Ernst Leads New Effort to Boost Critical American Small Businesses, Incentivize Domestic Production

WASHINGTON—U.S. Senator Joni Ernst (R-Iowa), a senior member of the Senate Small Business Committee, is leading a new effort to promote critical American small businesses and incentivize domestic production. The  American Small Business Competition Act would increase access to capital under Small Business Administration (SBA) lending programs for domestic agriculture and manufacturing businesses, as well as producers of critical technologies for national security.

 

“As inflation and the supply chain crisis continue to make life more difficult for everyday Iowans, it’s become clear we need to reduce our dependence on foreign entities and encourage domestic production and manufacturing. This commonsense legislation will help critical businesses in Iowa and across the country—from agriculture to manufacturing to national security—access necessary capital to grow and compete here at home and in turn protect the health, safety, and financial security of all Americans,” said Senator Ernst. 

 

“Because they are leaders in these industries, ABI members know that manufacturing, agriculture, and critical technologies are core components to our national competitiveness.  These industries are essential to Iowa and our nation and to creating sustainable economic value in the 21st century.  That’s why ABI supports the American Small Business Competition Act and we appreciate Senator Ernst’s leadership in providing greater access to capital for small businesses,” said Mike Ralston, President of the Iowa Association of Business and Industry.

 

Background:

The American Small Business Competition Act would double loan maximums under the 7(a) and 504 loan programs under the Small Business Administration (SBA) for small businesses principally engaged in agriculture, manufacturing, and/or production of critical and emerging technologies outlined by the National Security Council’s (NSC) Critical and Emerging Technologies list.

 

To qualify for the increased loan amounts, eligible small businesses would need to be headquartered in the United States and to report any foreign beneficial ownership to the SBA when applying for loan assistance. It also includes report language from the SBA Administrator on the cost of capital for small businesses per industry as a result of inflation and supply chain disruption over the last three years and to include recommendations on how to support access to capital for small businesses principally engaged in agriculture, manufacturing, and the production of emerging and critical technology relating to national competitiveness.