Gillibrand promotes new bill to establish lending program for small manufacturers

CICERO — U.S. Senator Kirsten Gillibrand has announced a new bill to help small businesses obtain financing to expand their advanced-manufacturing operations.

The legislation seeks to create and keep “high-paying, high-skilled” manufacturing jobs in the U.S., Gillibrand’s office said in a news release issued on Aug. 18.

Gillibrand introduced the “Scale-Up Manufacturing Investment Company Act of 2015,” a bill that would increase capital for entrepreneurs and small businesses looking to scale-up and commercialize their advanced-manufacturing and “innovation” operations.

Gillibrand promoted the bill during a stop at the headquarters of JADAK, LLC at 7279 William Barry Blvd. in Cicero.

JADAK is a manufacturer of machine vision, radio-frequency identification (RFID) and bar-code products for the health-care and life-science industries. The company made headlines earlier this year with the announcement that it merged with Bedford, Massachusetts–based General Scanning Printer Technologies, a firm that JADAK parent GSI Group also owns.

Gillibrand recently hosted a series of roundtables across New York to hear from community leaders and entrepreneurs about ways to help grow businesses in the state, her office said.

“If we want our economy to grow and create more jobs, we need to give small businesses the tools they need to turn their innovative ideas into successful business opportunities and expand their manufacturing operations instead of being forced to outsource that work in order to stay competitive,” the senator said. “The Scale-Up Manufacturing Investment Company Act will provide critical resources and opportunities for local entrepreneurs and small businesses to bring their innovations to market, and ensure that new technologies are made here in America, creating more jobs and growing our economy.”

The bill creates a loan program that allows private-investment firms to leverage funds that the federal government provides to help “emerging” manufacturers commercialize their products. 

The senator contends that many community banks and venture-capital firms are risk-averse about making loans to small manufacturers.

The program, which is modeled on the U.S. Small Business Administration’s small-business investment companies program, seeks to solve that problem. It would allow approved participating investment firms to raise capital that would then be invested into emerging manufacturers’ businesses, Gillibrand’s office said.

The federal government would use any fees, interest, and profits that the investments produce to offset the cost of the program.

Gillibrand introduced the legislation on Aug. 4, along with U.S. Senators Corey Booker (D–N.J.), Patty Murray (D–Washington), Chris Coons (D–Delaware), and Gary Peters (D–Michigan), her office said.

The Information Technology and Innovation Foundation; the National Venture Capital Association; and the Small Business Investor Alliance, which are all headquartered in Washington, D.C.; and the Chicago, Illinois–based Association for Corporate Growth, support the bill.

The proposal represents the second bill Gillibrand has introduced aimed at bolstering manufacturing. 

The senator in March announced “Manufacturing Universities Act” to “enhance advanced workforce training for the 21st century economy,” according to Gillibrand’s office.        

CICERO — U.S. Senator Kirsten Gillibrand has announced a new bill to help small businesses obtain financing to expand their advanced-manufacturing operations.

The legislation seeks to create and keep “high-paying, high-skilled” manufacturing jobs in the U.S., Gillibrand’s office said in a news release issued on Aug. 18.

Gillibrand introduced the “Scale-Up Manufacturing Investment Company Act of 2015,” a bill that would increase capital for entrepreneurs and small businesses looking to scale-up and commercialize their advanced-manufacturing and “innovation” operations.

Gillibrand promoted the bill during a stop at the headquarters of JADAK, LLC at 7279 William Barry Blvd. in Cicero.

JADAK is a manufacturer of machine vision, radio-frequency identification (RFID) and bar-code products for the health-care and life-science industries. The company made headlines earlier this year with the announcement that it merged with Bedford, Massachusetts–based General Scanning Printer Technologies, a firm that JADAK parent GSI Group also owns.

Gillibrand recently hosted a series of roundtables across New York to hear from community leaders and entrepreneurs about ways to help grow businesses in the state, her office said.

“If we want our economy to grow and create more jobs, we need to give small businesses the tools they need to turn their innovative ideas into successful business opportunities and expand their manufacturing operations instead of being forced to outsource that work in order to stay competitive,” the senator said. “The Scale-Up Manufacturing Investment Company Act will provide critical resources and opportunities for local entrepreneurs and small businesses to bring their innovations to market, and ensure that new technologies are made here in America, creating more jobs and growing our economy.”

The bill creates a loan program that allows private-investment firms to leverage funds that the federal government provides to help “emerging” manufacturers commercialize their products. 

The senator contends that many community banks and venture-capital firms are risk-averse about making loans to small manufacturers.

The program, which is modeled on the U.S. Small Business Administration’s small-business investment companies program, seeks to solve that problem. It would allow approved participating investment firms to raise capital that would then be invested into emerging manufacturers’ businesses, Gillibrand’s office said.

The federal government would use any fees, interest, and profits that the investments produce to offset the cost of the program.

Gillibrand introduced the legislation on Aug. 4, along with U.S. Senators Corey Booker (D–N.J.), Patty Murray (D–Washington), Chris Coons (D–Delaware), and Gary Peters (D–Michigan), her office said.

The Information Technology and Innovation Foundation; the National Venture Capital Association; and the Small Business Investor Alliance, which are all headquartered in Washington, D.C.; and the Chicago, Illinois–based Association for Corporate Growth, support the bill.

The proposal represents the second bill Gillibrand has introduced aimed at bolstering manufacturing. 

The senator in March announced “Manufacturing Universities Act” to “enhance advanced workforce training for the 21st century economy,” according to Gillibrand’s office.