WASHINGTON, D.C. – U.S. Sens. Sherrod Brown (D-OH) and David Perdue (R-GA) reintroduced bipartisan legislation that will expand financing opportunities for small and mid-size manufacturers in Ohio, Georgia and around the country. The Modernizing American Manufacturing Bonds (MAMBA) Act will modernize financing opportunities available to small and mid-size manufacturers to build new facilities.

“Ohio manufacturers are eager to grow their workforces and produce more Ohio-made products, and we can help them achieve that goal by connecting them with the capital they need to grow,” said Brown. “A simple update to the way manufacturers can use private activity bonds will be a huge help to manufacturers and entrepreneurs as they work to hire Ohioans and grow our economy.”

“We now have the opportunity to revive America’s leading role in manufacturing thanks to U.S. innovation and capital formation,” said Perdue. “This common-sense update will help our high-tech manufacturers grow and compete globally.”

MAMBA will:

 

  • 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 This outdated limit is not indexed to inflation and losing value every year, so raising it will increase access to capital for manufacturers.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.

Brown is a strong supporter of American manufacturing. He authored the Revitalizing American Manufacturing and Innovation (RAMI) Act, which was signed into law in December 2014. The bill created a National Network of Manufacturing Innovation made up of advanced manufacturing hubs to bring together industry, universities and community colleges, federal agencies, and all levels of government to leverage resources and spur innovation. Brown’s office also hosts a series of Manufacturing Camps each summer to get a new generation of Ohioans interested in manufacturing jobs.

 

 

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