118 HR 414 IH: Investing in Rural Manufacturing Act
U.S. House of Representatives
2023-01-20
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I
118th CONGRESS
1st Session
H. R. 414
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 referred to the Committee on Small Business, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Small Business Act to establish a rural manufacturing forgivable loan program, and for other purposes.
1.

Short title
This Act may be cited as the “Investing in Rural Manufacturing Act”.
2.

Rural manufacturing loans
(a)

In general
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended—
(1)
in paragraph (2)—
(A)
in subparagraph (A), by striking “and (F)” and inserting “(F), and (G)”; and
(B)
by adding at the end the following new subparagraph:
“(G)

Participation in rural manufacturing loans
In an agreement to participate in a loan on a deferred basis under paragraph (38), the participation by the Administration shall be 100 percent.”; and
(2)
by adding at the end the following new paragraph:
“(38)

Rural manufacturing loans
(A)

In general
The Administrator may guarantee a loan made under this paragraph to a covered applicant for the purpose of paying any eligible costs associated with the development of a business concern that manufactures goods essential to critical infrastructure sectors in rural areas.
(B)

Application
A covered applicant shall submit an application for a loan under this paragraph which shall include a comprehensive business plan that includes a goal for the resulting number of jobs to be created at the site that will be developed or expanded with the proceeds of such loan.
(C)

Loan forgiveness
A covered applicant shall be eligible for forgiveness of any indebtedness on a loan made under this paragraph as follows:
(i)
If the covered applicant has met 75 percent or more of the job creation goals of the comprehensive business plan described in subparagraph (B) not later than 5 years after the date of origination of the loan.
(ii)
If the Administrator makes a determination that the covered applicant only used loan proceeds for eligible costs, the covered applicant shall receive loan forgiveness in an amount—
(I)
less than or equal to an amount that is 50 percent of the total financing amount specified by the covered applicant; and
(II)
less than or equal to maximum amount allowable under paragraph (3)(A).
(D)

Identification of additional critical infrastructure sectors
(i)

Study
Not later than 180 days after the date of enactment of this paragraph, the Administrator shall complete a study to identify any additional sectors to be included in the definition of the term critical infrastructure sector under this paragraph.
(ii)

Provision of loans prior to completion of study
The Administrator may guarantee a loan made under this paragraph before the completion of the study required under clause (i).
(iii)

Additional critical infrastructure sectors
The Administrator may, at any time, take such actions as are necessary to identify additional sectors to be included in the definition of the term critical infrastructure sector under this paragraph.
(E)

Definitions
In this paragraph:
(i)

Covered applicant
The term covered applicant means a business that—
(I)
has a site located in rural area industrial park, manufactures goods that are essential to critical infrastructure sectors at such site, and intends to expand such site for purposes of employing a larger workforce at such site; or
(II)
is developing a site located in a rural area industrial park to manufacture goods that are essential to critical infrastructure sectors at such site.
(ii)

Critical infrastructure sector
The term critical infrastructure sector means—
(I)
each of the 16 critical infrastructure sectors designated in Presidential Policy Directive 21, titled “Critical Infrastructure Security and Resilience” and published on February 12, 2013;
(II)
any additional sectors identified pursuant to section 9002 of the National Defense Authorization Act for Fiscal Year 2021 (6 U.S.C. 652a); and
(III)
any additional sectors identified by the Administrator pursuant to subparagraph (D).
(iii)

Eligible costs
The term eligible costs means—
(I)
payroll, construction, permitting, and other capital costs associated with—
- (aa)
the development of a site located in a rural area industrial park for a business that manufactures goods that are essential to critical infrastructure sectors at such site; and
- (bb)
the expansion of such a site for purposes of employing a larger workforce at such site; and
(II)
any other costs the Administrator determines to be appropriate.”.
(b)

Authorization of appropriations
There is authorized to be appropriated to the Administrator of the Small Business Administration $2,000,000,000, which shall be authorized to remain available until expended, to carry out paragraph (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by subsection (a).
(c)

Rescission
Of the unobligated balances of amounts made available under the heading “Small Business Administration—Business Loans Program Account, CARES Act”, for carrying out paragraphs (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), $2,000,000,000 are hereby rescinded.