House Passes Bill to Double Small Business Manufacturing Loans
The "Made in America Manufacturing Finance Act" aims to boost domestic production by increasing SBA loan limits to $10 million, sending a strong signal of support to the sector.
The U.S. House of Representatives has passed a key piece of legislation aimed at bolstering the nation's manufacturing base, a move that could unlock significant new capital for small and medium-sized producers. The "Made in America Manufacturing Finance Act" (H.R. 3174) was approved with bipartisan support Tuesday, proposing to double the maximum loan size for manufacturers under the Small Business Administration's (SBA) flagship lending programs.
The bill would increase the cap on SBA 7(a) and 504 loans from $5 million to $10 million for manufacturing businesses. This legislative push comes at a critical time for the sector, which has seen a surge in reshoring initiatives and capital investment throughout 2025 but continues to grapple with skilled labor shortages and rising operational costs.
"Today is a big win for Main Street," said House Committee on Small Business Chairman Roger Williams (TX-25) in a statement following the vote. "This bipartisan package of bills will help strengthen our rural communities, bolster American manufacturing, and expand opportunities for small businesses across the country."
The legislation is designed to address a funding gap for growing manufacturers whose capital needs for new equipment, facility expansion, and technology upgrades often exceed the current SBA lending limits. By raising the ceiling, Congress aims to empower these companies to scale their operations, enhance productivity, and strengthen domestic supply chains.
This initiative aligns with a broader push to revitalize U.S. manufacturing, which has been a focal point of recent industrial policy. With trends like reshoring accelerating, access to adequate financing is seen as a crucial component for companies looking to bring production back to the United States or expand their domestic footprint. Industry analysts note that while large corporations have announced multi-billion dollar investments, the health of the sector relies heavily on the growth of its small and medium-sized enterprises.
Industry groups have voiced strong support for the measure. In a joint statement earlier this year, several business associations, including the Iowa Association of Business and Industry, praised the bill as a "commonsense solution that will empower small manufacturers to invest in the tools, technology, and facilities they need to compete globally," according to the Senate Committee on Small Business & Entrepreneurship.
SBA Administrator Isabel Loeffler also applauded the House passage, highlighting the bill's potential to provide American entrepreneurs with the necessary resources to "rebuild our nation's manufacturing base for the 21st century."
The bill's journey is not yet complete. A companion bill, S.1555, has been introduced in the Senate, where it awaits further action. Its passage in the House, however, marks a significant step forward in providing tangible financial support to a sector deemed critical for national economic security and long-term growth.