Expand SBIR set-asides; create large manufacturing 7(a) loans; refocus SBIC to manufacturers
Mandate would continue/expand SBIR/STTR (raise agency set-asides; require U.S. capital expenditure), create a larger Section 7(a) category (e.g., up to $50M) for manufacturing facilities/equipment, and reform SBIC away from duplicative software VC toward capital-intensive manufacturers (longer-term financing).
Mandate
Mandate Ch. 25 (SBA) — SBIR/STTR: continue programs; urge Congress to expand agency set-asides; stricter rules that SBIR funds be expended on U.S. capital investments; Domestic Manufacturing: ask Congress for larger-principal 7(a) category for manufacturing construction/upgrading; reform SBIC to support small businesses beyond tech startups and favor capital-intensive manufacturers.
Undo plan
1) Expand domestic manufacturing finance with underwriting discipline and subsidy-cost caps.
2) Keep SBIR competition/integrity rules as set-asides grow.
3) Avoid SBIC soft budget constraints that socialize VC losses.
4) Require domestic-content and clawback terms for overseas leakage.
5) Verify: manufacturing loan performance and SBIR commercialization rates.