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Davids Secures Support for Small Manufacturers and Domestic Supply Chains in Budget Package

September 10, 2021

Yesterday, the House Small Business Committee passed their portion of the budget reconciliation package, containing several provisions to support small manufacturers that Representative Sharice Davids pushed to include.

Last week, Davids called on Congressional leaders to include policies in the budget package that increase access to capital for small manufacturers and strengthen domestic supply chains. Following her advocacy, the House Small Business Committee included two new direct lending programs to help small manufacturers access the financing they need to succeed in their budget legislation. Davids voted to pass the legislation out of committee yesterday. Specifically, the programs are:

  • $2.746 billion to establish a direct lending subprogram under the 504/CDC lending program to allow CDCs to make loans to small contractors, small manufacturers, and small businesses in underrepresented markets
  • $9.5 billion to establish a subprogram within the Small Business Investment Company program to provide patient capital to underserved markets and small manufacturers

"I have heard from small manufacturers in the Third District who want to scale up or expand but face critical issues with access to capital. It's those conversations that led me to push for stronger policies in this budget package," said Davids. "Any bill that aims to spur long-term economic growth must ensure that our small manufacturers are included—I'm glad to see that my colleagues on the House Small Business Committee agree and have passed these important policies."

As Chair of the House Small Business Subcommittee on Economic Growth, Tax, and Capital Access, Davids has consistently advocated for small and mid-sized manufacturers, introducing legislation like the bipartisan 504 Modernization and Small Manufacturer Enhancement Act and the SUPPLIES Act to increase available capital for businesses. The programs Davids voted to pass yesterday would similarly allow small manufacturers to access new capital streams with flexible terms. The bill now goes to the Budget Committee to be combined with legislation from other House committees.