This bill establishes a new federal program called the Scale-Up Manufacturing Investment Company (SUMIC) Program to help small and emerging U.S. manufacturers access capital for building their first commercial production facilities and scaling up emerging manufacturing technologies. The program works by having the Small Business Administration provide federal leverage (up to $1 of federal money for every $1 of private capital) to privately managed investment funds that specialize in manufacturing, allowing these funds to make debt and equity investments in promising manufacturing companies. Participating investment funds must raise at least $250 million in private capital, and the federal government will provide up to $500 million per fund and $1 billion total across all funds in any given year, with funds charging borrowers leverage fees between 3 and 5.5 percent. The bill emphasizes that many technology-intensive manufacturing startups currently move overseas to access capital, and the program aims to keep manufacturing innovation and production in the United States by addressing the unique financing challenges these companies face during the transition from prototype to commercial production.
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