AHEAD OF MANUFACTURING DAY, BROWN, PERDUE, HULTGREN INTRODUCE BIPARTISAN, BICAMERAL PROPOSAL TO BOOST INVESTMENT IN MANUFACTURING JOBS
WASHINGTON, D.C. – Ahead of Manufacturing Day tomorrow, U.S. Sens. Sherrod Brown (D-OH) and David Perdue (R-GA), along with U.S. Rep. Randy Hultgren (R-IL-14), announced new bipartisan, bicameral legislation that will expand financing opportunities for small and mid-size manufacturers in Ohio. The Modernizing American Manufacturing Bonds (MAMBA) Act, will modernize financing opportunities available to small and mid-size manufacturers to build new facilities.
“Workers and entrepreneurs in our state are eager to make more Ohio-made products – that’s why it’s important to make sure our growing manufacturers have the capital they need to expand,” said Brown. “By making simple updates to the way manufacturers can use small issue private activity bonds, we can help Ohio manufacturers create jobs and boost our economy.”
“We have seen incredible advances in American manufacturing,” said Perdue. “Innovation and investment have helped manufacturing survive the globalization of our economy. To ensure the federal government keeps up with this evolving industry, the definition of manufacturing needs to include high-tech manufacturing techniques. This simple change will open doors for our engineers and businesses who continue to drive the manufacturing renaissance we are experiencing in America today.”
“Manufacturing bonds are a key tool for expanding and hiring more workers, but they haven’t been updated in three decades. It’s time to reform the outdated rules surrounding the use of these financing tools so that our manufacturers in Illinois and across the country can focus on growing their businesses and providing jobs for Americans,” said Congressman Hultgren, sponsor of the companion bill in the House. “I applaud Senators Brown and Perdue for propelling this bipartisan work forward in the upper chamber, and I look forward to both Houses sending a bill to the President’s desk for his signature. Let’s help our manufacturers invest, expand and hire.”
- Triple the bond size limitation from $10 million to $30 million so qualified small issue bonds – the primary economic development tool for small and mid-size manufacturers – meet the demands of today’s manufacturers. This outdated limit is not indexed to inflation and losing value every year, so raising it will increase access to capital for manufacturers.
- Double the capital expenditure limitation from $20 million to $40 million. There is currently a limit on the value of tax-exempt bond financing a manufacturer can access over a six-year period. The limit has not been updated in ten years. This change will help better meet the capital needs of developing manufacturers.
- Allow up to a quarter of bond proceeds to be used for facilities that are located on the same site or ancillary to a manufacturing facility.
- Expand the definition of manufacturing to reflect today’s advanced manufacturing environment, allowing more business to qualify for these financing opportunities.