Made in America Manufacturing Finance Act of 2025
Summary
The Made in America Manufacturing Finance Act of 2025 aims to increase loan limits for small manufacturers by amending the Small Business Act and the Small Business Investment Act of 1958. It defines 'small manufacturer' using the North American Industrial Classification System (NAICS) sectors 31, 32, or 33, requiring all production facilities to be located in the United States. The Act also mandates an Inspector General analysis and job creation/retention reports to assess the impact of the increased loan limits.
Expected Effects
The Act will likely increase access to capital for small manufacturers, potentially stimulating growth and job creation within the sector. Increased loan limits could enable these businesses to expand operations, invest in new equipment, and hire more employees. The Inspector General's analysis will provide data on the risk and cost to the government, while the job creation reports will track the effectiveness of the larger loans.
Potential Benefits
- Increased access to capital for small manufacturers.
- Potential for job creation and retention in the manufacturing sector.
- Stimulation of economic growth within the US manufacturing industry.
- Support for domestic production and reduced reliance on foreign manufacturing.
- Data collection and analysis to assess the program's effectiveness and risks.
Potential Disadvantages
- Increased risk of loan defaults due to higher loan limits.
- Potential cost to the government if loan programs do not operate at no cost.
- Possible administrative burden for the Small Business Administration.
- Limited scope, focusing solely on manufacturers and potentially neglecting other small businesses.
- The effectiveness of the act depends on the ability of small manufacturers to utilize the increased loan amounts effectively.
Constitutional Alignment
The Act aligns with the Constitution's Commerce Clause (Article I, Section 8, Clause 3) by promoting and regulating interstate commerce through supporting domestic manufacturing. It also aligns with the General Welfare Clause (Preamble) by aiming to promote economic prosperity and job creation. The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).