosting manufacturing and other sectors is critical to improving U.S. economic competitiveness.

“We welcome this legislation that would direct the Small Business Administration to focus more on traded-sector firms by ensuring small manufacturers have the capital they need to drive growth and create jobs,” Atkinson said.