Bill Would Establish Loans To Help Manufacturers Grow Operations
Earlier this month a coalition led by New York Senator Kristen Gillibrand (D-NY) and New Jersey Senator Cory Booker (D-NJ) introduced S. 1934, the Scale-Up Manufacturing Investment Company Act of 2015. The measure is designed to establish a new program of loans to help manufacturers in growing distribution of their products. The proposed loan program would be modeled after the Small Business Administration’s Small Business Investment Companies Initiative, according to the Auburn (NY) Citizen, and private investment firms participating in the program would be able to raise capital and invest in manufacturing companies. According to Gillibrand, “Manufacturers can’t obtain the capital they need to expand operations,” causing them to move operations overseas where they can obtain the needed financial resources. Gillibrand contends that legislation would “provide critical resources and opportunities” to help local manufacturers bring products to market and “ensure that new technologies are made here in America, creating more jobs and growing our economy.” The bill has support from area manufacturing groups like the Manufacturers Association of Central New York and from national groups like the Small Business Investor Alliance and the Informational Technology and Innovation Foundation.
What Happens Next
The measure has been introduced in the Senate, but not yet discussed in committee, meaning its fate remains uncertain.
What This Means For Small Businesses
Manufacturing is a key sector for New York City and New York State as a whole, as it brings many jobs to the state and helps boost the overall economy. News that one of the state’s senators is looking to boost the sector through legislation that would assist with loans is positive, as it indicates officials have an interest in helping to grow manufacturing within the state, particularly small businesses in the sector, and thus boost New York’s economy.
Additional Reading
NFIB recently noted data from the Federal Reserve Bank of New York on the state’s manufacturing activity.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
