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Committee approves HR 3174 to raise SBA loan caps for small manufacturers, ranking member urges caution
Summary
HR 3,174, the Made in America Manufacturing Finance Act, which raises SBA loan limits for small manufacturers, was reported favorably by the committee after debate about default rates and demand; the committee adopted a substitute and reported the bill to the House.
The House Committee on Small Business voted to report HR 3,174, the Made in America Manufacturing Finance Act (MAMFA), after adopting an amendment in the nature of a substitute. The bill would increase SBA loan limits for small manufacturers under the 7(a) and 504 programs from $5,000,000 to $10,000,000, according to statements during the markup.
Chairman Williams (substituted by the presiding member) described the bill as intended to provide manufacturers the capital needed to invest in new technology, hire and reshore jobs, saying the ability to manufacture in the United States "is vital to our country's economic and national security." He said supporters modeled fee‑and‑default impacts and that SBA modeling indicated the 7(a) fee structure would preserve the program's zero‑subsidy posture.
The committee's ranking member raised reservations and asked for more evidence before increasing loan limits, citing recent data showing higher demand for small manufacturing loans under $1,000,000 and relatively few loans over $3,000,000 since 2023. The ranking member noted rising default rates over the last three years, currently cited at about 3.7%, and warned that higher limits could lead to disproportionate use of lending authority and threaten the program's ability to remain 0 subsidy unless paired with increased appropriations.
Procedure and vote: committee members adopted the substitute amendment and voted to report HR 3,174 favorably to the House. The committee put a roll call on the record and later, when proceedings resumed, reported that the amendment and the bill as amended were adopted and the bill would be reported favorably to the House.
Members agreed to continue negotiations between the chair and ranking member to refine aspects of the bill, and several speakers said they were committed to further briefings with SBA to ensure the increase is implemented responsibly.
