American Innovation and Manufacturing Act

The American Innovation and Manufacturing Act creates a new investment facility to support manufacturing small businesses by providing financial assistance to small business investment companies (SBICs) that invest in eligible manufacturing firms with NAICS codes 31, 32, or 33. The program requires at least 50% of investments to go to these manufacturing businesses and establishes a pathway for new or underrepresented fund managers through a protégé program. The government can purchase bonds from participating SBICs with 15-year terms at 2% interest, receiving a share of profits equal to one-third of the commitment amount divided by total commitment plus regulatory capital. The program is authorized to spend up to $10 billion over two years to strengthen the manufacturing supply chain.