H.R.3174 - Made in America Manufacturing Finance Act of 2025 (119th Congress)
Summary
H.R.3174, the Made in America Manufacturing Finance Act of 2025, aims to increase loan limits for small manufacturers. It amends the Small Business Act and the Small Business Investment Act of 1958 to provide greater financial support to these businesses. The bill defines 'small manufacturer' and specifies that all production facilities must be located in the United States to qualify for the increased loan limits.
Expected Effects
The bill would likely lead to increased access to capital for small manufacturers in the United States. This could stimulate domestic manufacturing and create more jobs within the sector. The changes would allow small manufacturers to borrow larger amounts for expansion, equipment upgrades, and working capital.
Potential Benefits
- Increased access to capital for small manufacturers.
- Potential for job creation within the manufacturing sector.
- Encouragement of domestic production and investment in US-based facilities.
- Support for small businesses classified under NAICS sectors 31, 32, and 33.
- Enhanced competitiveness of American manufacturers.
Potential Disadvantages
- Potential for increased government debt if loan defaults rise.
- Risk of inefficient allocation of capital if loans are not properly vetted.
- Possible inflationary pressure due to increased investment without corresponding productivity gains.
- May create competitive disadvantages for larger manufacturing firms that do not qualify as 'small'.
- Increased complexity in loan application and approval processes.
Constitutional Alignment
The bill appears to align with the spirit of the Constitution, particularly the General Welfare Clause (Preamble). By supporting small manufacturers, the bill aims to promote economic activity and job creation, contributing to the overall well-being of the nation. The bill falls under the powers granted to Congress in Article I, Section 8, which allows them to regulate commerce and provide for the general welfare.
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).